GM plant closings will hit parts suppliers far and wide
John Seewer, Associated Press February 2, 2019
This Wednesday, Nov. 28, 2018 file photo shows Mari Keels transferring a front end of a General Motors Chevrolet Cruze during assembly at Jamestown Industries, in Youngstown, Ohio. Jamestown Industries, which supplies front and rear bumper covers for the Cruze, hopes its efforts to secure new business will allow its Youngstown plant to keep going. But the plant is down from three shifts to one and GM is still its biggest customer. (AP Photo/Tony Dejak, File)
TOLEDO, Ohio (AP) — The sting from a major restructuring at General Motors and its planned closings of five North American factories in the coming months is putting thousands of jobs at auto parts suppliers at stake, as well.
While GM expects nearly all its U.S. blue-collar workers whose jobs are being eliminated to have an opportunity at relocating to factories that are adding jobs, that won’t be the case for many in the supply chain who make parts, drive trucks, work in warehouses and keep GM’s plants operating.
For most of them, there is no safety net.
“There’s nowhere to transfer. They’ve got nowhere to go. They’re just out of work,” said Dave Green, a union leader near Youngstown where GM in early March plans to shut down its factory that makes the Chevrolet Cruze compact car.
GM’s labor agreements guarantee its workers transfer rights and relocation money, but that’s not true for the wide majority of suppliers, even where the workers are represented by unions.
“We’ve been lost in the shuffle,” said Brian Shina, who lost his supplier plant job when GM cut a shift at its Lordstown factory in May, months before announcing plans to close it. “We don’t have any leverage here.”
The dominoes already are starting to fall. A plant that makes seats for the Cruze and another business that does logistics and warehousing work for GM in Ohio will close in March, too. Just three years ago, those two had a combined 800 workers.
Green has compiled a list of more than 50 other businesses whose work is tied to the Ohio assembly plant. But it’s difficult to know how many could be forced to cut jobs because many do work for other auto plants and industries.
Despite varying estimates, some economists project that for every auto plant job that is lost, three or four additional positions are eliminated. Research shows that auto plants, and manufacturing in general, create more spinoff jobs than other industries.
“That’s the bigger part of this,” said Green, who plans on attending President Donald Trump’s State of the Union address Tuesday at the invitation of Democratic Rep. Tim Ryan, whose district includes the plant.
Trump, who has promised to revive manufacturing in the Midwest, has been highly critical of GM’s announcement, threatening that his administration was looking at cutting GM subsidies, including for electric cars. It’s an especially thorny issue for the president, who won over a surprising number of Democratic-leaning union workers during his first campaign.
There’s still a chance some of the factories targeted by GM could be revived during upcoming contract negotiations with the United Auto Workers union, which has promised to fight the closures. Those include assembly plants in Detroit and Oshawa, Ontario, and transmission plants in Warren, Michigan, and near Baltimore.
Suppliers closest to factories that end up shutting down tend to be hit hardest because they’re usually more reliant on those plants than those farther removed with a broader customer base, said Albert J. Sumell, an economics professor at Youngstown State University.
Workers at a parts plant in Whitby, Ontario, walked off the job in January to protest GM’s decision to shutter its Canadian plant while another nearby supplier plant announced it will be forced to close.
Many of the parts that flow into the transmission plant near Baltimore come from other states, including South Carolina and Tennessee, and some are delivered from Mexico and Canada, said Guy White, a UAW shop chairman in Maryland.
“There’s all sorts of suppliers. It’s huge,” he said. “We get stuff from all over the world.”
Other jobs that are directly tied to the plant are more likely to be in jeopardy, including those who supply its machines or sort parts, White said.
Those who study the auto supply industry say it’s too early to know the full impact of GM’s transformation away from cars to focus on trucks, SUVs, and electric and autonomous vehicles.
Some suppliers expect to withstand the potential losses from GM because they have made moves to diversify their customer base in the years since the Great Recession rocked the auto industry.
Jamestown Industries, a small operation that supplies front and rear bumper covers for the Cruze, hopes its efforts to secure new business will allow its Youngstown plant to keep going.
The idea is to add work in warehousing, logistics, and packaging outside of the automotive industry, said Lawrence Long, the company’s vice president of development.
But the plant is down from three shifts to one and now is poised to lose its biggest customer. Melissa Green, who has worked there 14 years, isn’t optimistic and making plans to switch to a career in nursing.
She’ll be able to go to school for free through a state program that assists laid-off workers but still will need another job once her unemployment benefits run out.
What also worries her is what will happen to the older workers who are just shy of retirement age.
“A lot of them don’t know what they’re going to do,” she said. “Hopefully they can find something because they have to survive.”
Wet’suwet’en territory is under siege by RCMP tactical forces, who are working with TransCanada to force a pipeline through our territory. Yesterday Gitdumt’en people and supporters were forcibly removed from our homelands for upholding our Wet’suwet’en laws. Militarized police confronted unarmed Indigenous people with assault and sniper rifles and made 14 arrests. As of now, Gitdumt’en Clan spokesperson Molly Wickham remains in state custody along with several others.
We have never signed treaties with Canada or given up our rights and title to these lands. Canada is violating Anuk Nu’at’en (Wet’suwet’en law), it’s own colonial laws, and UNDRIP. The violent separation of our people and our lands is no different today than it was 150 years ago.
We fear for our neighbors at Unist’ot’en Camp who now face a similar prospect of state violence.
