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Saturn workers get federal aid
Del. awarded $3.1 million to provide training for autoworkers losing jobs
LULADEY B. TADESSE
delawareonline.com
06/17/2004

Delaware is getting $3.1 million from the U.S. Department of Labor to provide job-related training for laid-off workers at General Motors' Saturn plant near Newport and its suppliers.

The federal emergency grant is the largest discretionary award ever to the state's Division of Employment and Training, meaning it can use the money for whatever it wants. State labor officials asked for the grant to help support the more than 1,000 workers who are losing jobs because of GM's decision to cancel the Saturn L-series.

Last month, GM said it would begin laying off 872 workers in mid-June. Wednesday, the automaker revised that number to 700 and said the other employees would stay on at the plant to do maintenance and other tasks. An additional 260 people at Johnson Controls Inc., Lear Corp. and Automodular Assemblies Inc. are expected to lose their jobs.

The Saturn plant has been shedding its work force gradually as it winds down production of the L-series. GM is pulling the plug on the vehicle a year earlier than originally planned, and the last of the cars will come off the assembly line today.

"Obviously, it's not a good thing for the people at the plant, but this car has had a problem since its introduction," said Alan Baum, director of forecasting at automotive consultant Planning Edge in Birmingham, Mich.

The L-series was Saturn's first entry into the midsize car market. But the model, assembled only at the Boxwood Road plant, has been unable to win much of a share of the largest and most competitive segment of the U.S. car market. The plant has the capacity to produce 287,000 cars a year, but the L-series never reached 100,000.

"The car will be unmourned," said David Healy of Burnham Securities Inc. He estimates GM lost $3,000 to $4,000 pretax on every car.

Full Article Here

 

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My job sucks *** and I am still working. Can I get some money from the government too? Apparently it is all the rage nowadays.
 

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Simply ridiculous use of taxpayer's money on people who were producing a horrible product ill conceived for this market. GM should foot the entire bill for the retraining, but is not the taxpayer's responsibility to cover the mistakes of stupid corporate leaders. We American taxpayers should demand GM to reimburse our government for the overall cost of this outrageous situation.
 

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In the meantime, the laid-off workers will receive benefits and pay equal to up to 95 percent of their base wages for up to 42 weeks, after which they join the company's jobs bank. Workers in the jobs bank are paid full salary. The average wage of a line worker at the plant is $26 an hour.
wait if they are getting all of that for doing ummm NOTHING!!! then why do taxpayers like myself who work long and hard i might add have to pay for them!!!
this is what pisses me off about democrats. . . sorry if i angered any leftists or UAW members. . . wait no i am not. . . ok done venting now <_<
 

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Originally posted by laserwizard@Jun 18 2004, 02:51 AM
Simply ridiculous use of taxpayer's money on people who were producing a horrible product ill conceived for this market.
not to spur on the exact same debate that went on a while back over this... but the product was horrible because it was ill-conceived, not because it wasn't built right. the L-series didn't fail due to quality issues. it failed because it isn't appealing enough. can't blame the line workers for that! they screwed together a car that no one wanted. it was their job to build it, not to sell it.

i never did come to understand the 'paid not to work' deal, but i see job-related training differently. perhaps GM was favoured here, but normally i'd think it's a good thing when unemployed people are retrained to find new work. i'd just hope this program would be extended to unemployed people in other companies (johnson controls and automodular, according to this article), and other industries too. now, they'll be able to go out and hopefully find new jobs... not sit at home and collect money while not doing a thing. seems rather proactive to me.
 

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The car never sold because the front of the car is UGLY. A friend of mine has one, its an ok car. Its just that ugly front.

As far as giving money to retrain, thats BS. Nobody should give them money. Not GM nor the Gov. I wouldn't like to lose my job, heck my mom works for GM in the OK city plant. If they let her go, she shouldn't receive money to be retrained.

Another example of why the country is screwed up. <_<
 

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If you read the article closely, it says the State of Delaware can use the money as they see fit. It does not mean that it all goes to retraining the workers at the plant.
 
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