[Congressional Record (Bound Edition), Volume 155 (2009), Part 11]
[Senate]
[Pages 14724-14725]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            JOB LOSS CRISIS

  Mr. BROWN. Madam President, in my State of Ohio and States such as 
Michigan, Indiana, Pennsylvania, middle-class families already hit by a 
terrible recession are facing a new wave of devastating job losses and 
plant closings. Some 400,000 Ohioans are employed, directly or 
indirectly, because of the auto industry. The auto industry crisis is a 
crisis especially in my State and in Michigan and in the other States 
in the region.
  As Congress works to help the industry through these most difficult 
times, the industry must do all it can to keep jobs here at home. That 
is why it was welcome news when GM announced that rather than start 
more small car production in China and Mexico, which they have done in 
the past, they would open a new small car manufacturing plant somewhere 
in one of these auto States.
  This crisis has hit home in my State, especially in Mansfield, where 
GM has one of its best stamping plants. Workers at this plant were 
asked to make concessions over the past 2 years, and they did. They 
were asked to produce in an exceptionally efficient manner, and they 
now rank at or near the top, across a range of performance standards. 
The Mansfield GM Fisher Body Stamping Plant played by the rules, did 
all that was expected of them, and they made it to the top, literally 
to the top of GM's stamping plants. Yet GM has decided to close this 
facility.
  GM's decision not to include the Mansfield stamping plant in the New 
GM, this new coming-out-of-bankruptcy company, one that is focused on 
building fuel-efficient cars for the 21st century, is troubling, it is 
more than troubling to employees and members of the Mansfield community 
and to me.
  Yesterday, I met with GM officials who were direct and polite and are 
trying to do their best. I met with GM officials to try to understand 
their decision. I am not convinced this makes sense for the New GM, to 
close this Mansfield Fisher Body Stamping Plant. I know it does not 
make sense for Ohio. GM's own scorecard shows the Mansfield plant has 
met nearly 100 percent of its targets and has a productivity rate of 94 
percent. According to GM's records, it is the single highest ranked 
stamping plant in GM.
  The plant that is a very close second is 70 miles away, north of 
Mansfield, in Parma, OH. By GM's own records, those are the two top-
rated stamping plants. It makes little sense to me and to the town and 
GM workers at Mansfield that the company would not want its best and 
brightest to embark on its new path toward success.
  The auto crisis hit home in Twinsburg, OH. Twinsburg is the home of 
the most modern stamping plant in Chrysler's network. It ranks among 
the highest in safety and productivity. Yet Twinsburg's workers and 
their families got the rug pulled out from under them last month. The 
crisis is playing itself out every day as auto suppliers struggle to 
find credit.
  So it is not just Mansfield and Twinsburg, it is not just the loss of 
fewer than 100, but 80 or 90 people in families in the Columbus area 
who lost jobs when a GM supply center announced it was closing. It is 
also what happens to those companies that supply the auto companies, 
and they, frankly, employ more workers than the auto companies 
themselves do.
  The crisis plays itself out every single day as auto suppliers 
struggle to find credit. If a manufacturer has auto customers, banks 
seem to put them on a black list and do not want to extend any loans, 
even those backed by the Small Business Administration.
  The crisis plays itself out in Warren and Dayton, where Delphi 
salaried workers, who played by the rules, are left without the 
pensions they deserve. These stories from Mansfield, from Twinsburg, 
from Warren, from Dayton,

[[Page 14725]]

from smaller communities are, unfortunately, not unique. There are more 
stories, stories from small Ohio towns such as Trotwood, near Dayton; 
Van Wert, on the Indiana border; and Greenwood and from other cities 
across Ohio and the Midwest.
  That is why it angered me when I sat in the Banking Committee as I 
was chairing, as Chairman Dodd was working on health care issues, when 
I heard these restructuring proposals for Chrysler and GM portrayed by 
my more conservative colleagues in this body as ``giveaways'' to 
workers. When they label this as ``everybody sacrificed except the 
workers,'' the workers have seen tens of thousands of lost jobs. We 
have seen a $7-an-hour cut in compensation for these workers. That is a 
$14,000 a year hit that these workers are taking. They are far from 
giveaways.
  American autoworkers, their families, and their communities are all 
in this together and have suffered with their communities perhaps more 
than anybody.
  Just 3 years ago there were a quarter million members of the UAW. 
After these GM and Chrysler restructurings in the auto industry, that 
number of worker members will be below 100,000. These are men and women 
who make up our Nation's middle class, the heartbeat of America, if you 
will.
  They work hard, they support their families. They are watching as 
their chance at the American dream goes up in smoke. It is an American 
tragedy. Anyone who dismisses it otherwise should be ashamed.
  Wages have decreased for entry-level workers. Wages have been frozen. 
Key health care benefits were eliminated for both active and retired 
workers. Understand, the much maligned legacy costs that companies are 
burdened with, if you will, these legacy costs, health care and 
pensions, were negotiated at the bargaining table when workers said: We 
will take less money in salary and wages today if you put that money 
aside for pensions and health care--for health care now and for 
pensions later. So they gave up dollars at the bargaining table. That 
is what these legacy costs are.
  These concessions, combined with swapping GM's contributions owed to 
the VEBA with stock, a step that will increase risks for retirees, will 
save General Motors billions. That is a good idea because we want this 
company to survive and thrive.
  Every facet of this restructuring has an impact on hard-working 
Americans, on their communities, their States, their Nation as a whole. 
We should ask yourselves this: Is the government doing everything it 
can to protect and create American jobs? Is the government ensuring 
that top-performing segments of Chrysler and GM are not sacrificed 
because of expediency or politics or information gaps or favoritism?
  I held a conference call with mayors from Ohio's auto communities 
recently. Nearly all of them raised the fact that they may need to 
eliminate police and fire and their other local government entities, 
eliminating teaching positions and others, because of the shortfall in 
tax revenue from plant closings. Some mayors have already done that.
  The worry from these mayors reminds us we are talking more about jobs 
and bottom line. We are talking about our Nation's manufacturing 
future. We are talking about our Nation's middle class.
  I yield the floor, and I suggest the absence of a quorum.
  The PRESIDING OFFICER (Mr. Udall of New Mexico.) The clerk will call 
the roll.
  The legislative clerk proceeded to call the roll.
  Mr. CASEY. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. CASEY. Mr. President, I ask unanimous consent to be permitted to 
speak for up to 15 minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________