Posted on 08/13/2005 11:19:39 AM PDT by Willie Green
For education and discussion only. Not for commercial use.
INDIANAPOLIS - DaimlerChrysler AG will close its Indianapolis foundry and eliminate 881 jobs by Sept. 30, reducing the automaker's once formidable Indiana manufacturing presence to just the city of Kokomo.
DaimlerChrysler recently notified the Indiana Department of Workforce Development of the closure under the Worker Adjustment and Retraining Notification, or WARN, Act. The law requires employers to give 60 days notice before certain plant closings and layoffs. The loss of 881 jobs is the largest in Indiana under WARN this year.
A provision in the four-year labor agreement struck by the automaker and the United Auto Workers in 2003 called for the foundry to close by the end of the third quarter of 2005, company spokeswoman Curtrise Garner said Friday.
"The company and union jointly agreed to that," she said by telephone from DaimlerChrysler's U.S. headquarters in Auburn Hills, Mich.
News reports at the time of the labor agreement said DaimlerChrysler would phase out the foundry over four years. The plant along Interstate 70 west of downtown Indianapolis produces V-6 and V-8 engine blocks.
UAW Local 550 represents workers at the foundry. Local President James Clark had little to say about the closure when asked for comment Friday. The affected workers, most of whom now live in Indianapolis, have been offered jobs at a variety of other DaimlerChrysler plants, he said.
Workers who choose to transfer to another DaimlerChrysler plant instead of retiring receive 95 percent of their base pay after taxes until a new job is found for them, Garner said.
Department of Workforce Development agency officials will meet with DaimlerChrysler representatives next Thursday to discuss state job assistance to the affected workers, agency spokesman Kip Chase said.
The plant was owned by American Foundry Co. until Chrysler bought it in 1946. The automaker invested in major upgrades there in 1964, 1978, 1988, and the late 1990s.
The closing will diminish DaimlerChrysler's presence in Indiana to Kokomo, where three transmission plants and an aluminum casting plant employ about 7,500 workers. The automaker spun off its 1,400-worker New Castle machine shop to a joint venture three year ago, ending a 96-year history in the eastern Indiana city where the high school still bears the Chrysler name.
The notice to the state of 881 jobs being lost topped Indiana's largest previous WARN job loss this year, for 613 jobs eliminated with the June closure of Tower Automotive's auto frame assembly plant in Corydon.
Yes, but were they overpaid union jobs for disadvantaged and undereducated Howard Dean contributors? Where will those 881(minus relocated) workers go after their unemployment insurance runs out?
WISH-TV - Indianapolis, Indiana - State Agency Plans to Lay Off 50 Unemployment Claims Workers
I know Indianapolis is a Republican city and I sympathise with the laid off workers, but change is inevitable and even with 0% financing American auto manufacturers are unable to long sustain producing more with out increased sales. Unfortunately, some people think the main purpose of a business is to provide employment rather than make a profit.
I know 881 seems like a lot but Indianapolis has about 420,000 workers, and 881 is less than 0.2% of the workforce. Indinapolis has a 4.5 unemployment rate. Not bad at all.
In majority (as opposed to the proportional) system of voting trying to rely on the third party is extremely inneficient. You need to work within established two parties.
In another words they are afraid to lose their company. Do they look ahead beyong next financial quarter or couple of years and care for the interest of the corporation as a whole or maybe even of the country? (Allowing "workers to collaborate more easily" could be done by moving all operations to one spot in China).
Remind me, what is your job?
Well--the sniping about who-did-what-to-whom is not real relevant to the 881 not-quite-almost-sorta employed types.
By the way, the article is not entirely correct--Chrysler also used to have a powdered-metal parts operation in Indiana; in the late 1960's, it had the largest presses (by tonnage) in the US.
To be fair--it was X42 who really, really started the ball rolling on moving factories to PRChina with the WTO admission.
Bush is merely "otherwise occupied" with ridiculous spending programs, unconstitutional restraint of political advocacy, and stupid additions to Big Government (which is, of course, "compassionate.")
The WSJ's spin is almost predictable.
Yeah, "manufacturing" jobs are declining--what a nice concession!! ...and they've been declining since 1950 or so, too--but during the years since MFN-for-Red China, they've been disappearing at an accelerated pace.
Yeah, the economy has fired up the jobs numbers--but the WSJ's claim that "Americans" are the sole beneficiaries should be re-phrased to "US residents." A lot of illegals are ALSO employed--as are plenty of H1-B's.
Nothing is stopping you from posting these on their own threads or consolidate onto one.
believe me, my job ISN'T going anywhere for a while....
if you only knew what a security clearance can do for you.
There aren't nearly enough cleared people for the military these days.
easy easy money and job security.
Well actually I didn't say 'announcing', I said "Someone posting the names of companies that added 881 jobs.." Big difference betweeen ADDED JOBS and 'promised to', 'expected to', 'will invest' 'ANNOUNCING NEW JOBS', 'ultimately'.
But you gave it a good shot and that is much better than just the usual postings criticizing Willie. Maybe others can follow your example, hopefully with less emphasis on future jobs.
If I am starting a new factory, I will add 20 for HR, then 50 for accounting, then 30 for purchasing, then 10 for operations, 6 for maintenance, 12 for security, 6 for shipping, 8 for receiving then finally 250 line workers workers. So when do you call the newspaper?
I don't believe you will see a news article for any intermediate steps, this is an artifact of how businesses start and how news is reported. Similarly, bad news of a factory closing is a great bad news story something that every journalist loves almost as much as a multi-car accident.
I am going to register as anti Willie and keep posting new jobs no matter whether they are announcements or doors opening.
Think of them as retroactive responses to Willie... Don't you just hate reading good news? It really sucks doesn't it?
So they do what you would want... sourcing these jobs in the US but for the wrong reason? Perhaps you just are desperate to find something to criticize.
LOL Call when you go belly up.
I wish you would make up your mind. Is it Willie's news that's good news or your news?
Reading about new jobs doesn't suck to me. I'm sorry it bothers you so much.
Hee... hee... hee.
Guess we're both using sarcasm.
I am thrilled about the unemployment rate being at 5 percent and read the business news hoping that it continues. My business software job depends on companies getting bigger and more successful.
I am tired of Willy's weekly factory closing report. One data point in a multi-trillion dollar economy is meaningless.
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Bush and all the politicians are working hard to redistribute America's wealth to Mexico and other poor countries. Outsourcing, inviting 15 million illegals into the country and demanding the American tax payers pay their way. Helping Americans lose jobs to illegals who are doing the job at a third of the salary and no benefits. All these things are part of his plan to force America into slave labor for the common citizens, and big money for his corporation buddies.
These idiots put their political party - Republican, before the good of America.
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