GM closures hit 1,600 in Lansing

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lished November 22, 2005
[ From the Lansing State Journal ]

 

Production to halt in 2 area sites in 2006

By Barbara Wieland
Lansing State Journal

General Motors Corp.'s plans to stop production at two Lansing-area plants next year raised as many questions Monday as it answered.

Among them:

• What will happen to the 1,600 workers at the Lansing Craft Centre and Lansing Metal Center?

• What will become of the buildings?

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• Do these plans change the future of GM's Delta Township assembly plant?

Though answers were scarce Monday, GM Chief Executive Officer Rick Wagoner reiterated the automaker's commitment to open the new assembly plant in Delta Township. That factory is "slated to begin production next year," he said.

As for the other questions: "We will be holding meetings as more information becomes available," GM spokeswoman Kim Carpenter said.

GM's decision to stop or reduce operations at nine assembly, metal stamping or powertrain plants and three parts warehouses across the nation, including the Craft Centre and the Metal Center, means 30,000 positions will be cut. It's part of the company's plan to shave $7 billion off its annual operating budget by the end of next year.

Under its contract with the United Auto Workers union, GM cannot unilaterally close most plants. But it can stop production at them.

During a conference call with employees and media representatives, Wagoner said many of the 30,000 job cuts will come through attrition or early retirement offers.

"Hopefully, we can reach an agreement on such a program as soon as possible," he said.

One major local concern still unclear is how many - if any - Craft Centre or Metal Center workers will find jobs at the Delta plant. There are 1,200 workers preparing the plant for production. When it is operational, there will be 2,900 workers, Carpenter said.

UAW Local 652, which represents 1,000 people at the Metal Center, already has 800 people on layoff.

It's also unclear how GM will compensate workers whose jobs are cut. They may be entitled to supplemental unemployment benefits, which pay workers up to 95 percent of their net pay. Taxes are then taken out, resulting in a take-home check that is about 70 percent of net pay.

Workers instead might be placed in the JOBS bank, where GM workers receive a 40-hour paycheck and full benefits in exchange for community service, attending classes or spending time at a GM work center in DeWitt.

"I would think it will be (supplemental unemployment benefits) pay, but we don't know that for sure," said Fred Charles, joint activities representative for United Auto Workers Local 652.

The news of the Metal Center closing took most people by surprise, he said. The plant recently was named one of the most efficient automotive metal stamping operations and work had been scheduled for the plant through 2008.

"I think the mood is, 'You do your best, you do things that make you No. 1, and this is how they honor you,' " Charles said.

Carpenter said that the stamping plant, built in 1952, had "facility issues" that made it difficult to update with new technology.

The announcement that the Craft Centre would close was less surprising. The plant has been closed for almost 30 weeks this year.

"The Lansing Craft Centre had a very challenging 2005," Carpenter said. "Market demand for the SSR has not met expectations."

Craft Centre worker Brian Fredline said the downtime had led to speculation about the plant's future. Because it is the only GM plant designed to produce vehicles at a low-volume, he thought it might be spared.

Fredline said he and other GM workers are well-positioned to find work at other GM plants. The automaker will operate three plants and one warehouse in Lansing after this round of plant closings, and there are other GM plants within an hour's drive in Flint and Grand Rapids.

"If you have to be laid off in any city, it might as well be Lansing," he said.

The Associated Press contributed to this report.

Contact Barbara Wieland at 267-1348 or bwieland@ lsj.com

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