More Manufacturing Jobs go the way of the Dodo
Friday July 31, 2009
As Ford Motor Company announced a $2.3 billion dollar profit for Q2 2009 they again sliced into the blue collar work-force of Northeast Ohio. Today, Ford announced that, even though they’ve turned a solid profit and their stock price has jumped 40% in the past two weeks, they will be eliminating 178 production jobs at its Avon plant. Back in April, Ford VP Marty Mulloy demanded that Ford receive the same concessions from the UAW that GM and Chrysler received. Mulloy contended that without these concessions, Ford would be disadvantaged.
Well Mr. Mulloy, Ford has turned a $2.3 billion dollar profit during the past quarter and Ford’s stock price has tripled since you made that argument. The UAW did its part to help Ford and now Ford repays that help by cutting 178 jobs.
The UAW did not return a call on this subject but did post on their website that it is their understanding that the move was the only way to maintain two production shifts at the Avon Lake facility.
Avon Lake Mayor Karl Zuber was much more willing to discuss the issue. Zuber expressed that the cuts are difficult for his city to absorb at this time, but that he is optimistic that if the economy rebounds, that many of these jobs will be restored.
According to reports coming out of Ford, a more fuel efficient van may begin production at the Avon Lake facility within the next few years. At least there is some reason for Zuber’s optimism. This blogger questions whether the cost savings to Ford, roughly .6% of it’s Q2 profit, justifies such a drastic reduction in force and the loss of hundreds of thousands in tax revenue for the community.
