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Friday brought another day of rumors and reports about additional layoffs at General Motors
Friday brought another day of rumors and reports about additional layoffs at General Motors Lordstown Complex.
The company reportedly plans to go from two shifts to one at its assembly plant, effective in April.
Ben Strickland, United Autoworkers Local 1112 shop chairman, confirmed that GM wants to eliminate a shift, but if, how and when it would be accomplished is still up in the air. Local 1112 represents hourly workers at the assembly plant.
“We were in discussions with management Friday, and more meetings are planned for Monday,” Strickland said.
“There is nothing confirmed. We are still miles apart on how we’re going to do it, although any layoffs would be done according to seniority.”
A lot of the rumors and media reports being put out may end up not being true, he said.
Early Friday, some other UAW officials said GM would definitely eliminate a shift at Lordstown. By the end of the day, however, those same officials were saying they were misinformed. Some media outlets also retracted their reports.
Late Friday, The Associated Press attributed plans to cut one of the two remaining shifts at GM Lordstown in April to “a person briefed on the plans.”
The person, who asked not to be identified because the plans have not been finalized, said workers have been told some of them will be laid off indefinitely, and an official announcement could come as soon as Monday.
The number of workers affected was uncertain.
Earlier Friday, Strickland said Local 1112 members will work five-day, eight-hour work schedules when they return to work Feb. 2 from a month’s temporary layoff.
Some rumors and media reports had workers returning Feb. 2 to a single shift, worked alternately by the first and second shifts, until April 6.
“We are not scheduled to come back to a four-day, 10-hour schedule,” he said.
Susan Waun, a GM corporate spokeswoman, said the company would have no statement on the matter until next week after completion of meetings with union representatives on scheduling and production.
The gloomy news at GM Lordstown came on the heels of the euphoria of the plant’s running three shifts this summer to keep up with sales of the small fuel-efficient cars it manufactures, the Chevrolet Cobalt and Pontiac G5, and news that the Lordstown plant will build the new Chevrolet Cruze.
GM is not alone in its misery, however.
All automakers, domestic and foreign, are struggling, said Walter Good, vice president for economic development for The Regional Chamber.
U.S. automobile manufacturers have received $17.4 billion in federal loans. Under the terms of the loan, GM and the other domestic auto manufacturers have until Feb. 17 to find a way to bring their labor costs in line with those of foreign-owned auto plants in this country.
GM, Chrysler and Ford must include those concessions as part of the restructuring plan they must submit to the government by March 31. If the deadline is not met, the government can demand its money back. Production cuts are also expected to be part of GM’s recovery plan.
The reduction to one shift would be a major blow to the local economy, local officials say.
“It is disappointing if GM is going to one shift. But, it is a function of supply and demand,” Good said.
GM’s problems have a ripple effect with it suppliers, and reduction of a shift will have a severe negative impact on the local economy, he said.
The good news, Good said, is that GM still plans to build the Cruze here, which speaks positively of the Lordstown plant’s long-term viability.
Lordstown Mayor Michael Chaffee said the village passed a three-month budget thinking it would have a better idea later in 2009 about what’s going to happen at GM.
“We hope, if GM does go to one shift, it’s short-term. If it is long-term, it is very bad for Lordstown and the entire area,” Chaffee said.
In December, GM eliminated the recently created midnight shift at its Lordstown complex by laying off 890 additional workers. That came on top of 1,060 layoffs announced in November.
Then, GM said demand for cars was so slow that it closed the assembly and fabricating plants for this month, in addition to eliminating the midnight shift.
The complex will have about 2,300 hourly workers on two shifts after the cuts.
alcorn@vindy.com