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As expected, 480 Lincoln Goodyear jobs headed south
The Lincoln Journal Star (Nebraska) ^ | Saturday, Oct. 19, 2002 | RODD CAYTON

Posted on 10/19/2002 1:29:09 PM PDT by Willie Green

For education and discussion only. Not for commercial use.

Goodyear's announcement Friday that it would build an automotive hose manufacturing plant in Mexico sent disappointment, though not shock, through the company's work force and Lincoln.

The new plant, expected to open next year, represents the next step in Goodyear's plan to shut down its hose production operation in Lincoln, which will cost more than 480 of its 1,430 jobs locally.

Lincoln plant manager Todd Turner characterized the announcement as moving forward on plans the company announced in January.

He said the decision was cemented earlier this month, when members of United Steelworkers Local 286 rejected contract changes that would have frozenwages and saved about 100 of the 480 jobs.

"We attempted to do something jointly to save at least part of the hose production in Lincoln," Turner said Friday. The proposal sank, 615 votes to 177.

For belt builder Paul Earnest, a 15-year Goodyear employee, the announcement was the dropping of another shoe.

"It's been one of their negotiation scare tactics for years," Earnest said. "I guess a lot of folks just got callous to it."

Steelworkers vice president John Shotkoski said he also saw the announcement coming.

"This is nothing they didn't start in January," Shotkoski said. "If I thought they weren't going to do this, I'd be lying."

He said the union will concentrate on belt manufacturing, which will remain in Lincoln. Shotkoski was comforted that the majority of the jobs will stay in Lincoln until the new plant in Delicias opens in mid-2003. Delicias is in Chihuahua state and is about 60 miles southeast of the city of Chihuahua.

"I would hope that with attrition within that year's time, and with the expansion of belt production, we can keep everybody who has some seniority," Shotkoski said.

Belt cutter and father of two Tom Day wasn't surprised to hear the news either.

"It might be my job, since I only got seven years in," he said.

Day is likely to be bumped from his job, because many hose workers have more seniority. Still, he said, he's glad the union voted against the proposal presented Oct 6.

"If we would've took the deal, they still would've moved the hose," Day said. "All they care about is money."

Turner said some layoffs would take place before the Mexican plant opens; those jobs will be moved to other North American plants.

Turner said laid-off union employees could have opportunities to move to any of eight other domestic plants covered by the company's national agreement with the Steelworkers -- if those plants are hiring. He said nonunion supervisors will be extended the opportunity to move on an individual basis.

"There certainly would be no guarantees for anybody," Turner said.

Turner said the new plant will have the latest technology, equipment and processes, and will be more efficient than Lincoln.

Shotkoski blamed the North American Free Trade Agreement, or NAFTA, which eliminated trade barriers between the United States, Canada and Mexico, for the loss of the jobs.

He also called Goodyear management hypocritical for accepting tax benefits under LB775, a state economic development program.

"The corporate world is at it again," Shotkoski said. "Companies are not bashful when they ask for state or local or federal money to help them along the way, (but when they need to save money) they're no longer friendly with the community, the people or the state -- they just pack up and move."

Because the jobs are going to Mexico, Lincoln Mayor Don Wesely said, local laid-off workers will be eligible for up to $12,000 each in federal grants under legislation associated with NAFTA. The money would go toward job retraining, income support while in training and job-search assistance.

Wesely, in a press release, said he is "deeply disappointed" by Goodyear's plans to "replace long-standing Lincoln employees with low-wage workers in Mexico."

He said the city and state governments offered up to $1.5 million to help the company through difficult economic times and keep the jobs in Lincoln.

Wesely said the focus now switches to employees who'll be out of work.

"We will work with the congressional delegation to help secure ... federal assistance available under NAFTA," the mayor said.

Goodyear is the second Lincoln manufacturer to move jobs to Mexico. Circuit-breaker maker Square D announced in February plans to move a product line to Tlaxcala, eliminating 125 jobs here.

