Category Archives: unemployment

Conway Workers, Local Leaders Caught Off Guard By Norfolk Southern Job Cuts

By Chrissy Suttles
Beaver County Times

Sep 4, 2019 – CONWAY — Norfolk Southern Railway did not give local leaders prior notice before cutting more than 50 employees at the Conway Yards switching station Tuesday.

“I read it in the newspaper this morning,” Beaver County Commissioner Tony Amadio said, echoing statements by state Sen. Elder Vogel Jr., R-47, New Sewickley Township, and others throughout the county.

When management told roughly 55 mechanical workers they would be laid off, many were caught off guard.

“It was mostly mechanics and electricians who were let go,” said one person who still works at Conway Yards and spoke on the condition of anonymity. “Someone from corporate came in to reassure everyone afterward, but he sidestepped our questions. We’re frustrated with how it’s been handled.”

Those who lost their jobs will retain a number of company benefits for the next several months, but it’s unlikely anyone will return to work.

Norfolk Southern announced an additional 100 layoffs at the Juniata Locomotive Shop in Altoona, but some of those electricians may relocate to Beaver County to work at Shell Chemicals’ ethane cracker plant, the Altoona Mirror reported.

The Conway Yards, which snakes along the Ohio River in Freedom and Conway, is one of the largest rail yards in the country. Norfolk Southern Vice President of Communications Tom Werner said the eliminated positions were no longer vital to railway operations as the company moves to precision-scheduled railroading – or parking locomotives, cutting travel time and reducing jobs to better match peer performance.

Earlier this year, railroad representatives revealed plans to eliminate 3,000 positions companywide by 2022 to hit financial goals. While a declining coal industry is partly to blame, the Virginia-based rail carrier has gradually increased its transport of chemicals, steel and lumber in recent years.

“On-time performance and train speed is hitting records highs, and terminal dwell is becoming lower than any time in memory,” Werner said. “That’s all good for serving the customers. The downside for our employees in mechanical is that fewer locomotives means fewer locomotives to be maintained.” Continue reading Conway Workers, Local Leaders Caught Off Guard By Norfolk Southern Job Cuts

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High-Tech Manufacturing: Aliquippa Summer Camp Opens New World to Students

Kordell Boose, 17, of Aliquippa takes instruction on finishing an aluminum cast during the Titans of Pittsburgh Summer Camp’s field trip Wednesday to Robert Morris University’s engineering lab. [Lucy Schaly/For BCT]

Learning about career opportunities in the manufacturing industry is the purpose of the pilot Titans of Pittsburgh Summer Program developed by Catalyst Connection and Southwestern Pennsylvania BotsIQ.

By Marsha Keefer
Beaver County Times

Aug 10, 2019 – MOON TWP. — Students, most of them from Aliquippa, gathered Wednesday at a robotic work cell in an engineering lab at Robert Morris University’s John Jay Center for the School of Engineering, Mathematics and Science.

For most, it was a seminal moment. The two previous days, they sat at computers at the Family Life Center housed in the Church in the Round in Aliquippa, and used software to design a product. Now, those drafts would be programmed into a computer-controlled milling machine to carve their designs in a rectangular block of aluminum — a process that took all of seven minutes.

What had been merely a concept would come to life.

Most of the 23 students enrolled in the four-day summer camp — high school juniors and seniors and a few recent graduates — had never worked with computer-aided design (CAD) programs and certainly not computer numerical control (CNC) routers, said Scott Dietz, director of workforce initiatives at Catalyst Connection, an economic development organization based in Pittsburgh that helps small- to medium-sized manufacturers improve competitive performance.

“We’re seeing sparks happening already this week in the few days we’ve had with them,” he said. “We’re seeing light bulbs going off. The students are seeing stuff they haven’t been exposed to before. We think the program is definitely a success.”

Essentially, learning about career opportunities in the manufacturing industry, is the purpose of the pilot Titans of Pittsburgh Summer Program developed by Catalyst Connection and Southwestern Pennsylvania BotsIQ, a manufacturing workforce development program that engages high school students in robotics competitions to stimulate interest in manufacturing careers.

Catalyst Connection works with 2,800 manufacturing companies across 12 counties in western Pennsylvania, Beaver County included, Dietz said.

“When we go in their doors, the first thing they tell us when we ask ‘what is their biggest pain point’ is workforce — lack of workforce,” he said.

Dietz estimated 30 percent of the current workforce will retire in the next 10 years and that’s compounded by the large number of job needs now.

“We recently did a survey of 100 of those manufacturers who told us they have 2,300 job openings,” he said. Extrapolating those numbers, Catalyst Connection projects a shortage of about 20,000 workers, Dietz said. Continue reading High-Tech Manufacturing: Aliquippa Summer Camp Opens New World to Students

The Road Not Taken

The shuttering of the GM works in Lordstown will also bury a lost chapter in the fight for workers’ control.

