General Motors’ plans to lay off 14,000 salaried and blue-collar workers might not be as bad as originally projected.
The company said Friday that 2,700 out of the 3,300 factory jobs slated for elimination will now be saved. Blue-collar workers will still lose jobs at four US plants slated for closure next year, but most will be able to find employment at eight other GM factories where jobs are being added. Some would have to relocate.
GM still plans to lay off about 8,000 white-collar workers and another 2,600 factory workers in Canada.
In November, the company announced plans to end production at the US factories and one in Ontario as part of a major restructuring designed to cut costs and divert resources to development and manufacturing of trucks, SUVs and electric and autonomous vehicles.
Legislators and President Donald Trump have hammered GM over the factory closures and layoffs.
While some of the roughly 3,300 factory workers will retire, most of the rest will be offered one of 2,700 jobs the company plans to add at factories where production will increase, GM announced on Friday. Some would have to uproot and move to other cities for jobs.
“Our focus remains on providing interested employees options to transition including job opportunities at other GM plants,” CEO Mary Barra said in a statement of the factory workers.
That still leaves the majority of the 14,000 cuts hitting white-collar workers. A small number of them will be able to transfer to other openings, and those who can’t will get help in finding work elsewhere, the company said.
Since the announcement, GM has faced withering criticism from Trump, legislators from the affected states and the United Auto Workers union, largely over the plant closure plans. Trump has focused on a plant in Lordstown, Ohio that’s slated to stop making compact cars on March 1. He has promised to return factory jobs to the US and Ohio, a key state in his 2020 re-election campaign.
GM’s attempt to close the factories still has to be negotiated with the United Auto Workers union, which has promised to fight back. The other factories that could go are assembly plants in Detroit and Oshawa, Ontario, and transmission plants in Warren, Michigan, and near Baltimore.
Trump continued to blast GM and Barra in an interview with Fox News on Thursday. “I don’t like what she did,” Trump said. “It was nasty. Ohio is going to replace those jobs in two minutes.”
The announcement that nearly all the blue-collar workers may get other GM jobs could counter some of the attacks, but it’s unlikely to stop them completely since GM still intends to halt production at the factories. It’s also unclear how many workers would be willing to relocate.
Tommy Wolikow, 36, who was laid off from the Lordstown, Ohio, factory in January of 2017, said he would be interested in openings at a Toledo, Ohio, transmission factory and an assembly plant in Spring Hill, Tennessee. But he’s not happy about the prospect of having to move. “I want to go back to Lordstown,” he said. “The last thing I want to do is uproot my family and leave my parents.”
Under GM’s contract with the union, the more senior active workers at the four factories targeted for closure get first crack at transferring to another plant and there may not be enough jobs for workers with less seniority who were previously laid off. Of the 3,300 factory workers slated to lose their jobs, 2,800 are active and 500 are on leave. In addition, there are 700 who were laid off previously at the Lordstown plant and another 130 on layoff from Detroit-Hamtramck.
Patrick Morrissey, a spokesman for GM, said Friday’s job announcement had nothing to do with the criticism the company has been facing. The automaker, he said, knew some of the laid-off workers would be placed at other plants, but it didn’t know the number of jobs available until this week.
“I don’t think we had all the details exactly where the openings were and how many there were,” Morrissey said. “We have opportunities for just about everybody who wants them.”
Morrissey said the number of workers placed in new posts depends a lot on how many of the senior workers decide to retire. About 1,200 are eligible. Some workers also could decide they don’t want to transfer to another factory, he said.