GM closing could indirectly affect poverty

By STACY VOGEL ( Contact )   Tuesday, Aug. 26, 2008
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Median weekly earnings by education level

Median weekly earnings by education level

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Percentage of unemployment by education level

Percentage of unemployment by education level

— Many people worry that the General Motors plant’s closing by the end of 2010 will worsen poverty in Janesville.

The community has already started to feel the effects of job losses since the plant eliminated 1,300 positions through layoffs and buyouts this summer. Local suppliers, such as Lear and LSI, also have laid off hundreds.

But many of the workers—especially from GM—have safety nets. Contract benefits will make sure GM workers receive full pay or close to it for up to three years.

Marc Perry worries about the people who will now compete with unemployed plant workers for jobs.

“With GM moving out, it kind of moves everybody down a level,” said Perry, Community Action director of planning and development. “So it’s that group that’s making $12 to $16 an hour, that group that’s just above poverty … that’s now going to be competing against GM workers for jobs.”

Community Action and the Southwest Wisconsin Workforce Development Board are working together to try to help workers affected by the changes, said Bob Borremans, executive director of the board.

The workforce development board oversees the Rock County Job Center, which offers resources to job seekers and those in poverty.

The groups want to find a way to encourage employers to hire and train workers who might not have the skills—or the resumes—to compete in the new workforce, he said.

“How can we provide the support systems that will relieve the employer of the bureaucracy and the accountability?” he asked.

Meanwhile, local nonprofits will probably deal with fewer resources themselves, Perry said. General Motors was known for its community contributions, such as food drives and fund-raising campaigns.

“GM has been a huge supporter of nonprofits for years, so I think there’s that concern, as well,” he said.

Still, Borremans sees community groups banding together in this time of need.

“There’s more willingness to partner, and there are agencies that are bringing resources to the table and looking at ways we can collaboratively bring services,” he said. “You can’t do it alone anymore.”







reader COMMENTS (26)
RUSerious
Aug 28, 2008 at 2:59 p.m.
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Well pwrtrip-I cannot explain your friend's situation-I don't even know his "story". But-if you admit to hanging around with a known drug seller, and were riding around in a vehicle stolen from GM's lot (one of GM's newly produced vehicles? They're not in employee parking lots, you know. But, I suppose the guard went with you), I cannot convince myself that your character would have honesty as one of its top virtues.
You say "I declined employment there 10 years ago." You turned down a job where you could make good money/benefits? Was it to avoid close contact with "undesirable" people? No, you have no problem telling us you count that kind among your friends. But don't complain about someone who took the job you turned down. And, by the way, did GM come to you and offer you a job and you turned it down-or did you apply, got the job, then turn them down? Just wonderin'. Some people think it's hard to get in.
But look-this isn't the story subject-we know what the subject is and I'm sorry for going in another direction. They sure had a reason for printing it. There is good reason for genuine concern about the future of our area for various reasons, but there should be no doubt that a complete GM closing will have some degree of impact from various angles.

Pwrtrip
Aug 28, 2008 at 1:17 p.m.
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My friend got busted...he still works there. Explain that. Im not against them, nor would I want to ever work there. I just happen to know the real life inside the plant and how it is a little distorted to the media. Its hyped up to be better than every other place. I declined employment there 10 years ago. Because Ive been around people that work there my entire life.

RUSerious
Aug 28, 2008 at 12:39 p.m.
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Oh Pwrtrp? And I suppose the union kept or got the incarcerated ones out of jail, too? No. Those found guilty (in the drug raid) lost their jobs. Period. Neither the union nor the company-or fellow employees-wanted those people there-why would they? What benefit would they have gained from keeping them? Is the worker more powerful than the company and the union? Were the on the job undercover agents even undercover from the company? Why would you want anyone to believe that? Swept under the rug? I think it was pretty big news.
Why do you have a problem with some saying they are good workers (meaning the ones that are, of course)? It’s only people with issues with GM workers’ pay/benefits that want every one of them to be known as a no account, drug-dealing lazy bum! And yes-the Union does protect them-that’s part of what a union is for. But-some infractions are too great to be considered defensible.
Ones with a good, solid work record certainly should be considered competitive employees in the same kind of work. Take a listen to this opinion:
http://wclo.com/podcasts/stan-milam-show...
Let’s get back to the story. GM workers have long had an impact on alleviating hunger and problems caused by poverty in the area. There may be some who transfer or otherwise may not be able to continue that some day (to the same degree.) Volunteering? Some long-time GM volunteers have stepped up that work because-yes-they have more time now. And they are giving it away to help those in need. It is what it really is!

