Category Archives: trade unions

Impact of GM Lordstown Shutdown Will Be Felt for Many Years


New Chevy Cruze models at Lordstown 

By Jordyn Grzelewski

The Youngstown Vindicator

jgrzelewski@vindy.com

LORDSTOWN, Dec 2, 2018 – Michelle Ripple has experienced the ups and downs of the General Motors Lordstown plant her entire life.

Her father worked at the plant for more than 40 years; she’s worked there for 18. The 49-year-old mother of three works as a carpet retainer installer.

Like many in the Mahoning Valley, the plant has been an integral part of her family’s history and ability to earn a living. Extended family members have worked there, too, over the years. At family gatherings, these were the people who Ripple could talk to about her work, knowing they would get it.

So when Ripple, of Hubbard, was called into a packed meeting at the plant Monday morning – where workers learned that GM will cease production of the Chevrolet Cruze and indefinitely idle the plant beginning March 1 – the news packed a punch.

“[I was] shocked,” said Ripple. “I just stood there like a mummy, not moving.”

She tried to shield her youngest daughter from the news, but the 14-year-old couldn’t miss the nonstop news coverage or talk at her school.

“She’s very emotional,” said Ripple. Her daughter is worried about what will happen with the family’s finances; Ripple assures her they will survive.

Ripple knows this is true – but that doesn’t mean she knows what to do next. She’s weighing her options as March 1 looms. The uncertainty is hard, for her and other Lordstown workers who shared their stories this week.

But despite the grim news, many expressed hope that this isn’t the end of the plant. They’re staving off that thought, at least for now.

That would be too much.

“I’ll have hope until the very end,” Ripple said.

GM PRIDE

It wasn’t clear at the time, but General Motors came to the Valley at an opportune moment.

The plant’s first car – a Chevy Impala – rolled off the assembly line April 28, 1966. A little more than a decade later, the Valley would be brought to its knees by the collapse of the steel industry.

Over a several-year period, steel mills across the Valley shuttered, beginning with the sudden and devastating closure of Youngstown Sheet & Tube Co.’s Campbell Works. The announcement came Sept. 19, 1977 – a date now remembered as Black Monday. Just like that, thousands of jobs went up in smoke. Thousands more steel jobs disappeared in the next few years.

But at least the Valley had GM.

“That was all happening from 1977 to 1980, and at the same time, General Motors was expanding,” said Bill Lawson, executive director of the Mahoning Valley Historical Society. “They had opened the plant in 1966. They added a van assembly plant in the 1970s, and a metal fabricating plant after that.

“So just as the dust was starting to settle … you had 12,000 people employed in the Lordstown complex at General Motors. General Motors took on an even greater significance in the local economy,” Lawson said. “I think it’s critical that the plant was there and employing that many people.”

Employment at the plant has dropped since its peak in the 1980s – two years ago, there were about 4,500 workers there. Now, after two shift layoffs, there are about 1,500.

Through it all, the Valley has maintained a sense of pride in the Lordstown complex and the vehicles it produces, from the Impala to the Chevy Cavalier to the Cruze, which the plant started producing in 2010.

“Any time a community has an employer that large that creates products sold throughout the country and even across country boundaries, people identify with that product,” said Lawson. “You see that definitely in terms of brand loyalty for General Motors – not just the autoworkers and their families because of the discounts, but I think other people have bought GM because they considered it an important part of our economy.”

The shutdown of the plant, then, will have an impact beyond job and revenue losses.

“It will affect Trumbull County’s budget quite a bit – and yes, it’s going to have a very negative impact on our perception of ourself and our self-worth, much as [the collapse of the steel industry] did 35 years ago,” Lawson said.

INDIRECT IMPACT

The economic losses, too, will be significant, economists say.

Experts note that beyond the estimated 1,600 workers expected to be impacted at the plant and other local companies GM contracts with, the effect of the shutdown will ripple across other companies in the plant’s supply chain, into other industries and to communities beyond the Valley.

“The main concern is, beyond the 1,600 or so good-paying jobs that will potentially be lost at General Motors Lordstown, are the indirect jobs that will be affected,” said A.J. Sumell, an economics professor at Youngstown State University. “It’s what, in economics, we call the multiplier effect.”

