GM Slashes Shift At Janesville Plant
Officials: 750 Workers Could Be Laid Off
Updated: 12:34 pm CDT April 29, 2008
JANESVILLE, Wis. -- General Motors officials announced plans on Monday to cut one shift of workers at its Janesville assembly plant.
VIDEO: Watch The ReportThe layoff, which officials said could affect about 750 workers, will be effective July 14.Officials said that workers will make sport utility vehicles during one shift instead of two.The plant currently has two shifts each making 44 SUVs per hours. After July, the single shift will make 58 vehicles per hour.Besides the Janesville plant, GM officials said that they will cut one shift at three North American factories that make pickup trucks and big SUVs, resulting in some layoffs. They said that the cuts will affect pickup factories in Pontiac and Flint, Mich., and Oshawa, Ontario, Canada.Officials said that the cuts are due to sagging sales, brought on by high gasoline prices and a housing industry downturn.The company said that the cuts mean it will make about 88,000 fewer pickups and 50,000 fewer large SUVs this calendar year.GM said that the number of layoffs will be worked out with its unions.Many of the employees didn't learn about the layoffs until they got to work on Monday afternoon, WISC-TV reported.GM officials sent a letter to employees."It goes without saying that many employees will have important questions and concerns related to this announcement. Please be patient and, know that all of your questions will be answered over the next few days and weeks," plant manager Gary Malkus said in a written statement.Workers inked a new union contract with GM last fall, which created a buyout option for some employees with a certain number of years of service.According to the Janesville Gazette, workers have until May 22 to sign up for the buyout option.
VIDEO: Watch The ReportThe layoff, which officials said could affect about 750 workers, will be effective July 14.Officials said that workers will make sport utility vehicles during one shift instead of two.The plant currently has two shifts each making 44 SUVs per hours. After July, the single shift will make 58 vehicles per hour.Besides the Janesville plant, GM officials said that they will cut one shift at three North American factories that make pickup trucks and big SUVs, resulting in some layoffs. They said that the cuts will affect pickup factories in Pontiac and Flint, Mich., and Oshawa, Ontario, Canada.Officials said that the cuts are due to sagging sales, brought on by high gasoline prices and a housing industry downturn.The company said that the cuts mean it will make about 88,000 fewer pickups and 50,000 fewer large SUVs this calendar year.GM said that the number of layoffs will be worked out with its unions.Many of the employees didn't learn about the layoffs until they got to work on Monday afternoon, WISC-TV reported.GM officials sent a letter to employees."It goes without saying that many employees will have important questions and concerns related to this announcement. Please be patient and, know that all of your questions will be answered over the next few days and weeks," plant manager Gary Malkus said in a written statement.Workers inked a new union contract with GM last fall, which created a buyout option for some employees with a certain number of years of service.According to the Janesville Gazette, workers have until May 22 to sign up for the buyout option.Doyle Promises Help For Workers
Meanwhile, Gov. Jim Doyle promised to help 750 workers at the Janesville plant who will be laid off. He promised Monday to send a rapid response team to help the workers expedite unemployment claims and give them access to job training and placement services.The governor said that the state will also work to get an extension for unemployment benefits for two years and up to $15,000 for additional education and retraining for eligible workers.Doyle encouraged all those affected to ask about available services at their local job center or call toll free at 888-258-9966.Stay tuned to WISC-TV and Channel 3000 for continuing coverage.
Previous Stories:
- April 9, 2008: Janesville GM Workers Laid Off Due To Production Cuts
- March 19, 2008: GM To Temporarily Layoff Some Janesville Workers
- March 13, 2008: Janesville GM Plant To Temporarily Lay Off Some Workers
- March 6, 2008: GM: Janesville Plant To Shorten Shifts Next Week
- February 13, 2008: GM Offers Employees Buyout
- December 20, 2007: GM To Cut Production At Janesville Plant
- October 4, 2007: GM Workers In Janesville Vote To Ratify New Contract
Copyright 2008 by Channel 3000. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
