Buyouts, retirements will soften the blow, UAW union chiefs say

The economic impact on the entire community is significant and negative.
By WILLIAM K. ALCORN
VINDICATOR STAFF WRITER
LORDSTOWN -- Leaders of the United Auto Workers at the General Motors assembly and fabricating plants are optimistic that cutting the third shift will not result in members' losing their jobs.
Union officials based their optimism on the number of workers who have said they are considering buyouts or early retirement.
UAW Local 1112 is estimating that 400 to 600 may take one of GM's offers, and it could be more than that, said the union's president, Jim Graham. Also, normal attrition will open up some positions, he said. Michael Martin, vice president of UAW Local 1714 at the fabricating plant, said some 100 of its members signed up for one of the GM options in the first eight hours that counseling was available. Martin said it will be several weeks before the exact numbers are known, but he said 10 percent to 15 percent of Local 1714's 1,800 members are "seriously looking into" the buyout or early retirement. This all happened so quickly that everybody is scrambling, even management, to put everything together, he said.
What could happen
Martin said it is possible that the number of people who leave could offset the number of jobs lost with cutting the third shift, and even could result in bringing back some of Local 1714's members who have been working at the assembly plant.
About 1,100 members of UAW Local 1112 work the third shift at the assembly plant, and some 500 members of UAW Local 1714 work the 11 p.m. to 7 a.m. shift at the fabricating plant.
GM announced Tuesday that it would eliminate the third shift at both plants in June or July.
As part of its plan, the automaker is offering buyout and early-retirement incentives.
Another Local 1112 official said there may be 100 additional people each needed for the first and second shifts at the assembly plant to accommodate the increase in production GM said it wants. GM's plan calls for making 1,000 cars a day with two shifts rather than 1,300 cars in three shifts.
Martin noted that some remnants of the third shift will remain at the fabricating plant. He said there are some products that have to be made on third shift, plus maintenance personnel will continue to work that shift.
Likewise, a Local 1112 representative said that though there will be no production on the third shift at the assembly plant, it also will have maintenance personnel working.
"I don't like losing a shift -- that is still 1,100 jobs -- but we feel that everyone left will have a job when this is all done," Graham said.
Effect on suppliers
Graham said he is also concerned about the Local 1112 members at area plants, such as Lear Seating Corp., Intier Seating Systems, Automodular Assemblies and Prologistics, that supply General Motors with parts and products. Some of those people will lose their jobs because of the production cut, Graham said.
Though the news is depressing, Graham said he is optimistic about GM's future.
"We are very confident that in two years, GM will be out of this. The company is starting to do the right things internally," said Graham, although he declined to provide specifics.
This is not a General Motors problem, Graham said. The problem is the Asian automakers and the federal government's allowing them to sell cars in the United States for less than they sell them in their own countries, he said.
Though UAW leaders are working to protect their workers, they say they are aware of the ripple effect that the loss of 1,500 jobs has on the rest of the community.
It affects restaurants, retail establishments and local government tax revenues, Graham said.
The United Way is an example of an organization that will be impacted, almost immediately and in the long term.
Impact on charities
Officials of the Youngstown/Mahoning Valley, Trumbull County and Northern Columbiana County United Ways say they each get about 10 percent of their annual pledges from GM employee and corporate gifts. To whatever degree the third shift cuts reduce GM, that will be the amount they expect to lose.
"We will have a better handle on the effect after the first pay period" under the new configuration, said John Tonti, Northern Columbiana County executive director. When GM employees don't have money to spend, small businesses cut back on their contributions too, he said.
"We have already cut our 22 agencies 20 percent across the board because we made only 80 percent of our goal. Our next letter will probably be telling them they'll be cut back further," Tonti said.
"We don't know the exact impact yet, but it will be significant. We will have to take it into consideration when we set the funding for 70 programs at 29 agencies next year," said JoAnn Stock, marketing and communications director for the Youngstown/Mahoning Valley United Way.
"General Motors and Delphi Packard Electric drive our local economy and drive up salaries for other jobs," said Thomas J. Krysiek, president and chief professional officer for the Trumbull County United Way. The exact impact is not known yet, but it will be significant and negative, Krysiek said.
alcorn@vindy.com