A Company Town Holds On For Life

CBS Evening News: As GM Keeps Downsizing, Ohio Town Suffers

(CBS)  Just a month ago, a 5-million square-foot GM plant was the heartbeat of Lordstown, Ohio, producing 1,500 cars a day and employing more than 4,000 people, CBS News correspondent Seth Doane reports.

"It's a real odd feeling, because it's dark and everything and it kind of reminds you that, hey, this thing could close, and this is what it would look like," said John Tarchick, a 31-year veteran of GM.

Tarchick was one of the 2,800 employees asked to temporarily stay home for the month of January.

While they all hoped to return, today 800 of those would not.

On average, 30 percent of General Motors plants across North America will be temporarily closed in the first quarter of 2009. It's GM's attempt to align production at facilities like the one in Lordstown, Ohio, with demand in the marketplace.

But "aligning production" means upending lives. Bobbi March already lost her GM job in December.

"Here I am: a college graduate, you know, I want to be able to provide on my own," March said. "Very tough."

It was tough enough to ask her parents for money, but now she needs government assistance, too, for food stamps.

In Ohio, 227,000 people filed new claims for unemployment benefits in 2008 - that's up 35 percent. Now the state needs federal help to meet the rising demand.

And Lordstown, population 3,600, is holding on for dear life. Seventy-five percent of the town's tax base comes from the GM plant, according to Mayor Michael Chafee.

"We're a one-horse town in that regard," Chafee said.

He estimates that for every job lost at the plant, at least two others are needed to replace it due to the difference in pay.

"It's not like I have a folder on my desk that says 'in case of 4,000 layoffs, open the folder' and see what comes next," he said.

Today John Tarchick learned he missed the layoffs by three people in his department.

"I guess it doesn't take a crystal ball to see that when the economy is going slow and they're not selling cars, that you can't keep producing if you're not selling them," Tarchick said.

That's a business calculation much easier to compute than to cope with.

[observer2020]

I live by military bases and in the 911 aftermath, they have cut access on certain roads. This effectively shut down an entire town in New Jersey because the only people that can get to it now are military. Never heard anything about that. But I guess it just didn''t matter. It wasn''t because of the economy, it was because of the military.

[cbscrash072]

Every single problem we face with the economy ....comes directly from......lobby driven legislation, and the lack of proper oversight......Of congress from BOTH parties over the last 40 years,,,,,career politicians harloting out their influence to the lobby dollar.Now it has come home to roost.......and BOTH parties are still in bed with the greedy lobbyists....only now......they have opened up the treasury for them and are trying to sell the people a huge pile of cr*p. Trusting the same people to get us out of the mess THEY made is stupid.They need to be removed at once....you don''''t put broken parts back into any machinery and expect it to work right,,,and keeping the same fools that caused the problem......Is insane thinking. They have committed TREASON and need to be addressed with that fact....they took an oath to the people...NOT CORPORATE AMERICA.

Posted by tincup356 at 10:49 AM : Jan 27, 2009

Just want to stress its BOTH parties fault.
I also agree with the treason charge. Lets take them out on the national mall and shoot them. I bet it would help the economy.

[babooph]

What whiners -they should be proud their nation has been able to give such a massive 10 year tax cut to the rich-think how bad things were before the tax cut!

[boatcaptain1]

Glidescube....Face it people. Gm is losing because Toyota and Honda make better cars.
__________________________________________
If you only knew the fact Glide.
GM and Toyota built roughly the same # of vehicles in 08. The real difference is the GM is tied to legacy costs like paying for retiree benefits and medical costs.
Now, wouldn''t you love to have a job like that?....where the company actually gave a rats behind about it''s workers!
It''s about the people of a country surviving, prospering, then growing and building the standard for future generations.
Look at the bigger picture Glide......do you see a future with no pensions-benefits....or would you rather have those things in life?

[element51]

morphndol9......It is very apparent from your postings that you are a mental patient. I believe that you think that you are posting something that is really important but all you are doing is posting nonsense. I don''t think you are evil but I do believe that you are in dire need of professional help. Please have someone take you in for help very soon.

[glidescube]

Face it people. Gm is losing because Toyota and Honda make better cars.

[mdalerwill]

So how about michigan, California and New york their entire state government is democrats and yet those three states have the highest unemployment rates in hte country. Why is all the manufacturing has moved out of those states?
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Posted by mccain08nc at 09:59 AM : Jan 27, 2009

California''s legislature has a democratic majority (not the entire government, and let''s not forget the Republican governor) but cannot deal with the budget crisis because they require a 2/3 vote to make important changes and NEITHER party will stand down from partisan positions to fix the problem caused primarily by allocations voted in by proposition at the ballot box.

