Peterbilt Motor Co. is closing its Madison, TN factory until market conditions improve, most likely not until at least the end of 2009. All functions formerly done at the Madison facility have moved to Peterbilt’s Denton, TX plant.

Madison plant manager Larry Vessels told FleetOwner that the Denton plant has the capability of meeting demand at this point, and the company is assisting the current workforce in finding new employment.

The OEM has not produced trucks at the Madison location since it locked out all 313 hourly workers represented by UAW Local 1832 on June 30th of last year after the union declined to vote on a new contract offer submitted by Peterbilt, The Tennessean reported.

“Based on the company’s unwillingness to compromise, we had no choice but to withdraw our comprehensive proposal,” UAW Local 1832 said in a letter to their members on Sept. 1st. “It is very obvious that Paccar [Peterbilt’s parent] wants to scare you into accepting their insulting proposal; therefore we must remain in solidarity if we want to win this battle.”