In what could be a devastating move for the Midwest auto industry, GM has indicated it will close 20 plants temporarily early in 2009.   Six of those plants are in Michigan with the Allen County GM auto plant also set for closing.   The GM plant in Allen County will go off line the first two weeks of March 2009.  The GM workers affected by the moves are eligible to receive up to 72 percent of their gross pay covered by state unemployment compensation and supplemental unemployment benefits paid by the automaker.

Get ready for a bumpy ride.  Those workers spend money in the local economies, and, no doubt, will cut back their spending.  The cut back in spending will impact local businesses and their ability to cover their expenses.  In today’s economic setting, no one is unconnected – what impacts one location impacts the surrounding area.

Whether you agree with the auto loan package or not, GM’s decision will have a devastating effect in the Midwest – even if it is for only two weeks.  Those weeks will be long weeks for the auto workers and the region.


About Charlotte A. Weybright

I own a home in the historical West Central Neighborhood of Fort Wayne, Indiana. I have four grown sons and nine grandchildren - four grandsons and five granddaughters. I love to work on my home, and I enjoy crafts of all types. But, most of all, I enjoy being involved in political and community issues.
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  1. mark says:

    You’ve got to be kidding. Those auto workers get 100% of pay and benefits during these shut-downs. Cry me a river.

    Suppliers are hurting because people aren’t buying cars. Auto workers make the same regardless. But that’s what makes the UAW great, right?

  2. Mark:

    The info came from the News-Sentinel and the Detroit News, so if their figure of 72% is incorrect, take it up with them.

  3. J. Q. Taxpayer says:

    Various UAW local web sites have provided members with a way of calulating their SUB PAY if laid off. I have seen two numbers most often of 80% and 85%. I have never seen the 72% or the 100%. Then again maybe in someone’s use of numbers they have come up with 72%.

    In general it is the hourly rate times 40 times 80%. That is the gross. Then they subtract the state unemployment payment from that number. Then their are taxes, like any normal check, and so forth.

    You can learn a great deal by searching “UAW local” and looking for stories on their web site. It makes for some interesting reading.

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