GM workers face a fork in the road
JANESVILLE Should I stay or should I go?
That’s a question that’s undoubtedly crossed the minds of General Motors workers who are facing the likelihood that their employer might not be in Janesville much longer.
Should they stay in Janesville, ride out GM’s last days here and move that much closer to a GM retirement package?
Or should they take a transfer to another GM plant, collect relocation payments and settle into a job that appears more secure than the one they’ve left in Janesville?
The answer depends in part on whether they are hourly or salaried.
GM has said its network has room to accommodate transfer requests from Janesville workers who want a GM job elsewhere.
So far, more than 30 hourly employees have transferred out of the Janesville plant, said John Dohner Jr., United Auto Workers Local 95 shop chairman at GM.
“We had a lot a few years ago when we lost the medium-duty line, but I wouldn’t say it’s huge right now,” Dohner said of the number of local transfers. “It’s hard for our people to know what plants are going to need help.”
GM announced earlier this year that it would cut one shift of production and lay off more than 850 workers. Weeks later, GM announced that it plans to end production in Janesville by 2010 at the latest.
In the interim, the hourly workforce at the Janesville plant has dwindled to 1,200. In addition to the layoffs, several hundred hourly employees accepted an early retirement/buyout plan the automaker offered all of its U.S. workers.
The salaried workforce has dropped from 195 to 130.
Hourly employees who want to transfer can put in a request for a specific plant on a national telephone system. The workers are hired based on seniority, although that seniority can’t bump people already working at the destination plant.
“My name isn’t on the national list, but I’m thinking about it,” said Mike Dietz, an hourly GM employee with 22 years experience.
Dietz said that most of the workers he’s talked with plan to hang on in Janesville. They’re close to having 25 years in, the level at which GM historically has offered some sort of pre-retirement package.
“I don’t get the sense that there’s an exodus, because a lot of people are pretty close to retirement,” he said. “Maybe the younger workers will go, but we’ve been told we still have 10 weeks worth of work this year and who knows after that.
“If (GM) came out right now and said, ‘We’re done,’ it may be different.”
Dietz considers himself fortunate. If he’d move, he’s got older kids who want to tag along.
“At GM, we’re fortunate that we have options,” he said. “If you work for (local GM suppliers) Lear or LSI, you don’t have those options.”
In addition to the transfer option, hourly workers have contract provisions that make transfers easier on the financial side.
Workers can choose between two relocation packages.
-- A $6,000 signing bonus to help cover upfront expenses after a transfer is granted. When the worker arrives in the new community, he or she will be paid an additional $16,000. Another $8,000 is available if the worker stays at the new location for one year.
-- A flat rate of $4,800.
GM spokesman Tony Sapienza said there’s a fundamental difference in the two packages, other than the money. If a worker takes the first package, dubbed “enhanced relocation,” they agree to give up all seniority rights at the plant they are leaving.
“So if they go to the new plant in a new community and decide they just hate it there, they will have lost all their seniority back in Janesville or wherever the plant was that they left,” he said.
With the basic relocation plan, workers retain seniority at their home plant, he said.
“That’s something the union negotiated hard for,” said Dohner, who left Janesville in 1986 for the GM plant in Fort Wayne, Ind.
“When I went to Fort Wayne, I think I got about $1,200 to go there and nothing to come back,” Dohner said.
Dohner said the relocation packages are not out of line, as GM has been known to pay relocation expenses and buy the homes of transferring salaried workers.
Sapienza said GM handles salaried transfers on a case-by-case basis.
While GM should have spots available for hourly workers, the same can’t be said for salaried workers.
Earlier this year, some salaried workers put in for transfers out of the Janesville plant. Some were granted, and employees moved.
Others, however, were somewhere in the process of finding a new home and moving their families when GM Chairman Rick Wagoner announced a couple of weeks ago that the automaker was reducing its salaried headcount through the remainder of 2008.
Wagoner said the cuts would be made through normal attrition, early retirements and mutual separation programs.
What that meant for salaried workers trying to leave Janesville is that the plants they were going to rescinded their offers, and they were called back to Janesville.
“It’s hard for those people who were right in the middle of everything when (Wagoner) made the announcement,” Dohner said. “It put a lot of people in limbo.”
Aug 4, 2008 at 10:29 a.m.
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At least we're not at the Slawson Cutoff.
Aug 4, 2008 at 10:17 a.m.