By Sarah Jaffe
The New Republic

June 24, 2019 – Illustration by Nicolas Ortega Chuckie Denison took the podium at the United Steelworkers hall in Canton, Ohio, in his ever-present blue Good Jobs Nation T-shirt, flanked by people holding protest signs. One handmade sign read “Promises Made, Promises Broken”; it featured a likeness of President Trump, who’d flown into Ohio that day for a big-money fund-raiser at a nearby country club. Another sign pointed out that Lordstown, home of the iconic General Motors auto plant, was only 49.4 miles away. Still another read, “We will lose 43,000 jobs because of Lordstown closing.”

Denison leaned into the microphone and told the assembled crowd his story, introducing himself as a third-generation GM autoworker. “I started in Dayton, Ohio. I watched that plant close. I went to Shreveport, Louisiana. I watched that plant close. I come here to Lordstown, Ohio, happy to be back in my home state. I’d never have thought that Lordstown would close.”

During the 2016 presidential campaign, Denison said, Trump came to northeast Ohio and promised better days. “He looked the people in the eyes and told them, ‘Do not sell your homes. The jobs are coming back.’”

The jobs never came back. When GM announced, last November, that the Lordstown plant would be closed as part of a restructuring plan, the community held out hope that the company would decide to retool the plant, and rehire some of the laid-off workers. But the last Chevrolet Cruze rolled off the Lordstown assembly line on March 6—a no-frills white model that workers draped in an American flag and posed behind for a last photo.

Variations of this scene have played out in countless shuttered plants and deindustrializing communities over the past four decades. But with the closure of Lordstown, workers are losing more than paychecks, retirement plans, and long-term job security; they’re also burying a lost chapter in union organizing—the moment in the early 1970s when the militant leaders of United Auto Workers Local 1112 at the Lordstown facility briefly revived the demand for greater control in the workplace. With the specter of Trump, the self-advertised mogul-savior of the manufacturing sector, lurking offstage, the last days of Lordstown feel like a parable about what becomes of workers in a political economy that hinges on their systematic disenfranchisement—on the factory floor and in the public sphere alike.

And as a twenty-first–century parable of the workplace, it naturally involved Donald Trump spouting off on Twitter. Nearly two weeks after the last car left the plant, Trump fired off a couple of tweets telling David Green, president of UAW Local 1112, to “get his act together and produce.” That outburst, combined with the news that Trump was heading to Ohio but skipping the plant, led to the press conference where Denison had laid into GM and Trump.

At the same event, Ohio Democratic Representative Tim Ryan—who’s mounting a 2020 run at the presidency—spoke about how plant closures destabilize the entire community. “You hear from a football booster, ‘So-and-so had to transfer. He was treasurer of the football boosters. So-and-so had to transfer. They ran this Boy Scout group,’” he said. “That’s what workers are…. They put their time in. You do everything right and then when you get home, you go coach Little League.” American Federation of Teachers president Randi Weingarten joined him in calling for GM to reopen the plant. “If parents lose their jobs, it devastates the community,” she told me afterward. “Teachers understand that; they are in some ways the first responders.”

Alyssa Brookbank is one of those teachers and the president of the Lordstown Teachers Association. She’s seen the effects of the shutdown up close. “Students know they are going to have to leave some of their family and close friends behind,” she said. “They don’t know how to handle it, and it is not their fault. It is a lot to put on the shoulders of young kids. This is much bigger than just GM. It is going to affect other businesses in ways we don’t even realize yet. It is going to have a ripple effect.”

Denison has the words “Union Thug” tattooed across his forearm in sweeping script. Higher up on his arm, he told me, he has a tattoo of the state of Ohio. He returned to Ohio, to work at Lordstown, just in time for the bottom to fall out of the economy in 2008. By that time, he had enough seniority with GM—having hired on right out of high school in 1998—to survive the wave of layoffs that came with GM’s bankruptcy filing in the wake of the crash. “The biggest thing wasn’t the money,” he says now. “It was the fact that I had a pension.” Because of those benefits, he was able to retire this year after 20 years of factory labor. He’s one of the lucky ones. Continue reading The Road Not Taken

GM’s Lordstown Chevy Cruze Plant Closes Amidst Protests

Employees of the General Motors Lordstown Complex were the largest group of workers from a single Ohio employer were displaced by mass layoffs 

It may re-open in the summer. For 1,600 workers, that’s not much comfort at all.

By David Grossman
Mechanics Illustrated

Mar 7, 2019 – General Motors’ Lordstown Assembly plant was in continual operation since 1966 through yesterday, March 6, 2019. The idling of the plant affected 1,600 workers and is the largest of the U.S-based GM four plants that will close this year.

Originally dedicated to iconic cars like the Chevy Impala and Pontiac Firebird, since 2011 the plant built electric Chevy Cruzes. Through the years, the planet built over 16 million cars. However, amidst a restructuring the company decided to discontinue the model in America.

