General Motors Rochester Plant Workforce To Shrink By A Third
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General Motors will downsize the workforce at its Rochester Operations plant in New York this year more than 200 jobs as it looks to outsource some of the production work performed at the facility.
According to The Detroit Free Press, GM is planning to lay off around 215 employees at the Rochester Operations facility by August. The plant currently employs around 770 workers.
The Rochester Operations plant produces fuel system components for GM vehicles. GM is outsourcing some of this production work to supplier BorgWarner, the Free Press reports, which will produce the parts at one of its plants in Mexico.
The future of the New York fuel components plant is in doubt as GM shifts to producing more electric vehicles. A United Auto Workers union member said more layoffs are expected at the Rochester facility about a year and a half after the initial layoffs this August, when a separate contract to build fuel system components for GM will run out.
The UAW allegedly bid on the work that GM outsourced to BorgWarner, but did not win the job. It’s possible that jobs could be saved at the plant if it were awarded more work from GM, but with the automaker looking to outsource more components production, this may be unlikely.
GM spokesman Dan Flores told the Free Press this week that the Rochester team “will continue to focus on building world class quality fuel system components and will continue to aggressively compete for new opportunities to earn business for the plant.”
In addition to fuel system components, the 1.7 million square-foot Rochester plant also builds other componentry for internal combustion engines like oil pans, air intake manifolds and manifold covers.
GM says EVs will account for 40 percent of its U.S. product portfolio by 2025. These will include small to medium-sized crossovers, SUVs and pickup trucks like the GMC Hummer EV and electric Chevy Silverado.
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Union Karma!
Melania I’m not sure this is the union’s fault – after all – their members’ pay is not as high as it was decades ago after accounting for inflation.
I blame GM for more imported Junk from Mexico or China. With Machete Mary’s ‘WOKE’ political stance against legal voting it is getting more and more difficult for me to defend a purchase from this admittedly Non-American Corporation. Same goes for Ford, and Coke.
At least people are starting to leave Coke on the shelves at the supermarket. The Imported manufacturers (some of which still have a large manufacturing presence in the USA – like Stelantis, and Honda) are looking more and more attractive…
I’ll vote with my wallet for fair elections, and also American Employment.
Stelantis and Honda profits go to foreign countries (they are not American companies …they do certain things to avoid paying American taxes.
1.They the less employees they have the better they feel. 2.When parts have a failure rate,they can clawback some of the expense from the supplier.
More outsourced work to Mexico. Thanks Mary put more people out of work in my city. Fill your pockets, don’t hurt your back walking around with all that cash. More cheep foreign parts in American vehicles. Have fun repairing the failure of these parts.
…so the shareholders have zero to do with these decisions?
I was born and raised in Rochester Ny, I left for Raleigh NC 27 years ago…..best move I ever made! NY will Tax you and any company that is unfortunate enough to do work there until they can no longer compete with companies in other areas. So it’s either move or get steam rolled.
Homes are very inexpensive in Rochester and it’s surrounding areas compared to other places….however the school and property taxes combined is ridiculous (you pay 2 property tax bills a year) so you end up paying much more for a home there when you factor in the taxes. Now if you are a company trying to do business after you pay taxes on your commercial property (and after the teaser rates they offer for a few years for business to move there) you loose out. I didn’t realize completely until I left how bad NY actually beats you up……everyone should leave. I have no idea why any companies would want plants in NY state.
This is northeast states in general. Municipal and school budgets are skyrocketing faster there than much of the country, even before the pandemic. Then add in all the tree hugger and socialist tax proposals to fund their ideas. There is a state in New England which had a bill proposal to add an extraction tax to bottled water, because some residents think water is like oil. Now they want to add a state tax to residential property not claimed as a primary residence to fund creating new affordable housing because there is a shortage of low income housing. The school district where I grew up now has more english as a second language teachers than they do english teachers, a roll the school district had to take on because a few decades ago the larger employers in town would provide this to employees and families in need, now those companies don’t exist. In the Northeast, unless there is a specific natural resource which enables it, such as lumber, fishing, shipbuilding, or covid nasal swabs there really isn’t a compelling reason to manufacture anything there.
Two property tax bills? Is that just paying every six months instead of once a year? Many localities do that.
not quite…you get a property tax bill….that’s the one that would show on up Zillow as “property taxes” Property taxes don’t include school tax bill that’s a separate property tax bill that comes for homeowners. The school tax bill doesn’t show up on Zillow and some other Realestate sites.
Weird. Most counties or states don’t do that.
We pay a town and county tax once a year and then a school tax once a year, both based on the value of your home.
Every area has their good and bad. I had family in Florida, and they paid as much in home owner insurance as we paid in taxes. Their taxes were cheap, but between taxes and home owner insurance, the total was about what we pay for taxes and home owner insurance combined.
Sorry to see the jobs disappear.
Florida also has no state income tax. So of course they have a higher property tax. States like Illinois double and triple dip. That terrible state has high income and high property taxes. It also has a negative growth rate as working people leave the state every year which is great.
True every area has good and bad. But lets be honest many states have more bad than good. So do many countries.
