Chrysler cuts trade workers
In lean manufacturing push, automaker also is reducing number of job classifications at plants.
Josee Valcourt / The Detroit News
Chrysler Group is cutting back the number of skilled trade workers in some of its factories as it strives to match the manufacturing efficiency of its Asian competitors.
Detroit's only profitable automaker has been on a crusade to build cars and trucks in less time and make its plants more flexible, which allows them to build several different vehicles on the same line.
As part of the push toward Japanese-style lean manufacturing, Chrysler is laying off some skilled trade workers such as electricians and tool and die makers. It's also reducing the number of job classifications at many of it plants.
"We are paying attention to classifications because fewer classifications would make our operations more flexible," said Chrysler spokesman Ed Saenz.
Skilled trade classifications typically limit workers from handling multiple job tasks.
The latest job cuts occurred at Chrysler's Warren stamping plant, which produces parts for the Jeep Commander and Grand Cherokee SUVs and the Dodge Dakota and Dodge Ram 1500 pickups. Last week, the company laid off 74 tool and die makers, welder repair and basic trade workers.
Union officials expect another 16 skilled trade workers to be laid off by Monday, bringing the plant's skilled trade work force to about 730 from almost 1,000 in 1999.
The laid off skilled trade workers will be transferred into Chrysler's "jobs bank," which means they will continue to receive pay and benefits while they are off the job.
Skilled trade workers, who make up to $33 an hour in straight-time pay, are the highest paid UAW factory workers.
Other Chrysler plants have made similar work force reductions or will in the future, Saenz said.
At Chrysler's Belvidere, Ill., plant, where the new Dodge Caliber small car will be built, the company expects to cut 5 percent to 10 percent of the body shop workers because of production improvements, Saenz said. Chrysler has said it is investing $419 million to retool the plant.
Chrysler's Sterling Heights assembly plant, which builds the Chrysler Sebring and Dodge Stratus, will also be retooled for new vehicles, which will mean job cuts, Saenz said, without providing details.
The moves are not sitting well with some Chrysler skilled trade workers. Dave Joiner, a committeeman for the United Auto Workers Local 869, which represents workers at the Warren stamping plant, warned workers about the cuts in a recent letter.
"On Dec. 21, the plant manager called me into his office and told me that on Jan. 9 he would be laying approximately 74 trades persons off into the jobs bank from the bottom up," Joiner wrote in the letter, which was obtained by The Detroit News. "I purposely did not come around to wish anyone Merry Christmas because I did not want to lie to anyone and I did not want to ruin anyone's holiday or their time with their families."
Joiner urged workers to notify union officials if they were asked to work outside their job classification. "We can help ourselves by not crossing lines of demarcation," he wrote.
UAW spokesman Roger Kerson declined to comment.
Chrysler has been trying to reduce its skilled trade work force for several years. In 2003, the company and the UAW agreed to a special retirement program designed to cut up to 5,000 skilled trades positions from Chrysler's then roster of 12,000 over several years. As part of that program, Chrysler offered $70,000 buyout packages to eligible workers in the first quarter of each year to reduce employment costs.
Saenz said the Warren reductions are not tied to the early retirement program.
Lowering employment costs and increasing productivity moves the automaker closer to goal of reaching parity with its Japanese competitors building cars in the United States.
"There's an enormous move at Chrysler to reduce the number of labor hours per car in addition to the cost per car," said Jay Baron, a manufacturing expert at the Center for Automotive Research in Ann Arbor.
It now takes Chrysler assembly workers 35.8 hours on average to produce a vehicle compared with Toyota Motor Corp.'s 27.9 hours, according to Harbour and Associates.
In 2005, Chrysler improved its productivity 4.2 percent, and by 19 percent between 2001 and 2004. During that period, Chrysler also trimmed its work force by 37,000 jobs.
Chrysler CEO Tom LaSorda told analysts that the 2007 goal is to build a car in 30 hours on average. "We will do more with less and that's the message," he said recently.