In a press statement, GM said that the Cruze “was a good product and was built with tremendous pride by the Lordstown employees. We know this is an emotional day for our Lordstown team.” Continue reading GM’s Lordstown Chevy Cruze Plant Closes Amidst Protests

GM Job Losses Fail to Dent Trump Support in Ohio Stronghold–So Far

Not Trump’s fault: Linda Balogh does not blame the US president for the job losses © Jeff Swensen

Auto crisis hits Midwestern region that swung to Republicans in 2016 election

 

By Patti Waldmeir in Warren, Ohio
FinancialTimes

Dec 21, 2018 – “I bet [General Motors’ chief executive] Mary Barra’s hands don’t look or feel like my hands,” said Linda Balogh, 52, as she reflected on the toll that her years on the production line have taken on her body.

Now she is about to lose her job, at the GM Lordstown plant near Youngstown, Ohio. It is one of four US factories that Ms Barra plans to idle next year as the American auto industry embarks on its most extensive restructuring since GM went bankrupt a decade ago.

Ms Balogh will not be the last to face redundancy, as Ford and GM prepare for a US sales downturn and scramble to cut costs so they can invest in new technologies for a future when cars are increasingly self-driving, electric and shared.

GM has said it will cut more than 11,000 jobs in North America, and Ford may cut twice that number, though many will be overseas. The scale of those job losses will hit hardest in areas such as Warren near Youngstown, where the plant is located. It was already a potent symbol of rust belt decline after its steel mills closed 40 years ago, leaving it heavily dependent on a GM plant that will soon stop production. Continue reading GM Job Losses Fail to Dent Trump Support in Ohio Stronghold–So Far

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

Bernie Sanders on Keeping Jobs: Carrier Just Showed Corporations How to Beat Donald Trump

We need a president who can stand up to big corporations, not fold to their demands.

By Bernie Sanders

Washington Post

December 1, 2016 – Today, about 1,000 Carrier workers and their families should be rejoicing. But the rest of our nation’s workers should be very nervous.

President-elect Donald Trump will reportedly announce a deal with United Technologies, the corporation that owns Carrier, that keeps less than 1,000 of the 2100 jobs in America that were previously scheduled to be transferred to Mexico. Let’s be clear: It is not good enough to save some of these jobs. Trump made a promise that he would save all of these jobs, and we cannot rest until an ironclad contract is signed to ensure that all of these workers are able to continue working in Indiana without having their pay or benefits slashed.

In exchange for allowing United Technologies to continue to offshore more than 1,000 jobs, Trump will reportedly give the company tax and regulatory favors that the corporation has sought. Just a short few months ago, Trump was pledging to force United Technologies to “pay a damn tax.” He was insisting on very steep tariffs for companies like Carrier that left the United States and wanted to sell their foreign-made products back in the United States. Instead of a damn tax, the company will be rewarded with a damn tax cut. Wow! How’s that for standing up to corporate greed? How’s that for punishing corporations that shut down in the United States and move abroad?

In essence, United Technologies took Trump hostage and won. And that should send a shock wave of fear through all workers across the country.

Trump has endangered the jobs of workers who were previously safe in the United States. Why? Because he has signaled to every corporation in America that they can threaten to offshore jobs in exchange for business-friendly tax benefits and incentives. Even corporations that weren’t thinking of offshoring jobs will most probably be re-evaluating their stance this morning. And who would pay for the high cost for tax cuts that go to the richest businessmen in America? The working class of America.

Let’s be clear. United Technologies is not going broke. Last year, it made a profit of $7.6 billion and received more than $6 billion in defense contracts. It has also received more than $50 million from the Export-Import Bank and very generous tax breaks. In 2014, United Technologies gave its former chief executive Louis Chenevert a golden parachute worth more than $172 million. Last year, the company’s five highest-paid executives made more than $50 million. The firm also spent $12 billion to inflate its stock price instead of using that money to invest in new plants and workers.

Does that sound like a company that deserves more corporate welfare from our government? Trump’s Band-Aid solution is only making the problem of wealth inequality in America even worse.

I said I would work with Trump if he was serious about the promises he made to members of the working class. But after running a campaign pledging to be tough on corporate America, Trump has hypocritically decided to do the exact opposite. He wants to treat corporate irresponsibility with kid gloves. The problem with our rigged economy is not that our policies have been too tough on corporations; it’s that we haven’t been tough enough.

We need to re-instill an ethic of corporate patriotism. We need to send a very loud and clear message to corporate America: The era of outsourcing is over. Instead of offshoring jobs, the time has come for you to start bringing good-paying jobs back to America.

If United Technologies or any other company wants to keep outsourcing decent-paying American jobs, those companies must pay an outsourcing tax equal to the amount of money it expects to save by moving factories to Mexico or other low-wage countries.  They should not receive federal contracts or other forms of corporate welfare.  They must pay back all of the tax breaks and other corporate welfare they have received from the federal government. And they must not be allowed to reward their executives with stock options, bonuses or golden parachutes for outsourcing jobs to low-wage countries. I will soon be introducing the Outsourcing Prevention Act, which will address exactly that.

If Donald Trump won’t stand up for America’s working class, we must.