So, how large is that multiplier?

“It’s particularly large with an employer like a car manufacturer, because you don’t have just the indirect jobs in the service industry, like restaurants and hotels and those businesses where the employees at GM Lordstown would have been spending money,” Sumell said. “There’s a greater impact because of all the jobs that are directly dependent on GM Lordstown – the suppliers of GM Lordstown.”

OTHER COMPANIES

Locally, there are several companies that are directly tied to the plant. Lordstown Seating Systems, which makes seats for the Cruze, reported it would lay off 83 employees earlier this year after GM announced it was cutting the Lordstown plant’s second shift.

A company representative declined to comment Friday on the impact of the plant halting production next year.

Jamestown Industries, which supplies the plant with front and rear bumper covers for the Cruze from its plant in Youngstown, said last week that recent attempts at diversification put the company in a better position to weather the idling of the plant.

“In 2015, we started the process to diversify to insulate ourselves from some of the variability that’s in the automotive industry,” said Lawrence Long, vice president of development for Jamestown. “So while there is uncertainty with regard to the Lordstown plant, we are confident that we will make it through this tough time.”

As for potential layoffs at Jamestown’s Youngstown plant, Long said, “We don’t know for sure how it will impact our workforce. We’re working hard to make sure we keep our workforce intact.”

Jose Arroyo, United Steelworkers business representative for this area, was not as optimistic about the future of Comprehensive Logistics/Source Providers in Austintown, which does logistics and warehousing for GM Lordstown.

With the previous layoffs at the plant, Source Providers laid off more than 350 people, Arroyo said; about 180 employees remain.

“Obviously, the prospects aren’t good, considering GM is Comprehensive Logistics’ only customer,” said Arroyo. “As General Motors goes, so goes Comprehensive Logistics [and subsidiaries] Source Providers and Falcon Transport. We’re extremely concerned, and we’re waiting to hear more from the company.”

Arroyo is also hearing concern from other companies whose workers he represents, such as aluminum and steel companies.

“Everybody is kind of holding their breath right now and hoping the talks with General Motors will end up in a new vehicle or retooling of the plant,” he said.

BUSINESS IMPACT

The impact will be felt by small businesses with less direct, but still significant, ties to the plant.

Our Place Diner in Lordstown is owned and operated by a family with deep GM Lordstown ties.

“My dad retired from GM after 30 years. My brother was laid off with the second shift. My husband was laid off with the third shift,” said Jackie Woodward, whose father owns the diner. “We are just like everybody in this town.”

The impact of the plant on their family’s business is significant.

“A lot of the business in this town relies on the traffic from General Motors and the companies that supply General Motors,” Woodward said. “There are not a lot of people who live in this town. So every business in this town relies on this.”

As for what the future holds for Our Place Diner, Woodward said they are taking it one day at a time and holding out hope.

“We have employees who rely on us. There are customers that won’t be impacted by GM, and you hope to stay open for everybody that needs a place to stop and eat,” she said.

As for how this ripple across the local economy will play out, Sumell said it will take years for the full effect to be realized. And as for what that impact will be, he cited research indicating that lost manufacturing jobs result in other job losses.

“Studies on similar situations have suggested that about three additional jobs [for every lost manufacturing job] would be lost over the course of years – which would put the total in the range of 7,000 or 8,000 jobs lost,” he said.

As a percentage of the Valley’s total workforce of about 220,000, that is fairly significant, he said – and he noted that it would accelerate a long-running trend of the Valley’s employment declining each year.

SILVER LINING?

The good news is that the Valley’s economy is more diversified today than it was back in the 1970s when the steel industry went under – and that trend likely will continue.

“We are much more diversified, which is an outcome of a sad situation – but it’s almost a silver lining of a sad situation,” Sumell said. “Because we’ve lost so many jobs in manufacturing already, we have a relative increase in jobs outside of manufacturing, which are generally less susceptible to massive layoffs.”

In the future, it’s more likely that employment will be spread across a variety of companies – for example, a brand-new, state-of-the-art energy center in Lordstown that cost $1 billion to build employs about 20 people, who earn good wages.