Reach Rodd Cayton at 473-7107 or rcayton@journalstar.com.


TOPICS: Business/Economy; Government; Mexico; US: Nebraska
KEYWORDS: nafta; recession; thebusheconomy
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The giant sucking sound continues to roar.
1 posted on 10/19/2002 1:29:09 PM PDT by Willie Green
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To: Willie Green
True. Thanks for posting this and the others you post on this subject.

Glad to see the freepers that think some of us are just "whining" shut up. Some don't know what it's like to feel like you're drowning and theree's nothing you can do to stop it. There is no 911 to dial for help.
2 posted on 10/19/2002 1:36:42 PM PDT by Thisiswhoweare
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To: Thisiswhoweare
Make your self a job
3 posted on 10/19/2002 1:40:06 PM PDT by bert
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To: Willie Green
You and another poster have been posting these plant closures steadily. How many jobs would you estimate have been lost just this week alone?

NAFTA: The giant sucking sound :(
4 posted on 10/19/2002 1:41:40 PM PDT by TheSpottedOwl
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To: Willie Green
"If we would've took the deal, they still would've moved the hose," Day said. "All they care about is money."

I guess the workers don't care about money?

5 posted on 10/19/2002 1:42:10 PM PDT by ItisaReligionofPeace
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To: TheSpottedOwl; Willie Green
be sure to count the 3000 person plant that is going to open near Savannah, Georgia.
6 posted on 10/19/2002 1:51:37 PM PDT by ItisaReligionofPeace
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To: bert
Who will pay him if no one is working because there are no jobs?
7 posted on 10/19/2002 1:56:15 PM PDT by Black Agnes
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To: bert
you're being callous. may i ask what is your profession? how does one make their own job? selling crap that people won't buy? services that people don't need or want or are done by low wage illegals? and no, i'm not whining...i have compassion.
8 posted on 10/19/2002 1:57:44 PM PDT by contessa machiaveli
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To: Willie Green
I have allways bought nothing but Goodyear tires since I was 16. Looks like I have bought my last set.
9 posted on 10/19/2002 2:02:01 PM PDT by Newbomb Turk
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To: Thisiswhoweare
You have to realize that there are FReepers that make their living from pawning a lot of this chinese junk off on Americans who are losing their jobs...

Walk into a "small business retail establishment" and hunt for something American made...You may be there a while...I have a brother who is looking into entering into this very lucrative field...A 2000% mark-up on most of that junk...

You better learn to like rice...The meat will be reserved for the business people...
10 posted on 10/19/2002 2:04:33 PM PDT by Iscool
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To: ItisaReligionofPeace
I believe the story about the DCX plant was already posted as "10,000 New Jobs".
Actual jobs at the plant is about 2000, but they pumped up the number by a factor of 5 to estimate the multiplier effect of smaller supporting businesses that would accompany the new facility.

I don't know if a factor as great as 5 is valid, but it is true that the economic stimulus would produce additional jobs beyond the ones directly created at the new facility.

It is also true, however, that the same "ripple effect" produces more job losses than what is anounced when a plant closes.

2000~3000 new DCX jobs in Georgia is good news.
It helps offset 7000~8000 job losses in Georgia from Delta Airlines.

11 posted on 10/19/2002 2:05:05 PM PDT by Willie Green
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To: ItisaReligionofPeace
be sure to count the 3000 person plant that is going to open near Savannah, Georgia.

Sure, makeing vehicles that most people won't be able to afford...And, watching the profits head to Japan...Yea, that's the answer...

12 posted on 10/19/2002 2:07:31 PM PDT by Iscool
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To: TheSpottedOwl
How many jobs would you estimate have been lost just this week alone?

I don't know and I wouldn't dare guess.
What I HAVE noticed is that the pace of anouncements picked up significantly at the beginning of October.

13 posted on 10/19/2002 2:08:06 PM PDT by Willie Green
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To: Willie Green
crap, just crap!
14 posted on 10/19/2002 2:10:02 PM PDT by lsee
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To: Willie Green
I was involved in a project that involved a partial plant closure in the US, combined with the expansion of a Mexican plant as some manufacturing capacity, and the attendant jobs, were to be shipped south.

