| Auto layoffs hit home |
| Goodyear sheds 75 jobs in the wake of
slowdown in auto sector |
| By Morgan Ian Adams |
| Enterprise-Bulletin (Tue, February 13, 2000) |
| COLLINGWOOD - The woes of the Big Three automakers is
quickly translating into cutbacks at local auto supply plants. |
| Larry Spilker, plant manger of Goodyear's Collingwood
facility, confirmed 75 production workers had been laid off because of
production cuts at General motors, Ford and Daimler Chrysler. |
| While the plant, which manufactures automotive hose - 100
per cent for what's known in the business as original equipment - for Ford
and Chrysler, about 80 per cent of its business goes to GM. |
| Two weeks ago, Daimler Chrysler announced it was cutting
about 26,000 jobs in its North American operations over the next three
years - of which at least 3,000 are in Ontario, Analysts predict about
15,000 jobs in the automotive sector are at risk, with both Ford and GM
expected to announce cutbacks with a softening of the market for new
vehicles. |
| General Motors has already announced plant shutdowns for
February as the automaker looks to trim back on its inventory, and it
plans on building about 20 per cent fewer cars in the first quarter of
this year compared to last year. |
| Spilker said there's been a 20-25 per cent drop in orders,
with little indication when things could start to look up. |
| "You're guess is as good as mine," he said.
'But we're seeing continued weakness through the firs quarter." |
| Geoff Dalziel, president of Canadian Auto Workers Local
1995, said while he's concerned for the 500-odd employees he represents at
the Alcoa Wheel Plant, he is confident the slowdown in the auto industry
will be short lived. |
| "Definitely, I'm concerned," he said.
"But with Chrysler, the consensus seems to be it's their own
mismanagement - again." |
| A representative for Pilkington LOF Glass said the local
auto glass manufacturer has not been affected by the slowdown in the
automotive industry, and should not be affected. It was explained
Pilkington was adding new lines - an investment in the local plant of $30
million. |
| Spilker said his plant typically operates knowing what the
firm orders are going to be five weeks ahead, with a 'vision' of what
could be coming for the following two months. |
| "We've seen a reduction from what was originally
projected," he said. |
| He also acknowledged the "just-in-time' delivery
system - where manufacturers maintain little inventory - also contributes
to the fast and furious pace at which layoffs happen down the line of
manufacturers. |
| In the past, manufacturers built up inventory during slow
periods, allowing them to postpone, or even avoid, layoffs. |
| "It (layoffs) really does happen a lot faster,"
he said. "All businesses over the years have gone with less and
less inventory - but the bottom line is if you build inventory, you
destroy your cash flow." |