“We’ve become so much more automated, within manufacturing, that there is no single, dominant employer or single, dominant industry in most cities,” Sumell said. “The silver lining to that is, if you have [that] instead of just one dominant employer, or one dominant industry in a city, you have, naturally, a more diversified economy.”

He added: “We are in a better position, today, to deal with this type of blow than we were 40 years ago.”

Who that might not benefit is the GM Lordstown workers who are facing layoffs and an uncertain future. For many, it will be a question of retirement or moving or investing time and money into training for a new career. As Sumell notes, that’s often easier said than done.

But if there is any upshot, it may be that the Valley’s past economic woes have prepared it for this moment.

“We have been dealing with economic devastation for the past 40 years in this area,” Sumell said. “There is a sense of resiliency that is naturally built into our fabric in this community. So I’m confident we will be able to not just survive as a community, but to grow and to become a stronger community in the future.”

Continue reading Impact of GM Lordstown Shutdown Will Be Felt for Many Years

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Workers Rally to Resist Anti-Union Legislation

carpenters

By Tom Davidson

Beaver County Times

picketsMarch 23, 2017 -BEAVER — About 75 union supporters rallied at noon Thursday in front of the Beaver County Courthouse to rail against legislation they say moves Pennsylvania toward becoming a right-to-work state.

The legislation, Senate Bill 166, is called the Public Employee Protection Act, and it recently passed the state Senate.

"I like to call it ‘paycheck deception,’" is how Steve Kochanowski of Potter Township described the legislation.

He’s on the executive board of the Beaver County Democratic Party and is active with its young Democrats group.

Kochanowski, 32, is looking for a job now and is a former corporate trainer.

He opposed the law because "I believe it’s the first step to trying to make Pennsylvania a right-to-work state," he said.

He and other Democratic leaders, along with Beaver County’s labor union leadership, organized the rally to marshal opposition to the law before it passes the state House.

About 75 people turned out for the rally, wielding signs that said things such as "Workers’ Rights are Human Rights" and "Resist Right to Work Legislation."

The legislation would "hurt everybody here," according to Mitch Kates, political director of the Pennsylvania Democratic Party.

"We’re having organizing events like this all around the state," Kates said. "We want to help raise awareness."

MayorWalkerThe law would prohibit unions from allowing payroll deductions for union dues that are used for political activities, and it’s a step toward stopping union members "from being able to donate to causes that are dear to your heart," Aliquippa Mayor Dwan Walker said.

Walker is the son of a union worker and said his father appreciated that union dues were deducted from his paycheck. Otherwise, with other bills to pay, the dues might not get paid, Walker said.

"These are matters of the heart," Walker said. "I stand for workers’ rights. You must resist."

All of the speakers at the rally urged people to call their state legislators to voice opposition to the law.

People who live in so-called right-to-work states, where union power is limited, make less money under worse conditions, Denise Cox of Ohioville said.

She’s an organizer for the Service Employees International Union and said laws like the one proposed "weaken our workforce."

"Government should … let us work together," Cox said. "(The law) is wrong for our future."

She called it "big government’s intrusion into our workplace."

Continue reading Workers Rally to Resist Anti-Union Legislation

Midland Labor Leader Offended by Trump’s Attack on United Steelworkers

Tepsic speaking at ATI strike rally in Midland

By Jared Stonesifer

Beaver County Times

MIDLAND. Dec 9. 2016 –  — Tony Tepsic doesn’t have a Twitter account but, if he did, he would tell Donald Trump just when and where to find him.

Tepsic, president of the United Steelworkers Local 1212 in Midland, took offense to the fact that the president-elect earlier this week attacked a fellow United Steelworkers local president in Indiana.

The feud started when Trump claimed he helped save 1,100 jobs from leaving Indiana. Chuck Jones, president of United Steelworkers Local 1999 based in Indianapolis, called Trump a liar and said the real number of jobs saved was around 800.

Trump took to Twitter to fire back, saying Jones has done a “terrible job representing workers” while adding “no wonder companies flee (our) country!”

For Trump, it was just another 15 seconds on Twitter. Jones, however, started receiving anonymous phone calls that threatened his children.