NC might was well be a territory of New York State at this rate. The amount of people from the northeast who are in the south these days is funny to me. Nothing wrong with moving within a country. However the northeastern people I work with still have the same mindset that made their previous places terrible and they do the same to their new states eventually.
dblezy you are 100% correct…..one reason I moved to NC from NY because I hated the way NY municipalities did things…..I now see many NewYorkers moving here and trying to change things forgetting why they left.
Do the math. A camaro in 1970 cost around $3400 dollars factor in inflation around $26,000 dollars today. The cost of a camaro today is over $50,000. So who is the real greedy people? Executives and stock holders..
Quit blaming hard working Americans for the ridiculous car prices. Toyota and Honda prices are high also but there quality is much greater.
How about you “do the math” yourself. A 2021 camaro base price is $25k. Base price in 1970 was $2749 for a V6, or around $18,800. Although the ’21 base has a 4 cyl, there’s still a ridiculous amount more of technology, safety features, advanced materials, development work, etc. (and hp) than a 1970 camaro, so I think that’s a pretty reasonable increase. Similar scenario comparing V8’s, as I’m sure that’s going to be your argument back. The only “$50k” variant is the ZL1, which is a track monster without a ’70 counterpart that is actually still a performance “bargain” in comparison to a lot of competition. Government regulations also significantly increase costs by requiring a lot of that technology to meet safety and fuel economy standards. Actual profit margins on a new vs old camaro are probably pretty similar given the additional costs and requirements of newer ones.
In 1970, the smallest engine available on a Camaro was an inline 6.
Yes you’re correct, should have said I6 not V6. And that I6 only made 155hp, and the current 4cyl makes 275.
A few years back a company that made ignition switches in our town was shut down. Sent the jobs to Mexico where the workers were paid $8 a day . Maybe that’s why I keep getting recalls on my GM switch’s
What you may not realize is that many makes are using the same components from the same companies…GM built parts for other manufacturers and other manufacturers build parts for GM…all companies need to be competitive in order to stay in business. Union work forces in Rochester NY makes it very hard to stay competitive….some people refuse to see the truth.
The weather in Rochester also makes it difficult in the winters for companies that manufacture goods and ship world wide. It’s also harder to recruit skilled people to move to that climate……Kodak at one time had a hard time getting skilled collage graduates to move to Rochester…..prospects would rather takes jobs in Atlanta, California or any other more climate friendly areas.
NY state takes all the revenue it can from upstate NY to feed NY city and it’s boroughs. I am completely neutral on politics….these statements come from knowing how NY State works.
GM labor costs with the UAW are not competitive with foreign makers in the US who are non-union. They are also not competitive with costs of labor in countries like Mexico, Korea, China, and more. There will be more GM/UAW jobs lost.
I would not group S Korea with the rest.
Sorry for the folks that lost their jobs. With that said most people do not have a career but merely a job. So that means we must always be vigilant and look out for ourselves. Whether that is learning a new trade or new skills that can be applied in the economy one must do this. The automotive industry is runs if people want to buy new cars. So we can’t protect everyone when things shift within the economy. With that said make the USA a better place for our companies to do business. And loose all of the socialist constructs that are dragging us down.
Right you are !!!
Like for instance Machete Mary telling Michigan to support Fraudulent Voting. Her Hero Uncle Joe Stalin stated “I care not how the people vote, I only care who COUNTS the vote”.
By this one action it is so transparently obvious that she really hates this country – or is a true Corporatist – (the system here won’t let me use the more common word) – or realizes that she is being blackmailed if she doesn’t play along..
So I guess it is too much to hope for that any CEO has any scruples left…. I think the MY Pillow guy is the only one left.
Just wait till all the “new” corporate taxes pass. Than we will see even more USA job losses. US Companies run on greed and profit. When their profit falls, the greed goes up. Used to be, a person got a job right out of school, and pretty much had that job till they retired. Not anymore. Those days are gone forever. When the Corp taxes get raised shortly, one will see it all change again. And not in favor of the poor working stiffs.
Please do not generalize. There are many US corporations that have produced their products in the US and been very good to their employees.
Some corporations and unions have failed their employees/members. Sadly, we now live in a world market so there are many factors that effect manufacturing and employment here and in the world.
Many people don’t have pensions anymore (unless you work for government)
So there retirements are tied to 401k stocks and investments….therefore we need these companies to make profits…..so let’s not Tax them to lower profits so are governments will have to pay for us in retirement.
So you are saying raising the corporate tax rate will see more jobs lost, correct?
You do realize we are currently at a lower rate and we are still losing jobs… which this article is proving.
What I am saying if companies can’t be competitive, they will have to lay everyone off……it’s that simple…..when I company comes to an area the whole local economy thrives….taxes revenues for the communities are drastically increasing…..the revenues increase even when the community is giving Tax breaks to the companies for coming there.
When a company leaves the area it devastates the area.
Maybe those UAW guys and gals can get one of those 17,ooo,ooo, Biden “green jobs” until they disappear…..
An aspect of Capitalism (maximize profits) combined by the ease of USMCA to carry out whatever greedy move a corporation wants to do.