Economic Development Futures Journal

Wednesday, September 24, 2003

counter statistics

Ford: Lorain, Ohio Versus Hazelwood, Missouri

Missouri's governor has detailed for reporters the aggressive push that resulted in Ford Motor Co. reversing its decision to close an assembly plant near St. Louis and instead reportedly shut down the Lorain, Ohio Assembly Plant.

The last-minute deal to keep the suburban Hazelwood, Missouti plant operating while shuttering the Lorain plant was included in the four-year labor pact reached last week between the company and the UAW, according to company and union sources. A source told the Associated Press that Ford had decided to close the Lorain plant because many of its 1,700 workers would have the option of an early retirement package or a transfer to the Ohio Assembly Plant in Avon Lake, which jointly produces Econoline vans with Lorain.

A source close to the negotiations in Detroit yesterday confirmed that the Lorain closing is written into the tentative agreement between Ford and the UAW, but the timing and other details of the closing were still not available yesterday. source close to the negotiations in Detroit yesterday confirmed that the Lorain closing is written into the tentative agreement between Ford and the UAW, but the timing and other details of the closing were still not available yesterday.

The UAW's ''Ford Council'' -- including the president and bargaining representatives of each of the union's locals -- has already met and endorsed the new contract, according to union officials, and rank-and-file Ford workers are expected to start voting on the contract this week.

Missouri Gov. Bob Holden said a delay at the end of contract talks between Ford and the UAW gave Missouri a chance to launch a last-ditch effort to convince Ford to save the Hazelwood plant and its 2,600 jobs.

Holden said the effort to save the plant involved federal lawmakers from Missouri, state economic officials, business leaders and civic representatives from the city of Hazelwood and nearby areas, and included tax breaks, job-training incentives and other enticements for Ford if it kept the plant open.

As Paul Harvey says...and now you know the rest of the story.

Read more here.

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