“Nothing that says they’re going to kill me, but, you know, you better keep your eye on your kids,” Jones told MSNBC, according to the Associated Press. “I’ve been doing this job for 30 years, and I’ve heard everything from people who want to burn my house down or shoot me … I can deal with people that make stupid statements and move on.” Continue reading Midland Labor Leader Offended by Trump’s Attack on United Steelworkers

‘Day of Disruption’ Protests in Pittsburgh Target McDonald’s, UPMC, Giant Eagle

Workers’ demands include $15 minimum wage, union rights

By Katelyn Sykes

WTAE Reporter

PITTSBURGH — No 29, 2016 – Thousands of workers are walking off the job and marching Tuesday in cities across the country, including Pittsburgh, where morning protests will be followed by a larger downtown rally in the afternoon.

The Service Employees International Union is targeting McDonald’s restaurants and UPMC with marches demanding a $15 minimum wage and union representation.

Organizers began their "Day of Disruption" marches at McDonald’s on Penn Avenue in East Liberty. Demonstrators went inside to voice their demands, then began circling the restaurant outside and chanting slogans like "Hold your burgers, hold your fries. We want wages supersized."

"I want to be able to take care of my family, to take care of myself, to pay bills," McDonald’s employee Aaron McCollum said. "You can’t possibly do that on $7.25, $7.35 an hour."

The protest then moved to a McDonald’s restaurant on North Euclid Avenue.

"It’s about workers, but it’s also recognizing that workers are more than who they are in between when they clock in and clock out, but that they’re our community members, they’re our neighbors, they’re humans," said Kai Pang, an organizer with Pittsburgh United. "We should have the right to not only survive but thrive in this city."

The group plans a similar protest near a McDonald’s and the federal building downtown during the evening rush hour.

"I’m just trying to fight for something that I believe in," McCollum said.

A press release on behalf of the group added, "Giant Eagle workers will also join the Fight for $15 today, asking that the company start paying family-sustaining wages and stop interfering with Giant Eagle employees’ right to organize."

The union contends UPMC shuttle bus workers have also gone on strike seeking union representation.

UPMC previously announced plans to increase the minimum starting wage for entry-level jobs at most of its facilities to $15 per hour by 2021.

But the union says UPMC needs to move faster, and it accused the network of trying to silence workers and union organizers.

UPMC hasn’t commented on Tuesday’s activity.

"I think more now than ever that we’re standing up for worker’s rights, for economic justice at a time when income inequality is very high and only grows higher," said Pang.

Faculty Organizing at the University of Pittsburgh: Why a Union, and Why Now?

By Anupama Jain

New People

Oct 22, 2016 – There’s something in the air in Pittsburgh! From Robert Morris to Point Park, Steel City-area faculty are organizing to join the ranks of unionized labor. To some, this might be little surprise: Pittsburgh, is a city with a rich history of labor organizing. At the same time, when one thinks of Pittsburgh labor history they might think of workers smelting steel or armed Pinkertons at the Homestead steel mills. This isn’t entirely off base: in fact, Pittsburgh-area faculty are organizing with the help of the United Steel Workers including faculty at the University of Pittsburgh.

But why unionization, and why now? There are many reasons, but three important ones are: 1) labor contingency and uncertainty worsens learning conditions, 2) teachers and researchers need a stronger voice in negotiations with administration, and 3) academic freedom is an increasingly valuable commodity in an age of emerging social consciousness about inequality.

Focused, appropriately compensated teachers can do their best work,but one class of teachers, adjuncts, teach on a pay-per-class basis. Because the compensation for these classes is very low, adjuncts often teach at several different universities, and many must work other jobs. Moreover, these positions are renewed on an ad hoc basis, often with little lead time before classes start. One colleague of mine would teach two classes at Pitt a semester, a few more at Point Park, and also tended bar in the evening. The only job he could count on having come next semester was the gig tending bar. For many, teaching is a vocation chosen not for monetary benefit, but for the value of teaching itself. But running around town, barely making ends meet is not a recipe for the best teaching. The unpredictability wears both on the teachers —who struggle tol pay their bills—and students, who may be excited about particular instructors and their classes, only to scroll through the catalogue and see no hint of the instructors because they have not yet been renewed. For other, less-contingent faculty, increasing demands for service and research also eat into teaching time. Appropriately compensated faculty are more capable of directing time and effort into education.

