Now after the Ford plant has closed many of them are back working civil service. As far as $75 bucks an hour, maybe not that much but they made a TON more than we make civil service and many of my old friends were making well over 100K/year and that was 10 years ago. Unfortunately now the plant that had been open nearly 90 years is closed for good in part to the economy and then to the cost of pay/benefits that Ford could no longer pay and still turn a profit
Matt B.
While I agree with some of the statements being made, Matt I have to tell you they do not close plants PURELY based on wage and benefits costs. You said it was a truck plant correct? Not sure when they closed it but I will add some additional comments for thought...
1st - If this plant closed recently - I would have to say it may have been due to the big increase fuel over the last several years ($4.00 a gallon plus). We all know most trucks do not get great gas mileage. Second, most of the Big 3 have multiple facilities where the same vehicle or vehicle type is made which can lead to underutilization of resources (to many facilities) leading to increased cost (Just think about this, how much do you think GM, Ford, or Chrysler pays per month in utility bills...I know the answer to one of them). Closing the facility was more than likely a business decision where operations from one plant was moved to the other so they could better utilize resources thus eliminating the costs associated with turning on the lights, power, equipment, air, furnaces, AC, and water to the facility that was not as efficient. Along with this comes the reduction of manpower as some of the workers were probably offered jobs at other facilities, some were bought out, and some just quit. My point to all of this is simply this,,,,,,these tough situations where plants are being closed has more to do with efficiency of operations than it does with the wages and benefits of current employees. I also agree that retirement benefits are hurting ALL 3 of the Big 3 from a cost standpoint. Also, you stated 10 years ago they were making over 100K,,,,,10 years ago the economy was booming, people were buying vehicles, people were not being laid off but instead were being hired, companies were posting great profits leading to profit sharing checks in many industries, many were expanding operations, consumers had confidence in the economy, and NO ONE, NO ONE was worried about losing their job and or gas prices. I could go on and on however my one and only point is wages and benefits are a small part of any business decision when closing facilities.....