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June 9, 2009 issue
Investments in education, retraining key to automotive recovery in Michigan


By Ron Podell

 

For most of his career, Don Riviera was a tool-and-dye maker. When the fourth company he worked for went out of business, he enrolled in Eastern Michigan University' technology management program.

He received his bachelor's degree from EMU in December 2008 and now operates Riviera Industries, his own tool-making and machining company that employs seven in Gibralter.

"Training continues. It never stops," Riviera said. "We are an automotive town. We'll remain an automotive town. When the UAW is working, we are working."

Labor Secretary Solis makes point

AUTOMOTIVE ANXIETY: U.S. Labor Department
Secretary Hilda Solis (center) makes a point during
an auto recovery panel discussion in Welch Hall June
2. Solis was on campus to listen to concerns and
announce the Department of Labor has released an
additional $49 million to the state of Michigan to
provide career retraining assistance, extended
unemployment insurance and some healthcare
coverage to workers who lose their jobs for trade-
related reasons. Also pictured (from left) are EMU
President Susan Martin, Congressman John Dingell
and Andy Levin, deputy director for the Michigan
Department of Labor and Economic Growth.

It will be retraining stories like these that will have to multiply rapidly to eventually pull the state of Michigan out of its economic auto doldrums and harken a recovery of the state's economy.

"We think it's important here to talk about worker retraining," said EMU President Susan Martin. "Ypsilanti is really a wonderful working man's town. We are a community together. ...We want to work with our community and our citizens to get people back to work."

Riviera's and Martin's comments came during a roundtable panel discussion hosted by Eastern Michigan University and Congressman John Dingell June 2. At that discussion, U.S. Department of Labor Secretary Hilda Solis announced that the U.S. Department of Labor released an additional $49 million to the state of Michigan to provide career retraining assistance, extended unemployment insurance and some healthcare coverage to workers who lose their jobs for trade-related reasons. Michigan now has nearly $60 million available to assist trade-affected workers.

"We have to provide support for this industry and the communities affected," Solis said during a panel discussion in Welch Hall that included Andy Levin, deputy director for the Michigan Department of Labor and Economic Growth; and a smattering of state legislators, Ypsilanti city officials and United Auto Workers (UAW) Local union representatives.

At the request of Dingell and Governor Jennifer Granholm, Solis came to talk with Michiganders about the future of the American automotive industry as well as worker retraining programs and green job opportunities.

"In June, we will be soliciting (federal) grants to the tune of $500 million for green jobs," Solis said of money that would prepare and transition auto and auto-related workers for careers in energy efficiency and renewable energy sectors. "We want to get people — a workforce already skilled and equipped — to easily make the transition (to green jobs)."

The announcement of the additional $49 million for Michigan came on the heels of General Motors' bankruptcy filing June 1. GM took a route similar to auto rival Chrysler LLC, which filed for Chapter 11 bankruptcy protection in April. Under a reorganization plan for GM, the federal government will have a 60-percent ownership stake in the new company. The United Auto Workers would receive a 17.5 percent stake; the Canadian government, 11.5 percent; and unsecured bondholders would receive 10 percent. Existing GM shareholders would receive nothing. The Obama administration expects a restructured GM to emerge from bankruptcy in 60 to 90 days.

The GM bankruptcy announcement was a double whammy locally when officials received unexpected news that the Willow Run Powertrain transmission plant will close by the end of 2010, with its work to be handled by GM plants in Toledo and Silao, Mexico.

"We can no longer stand by and watch GM send jobs out of Michigan to other countries," said Don Skidmore, president of United Auto Workers Local 735, which represents workers at Willow Run. "The taxpayer deserves better. Members of the UAW deserve better. To look at my workers' faces yesterday (June 1)...I feel that pain. Do we need a green future? Yes. Do we need to stop outsourcing of American jobs? Yes!"

While Solis said the federal government would not get into the business of micro-managing GM, she did say, "The president supports keeping these jobs here. I took this job with the understanding we have a productive workforce with high-paying jobs. I promise you we will have a more robust discussion on these issues."

Don Riviera - technology management program

TECHNOLOGY MANAGEMENT: Don Riviera (far
left) discusses the importance of worker
retraining in the state of Michigan. Riviera
received his bachelor's degree in technology
management from EMU in December 2008 and
now operates a tool-making and machining
company in Gibralter.

Dingell joined with Ypsilanti Township officials to plead their case to GM to keep the Willow Run plant — which employs approximately 1,364 hourly workers — open. Dingell stressed the point that the Willow Run plant was creating six-speed transmissions for $145 less than GM's Toledo plant, which also produces the six-speed transmission.

Without the Willow Run plant, that would be a loss of $5 million in county taxes, said Ypsilanti Township Supervisor Brenda Stumbo.

"Nothing like pouring salt in the wound," Stumbo said.

Like Skidmore, Levine agrees the future includes more green jobs. But both said more must be done to preserve and protect existing jobs.

"We're looking not to just get additional funds, but fund creative ways for incumbent worker training," Levin said. "...A job saved is even better than a job created. It causes a lot less pain and suffering."

Eastern Michigan is helping preserve jobs and helping people receive training for better ones with its technology management program, said Pam Becker, the program's coordinator. Becker said EMU has partnerships with 10 community colleges, in which those community college credits transfer up to 94 semester hours of coursework to EMU and count toward a bachelor's of science degree in technology management.

"They (community college transfer students) can come to EMU and get a bachelor's degree for $15,000, which is almost unheard of," Becker said of the program,.

Anthony Sledge, a member of UAW Local 547 who works at the Saline Ford plant, is one of the students — by way of Henry Ford Community College — in EMU's technology management program.

"It's really helped. The technology management program's going to sustain me," Sledge said.

The U.S. Department of Labor grant "Workforce Investment: Providing Higher Education for the Displaced Worker" that EMU received for retraining of 65 displaced workers in technology management is still accepting applications. People that are interested in the program may contact Pam Becker at pam.becker@emich.edu for more information and an application.