Second shift or temporary workers no longer needed
May 8, 2008
FLINT, MI - Just one month after a banner announcement about hundreds of temporary jobs coming to Flint, General Motors reversed course Wednesday.
GM indefinitely postponed the addition of a second shift to the medium-duty line at Flint Truck Assembly, which had been scheduled to begin next week.
The UAW had said it could have given jobs to about 500 temporary workers.
"We feel we can meet our customer orders with a single shift rather than add a second shift," said Kevin Nadrowski, a Flint Truck Assembly spokesman.
Workers on the medium-duty line produce the GMC TopKick and Chevrolet Kodiak.
Nadrowski said Flint Truck Assembly also will scale back production on the plant's heavy-duty line, which makes Chevrolet Silverados and GMC Sierra pickups, sooner than planned -- although workers' layoff dates will remain July 14.
GM said last week it would cut one of three heavy-duty truck shifts at Flint Truck Assembly and three other North American factories because of lagging sales.
That move will lay off about 750 workers.
Workers on the heavy-duty line already have been idled since February by the strike at American Axle & Manufacturing Inc.
"Basically, when our employees return to work from the American Axle strike, we will be going to a two-shift operation," Nadrowski said.
Talks between the UAW and American Axle continued Wednesday, and automotive analyst Erich Merkle said the strike is getting closer to settlement.
Even though GM plans to scale back to two shifts as soon as the strike ends, work -- in some capacity -- is guaranteed for employees on all three shifts until July.
A shutdown is planned for the first two weeks in July, and the layoffs go into effect July 14.
Nadrowski said April sales, the continuing effects of the American Axle strike and market conditions were factors in deciding to cut the shift early.
"It's really a devastating cocktail here," said Merkle, an analyst with IRN Inc. in Grand Rapids.
A statement posted on UAW Local 598's Web site from April 29 said workers were "shocked and devastated" when they first learned of GM's decision to cut one of three shifts at the plant.
"Be assured that job security of this membership is our No. 1 priority," said a Web site statement from shop committee Chairman Mark Hawkins and President Ben Mata.
The Flint Journal could not reach Hawkins for comment Wednesday.
UAW Region 1-C Regional Director Duane Zuckswerdt referred questions about the latest GM announcement to Local 598.
Karen Snider, a fork truck driver on Flint Truck Assembly's medium-duty line, had hoped her son, Gregory Snider II, would be considered for the announced, but now eliminated, additional medium-duty jobs.
"I was kind of surprised" to hear Wednesday that the shift was being cut, said Karen Snider, 49, of Argentine Township.
GM said in December that it had a tentative agreement to sell its medium-duty truck business to Navistar. A final deal is expected to be signed this year. It's expected that Navistar will move production to Springfield, Ohio.
The tough economy and high gasoline prices also have hurt commercial truck sales, Merkle said.
"Businesses are starting to get a little more cautious and are pulling back on additional spending," he said.
Journal staff writer Ron Fonger contributed to this report.