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Getting the PROPER education in these changing times is the key. SHORTY was right. A college education doesn't insure you'll have a career. There's nothing wrong with college, there's just not that much offered to as many people in regards to the "age" we're in now. People need to understand (many close their eyes to it) it's time to re-shape the thought process as to how to earn a decent income in the future. The future is now. It's called humbling one's self to the new information needed to educate one's self on how to prosper in this age we've entered. It all boils down to hunger and the willingness to change.
Aug 4, 2008 at 3:12 a.m.
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If you come to a fork in the road, take it.
Aug 3, 2008 at 9:31 p.m.
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Shorty I am doing just fine.
Aug 3, 2008 at 9:17 p.m.
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DUH???? I don't work at GM I do have a college education in the medical field, and perhaps I could offer you the name of a good therapist, it is apparent that you two need help. Best of luck to you if you ever enter my office.
Aug 3, 2008 at 8:37 p.m.
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His name is Matt Foley. Now, he's been down in the basement eating NoDoz for the about the last 4 hours.
Aug 3, 2008 at 8:33 p.m.
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If your out of work. riding four-wheelers or obtaining an education. I would put all my bets on obtaining an education. The market is bad now. It will get better in the future. So keep saying "doesn't gurantee you ANYTHING" Let me know how that works for ya.
Aug 3, 2008 at 8:15 p.m.
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An education today doesn't gurantee you ANYTHING!!! Talk to any college grad lately and they will testify the same. And if you think it's easy raising a family on McDonald's wages you must be the motivational speaker we all need to listen to. I can smell the coffee, jvldude!!!! can you?????
Aug 3, 2008 at 8:13 p.m.
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You'll have plenty of time to live in a Van down by the river when ... you're livin' in a VAN down by the RIVER!
Aug 3, 2008 at 6:59 p.m.
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dude must be a motivational speaker. He lives in a van down by the river.
Aug 3, 2008 at 6:34 p.m.
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Hard work and determination. People who make excuses about why not to get an education are just plain lazy and unmotivated
Aug 3, 2008 at 6:21 p.m.
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As someone recently pointed out to me... As property owners we are paying $70million, I believe, in improvements to Parker and Craig. Now enrollment is going to be down by a significant amount due to people having to move out of Janesville to find other jobs. Jobs that they lost at GM, or at one of the many other businesses affected by Gm's decision to close.
Aug 3, 2008 at 6:04 p.m.
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Go on the internet or get a copy of the Fri/Sat/Sun August 1-3,2008 USA Today. Read the front page article on state and local government boosted spending at 7.8% in just the second quarter over 2007 while revenue only rose 2.5%. "State and local spending has been rising three times as fast as revenue amid warnings from governors that their finances are nearing crisis stage". It is emergency time right now for the Janesville city fathers to start cutting spending before the GM crisis hits. You can't keep spending like janesville does and expect that revenues are going to raise. City government needs serious cutting and stop spending on more land for the city, hiring retired workers for part time jobs instead of those in need of employment. Stop sending two and three garbage trucks around the city when it can be done with one. Conduct a time study on all city employees and look for ways to cut. When the incomes continue to decline the city can't continue to expect to simply raise taxes to pay three city workers to stand and watch one or two do the work. They should all be productive or eliminate the position. If the foreman can't use a shovel or equipment you don't need him or her. It's crunch time before the storm is all I am saying. Be prepared, proactive instead of reactive all the time. Demand it taxpayers or you'll pay the higher price.
Aug 3, 2008 at 6:01 p.m.
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jvdude, just because one has a degree of some kind doesn't guarantee a "great" job. My husband has a bachelors degree in business. 2 years ago he wanted out of his job, applied ALL over and found it EXTREMELY difficult to even get an interview with companies that wanted 5-7 years experience. How does one get that type of experience? Going to college doesn't always mean you will find that great paying job you were educated for. Nowadays you need to look at job security etc.. There are no guarantees with ANYTHING these days.....
Aug 3, 2008 at 2:57 p.m.
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stevev - you are right there. I did go to college for 2 years but stayed with GM because at that time the economy was slow and I saw alot of people on the line with degrees. Everyone can have regrets, and wish to change things in their lives, but working at GM was not all bad. Yeah, the work sucked sometimes and it was hot. But I look at all the positives I had. I met alot of great people, had the money and time to help charities, and my family go great discounts on cars! Plus much more. What will hurt the most is having to see friends move away.
Aug 3, 2008 at 2:45 p.m.