Pwrtrip
Aug 28, 2008 at 11:58 a.m.
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Im not saying they are evil, you just said they are better than everyone else because of GMs low turnover. Which isnt true...the union does protect them a lot. I see people hired every day and fired too. You dont sound like a very bright HR person. If you judge people on their past I hope your place folds up. If someone shows up on time, and does thier work as expected I see no reason to hold thier past against them. Everyone deserves a second chance and people like you hold them back. People like you are keeping people jobless and aiding to the poverty issue at hand.. thanks.

HeatherH
Aug 28, 2008 at 9:41 a.m.
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Pw, we understand. GM workers are evil, they are awful employees and any company would be foolish to hire them. Of course they would be better off hiring someone who has no desire to work, hasn't held a job for more than 2 weeks, and doesn't understand why they can't make $15/hr.

How much experience do you have in hiring/training? If I had a dollar for every applicant who comes into my place of business with felony records for theft (and want to handle money), sporadic work history, and completely unprepared, I would be able to have some fun little toys in life.

I guess now I'll have to make sure that if a GM employee comes in I throw their application directly into the no bin since you've enlightened me.

GM leaving town WILL hurt Janesville. To say it won't is completely denying the problem. I'll be interested to hear from you after things do get worse and see how much of the blame you place on GM since they're apparently evil.

Pwrtrip
Aug 28, 2008 at 8:11 a.m.
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BS... I know people that have got busted for selling drugs there, there was a huge raid. They still work there. How many people does GM employ there? And how many work directly on the line? Its hard for a line worker to go home and sleep yes. No hogwash here. People have even taken the vehicles off grounds and went to bars with them. I know...I rode with.
Security has cracked down more down there, but its still a very loose ship. But yea...lets just pull the rug over it and pretend its the best place with the best workers. Makes no difference to me really what you think. It is what it is.

RUSerious
Aug 27, 2008 at 4:48 p.m.
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pwrtrp: "Yes...You can steal, sell drugs, get busted and still keep your job. You can be a prostitute there and keep your job. You can go to work, punch in, then go home and sleep for 8 hours then come back and punch out. Believe me Ive had direct connections with several people for the past 25 years who work there." As they say...you are known by the company you keep.
Who builds the vehicles while all this is going on?
But-in general, the entire statement is hogwash. Punch in-go home-sleep 8 hours? No one notices? No one even cares?? To borrow your own statement "lol...give me a break!"
And, FYI-the union does not protect drug sellers, nor drug users on the grounds.
Again-to paraphrase you: Ive had direct connections with many people since before I was born who work there-both sides.

Pwrtrip
Aug 27, 2008 at 2:42 p.m.
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HeatherH - GM doesnt have a turnover rate...not because the employees are so good and hard working, because they are union protected. Yes...You can steal, sell drugs, get busted and still keep your job. You can be a prostitute there and keep your job. You can go to work, punch in, then go home and sleep for 8 hours then come back and punch out. Believe me Ive had direct connections with several people for the past 25 years who work there. Why does a vehicle cost so much? Because GM because the union demands so much pay. All newhires to GM only make half of what the old timers make. GM is trying to eliminate the high paid people...early retirement, buyout... and reduce its staff to lower paying employees. So GM is not all its cracked up to be anymore...regardless what you and the media say. The days of the line worker making $30+ an hour are over. So even with its doors open its reducing the amount of income for Janesville. Pay is going down...Taxes going up. GM used to be the king pin for Janesville. The town has grown and while it has supporting businesses, I dont see it turning into a "Beloit" because of GM closing. Its psychological impact is what is effecting everyone...and that is it. How many people that actually live in Janesville are going to be out of work? (not counting people who took the buy-out or retired). Anyone know the exact number? This is just like the Y2K scare...everyone go stock up on canned food and water...HURRY!!!!

