|
 |
COMMUNITY RESPONDS
WITH GRIT,
DETERMINATION TO KEEP THE LINE RUNNING.
|
By Kevin E.
Kipp
City folk and country folk; Democrats and Republicans; management
and labor; folks who often disagree; heck, even Gov. Bob Holden
and House Speaker Catherine Hanaway, R-Warson Woods, agree:
The Ford plant in Hazelwood is a crucial engine for the regional
economy, and keeping it open is a super-priority for St. Louis and
Missouri.
The
immediate impact of closing the plant would be to
eliminate 2,900 jobs, says Ken Dearing, president
of UAW Local 325, adding, “Twenty-six hundred of those
are UAW jobs.” |
|
The immediate impact of closing the plant would be to eliminate
2,900 jobs, says Ken Dearing, president of UAW Local 325, adding,
“Twenty-six hundred of those are UAW jobs.”
The ripples would quickly affect nine Ford parts suppliers in the
state—and 3,000 more UAW jobs at places “like Lear Seating in St.
Charles with 600 to 700 jobs, or Woodbridge Foam that goes into
Lear Seating, with 200 or 300 more jobs,” he says.
Dearing notes that statewide, closing the Hazelwood plant would
put 11,000-plus jobs at suppliers and other vendors in harm’s way.
Moreover, those jobs represent $668 million in state revenue.
"THE
COMMUNITY PULLED TOGETHER. OUR JOINT ACTION IS SAYING
WE CAN'T LET THIS HAPPEN."
Chuck Mueller
chairman and CEO,
Ameren UE
|
|
Stung by a $5.45 billion loss in 2001, Ford Motor Company announced
on January 11, 2002, a massive cost-cutting reorganization that
called for reducing production from 5.7 million units to 4.8 million;
re-focussing on core business; eliminating 35,000 positions worldwide,
including 22,000 in North America; and closing five plants, including
the one here by mid-decade.
On the same day, Holden issued a statement assuring “the workers
in Hazelwood and all Missourians that we are prepared to respond
to this situation appropriately...” and directing state officials
to prepare that response.
Shortly thereafter, Holden announced the creation of the Ford Hazelwood
Task Force. It now comprises 22 business leaders, as well as federal,
state and local officials—elected and staff—of both parties.
To lead the group, Holden recruited Ameren Corporation’s chairman
and CEO Chuck Mueller. Mueller says Ford’s announcement “was quite
a surprise, particularly considering that the plant here has always
been very productive.”
But he grasps Ford’s challenges. “There’s overcapacity industry
wide,” he says, “with newcomers adding production and competing
for sales. They lost some ground. Now they have to make it up.”
For its part, Mueller says, “The community pulled together. Our
joint action is saying we can’t let this happen.”
Asked if he had reason for optimism, he says, “Number one, we have
a great location for a plant and a great record of productivity
and an excellent workforce. And I think Ford has to recognize the
dedication of our community to keep them here.”
Okay, that’s four good reasons. Mueller expanded on workforce excellence.
“Typically, the announcement of a shutdown is followed by a decline
in productivity,” he says. “Instead, our workers in Local 325 decided
to make it as difficult as possible for the company to decide to
close us down. They stepped it up, and the plant is among the most
productive in Ford’s system.”
Denny Coleman, president and CEO of the St. Louis County Economic
Council, credits fellow task force member Dearing for that. “During
what must be very stressful times, Ken has done a tremendous job
in rallying the troops, keeping the communication open between the
workers and the task force, keeping workers informed of what’s being
done to keep the plant open.”
Back to Mueller: “Another point to recognize is that Ford has to
shut down just a couple plants; we don’t have to beat out all the
other plants. Just a couple.”
More Mueller: “And we need a new product to replace the Explorer.
Several plants could be on the bubble; if they shut down instead
of us, then we could have the new product we need.”
Mueller concludes, “Something’s got to give, but it doesn’t have
to be us. It’s a business decision, and it’s up to us to make it
attractive for them.”
Patrick McKeehan, project director of the Ford Task Force says,
“The major theme of the package we’ve developed focuses on reducing
Ford’s costs.”
Coleman says, “Local incentives include significant tax savings
on investments in the plant especially in new equipment that will
be necessary to retool for a new product.”
At the state level, economic development incentives were bundled
into SB 620, of which Hanaway and Senate President Pro Tem Peter
Kinder, R-Cape Girardeau, were primary sponsors. In a press release
in February, Holden predicted, “Their leadership will be essential
to get this measure through the General Assembly.”
It got through. Holden signed it on June 18.
McKeehan explained that the legislation reduced taxes by expanding
eligibility for the Enterprise Zone program to include retention—not
just the creation—of jobs in “essential industries.”
It provided the means to reduce operational costs by amending BUILD
Missouri, a bond program that helps companies finance facilities
through a complex process of repayment and tax credits.
And it made skilled labor more affordable by expanding worker training
programs.
Task Force member Bob Coy, now senior vice president for economic
development at the RCGA speaks from experience. Several years ago
Coy headed economic development for then-Gov. Tom Carper in Delaware.
That state succeeded in turning around a General Motors plant closure
and preserving more than 3,000 jobs “by persistence and making a
compelling deal for GM,” he says.
Coy explains that the package, including state legislation, assumes
that Ford will need to assign a new vehicle to the plant here for
it to stay open. Moreover, retooling the 3.1 million-square-foot
facility will require a significant investment.
Hanaway notes that Ford must also be “willing to keep jobs in the
area for 10 years and make a serious investment in upgrading their
plant, on the order of $500 million.”
She says the bill is meant to protect the Hazelwood jobs—with an
average income more than $60,000—as well as those in 30 other Missouri
counties, a spread that reduced rural-urban tensions in passing
the bill.
“These are the kinds of jobs that we won’t replace, if we lose them,”
she says, “and they’re not going overseas; they’re going to Kentucky.
We cannot afford to lose the contest with other states for high-paying,
high-quality jobs. State policies need to be reformed, so we retain
and attract more jobs to Missouri.”
|
Gov.
Bob Holden tours the Ford plant in Hazelwood with
plans to keep it open. |
|
Hanaway also praised Democrat Holden. “The governor on this issue
was focused, aggressive and effective. He helped develop the package
to try to save jobs at the Ford Plant.”
And with members of the task force, he has energetically helped
present it to Ford management.
Mueller says, “It’s entirely Ford’s decision, but we have done everything
in our power to make it attractive to them. Their response will
also depend on the economic recovery—its vigor or lack of it.”
“And,” continues Mueller, the chairman of the St. Louis Federal
Reserve Bank, “I see it beginning to turn up, although slowly.”
Dearing exhibited the most nearly unabashed confidence: “I’m optimistic
that we’re going to be fine—between the package that we put together
with the state, the county and city, plus our UAW International
contracts are up. Our negotiators went to Detroit in July, and plant
closings are definitively part of the agenda.”
The negotiation deadline is this month.
Kevin Kipp runs Bubble Communications, a creative services and
community relations firm.
|
|
|
|
|
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
|
