Future is brighter for Valley GM plant

By Don Shilling

A new local labor contract at the assembly plant and increased productivity are encouraging signs.

LORDSTOWN — A tentative labor contract and improved productivity has the local General Motors plant in good shape to receive a new product, an observer said.

The union at the assembly plant announced Thursday that it has reached a tentative agreement on a new local labor deal.

Greg Gardner, communications director for Harbour Consulting in Troy, Mich., said Lordstown is establishing a strong case for its long-term future. In addition to the contract, the plant has been showing gains in productivity, he said.

“Lordstown is now one of GM’s best-performing plants based on productivity,” he said.

Gardner’s statement is timely because Harbour Consulting next week will release its annual productivity report, which is closely studied in the industry. He said he couldn’t release details of Lordstown’s performance other than to say it stacks up well against other small-car plants.

In last year’s study, Lordstown moved up from No. 20 to No. 9 on the overall list of most productive auto plants in North America.

GM is reducing production at plants that make sport-utility vehicles and trucks, but the Lordstown plant has been helped by a shift in demand to small cars, Gardner said.

“This plant has a history of building fuel-efficient cars. With its improved productivity, it’s probably going to survive,” he said.

United Auto Workers Local 1112 went even further.

“This agreement will secure the future of the Lordstown complex for many years to come and help in securing the future for our families and the Mahoning Valley,” the union said on its Web site.

The notice said contract highlights are being compiled, and informational meetings and voting dates are being scheduled. UAW and GM officials could not be reached for comment.

Workers at the fabricating plant, which is adjacent to the assembly plant, already have approved a new local agreement.

The Lordstown complex, which has 3,400 hourly workers, has been producing the Chevrolet Cobalt since 2004, but UAW leaders in Detroit said last year that GM is planning to bring a new small car and new midsize model to the plant.

The small car is to be introduced first, and the industry and publications have speculated that it could be a new version of the Chevrolet Aveo, which is now made in Korea, an updated Saturn Astra, which is now made in Europe, or the next generation Cobalt.

As GM looks to the future, it has been using local agreements to reduce costs, Gardner said. Local agreements cover plant-specific issues, such as work rules and job classifications.

Gardner said GM has been trying to reduce the number of skilled trades workers by combining job classifications. That would allow workers to perform multiple job duties. GM could cut its skilled trades staff by not replacing workers who leave under a recent buyout offer.

Also, GM wants to cut costs by using its highest-paid production workers only on assembly line jobs. It wants to bring in outside contractors or use lower-paid workers for jobs such as material handling or yard maintenance.

A national labor contract that was reached last year allows GM to bring in new hires at half the pay of current workers.

GM cleared room for new hires with its latest buyout offer. The company said Thursday that 19,000 of its 74,000 U.S. hourly workers have accepted the offers.

Retirement-eligible workers were offered financial incentives to retire with their full pension and benefits, while workers who were within four years of their 30th anniversary with the company were allowed to retire early and get reduced pay until their benefits kicked in. Other workers could also take up to $140,000 to leave the company with no ties, including pension or health benefits.

shilling@vindy.com