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The thing I have found to be pretty surprising in talking to people who are losing their jobs at either GM, LSI, etc is how many of them actually do have post-high school education, whether tech school or college but still chose manual labor over a job in the field they studied in. Of course, there are many reasons why someone would have done this, whether schedule, benefits, or whatever, but I wonder how many of them are regretting the decision now. And from what I hear, Blackhawk Tech and U-Rock have been flooded with applications.
Aug 3, 2008 at 2:43 p.m.
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If I worked at GM, I'd be looking to relocate. Since I don't work for GM, I'm looking for ways to make the city a better place to live. One quick check of the ads in today's paper shows a large number of area firms that are hiring. Now - that is not hiring at the same pay and benefit rate as GM, but at least there are jobs out there.
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Milwaukeeman's bleak vision of the future is based on a pretty old view of Janesville as a "one horse town". Yes - the loss of the high paying jobs will hurt, and I'm sure some stores will close over the next few years. Stores close all the time. Still - there are several non-GM businesses in town that are doing well. The location of Janesville is another huge plus. Time to ditch the "We're not Madison" mantra and start pursuing the employers from that area.
Aug 3, 2008 at 2:29 p.m.
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Either way, you guys are in for some rough times. I wish you the best and hope that you *can* rebuild the city.
Aug 3, 2008 at 2:26 p.m.
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This whole thing is terrible for the economy of both the city and the state. There were several comments that imply that this situation will only affect GM workers, which simply isn't the case. This will decrease city funding, leading to less funding for schools, *and* the city/state funded medical institutions. That is, even the "educated" people in Janesville are in deep trouble. And when professionals suffer, the service industry also suffers. Expect stores to close down, businesses to move, and professionals to relocate. And when they (GM workers, service workers, and professionals) want to move to a better place, expect property values of homes to be worth less. Who would want to move _to_ Janesville right now? The population in Janesville is going to shrink, and the people left who can't sell their homes or have no where else to go are going to suffer.
Aug 3, 2008 at 1:54 p.m.
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I second that post, unidentified! Janesville is not in a rebuilding mode yet. So if someones intent was to still work in this area, going to school is not a lock for a local job. Everyone has different criteria for making a decision, so there isn't just one RIGHT answer for all.
Aug 3, 2008 at 1:51 p.m.
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Anyone with over 30 years senority should consider taking the next and possibly final buyout. The real purpose of these offers are to ensure ratification of the reopening of the UAW contract, which is right around the corner,Wages,vaction, holiday and sunday double time will be on the table.along with everything else. GM is in much more trouble than the UAW is telling its members, and will do what is necessary to hopefully keep it out of bankruptcy, and soon!
Aug 3, 2008 at 1:46 p.m.
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Rebuild the city with what? Start new careers in what? Many of the management jobs in this town were also related to GM or suppliers. Getting an education doesn’t guarantee anything right now. Most of jobs available in Rock County are medical related. After that, there isn’t much selection and even Mercy is cutting back. Leadership seems to turn a blind eye to this fact, maybe because they just don’t have answers, but it doesn’t change the truth. There seems to be absolutely no sense of urgency from the Governor down to local officials, which means either GM is staying (and they know, but can’t say anything) or they are completely clueless on how to proceed. It’s easy to tell all these people to get an education and move on from GM or a related supplier, Janesville has a diverse economy, we don’t need GM, and so on, but talk is cheap and I’m not buying.
Aug 3, 2008 at 1:27 p.m.
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My definition of a loser is someone who kicks others when they are down. Sound familiar, dude?
These people are going through a major life change and many decisions that affect families and communities. Yes, many others have been in the same boat, but have not had as many people trying to sink that boat like there is here in Janesville. They say misery loves company - so all the negative people here must be overjoyed that someone else is at a low point in their life too.
Aug 3, 2008 at 12:55 p.m.
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Janesville will be in a terrible state without GM. Look for lean times ahead, folks.
Aug 3, 2008 at 12:43 p.m.
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The fork is sticking in GM.
Aug 3, 2008 at noon
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What will they rebuild it WITH. No one put a sign outside your city saying "only GM". For some reason they don't want to go there. The whole state, for that matter. Face it you live behind the "Cheddar Curtain".
Aug 3, 2008 at 11:28 a.m.
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How about GM workers get an education and work their way though another career like most of us have
Aug 3, 2008 at 11:13 a.m.
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Cardtrader, let us all hope that you have one heck of a deck so you don't ever have to deal with having to relocate etc. Sounds plain and simple that you are a very unhappy person. What a shame.
Aug 3, 2008 at 11:02 a.m.
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I hope they all leave so we can start rebuilding this town
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