I'm a hired gun, I go where I'm sent. The US plant was festooned with banners saying "our employees are our most important asset", which seemed rather humorous under the circumstances. The work ethic in the US plant, and in the Mexican plant, was very strong and I was impressed with both sets of workers. The US workers who were losing their jobs were philosophical about it, and surprisingly helpful and there was no visible acrimony as they helped us with our work.

I was also impressed with the Mexican workers who were taking on the additional workload.

Halfway through, the project was suspended, as the company had discovered that they could cut costs even further by subcontracting their manufacturing to Chinese companies. Not building or buying a plant in China, but simply handing over their specs to Chinese companies who would produce product to their design.

Rather than pay US workers, say, $12 or $16 an hour, or Mexican workers $1 per hour, they could pay Chinese pennies per hour. And have no responsibility to them, as they are not even employees.

I told them they were committing suicide, because if the Chinese company has your spec and your design, why do they need you? But I am no one, just a hired gun. It was an interesting project while it lasted.

I am generally a free-trader, and pro-NAFTA. I can see shifting low quality manufacturing south while retaining the more sophisticated processes here. High tech manufacturing makes high wages an insignificant part of the cost. And there are hidden costs to doing business in Mexico that makes it almost as expensive as the US, and sometimes even higher than the US, for certain processes. Whether it is better to move or remain in the US depends on the process, the labor situation, distance to your market and distance from your raw materials. It depends on the regulations, it depends on how well you can resist graft and hijackings and such in Mexico. Mexico is not automatically cheaper for a host of reasons, and some companies that have moved there have moved back after a time.

But opening your markets to Chinese slave labor is suicide. If even $1 an hour Mexican labor is too expensive, because you're competing with prison workers, a moral line has been crossed.
15 posted on 10/19/2002 2:37:04 PM PDT by marron
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To: marron
I agree, doing business with China is flushing down the toilet every thing this country is supposed to stand for, all for the almighty dollar. Slave labor......dispicable.
16 posted on 10/19/2002 2:56:18 PM PDT by Husker24
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To: marron
you make some interesting points. for the first time in my life i had to stop off at a sleazemart to buy cat food(nothing else was open). so being curious i began examining the merchandise, i wanted to see where it was made. i'm sure we've seen the made in turkey, china, hong kong, malaysia, yugoslavia, etc. but i was totally shocked to see a "made in kenya" label. kmarts, walmarts, targets, etc. are just feeding some americans appetites for sleazy, cheap products. i'm not sure how much lower it can go.
17 posted on 10/19/2002 3:03:45 PM PDT by contessa machiaveli
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To: Willie Green
Socialist Plant Willie Green "The economy sucks!" Alert!
18 posted on 10/19/2002 3:22:46 PM PDT by MonroeDNA
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To: contessa machiaveli
I'm not callous.

I don't know you or what you know or what you can do. You have some skills and knowledge that can be brought to bear. But perhaps not the skills you are accostumed to use to make a living. I worked as an executive/engineer in the construction industry for many years. In the last few years I have offered my services as an inspector of goods being exported. The job uses my knowledge of materials and world trade. It is not what I did for years and years. It is new, different and fun.

Offering services to business and industry is the source of many home businesses. There are lots of independant contractors offering all kinds of services.

You have a computer and some skills, put them to work from your home.

My comment was not meant to be callous or critical but to offer encouragement. You can make yourself a job.... if you decide you want to.

19 posted on 10/19/2002 4:37:55 PM PDT by bert
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To: Black Agnes
Please see post 19.

Your question assumes no jobs. I don't forsee such a situation, just different job. To suceed in the changed world, build on existing skills and obtain new ones. There may be some work involved, but all you have to do is do it.

Quit trusting in others and believe in yourself.

20 posted on 10/19/2002 4:50:23 PM PDT by bert
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