March 8, 2009 - UAW Union workers at Lordstown Metal Plant, Lordstown OH

Despite GM's troubles, Ohio workers upbeat

Amid talk of a potential General Motors Corp. bankruptcy, workers at the automaker's Lordstown complex are moving ahead with the installation of 840 robots, a $350 million investment ahead of next year's scheduled production start on the Chevrolet Cruze.

The investment in the robots, which would weld steel parts into the body of the fuel-efficient car, is small compared to the billions of dollars that would be lost if GM failed. But local union leaders said it's enough to give workers reason to remain upbeat.

"I refuse to give up hope that our future is going to be bright," said Dave Green, president of United Auto Workers Local 1714, which represents about 1,100 workers at the Lordstown metal plant. "We're moving forward with the Cruze. We should be ecstatic about what's going on here, but the world is messed up."

The Lordstown assembly plant has laid off hundreds of workers and is operating only one shift as the company struggles to survive the worst auto sales climate in more than two decades. Fear of more cuts or closures weighs on the minds of some Lordstown employees as they monitor daily news for any sign of a turnaround.

General Motors lost $30.9 billion last year and has said auditors are raising serious doubts about the company's ability to continue operating. It maintains that an out-of-court restructuring is its best option.

GM has stayed afloat with $13.4 billion in U.S. government loans and is seeking up to $30 billion, a move that draws criticism from some lawmakers.

House Republican leader John Boehner of Ohio said Sunday in a televised interview that he does not support handing over more money unless the automaker proves it has a viable, long-term business model and can pay back loans.

Workers want Congress to quickly approve the new loans because the nation's auto industry affects millions of people directly or indirectly, said Jim Graham, president of UAW Local 1112 at the Lordstown assembly plant.

"It didn't take them that long to give themselves raises or $350 billion to the banks," Graham said.

Communities around Lordstown depend on manufacturing for about 36 percent of total annual payroll, much of it from the complex and nearby auto parts suppliers, said Cleveland economist George Zeller.

Workers would miss out on several hundred million dollars in lost paychecks — more than one-fifth of all paychecks in northeast Ohio's Trumbull County — if GM were to halt all operations, Zeller said.

Original Story - International Herald Tribune