[lilvinnyb]

At the same time your losing jobs, Obama just made the price of producing cars and fueling them more expensive on Monday.

Can''t blame Bush for this one.

Ever notice why new car factories are avoiding the northeast...unions who drive up costs. The "chickens coming home to roost" is really the UAW!

[tincup356]

Every single problem we face with the economy ....comes directly from......lobby driven legislation, and the lack of proper oversight......Of congress from BOTH parties over the last 40 years,,,,,career politicians harloting out their influence to the lobby dollar.Now it has come home to roost.......and BOTH parties are still in bed with the greedy lobbyists....only now......they have opened up the treasury for them and are trying to sell the people a huge pile of cr*p. Trusting the same people to get us out of the mess THEY made is stupid.They need to be removed at once....you don''t put broken parts back into any machinery and expect it to work right,,,and keeping the same fools that caused the problem......Is insane thinking. They have committed TREASON and need to be addressed with that fact....they took an oath to the people...NOT CORPORATE AMERICA.

[presjfk]

The first place for the bread lines to form during a bad economy is Ohio. Even during good times, many suffer there. For decades Ohio has suffered greatly from restructuring, outsourcing and a changing economy. If I lived in Ohio, I would move!

[bozworth4]

Where are the Union Dues??? Don''t worry your union will not let you take any pay adjustments downward.
If you are told long enough, "you are doing well". You WILL start to believe it. Hang on help is on the way. Union leaders are meeting now to figure your raise, and most importantly THEIR pay increases.

[dls3221]

More UAW propaganda: Lordstown was known as the most militant UAW town when striking GM. A real demonstration of greed. And all those soup line whiners have been making union scale wages and continue to do so. Perhaps we can also feel sorry for those Wall St. bankers who have lost bonuses, if there are any.

[spirit411]

I am thinking how the financial guys that have been systematically destroying our country are in myeyes, the worst type of terrorist and should be tried as such.about an hour ago - clear

[rickwar]

Horror of horrors; GM stock, a linchpin of the vaunted Dow Jones Industrial Average and currently trading at $3.38 per share, is A PENNY STOCK! On the bright side, the corporation is now small enough to fail.


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Posted by b4ucmyI at 01:18 AM : Jan 27, 2009

Might just point out it''s up from a 1.84 and if you bought at the bottom you''ve nearly doubled your money as an investor. Hmmm, what if it gets back to 10 (and it will) and you bought at 1.84?

Hang on the General is far from dead.

[monster98-2009]

To all the people in Ohio who voted for "FAMILY VALUES" in 2000 & again in 2004 ---i hope you enjoy what you voted for. Call it Karma. It seems to me you are enjoying EXACTLY the quality of life your ignorance voted for.

For the people of Ohio who voted to change that in 2008... Welcome, finally. It''s a little late, but glad to see you''ve awaken. It will take some time to get things back on track. Let''s get to work. Set your ignorance aside & you will see what family values are all about.

[honestabe8]

While the country sinks and companies close, we have idiots investing millions to save cats. Screw the fellow man but protect the felines. Go figure.

Posted by DebinOK1 at 10:48 PM : Jan 26, 2009

Deb: It is his money, he should be able to do what he wants with it (within the law, of course). As you should be able to. The problems of this country are not due to people like him. It has more to do with partisan ********* politics and bought and sold spineless politicians

[irmcvet971]

How long before GM has no employees, produces nothing, and continues to get billions of tax dollars? That''''s where it''''s headed.

Posted by b4ucmyI at 01:01 AM : Jan 27, 2009

We need to throw ALL those Trade Agreements in the Trash Can, find NEW negotiators who will negotiate for ALL American''s and not just the rich to re-negotiate them. We need to throw EVERY LAST Trickle Down Republican OUT of office and NEVER allow one back in. We need to work with our New President to stop the slide the nation is in and once the ship is righted KEEP it that way.

[irmcvet971]

While the country sinks and companies close, we have idiots investing millions to save cats. Screw the fellow man but protect the felines. Go figure.

Posted by DebinOK1 at 10:48 PM : Jan 26, 2009

You don''t get out much do you? LOL I hardly think the effort to save cats has anything what so ever to do with Trickle Down Economics OR Trade Agreements that are grossly unfair to American Workers. How about you take off the tin foil hat for awhile.

[b4ucmyi]

Horror of horrors; GM stock, a linchpin of the vaunted Dow Jones Industrial Average and currently trading at $3.38 per share, is A PENNY STOCK! On the bright side, the corporation is now small enough to fail.

[b4ucmyi]

How long before GM has no employees, produces nothing, and continues to get billions of tax dollars? That''s where it''s headed.