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Local GM stamping plant layoffs to begin next month

 IBJ Staff
December 2, 2010
Keywords
Auto Industry, Automakers, Factories, GM, Layoffs, Manufacturers, Manufacturing & Technology, UAW
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It’s official: General Motors will begin shutting down its Indianapolis metal-stamping plant Jan. 28, with an initial wave of layoffs that will cost 75 workers their jobs.

In a letter filed with the Indiana Department of Workforce Development this week, local officials said the facility at 340 S. White River Parkway West Drive will cease production June 30. Work will be transferred to other GM plants or other facilities over the next several months.

About 640 hourly workers at the plant are represented by United Auto Workers Local 23. Union members in September overwhelmingly voted to reject a proposed pay cut that would have kept the facility open under a new owner—Illinois-based JD Norman Industries.

GM has planned to close or sell the 2-million-square-foot plant for three years.

Norman Industries sought concessions from the union, hoping workers would approve a 50-percent pay cut to keep their jobs. But Local 23 resisted even putting the matter up for a vote.

The late-September vote, held by mail-in ballot, was arranged by higher-level UAW officials who  promoted the deal as a way to keep the plant open and grow union membership in Indianapolis. Officials hoped employment would grow to as much as 2,000 under Norman Industries' ownership.

Not all of the UAW members will lose their jobs. Many workers already are eligible for retirement, and those who aren’t have the right to transfer to other GM plants.

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  • UAW
    FrumiousDecember 3, 2010 1:45 AM
    Unions outlived their purpose from 100 years ago. They are now the lazy man's way to a bloated paycheck. Toyota, Honda, Kia, Subaru - all are well-run profitable companies where the workers are on board with the notion that what is best for the company is what is best for the workers. UAW set themselves up as the arch enemy of management, and has never figured out that they slaughtered the golden goose. And if you think that a handful of upper level executives with multi million dollar salaries had anywhere near the effect that tens of billions of dollars spent on bloated union contacts, you are out of your mind. The UAW gutted and beheaded Anderson, IN and Flint, MI. The UAW sent transmission plants to Mexico and engine plants to Canada. Just as the UAW killed Chevy in Indianapolis. Toyota and Honda are building and growing in Indiana. GM, Chrysler and Ford are not. What common denominator is at work here, I wonder... And it isn't "executive pay."
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  • Stand TALL
    ALDecember 2, 2010 10:22 PM
    These people did the right thing. They stood together and yes they can move to keep their wages. You big mouths on this board wouldn't have anything to talk about if your boss suddenly told you to work for half your wage. If you think 28 bucks is too much money, then you never did the work. I've seen grown men walk out after 4 hours because they couldn't cut it. The UAW didn't bankrupt GM. Detroit execs making stupid decisions then giving themselves millions in bonuses ruined GM. For all the people who have already had their wages cut, did you see car prices drop?? NO. But the execs still make millions and you guys want to blame a guy who makes 28 bucks. Get real.
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  • Dumb Asses
    rwhDecember 2, 2010 5:17 PM
    I can't believe these workers voted this down. Too bad Norman couldn't fire them all and hire people that would appreciate a job especially in these times. The UAW needs to come down to reality they almost destroyed GM.
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  • Farewell
    FrumiousDecember 2, 2010 4:30 PM
    Well done, UAW. As long as those who are willing to relocate keep their inflated wages and benefits, that's all that matters.

    Pathetic.
    Reply to CommentFlag Comment

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