Shift elimination to affect about 830 jobs at Oklahoma City GM plant

Wednesday, April 6th 2005, 6:28 am

By: News On 6

OKLAHOMA CITY (AP) A decrease in demand for the two sport-utility vehicles manufactured at the General Motors Oklahoma City assembly plant has led to the elimination of the second shift at the facility, affecting about 830 jobs, officials said.

Corporate spokeswoman Nancy Sarpolis said late Tuesday the shift would shut down June 27 at the plant, which has about 2,500 hourly and 180 salaried employees.

Sarpolis declined to characterize the shutdown as permanent, saying the corporation could restart the second shift if demand for vehicles manufactured by the plant increases. The shift begins at 4:30 p.m. daily.

Most of the job losses will occur among employees who worked that shift, but seniority and other factors will be weighed, Sarpolis said. Local and national union agreements will be followed, she said.

Higher gasoline prices and strong competition in the midsize SUV market has affected sales of the seven-passenger Chevrolet TrailBlazers and GMC Envoys made at the plant.

GM slowed its Oklahoma City assembly line by almost 25 percent earlier this year, a move that resulted in at least 250 layoffs.

Gov. Brad Henry is ``disappointed and concerned about any reductions in jobs at the GM facility,'' but also believes GM has been a good corporate citizen, his communications director, Paul Sund, said Tuesday.

``The governor is looking forward to visiting with GM officials about their continued commitment in Oklahoma and remains confident they will be a major player in the Oklahoma economy in the future,'' Sund said.

Rep. Tom Cole, R-Okla., said he's also disappointed for the workers and sympathetic to their situation.

``We will be exploring ways in which we can help the people affected by this get back into the work force.''

University of Oklahoma economist Robert Dauffenbach said the economic impact on the region will be significant.

``Those guys make $20, $25 an hour,'' Dauffenbach said. ``Let's say they work a 2,000-hour work year at $22.50 an hour, that's $45,000 pay. It's a $36 million annual payroll.''

Sarpolis said good benefits provided to GM employees should cushion the economic blow some.

A representative for the United Auto Workers Local 1999 in Oklahoma City couldn't immediately be reached for comment late Tuesday.

Union officials last month said reduced demand for vehicles made at the plant forced the automaker to study options that included the possibility of cutting production to one shift and laying off workers.