GM to close plants, nationwide

November 22, 2005

New York Times covers the problems facing General Motors currently, regarding the closing of several of its aged facilities.

Art Baker, the chairman of the local auto workers union that represents the 950 hourly workers at the [Lansing, MI] metal center, said he learned of G.M.’s decision just 15 minutes before he told employees. “It was not the expectation that General Motors was going to get lean and mean,” … The union called the job cuts and plant closings “extremely disappointing, unfair and unfortunate.

Also via the Detroit Free Press: “‘They keep coming up with plans, but they never get rid of the people that put them in the hole,’ said Allen Wojczynski, 58, who works at a GM warehousing plant in Ypsilanti.” —- now, I hate to be the bearer of bad news, but the people in charge of restructuring are doing the best they can with what they’ve got. Like all the king’s horses and all the king’s men, trying to put humpty-dumpty together again… The problem is in the past. Mr Wojczysnki probably didn’t realize the hidden entendre in his words: that yesterday’s UAW has crippled the American Auto industry.

The biggest let down seems to be that argument: “You used to be able to raise a familiy in the suburbs in this line of work…” Look: when it was good, it was really good. But you can’t put all your eggs in one basket like that. True, the Auto-industry boomed here for years. Generations were raised on General Motors, Ford, and Chrysler incomes, health insurance, pensions… But it’s about to get really bad. And I imagine that eventually the industry will level out somewhere. For now, though, the problem is exacerbated by that fact that by all accounts, yesterday’s workers were grossly overcompensated, which unreasonably raised the expectations of today’s would-be assembly line workers.

Dana Johnson, the chief economist at Comerica Bank in Detroit, seemed more certain that GM and Michigan could emerge strong and vital when this period of pain and suffering ends.

“To me, the sooner that GM and Ford aggressively restructure themselves, the better this state’s economy can move forward,” he said. (Detroit Free Press”Freep)

Daniel Crane, 27, who installs glass on Minivans at the Doraville, GA facility, hits the nail on the head: “Who buys a minivan?” he asked. “G.M.’s not coming out with a product anybody wants.”

Well, it’s a step in the right direction.


Posted in: Potpourri

Comments

1 Comment so far

  1. Matt November 23, 2005 4:28 pm

    I think people need to understand also that it is mainly the workers who never bothered to attain any skill whatsoever that will be hit hardest by these layoffs. There is always demand for skilled plant workers, whether they be tool & die guys, machinists, plant electricians or whatever. The message people should be getting from these layoffs is to learn a skill, any skill. There is no room in a competitive economy for over compensated unskilled workers.

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