SHARE WIDELY – Wet'suwet'en territory is under siege by RCMP tactical forces, who are working with TransCanada to force a pipeline through our territory. Yesterday Gitdumt'en people and supporters were forcibly removed from our homelands for upholding our Wet'suwet'en laws. Militarized police confronted unarmed Indigenous people with assault and sniper rifles and made 14 arrests. As of now, Gitdumt'en Clan spokesperson Molly Wickham remains in state custody along with several others.We have never signed treaties with Canada or given up our rights and title to these lands. Canada is violating Anuk Nu'at'en (Wet'suwet'en law), it's own colonial laws, and UNDRIP. The violent separation of our people and our lands is no different today than it was 150 years ago.We fear for our neighbours at Unist'ot'en Camp who now face a similar prospect of state violence.Today there are international solidarity actions with the Wet'suwet'en. Attend one near you: https://www.facebook.com/events/2225649537692362/For ways to support: https://www.facebook.com/permalink.php?story_fbid=225163691762758&id=212798726332588To donate: https://www.gofundme.com/gitdumt039en-access-point#WETSUWETENSTRONG #NOTRESPASS #WEDZINKWA #NOPIPELINESNo use of footage without consent. Direct media enquires to michaeltoledano@gmail.com
‘A true hero’: Good Samaritan puts up dozens of Chicago’s homeless in hotel amid record-low temperatures
By Allyson Chiu January 31, 2019
People sleep in tents near a wooded area adjacent to Chicago’s Dan Ryan Expressway on Tuesday. (Armando L. Sanchez/Chicago Tribune/AP)
In one of Chicago’s homeless encampments, a haphazard collection of tents and flimsy dwellings made of tarps and blankets are scattered among barren trees. Nearby, stuffed garbage bags and beat-up cardboard boxes are strewn about in piles on the snow-covered ground.
This tent city adjacent to the bustling Dan Ryan Expressway is where dozens hunkered down to ride out a deadly cold snap that has sent temperatures across the Midwest plummeting to historic lows this week. With temperatures in Chicago continuing to drop, reaching minus-24 Wednesday morning, the city and welfare organizations have been working to keep the homeless population safe, Jacqueline Rachev, a Salvation Army spokeswoman, told The Washington Post in a phone interview late Wednesday.
But on Wednesday, the second-coldest day in Chicago’s history, one Good Samaritan went beyond donating clothes or blankets — the unnamed person offered to put up about 70 homeless people in a hotel on the city’s South Side, the Chicago Tribune first reported.
“We think it’s wonderful that there’s somebody out there that has decided to be so kind to provide a warm place and a safe place for these folks to go,” Rachev said. “We’re thrilled they’re safe and warm at least for a few days.”
Much to the trepidation of officials who have repeatedly implored the public to seek proper shelter and avoid being outdoors, a group of homeless people remained camped in the tent city, relying on makeshift shelters and donated propane tanks for warmth. On Wednesday afternoon, their living situation grew even more dire.
One of the propane tanks — which officials have warned people not to donate, citing serious safety concerns — exploded shortly after noon when a space heater was left on too close to it, ABC 7 reported.
“I was just coming out of my tent, and I heard a boom,” Donald Gorobegko, a resident of the tent city, told ABC 7. “I felt the ground shake, then I looked up, I see smoke.”
Chicago Fire Media: During extreme cold weather, we understand that people want to help our homeless population. However, we ask that under no circumstance should you donate propane tanks which are potential fire hazards. Propane tanks can cause potential fires and explosions.
Walter Schroeder, the deputy district chief for the Chicago Fire Department, told the Tribune that by the time firefighters arrived at the encampment, the blaze was already out and no one had been injured. But crews did find dozens of other propane tanks, which “escalated” the incident “to a Level I Hazmat,” Schroeder said.
There were about 150 to 200 propane tanks in the tent city, Maj. David Byrd of the Illinois State Police told ABC 7, describing the environment as “extremely unsafe.” After the explosion, the area was closed off, and authorities hurried to find places for the displaced people to go, the news station reported.
The Salvation Army, Rachev said, received a call from the city in the early afternoon informing them that group of about 70 homeless people needed to be moved to a warming shelter, and the organization immediately began making preparations for transport.
Then, about an hour later, the city called back. There was “no need” to pick anyone up, Rachev said, as “a Good Samaritan contacted the city and offered to pay for hotel rooms instead.”
Rachev did not know the person’s identity or the name of the hotel, but said she believed it was located on Chicago’s South Side. She also said she did not know exactly how many people went to the hotel. The Tribune reported that only one man did not go, choosing instead to check into a warming center. City officials could not be reached for comment late Wednesday night.
“It’s a deadly situation for anyone,” Rachev said about the extreme weather. “We’re thrilled that someone was in a position to be able to do this.”
While it remains unclear who was responsible for this act of kindness, others in the Chicago area appeared to have the same idea. On Wednesday, a Reddit user wanting to help homeless people shared a post offering to “cover a night at a local hotel of my choosing.”
“I know it’s not much but at least it’ll let you sleep in a warm bed and take a warm shower,” the person wrote.
Another person responded asking if the user wanted to “team up,” suggesting that together they could help more people.
“Bless you for this wonderful offer,” one person commented. “You could be saving someone’s life. You are a wonderful person for doing this!”
On social media, the anonymous donor who paid for the hotel rooms was heralded as “a true hero” and an “angel.”