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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsNavistar to shift production from Alabama to UAW plant in Melrose Park, Illinois.
FRI FEB 21, 2014 AT 10:02 AM PST
Navistar to shift production from Alabama to UAW plant
by Short Bus
Wasn't someone saying something recently about unions scaring businesses that are operating down South.
Navistar just announced that they will be shifting production of their mid-range engines from their non-union Huntsville, Alabama plant to their UAW plant in Melrose Park, Illinois.
The closure of the plant in Huntsville will result in the loss of about 280 jobs and generate savings of about $22 million a year. Production at that plant will be shifted to an engine plant near Chicago, which will add about 75 workers.
Of course, neither the WSJ article cited, or other sources I checked, mentioned the union status of the facilities. Probably because labor costs aren't the driving factor in many business decisions and wasn't related to the issue being discussed. However, if the story was about production being shifted to the South, we know what the headlines would be screaming, relevent or not.
http://www.dailykos.com/story/2014/02/21/1279366/-Navistar-to-shift-production-from-Alabama-to-UAW-plant
http://online.wsj.com/news/articles/SB10001424052702304275304579395502351670542?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304275304579395502351670542.html
more plus interesting comments:
http://www.al.com/business/index.ssf/2014/02/navistar_to_move_mid-range_eng.html
rgbecker
(4,835 posts)K&R
Wellstone ruled
(34,661 posts)Navistar's biggest customers are located in the upper Midwest. Trucking and Wholesale companies,plus,all the School Bus assembly plants in Indiana.
It's all about reallocation of capital. Better educated and stable work force,rail hubs,supply chain for assembly parts are in around Chicago and Toledo. Every new truck is a custom job today,engines,tranny's,wheels and tires are a special order. Corn Binder engines are not the most reliable,therefore,you have choices like Cat or Cummings all made in the Midwest.
And to think back a couple of decades how International Harvester screwed the UAW royally. Way to go UNION MADE.
okaawhatever
(9,478 posts)Governors killed high speed rail? Wasn't cargo going to be carried on the trains? I can imagine it would open up factory opportunities not present in the deep south.
proudretiredvet
(312 posts)I have no idea and no answer but it will instigate some research and questions of my own.
okaawhatever
(9,478 posts)protecting oil and airline interests than anything else, but if it would give manufacturing up North and in Florida an edge I could see a good reason there, too.
proudretiredvet
(312 posts)I've been on the "bullet trains" overseas. They are great. I have no clue why we do not spend the money to build a network of fast rail here. I would use it without hesitation.
SunSeeker
(51,797 posts)PatrynXX
(5,668 posts)In terms of like Teamsters I don't like because of their methods. But in the face of such anti union idiots they are needed. But they aren't pro safety at work.
UAW I like alot . Never worked for an actual Union but UAW's methods are pure american and they usually get along great with Car Companies. As in the bottom line is if UAW has such a nice rep... It would be in the interest of any Manufacturer to make sure their factors are unionized. Especially in America. To not be Unionized Car or Vehicle maker in the USA is just a serious PR problem one can't get around. Otherwise back to Foreign cars it goes.
busterbrown
(8,515 posts)Felt very entitled...Of course that was one of the problems with Unions back then.
It has got to change and I think it will.
Start with not paying Union Reps and officials so much and enough with the perks..
They deserve a nice paying job with good benefits and are essential to an good union.
But they need to come down a notch or two.
Populist_Prole
(5,364 posts)Good news but surprising in that the decision was a purely economic/logistical one, and not ideological power/control one we have come to expect.
The conservative redneck politicians in Alabama must be shitting a brick over this.
Art_from_Ark
(27,247 posts)And only 75 jobs will be added in Illinois, resulting in a net loss of 205 jobs.
pampango
(24,692 posts)and wasn't related to the issue being discussed."
For any reason it is good to see jobs shifted from a "right-to-work" state to a union state like Illinois.