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GM-Chrysler merger off, but more layoffs on the way

Published Nov 14, 2008 9:13 PM

Between Chrysler and General Motors, it’s hard to say where the collective sigh of relief was the loudest. On Nov. 7 GM announced that talks on a possible merger of the two automakers—which would have wiped out thousands of jobs at both companies—was off. At the same time, the headlines announced yet more layoffs at the Big Three and their supplier plants.

In the past week the following cuts have been announced: 2,000 salaried and 3,600 hourly workers at GM; 2,000 salaried workers at Ford; 500 at Chrysler’s advertising agency, BBDO North America; and among parts makers, 200 at Meridian Automotive Systems, 2,000 at Dana, 1,250 at ArvinMeritor and 800 at Visteon.

These are on top of all the previously reported cuts, some of which have already gone into effect. Workers at Chrysler’s St. Louis minivan assembly plant will receive their final paycheck this month.

By the time this paper goes to press there will probably be more layoff announcements. The industry analysts are busy speculating about a possible bankruptcy of one or more of the Big Three if they don’t get federal aid fast. Any funds that become available for “retooling” will be used to modernize the operations so as to eliminate, not protect, existing jobs.

The laid-off and soon-to-be laid-off workers were no doubt a factor in Barack Obama’s sweep of the Great Lakes industrial states. Now the task is to take that incredible anti-racist sentiment and unite the workers around a program of jobs before profits and money for worker-community control of the plants.


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