TOLEDO (WTOL) - Ohio’s senators are weighing in on Monday’s announcement that General Motors will lay off 14,700 factory and white-collar workers and close five plants -- including one in Ohio and two in Michigan.
Both Republican U.S. Sen. Rob Portman and Democratic U.S. Sen. Sherrod Brown had blistering remarks for the automaker, which benefited from the GOP tax overhaul.
As a result of the overhaul, GM is able to bring its $6.9 billion in overseas cash back to the U.S. at less than half of the tax rate the corporation would formerly have paid, and immediately deduct the cost of any new investments in plant and equipment, according to a statement from Brown’s office. Despite these tax cuts and the company’s record revenues as reported in its 2016 SEC filing, GM is still moving forward with the layoffs.
The reductions are tied to GM's plans to the company's plans to cut costs and focus on autonomous and electric vehicles.
Most of the affected factories build cars that won't be sold in the U.S. after next year. They could close or they could get different vehicles to build. They will be part of contract talks with the United Auto Workers union next year.
Plants without products include assembly plants in Detroit; Lordstown, Ohio; and Oshawa, Ontario. Also affected are transmission factories in Warren, Michigan, as well as Baltimore.
Portman said GM is letting Northeast Ohio down by shuttering the Lordstown plant. He also stressed that, in the short term, he urged GM to relocate production and employees to the Toledo Powertrain plant.
“I am deeply frustrated with General Motors’ decision to shut down its Lordstown plant and disappointed with how the hardworking employees there have been treated throughout this process. During frank conversations with GM CEO Mary Barra after the announcement that GM cut a shift at the plant due to the weakening market for the Chevy Cruze, I urged her to look to the Lordstown plant for production of other vehicles and to make a public commitment to the plant and its workforce," Portman wrote. "During today’s conversation, I pressed GM again to provide new opportunities to the Lordstown workers and take advantage of the skilled workforce there. I once again urged GM to make a commitment to bring a new product to the plant, especially since GM is proposing to build a number of new electric vehicles.
In the short term, I urged GM to at least reallocate some of the production and employees to the Toledo GM plant. I will continue doing everything I can to help the Lordstown workers during this transition.
Ohio taxpayers rescued GM, and it’s shameful that the company is now abandoning the Mahoning Valley and laying off workers right before the holidays.
"In the short term, I urged GM to at least reallocate some of the production and employees to the Toledo GM plant. I will continue doing everything I can to help the Lordstown workers during this transition. For decades, workers in the Mahoning Valley have made a commitment to GM, and today GM let Northeast Ohio down,” Portman said.
Democratic Sen. Sherrod Brown also slammed GM's decision, calling it "corporate greed at its worst."
“The workers at Lordstown are the best at what they do, and it’s clear once again that GM doesn’t respect them. Ohio taxpayers rescued GM, and it’s shameful that the company is now abandoning the Mahoning Valley and laying off workers right before the holidays. Even worse, the company reaped a massive tax break from last year’s GOP tax bill and failed to invest that money in American jobs, choosing to build its Blazer in Mexico,” Brown wrote.
“GM owes the community answers on how the rest of the supply chain will be impacted and what consequences its disastrous decision will have on the Mahoning Valley and our state. My office stands ready to do everything we can to help these workers. This decision is corporate greed at its worst.”
Brown's statement noted that GM has eliminated nearly 3,000 jobs at the plant over the last two years.
According to the senator, the Lordstown plant is set to close in March 2019.
