Duration of GM’s second shift remains hazy

But even if the recall of 1,050 workers is short-lived, it will wield a large impact on the Valley economy.

LORDSTOWN — General Motors’ recall of 1,050 local laid-off employees came as a breath of fresh air during suffocating economic times.

But without a definitive time line for employment, can workers really breathe a sigh of relief?

The car manufacturer said Tuesday that it will recall 1,050 laid-off employees at the Lordstown complex beginning Oct. 5. That figure includes 1,000 hourly workers in the manufacturing and fabricating plants and an additional 50 salaried workers. The recalled employees will work the second shift.

Tom Mock, communications manager for the Lordstown complex, said although the worker recall is needed relief, it may not be a permanent deal.

“I think it would be premature to say these workers would be back for a certain amount of time,” he said.

Mock said sales of the Chevrolet Cobalt, built at Lordstown, have increased in recent months. He credited the success of the government’s “cash-for-clunkers” program and said the Cobalt is one of the most sought-after vehicles in the program.

“We have found that this is a time where the demand for our product is up substantially,” he said. “We hope this economy can continue to sustain itself and keep us on a rebound to recovery.”

In addition to the success of the Cobalt, Lordstown employees are also being brought in for training and preparation for the launch of the Chevrolet Cruze in April.

Production for the Cruze is scheduled to begin in November in anticipation of the launch, GM officials said.

Mock said even if the “cash-for-clunkers” program doesn’t continue to fuel people’s interest in new cars, the Cruze should help stimulate sales.

“We firmly believe that the Chevrolet Cruze will be a game-changer,” he said. “We believe the Cruze will be a boost to our community and our company, and we are confident in it.”

Jim Graham, president of the United Auto Workers Local 1112, said he believes the second shift isn’t in danger and expects it to be around even after Cash for Clunkers ends.

“I think we’re going to be there through the Cruze,” he said “I am very confident that the second shift isn’t going anywhere. I think it will last.”

David Green, president of the United Auto Workers Local 1714 in Lordstown, agreed.

“When the financial crisis occurred ... people got nervous, and the folks who were interested in buying a car didn’t go out and buy one,” he said. “Some folks went out and bought in the ‘cash for clunkers,’ but there are still a lot more out there who will be buying cars.”

“It’s a big plus,” Graham said. “The ripple effect goes from Cleveland to Columbus to parts of Pittsburgh. When we make money, we’ll spend money.”

Mock said by bringing back the 1,050 workers, GM will help rejuvenate anywhere from 4,000 to 10,000 additional local jobs.

“Each manufacturing job that you’ll have has an impact on four to 10 jobs in a given community,” he said. “It’s a really significant impact.”

He said preliminary numbers show about 250 other local manufacturing jobs being directly affected by the return of the second shift. He added that the money spent at other local businesses should help spur the economy more.

Lordstown Mayor Michael Chaffee agreed with Mock, saying, “We always talk about the negative ripple effects when we hear about layoffs, but this is the exact opposite.”

Chaffee said the recalled workers will affect other manufacturing jobs, local businesses and the village itself.

“The increase in workers is obviously related to an increase to our tax revenue,” he said. “This year we took a very cautious approach to what we figured we’d collect. But now with this additional revenue we’ll exceed the number we had planned on.”

He added that the additional revenue will help the village avoid layoffs or cuts.

Green said the scope of the recall goes beyond the local economy.

“You can start all the way at the state level, with them tapping into the unemployment for these workers,” he said. “That’s 1,000 claims that they don’t have to make anymore.”

Even though the recall may be temporary, Mock said GM celebrated the news as a victory and hopes more positive news comes out of Lordstown.

“A lot of team members broke into applause because a lot of their friends have been laid off,” he said. “It’s going to be able to bring back a lot of younger team members who may be raising a family.”

Green summed it up, saying: “If you have 1,000 people going back to work in one location, it’s a good thing, and it’s going to have a positive impact on the entire surrounding community.”

jmoffett@vindy.com