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REVERSAL
OF FORD DECISION IS VIVID TESTIMONIAL TO BIPARTISAN STATEWIDE AND
REGIONAL PARTNERSHIP TO RETAIN FORD HAZELWOOD PLANT
The New York Times in a September 19 story captured the context
of Ford’s major announcement, noting “among the most surprising
developments this week was Ford’s decision to keep open a plant
in Hazelwood, Mo., in the St. Louis area, that it had said must
close as part of its corporate turnaround plan. Instead, it will
close the plant in Lorain, Ohio, west of Cleveland.”
Ford Hazelwood Task Force Chairman Charles Mueller
addresses business, civic, elected leaders and the
media at a news conference in Hazelwood on the successful
community effort to retain the 2,600 Ford Hazelwood
jobs. Mueller joined Ford officials, Governor Bob
Holden and other Task Force members on September 29.
Mueller gave special credit to the local UAW leadership
and the extraordinary productivity gains by the Ford
Hazelwood employees. |
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For the first time since January 2002 when Ford Motor Company announced
plans to close its Hazelwood assembly plant by mid-decade, the fortunes
of the 55-year-old plant have turned back to positive with the announcement
that Ford has taken the plant off the closure list. The Hazelwood
plant will remain in operation if employees approve a proposed labor
contract extending through 2007.
For the past 20 months, Gov. Bob Holden’s Ford Hazelwood Task Force,
chaired by Ameren Chairman and CEO and former RCGA Board chairman
Chuck Mueller—and made up of a joint team including the State of
Missouri, St. Louis County, the City of Hazelwood, and the RCGA—has
worked hard to develop a practical plan and strategy to retain the
2,600 jobs and $169 million in annual salaries, and some $20 million
per year in tax revenue to the State, generated by the Ford plant.
Missouri House Speaker Catherine Hanaway (R-Warson Woods) and Senate
President Pro Tem Peter Kinder (R-Cape Girardeau) championed legislation
in the regular session of the Missouri General Assembly. Many members
of the General Assembly distinguished themselves on this legislation,
particularly Senator John Loudon (R-Chesterfield), Representative
Tom Dempsey (R-St. Charles), Senator Rita Days (D-St. Louis), and
Michael Spreng (D-Florissant). This legislation, signed in June
by the Governor, was a dramatic illustration of the bipartisan partnership
that has characterized the work of the Ford Hazelwood Task Force.
Ford’s decision to take the Hazelwood plant off the closure list
is a huge relief not only to the 2,600 Ford employees in the region,
but to the State of Missouri and the entire bi-state St. Louis region
overall. In addition to the 2,600 jobs at the plant site, RCGA Chief
Economist Bryan Bezold notes that the Ford assembly plant generates
some 5,100 additional jobs in the metropolitan area, in fields ranging
from auto parts manufacturing to accounting and other business services.
The Ford Hazelwood facility has a total direct and indirect regional
economic impact of more than $2.6 billion annually, Bezold documents.
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Governor Holden tours the Hazelwood Ford assembly
plant. |
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Gov. Holden and the General Assembly, who have differences on other
issues, worked hand-in-glove on the Ford retention effort. Long
term, while the region still has challenges to sustain Ford Hazelwood—including
the need to ultimately identify another product to sustain the plant
beyond the four-year proposed labor agreement with the UAW that
expires in September 2007—if this community partnership continues,
the challenge can be met. |
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