RUSerious
Aug 26, 2008 at 10:19 p.m.
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Pwrtrp: You said “Sympathy? lol...” I’ve NEVER heard a GM worker asking for sympathy! For months some posters have been blasting GM workers because “Janesville bends over backwards for GM people...People lose their jobs every day and go unrecognized...” Do you really think this is being done for the individual worker? Do you really think that if ONE GM worker lost his job-the city would pull out all stops for him? It is the impact on the whole area that is the concern. These employees didn’t ask for these “perks”. It is the COMPANY being courted, not its employees! You said “Look on the bright side...we should have plenty of people available to volunteer at Rotary Gardens.” Yep-and they DO volunteer/donate-in spades!
BUT-These posters also say about GM workers: They are whining even though they get high pay, extended benefits if they lose their jobs...well, look again-the whining is done by people who DON’T LIKE that they get these things. As I’ve said before, do you really think the worker who produces a $2 burger, $10 t-shirt, an $800 television should get the same pay as someone making a $20,000 vehicle? Who gets the rest? Or do you think they should/would all be the same price? Or do you maybe think the vehicles could be yours for $5000 if GM workers would insist on making $10 and hour/no benefits? Not when the execs get millions of dollar bonuses/the more they take back-the more they get. These standards were set when most employees were hired on: pay scale, formula for raises, benefits, etc. Who among us would go to GM and say: “I will only work for you if you can pay me less, like my neighbor working at (random employer) makes!” OR “I would never take a job that pays that much!”? I can’t think of anyone-can you? On the other hand, who might have taken a GM job and said “This is one way to get me on my feet so I can make a good life for my family!”? I will tell you who, Pwrtrp...thousands over the last half century. That’s who! If you and some like you could take away the last decades of prosperity in Janesville, due at least in part to the income of GM families and related businesses, what would we have? Your guess would be different from mine I’m sure-but we will never know. And I’m glad.
Now-on to the “poor” among us: You appear to have little sympathy for them, as well. Apparently, they’ve all brought it on themselves. Some, maybe. But there are many paths to poverty. Let’s hope neither of us accidentally crosses one of them.
You said “With GM closing down, everyone making less will actually move up...Middle wage people of Janesville will for once be respected.” Well, since you don’t already know-individuals are respected, incomes alone are not. (But-they are apparently envied, hated or sneered at by some.) You apparently want some form of communism or socialism. You’ve come to the wrong country.

SarahB
Aug 26, 2008 at 6:54 p.m.
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HeatherH: You know, you're right! I have to laugh now and am glad you wrote a follow-up for me. I am blessed to have worked in a variety of jobs (I have three college degrees, all in different fields) and have yet to find a job that I have not enjoyed. In fact, I was just speaking with a friend on the phone about how the jobs that I have enjoyed the most have paid the least. (But I still need a certain amount of income to make it in life ... but I live cheap too.) Anyway, you are right about those that complain constantly at work; after listening to them threaten to quit over and over, I sometimes wish they would just do so and get it over with. LOL! Thanks, HeatherH.

HeatherH
Aug 26, 2008 at 4:33 p.m.
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Sarah, I understand what you're saying, and I agree that a former GM worker might not like taking a 50% pay cut. At the same time, I do think they'll be grateful to HAVE a job. When you're used to doing something with a huge chunk of your day, it's a big adjustment to have nothing to do. With the way things are bound to look, those who have jobs will be the lucky ones and many will know that.

Truth be told, those with a good work ethic aren't going to be the ones griping about low pay. From my personal experience in management, the ones who gripe the loudest are the ones who do the least work, miss the most time, and don't EARN more than what they make.

SarahB
Aug 26, 2008 at 4:28 p.m.
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HeatherH: I hear what you are saying, but I also wonder how many GM workers will let their "contract benefits" run out before seeking a new job? In addition, if I were the boss at a place paying $10/hour, I probably wouldn't expect to hear much gratitude from a new hiree used to earning more than $20/hour. And, if the new job does not have a union ...

Unidentified
Aug 26, 2008 at 4:18 p.m.
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Pwrtrip: I get a laugh every time someone is so naïve to reality and so lacking in compassion. For example, there are probably more people being laid off that don’t work for GM, because of the plants potential closing, than work at the plant. Most of those people aren’t getting big severance packages, transfer rights, or sub pay. However, the cause is still the GM plant. In addition, there is –not--- ample work available for thousands of displaced workers. I’ve had friends look for work for months only to end up with a ten dollar an hour job. Granted, its work, but it won’t pay the bills for long. In addition, instead of a few dozen people competing for that ten dollar an hour job there are now hundreds. The type of bitter attitude some people display on these blogs would be reason enough for a big company to steer clear of Janesville. Whether it’s bashing GM or Mercy, it’s never good to see the areas two largest employers or employees getting hammered time and again. Nearly every Google search for Janesville will bring up a Gazette news article. As a result, don’t think these comments won’t get read by perspective companies looking for a new place to call home. Lastly, don’t think that GM closing won’t trickle down through the entire community. For instance, most of the people laid off are still receiving insurance (for three months after being laid off) and unemployment benefits. Additionally, a whole shift worth of GM and related companies are still working. Accordingly, the majority of the influence this announcement has on the community hasn’t begun to be felt yet. The impact of this announcement will likely not be felt in its entirety until GM makes a final decision to close (hopefully not) and those affected run out of money, which may take years. It is without doubt, though with work it could be temporary, that the standard of living in Janesville will decrease and the poverty level increase.

shorty64
Aug 26, 2008 at 4:12 p.m.
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PS, I guess we can see by the "intelligent one's" in this post who might be first in line at Rotary Gardens donating their time, obviously there are a couple here that have no life/job.

shorty64
Aug 26, 2008 at 4:09 p.m.
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Sad thing is, is with the loss of any jobs; unfortunately the students are then left looking for a job after the adults are forced to take them. Shame on ANYONE who wishes ANYONE, GM or McDonalds to lose a job. GM employees aren't the highest paid in Rock county, look around ar your county, city, Drs. etc. Lighten up people, being so negative is known to take years off a persons life.