Continue reading Faculty Organizing at the University of Pittsburgh: Why a Union, and Why Now?

What Pennsylvania’s Faculty Strike Means for the Future of Labor

By Neil Cosgrove

The New People via Portside

Nov 1, 2016 – The faculty of the 14 Pennsylvania state-owned universities went on strike from October 19th to the 21st, 2016, somewhat less than three days.  Around mid-afternoon on the 21st, a tentative contract agreement was reached with the State System of Higher Education (SSHE), ending the strike.  As part of the agreement, the Association of Pennsylvania State College and University Faculties (APSCUF) "agreed to a salary package that was significantly lower than that of the other unions" that had recently bargained with the State System.

As labor battles are traditionally viewed, making concessions on salary and benefits would have to be considered a defeat.  But the faculty union regards the result of the strike as a clear-cut victory, a victory that preserved what many regard as one of the best university faculty contracts in the country.  For the 16 months since the system’s previous contract with the faculty had expired (June 30, 2015), the Pennsylvania State System had tried to destroy that contract, but was forced by the strike to withdraw most of the 249 changes the Chancellor and Board of Governors had sought.

The most significant of those withdrawn changes, the ones that ultimately forced the faculty to strike, were obvious attempts to break the union by driving a wedge between tenured and tenure-track faculty and the growing number of temporary and adjunct faculty.  What makes APSCUF a strong union is that adjuncts work under the same conditions, including teaching loads, benefit packages, and salary scale as so-called "regular" faculty.  Adjunct faculty at State System schools like IUP, California and Slippery Rock generally regard themselves as an integral part of the universities in which they work, not as an exploited proletariat paid a ridiculously low per-course stipend, without access to offices or benefits, and forced to teach each term at multiple institutions in order to make a low-income living.

Moreover, APSCUF’s 2011-15 contract limited the number of temporary faculty a university could employ to 25% or less "of the full-time equivalent of all faculty members employed at that university." Compare that to estimates of adjuncts constituting close to half of the faculty at colleges and universities across the country.  In 2015, median per-course pay for adjuncts was $2700.  At Pennsylvania State System universities, full-time temporary faculty at the bottom of the salary scale received a 2014-15 salary of $46,610.  If such a faculty member taught only a quarter, half, or three-quarters of the normal teaching load of four class sections per term, they would receive the appropriate fraction of the stated salary.  Moreover, the contract required that temporary faculty members who had "worked at a university for five full, consecutive academic years in the same department" would be given tenure-track status if approved by the department. 

Continue reading What Pennsylvania’s Faculty Strike Means for the Future of Labor

First Faculty Strike in PA.State System History Begins

By Susan Snyder
Philly.com

Oct 19, 2016 – Faculty in Pennsylvania’s 14 state universities are on strike, the first in the system’s 34-year history.

The Association of Pennsylvania State College and University Faculties union announced shortly after 5 a.m. that a strike could not be averted, likely bringing education to a halt for 105,000 students in the state system universities.

The decision followed five consecutive days of bargaining that went into last evening and broke off after 9 p.m.

"At 11:35 p.m., we made a last attempt to negotiate through back channels," said union president Kenneth M. Mash, a political science professor at East Stroudsburg University. "We waited until 5 a.m. We are headed to the picket lines, but even on the picket lines, our phone will be on, should the state system decide it doesn’t want to abandon its students."

Mash said he would be picketing outside the Dixon Center in Harrisburg, where the chancellor of the state system, Frank T. Brogan, has his office.

There is no limit on how long a strike could last. Mash said faculty will return when negotiators reach a contract.

The state system has said it intends to keep campuses open, including residence halls and dining facilities and operate as close to normal as possible. But it does not intend to hire replacement workers. It remains to be seen how many, if any, faculty cross the picket lines to work.

"I think none of us ever wanted it to end up here," said Amber Holbrook, a West Chester social work professor who was among the more than a dozen faculty members picketing outside the system’s Center City campus. But, she said, the system’s proposed changes would make it "hard to recruit and retain faculty."

Negotiations broke down over health insurance costs and salary increases

Continue reading First Faculty Strike in PA.State System History Begins