Community reacts to GM’s news
Podcast Episode
As we continue examining how the General Motors news will impact the area, guest host Gary Wescott talks with Janesville City Manager Steve Sheiffer about the direct economic impact and aid that might be available to workers as well as the impact on other city projects.
JANESVILLE — As sad as the General Motors news is, Jason Thoms of Janesville was not surprised by Monday’s announcement that the Janesville plant will build SUVs on just one shift and that about 750 jobs will be eliminated.
“Those who can afford a new vehicle are looking for something with more economy—something the Janesville plant just isn’t producing,’’ he said.
Thoms believes the Janesville plant is one of GM’s flagships with an established local supply chain and a dedicated community behind it.
“I don’t think the facility is going to close. However, I do think GM needs to diversify its production here so that it can continue operating efficiently no matter what the economy does,’’ he said.
-- Monday’s announcement didn’t surprise Cathy Burt of Janesville. She knew the rising cost of gas wasn’t a good sign.
“This is not new news. This has been anticipated to a certain extent,’’ she said.
If the local plant retools to build a smaller vehicle, Burt said, it has a good chance to stay open.
“They have to seriously think about downsizing the vehicle they build,’’ she said.
-- Vern Anderson of Janesville was surprised because he thought the plant was going to continue building SUVs on a reduced production schedule.
He also thinks many employees will have to relocate. He hopes that GM will help employees find new work and that some workers will retire.
Anderson is confident the local plant will stay open.
“I think they’re resizing and regrouping at this time. I have faith they will remain a permanent site because Janesville has always had a good employment record at this plant.’’
-- Janice Peterson of Janesville wasn’t surprised by the announcement. She figured something was coming after vehicle sales dropped and the United Auto Workers went on strike against American Axle, reducing production at several plants, including Janesville.
“With the combination of both, it just didn’t look good,’’ she said.
While some workers will take buyouts, Peterson thinks a good number will “hang in there and hope things will get better.
“I certainly hope it survives,” Peterson said of the plant. “It’s always been a great addition to our community.’’
-- Shari Renken of Janesville hasn’t been impressed with how GM has treated employees lately, and Monday’s announcement was another example.
“It puts too much emphasis on the almightily dollar and not on family and people who help get the almighty dollar,” she said.
Renken isn’t sure what workers will do.
“The job market is not that good right now. So there are not that many places for them to go,’’ she said.
But Renken hopes the plant survives.
“Without GM, we’d be hurting big time.’’
-- Tom Reed of Janesville said the GM announcement “isn’t good news across the board for the auto industry.’’
For the plant in Janesville to be viable, he said, it needs to operate two shifts.
“We’ve gone through tough times before, but this is not good news if GM is competing within itself from plant-to-plant. It’s getting tougher to compete.”
-- Jeff Davis of Edgerton, who is a GM worker, admitted that rumors of such news have swirled around the plant for several months.
“Given the economic situation now and with three plants producing SUVs, there’s only so much you can do to the building due to the age of the Janesville plant,’’ he said.
Davis said quite a few employees can retire and also have the option of the buyouts.
Monday’s news “may accelerate plans of retiring,” he said, “but due to the economy, they may not.’’
The plant’s future depends on the product it builds, Davis said.
“Without a product change, it’s kind of dismal with the economy.’’
-- Greg Richards of Janesville was only little surprised about GM’s announcement—given the economy and price of gas.
The reality, though, “is still shocking,’’ he said.
Richards thinks more people will take buyouts.
He hopes the plant can hold onto one shift but isn’t sure if that’s feasible because Janesville is one of the oldest plants.
Read more in our special section on the GM cutbacks.
May 1, 2008 at 12:47 p.m.
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Legally GM has to do what it has to do to make the share holders money. Morality is not part of the corporate laws publicly traded companies have to follow. It stinks, without a doubt, but that's capitalism. The very same laws that bring us a great deal of prosperity when the economy is going great also bring a lot of heartache when it goes south. Companies can't keep people employed when they're not productive.
The workforce has to take care of itself with unions and maintain their education and job skills to stay competitive. If you get laid off or take a buyout - life isn't over. Retool yourself with a new career or go back to school and learn a new trade.
Play the cards you're dealt - but nobody said you couldn't change tables.
Apr 30, 2008 at 5:52 p.m.
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I feel horrible for those employeed by GM and going through this tough time, And wish you the best of luck. And it sad that its having such a rippling effect on its distributing companies. But I honestly have to say if the plant it self has to leave then good.
When times weren't so hard GM has always looked out for it self. They have done a few things here and there for the community. But what about those in need of a job? Its my understanding the only way for opportunity is if you yourself is close to someone in the plant, just to get the application, and then you might be hired as summer help ,and then maybe 5 years down the raod be employeed fulltime.
This is the kind of action that got GM where it is today.
Those of you leaving GM will understand that when you take the buyout. And have to cut your wages in half pushing the dirty work just to make ends meet. It sucks. It would stink even more if you applied at mcdonalds at a time like this and they turned you away because you need to get app through your stepbrother who got it through his aunt who got it from her dad.
I pray a more equal opportunity employers seek Janesville out in place of General Motors so those of you, who felt the effects of GM's loss will have a job else where paying but not limited to $6.15 an hour.
AMEN
Apr 30, 2008 at 10:50 a.m.
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I am kind of glad GM is shaken the area up. I have spoken to several City of Janesville board members over the years about why they have not made a bid on other employers to plan for this day. They just turned a deaf ear. There is no reason over 70% of the perks given to local companys in tax breaks should have never went to GM. As the people of this area this should be a wake up call. The City needs to DEEP 6 there GM tax credits, and get into the hunt for other companies. Let Beloit be a example of what not to do, by waiting till Beloit Corp left to turn the corner.
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