HeatherH
Aug 26, 2008 at 4:06 p.m.
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Pw, you apparently haven't taken an economics course. GM workers losing their jobs IS a huge deal for Janesville and Rock County. The job market is already in a slump, now there are going to be 2600 more people looking for a job. That doesn't bode well for those who are currently looking or looking at the time GM workers are looking. And if those workers find work in Madison, Milwaukee, etc, do you think they're going to stick around? That leads to loss of tax revenue from property taxes, sales to local businesses, etc.

Sarah, the GM workers may very well be more employable than other workers who are looking for a job. I would assume that GM doesn't have a high turnover rate among the employees who are going to be losing their jobs. That means they have a stable work history when many do not. They have dealt with corporate politics, so they are probably less likely to gripe about rules. Both of these are attractive to potential employers.

SarahB
Aug 26, 2008 at 3:55 p.m.
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Why would a GM worker be more employable (outside a GM plant) than any other worker?

janesvillean
Aug 26, 2008 at 1:13 p.m.
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garyprimer, they're all indirect examples. The expectation is that GM workers will continue to be among the most employable. It's the people holding marginal jobs who will suffer as less skilled workers are pushed down the "food chain".

Pwrtrip
Aug 26, 2008 at 11:18 a.m.
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RUserious you are putting words in my mouth i didnt say. Im saying Janesville bends over backwards for GM people. No one else matters in a nutshell. Look at Jackson St. Look at Hwy 14, and hundreds of other unsafe broken up roads. Thats just one example. People lose their jobs every day and go unrecognized. Why is GM such a big deal? Life goes on...these people have how much of a notice that its closing? Ample amount of time to find new employment. PLUS!! They get compensated for gettting let go...severance pay or what ever you'd like to call it. Sympathy? lol... give me a break. Look on the bright side...we should have plenty of people available to volenteer at Rotary Gardens :)

garyprimer
Aug 26, 2008 at 10:59 a.m.
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Aren't these all examples of the Gm closing directly affecting poverty?

RUSerious
Aug 26, 2008 at 9:50 a.m.
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pwrtrp(says it all!): Middle-wage people are not respected-or disrespected-because of the money they make-it is a person's character that should determine that. Apparently-to you-those in poverty, or those working hard for a living at GM or doing anything that makes more than you are not to be respected. Why is that?

BillyDurant
Aug 26, 2008 at 8:58 a.m.
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Pwrtrip -

How can you say, "close that place down!" That is ridiculous. How would you feel if someone said to close your place of employment? GM employs thousands in southern Wisconsin, so what you said is a slap in the face to all of those hard working people and their families. How can someone have such ill will towards a group of people that may be losing their jobs? Also, your comment about Beloit was uncalled for as well.

cyclepath
Aug 26, 2008 at 7:39 a.m.
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Please people, proofread your comments before you post them. Good one pwrtrip on the stoplight factory.

mrmeadec
Aug 26, 2008 at 7:05 a.m.
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Janesville needs lots more middle wage jobs for that to work. Right now if you want one of those jobs you need to look outside of Rock county. I've have worked in Jefferson County the last 8 years and still waiting to find something in Janesville or even Rock county that i can make what i make $$$$

Pwrtrip
Aug 26, 2008 at 6:24 a.m.
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With GM closing down, everyone making less will actually move up!! Everything wont revolve around GM workers anymore. Middle wage people of Janesville will for once be respected. Just dont let this town turn into Beloit. Close that Place down!!! Maybe turn it into a stoplight factory to support Janesvilles needs? Just an idea.

doc0430
Aug 26, 2008 at 5:22 a.m.
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2010 is being very oppionistic at best and the Gazette doing what 10 11 12 articales on poverty and such,. WOW! Are you kidding me or is the world actually coming to an end thats right folks you read it here first!!!!!! Now folks reach around grab firmly around the base of your skull, pull backwards until you feel or hear A pop! Thats when you know you now know you have your head out of your rectum! Attention people the sky is not falling and the world is not coming to an end! Get over it!

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