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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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To: Willie Green
You are right, I am not that familiar with hose making. but I am familiar with a high tech assembly plant that went to Mexico and absolutely failed. The plant is now in Red China.
41 posted on 10/21/2002 3:09:16 PM PDT by CWRWinger
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To: contessa machiaveli
TWENTY YEARS OF LOYALTY.....

The plant in question made commodity products that can be made cheaper in places where there is no Steel Workers Union. Rubber/steel workers? why steel workers?

Because the union leaders destroyed the American steel industry and looked where ever it could for other industries to destroy. They found fools to listen to their promises of no work for riches in Nebraska

The loyalty to a union is misplaced. The union should have been decertified and then the jobs might have been salvaged. Probably not though because the cancerous union mind rot permeated the plant.

The only cure is putting the plant to death.

42 posted on 10/21/2002 4:28:25 PM PDT by bert
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To: bert
'Fess up ... you're Rush Limbaugh, aren't you?
43 posted on 10/21/2002 4:34:47 PM PDT by iconoclast
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To: Dickie Dryhope
Either get an education so that your productivity can support a high wage

Just curious, Dickie, what do you do for a living?

44 posted on 10/21/2002 4:37:34 PM PDT by iconoclast
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To: TheSpottedOwl
Minimum wage laws could also be part of the problem...

Would you be able to support yourself and any family that you might have if you all of a sudden were forced to work for $4 or less an hour?

45 posted on 10/21/2002 4:44:26 PM PDT by FormerLurker
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To: bert
You can make yourself a job.... if you decide you want to.

Perhaps selling hotdogs in the parking lot of Home Depot, where many engineers are now working the aisles ?

46 posted on 10/21/2002 4:51:17 PM PDT by FormerLurker
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To: FormerLurker
....Perhaps selling hotdogs in the parking lot of Home Depot....

Why not? activly participating is better than bitching and moaning.

The most hated phenomenon is change and the resulting uncertainty. People are lazy and love to make ruts and then live in them forever. Leaving the rut can be fun if approached in the proper manner.

47 posted on 10/22/2002 10:21:53 AM PDT by bert
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Comment #48 Removed by Moderator

To: fissionproducts
Are FReepers into free market or government controls? The union members are getting what they deserve. No one is entitled to a high paying job.

Is it in AMERICANS' best interest for their Government to pursue policies that will lower American working conditions, compensation and standard of living to Third World levels?

49 posted on 10/22/2002 11:11:12 AM PDT by Willie Green
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Comment #50 Removed by Moderator

To: Willie Green
Gates make great hoses.
51 posted on 10/22/2002 11:19:23 AM PDT by philetus
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To: fissionproducts
Well maybe you should be an advocate of protectionist trade policy.

A Proposal to Abolish the Corporate Income Tax

52 posted on 10/22/2002 11:20:55 AM PDT by Willie Green
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To: JoeMomma
Why do they need job retraining? The good folks at Lincoln NE did their jobs okay. The only sin the Lincoln workers committed was earning a decent wage to support their families.

This establishment idea of gradually lowering the income of American working class people to well under 3 world level is crazy.

The age for humiliation and degradation of the American working class is upon us like a large pile of rats chewing on the pages of the constitution.

53 posted on 10/22/2002 11:47:44 AM PDT by Logic_3
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To: bert
Why not? activly participating is better than bitching and moaning.

Selling hot dogs in the Home Depot parking lot doesn't pay the rent, never mind support a family.

54 posted on 10/22/2002 3:04:07 PM PDT by FormerLurker
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To: Logic_3
Your Post # 53 says it all!!!
55 posted on 10/23/2002 2:22:08 AM PDT by Robert Drobot
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Comment #56 Removed by Moderator

To: Dickie Dryhope
You sound like a good man and a good father.
I'm retired ... father of six, stepfather of five, grandfather of 16.
57 posted on 10/23/2002 5:22:35 PM PDT by iconoclast
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