Post by Dan Cummings - Many will tell you the first body blow against Central NY's old-line manufacturing base was Allied Chemical's decision to close it's Solvay plant right in the middle of the 1980's. The two decades-plus that followed have brought a long list of factory closings and cutbacks. Layoffs and downsizing. Mergers and acquisitions. This week comes word that the biggest single blow could yet land: the closure of the New Process Gear plant in DeWitt.
A decade ago, the plant was riding high. Now, the new owner says it may ride into the sunset...if the union won't accept massive wage and benefit cuts. The domestic auto industry is in decline and Magna says it can't afford to keep the plant open under its "current cost structure" (read high union wages).
Can the local economy weather the loss of 2,700 of the best-paying manufacturing jobs in the region? Should the UAW members accept the pay cuts to keep the plant open? Many are wondering if Magna, the new owner, will keep the plant open for long even IF New Process Gear workers agree to the concessions being demanded. At the very least, we're hearing, the workers want some guarantee of job security in exchange for giving back so much in pay and benefits. After all, they say, when Magna came into the picture a few years ago, executives with the new company promised a future for the plant...a future that would extend at least until 2011.
The new national Chrysler contract that covers most of the hourly workforce will cushion the impact of any plant closing, should it come to that.
Today, a Magna executive told Onondaga County Executive Joanie Mahoney the next week to ten days should tell the tale at the bargaining table. Then, and only then, would any offers of local or state government assistance come into play. Mahoney tells me she was encouraged by her conversation with the Magna boss today, if only because he said he wanted to continue the conversation after the union finishes negotiating with the company.
Governor Spitzer met today with local UAW leaders on the New Process Gear situation. After that meeting, when I asked Spitzer directly, he refused to offer any details on what was discussed.
For New Process Gear workers and the families who depend on those paychecks, here's hoping this will not be the winter of their discontent.