Layoffs expected at GM supplier Lear
Podcast Episode
Janesville Gazette business editor Jim Leute talks to WCLO's Stan Milam Show about possible layoffs at Lear Corp.
JANESVILLE — Lear Corp. in Janesville is expected to lay off more than 275 people in Janesville because of production cuts at its largest local customer, General Motors.
When it takes effect this summer, the move will eliminate more than a third of Lear’s hourly workforce of 670.
Lear is a just-in-time supplier of interiors and seating systems to the Janesville GM plant. Lear wages typically run between $15 and $20 per hour, depending upon the job.
GM announced last week that it will eliminate second-shift production at the close of business on June 26. After a two-week summer vacation shutdown, GM will resume production of Chevrolet Suburbans and Tahoes and GMC Yukon XLs and Yukons on July 14 with a single shift.
GM has told the state that cutting the second shift would result in the elimination of more than 750 positions.
Sources have told The Janesville Gazette that the Lear layoffs could range from a low of 280 positions to a high of 350.
State Department of Workforce Development officials said this morning they were waiting for official notification from Lear, which could come as early as today.
So far, the GM announcement has resulted in the state being officially notified of a total of 882 layoffs at Janesville employers. With the expected Lear layoffs, that number could reach 1,200.
Logistic Services Inc., another GM supplier in Janesville, said late last week that it will lay off 132 employees in July. LSI and its 235 workers sequence parts and deliver them to the GM plant in Janesville.
Wages at LSI typically range between $10 and $15, with drivers earning more than warehouse workers.
With the Lear layoffs, the Southfield, Mich.-based company would employ about 375 hourly workers in Janesville. Eighteen months ago, the company had 945 hourly workers.
Earlier this year, Lear laid off 89 workers when GM announced it was slowing its two-shift production line from 52 jobs per hour to 44. Those employees were primarily second-shift employees who all had eight years of service at the facility.
Lear began operations in Janesville on a limited basis in 1990. A corporate spokesman said the company had no comment on the layoffs.
May 7, 2008 at 12:03 a.m.
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Lear makes seats for nearly every auto maker in nearly every part of the globe. However, most of Lear’s operations are based on JIT (just in time) delivery, which requires a plant close the auto manufacturers facility. Lear has opted to specialize in seat systems only and has sold a majority stake of its other interior components to an investment group. This was a result of the shrinking profit margins on door panels, trim components, and other minor interior parts. What does that mean you may ask? Well it means Lear Janesville either builds seats for GM Janesville or we’re screwed, since we don’t build other interior parts and there isn’t another auto manufacturer in close proximity. I don’t see a foreign auto manufacturer moving to Janesville anytime soon, seeing how we have a big UAW footprint here, so we can only hope GM can get 35 MPG out of a Suburban in the near future. Beep beep beep beep beep, oh sorry that was my alarm. I just woke up from a dream that GM managed to get 35 MPG out of a Suburban and we started working two shifts again. Oh…. look outside… a parade of Toyota Prius are driving circles around GM Janesville in celebration of its slow painful demise, wait this must be a nightmare. No I’m wide awake and it’s pretty close to the truth. I’m going to go back to sleep and see if I can’t summon up that first dream….
May 6, 2008 at 10:01 p.m.
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Dkush, on the flip side, by selling only to GM, both Lear and GM were able to cut costs through better supply chain management. This is a common practice. The big company, outsources parts of thir production process to a smaller company. The smaller company then moves close to the larger company to save on transportation costs. Maybe lear does make seats for somebody else, I really don't know. But if they did, they are making them right next door to those customer's plants, not here in janesburg.
May 6, 2008 at 7:03 p.m.
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I can't understand why these other companies who make seats and parts for GM don't sell to other companies as well. This is what happens when you sell to only one one company. They go down and everyone else who supplies to them does also. Put your eggs in more than one basket!
May 6, 2008 at 12:24 p.m.
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They haven't bothered to write that Lear management is meeting this afternoon to go over what they need for numbers to keep the line going. That is when I believe the true numbers of how many are losing jobs.
May 6, 2008 at 5:39 a.m.
May 5, 2008 at 11:35 p.m.
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It is very unfortunate that these jobs have been and are being cut.
These are families that have children or parents that they have to
provide for. I believe that parents, grandparents, etc... need to take a stand for there dreams and goals and take back our communties. The handwriting is on the wall. We need to have a Plan B, to not be on the outside looking in and wondering what happen to "My Job". I was in a similar situation working for almost 20 years on a job. I got hurt on the job, and my employer said, prove that you are injured. To make a long story short, we lost our home, we had to file chp 13, are credit was demolished. It was devastating for my family. However I learned I very valuable lesson. A Job only paids you enough money so you won't quit, and You work hard enough so they won't fire You!!!!
Quick Question?
How much are You really Worth?
The moral of the story is Build your own business and Make A Difference, and then you can have Time & Money together....
That is what having Freedom is all about...
God Bless
May 5, 2008 at 10:40 p.m.
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Tickets for my next show will be available through Wisconsin Unemployment Insurance.
May 5, 2008 at 7:06 p.m.
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With that skillset you would make a great greeter.
May 5, 2008 at 4:56 p.m.
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I agree it's wonderful that we play second fiddle to nearly everyone else. I guess I’ll check here instead of looking to the union. So I guess the magic number is 375.
Turn out the lights, the parties over. Na na na na na.. hey hey hey… goodbye. Do do do do do goodnight my sweetheart it’s time to go. That’s all folks. This is the end…my only friend the end. It's the end of the world as we know it.
It was a good run while it lasted. I’ll just stop at Fagan from time to time to get a look at the new seats on my way to my new job at Wal-Mart.
May 5, 2008 at 1:46 p.m.
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It is really nice that the Gazette knows before the actually employees know how many they are keeping and who is going to be let go.
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