Expert: Pact a mixed bag (IF you are middle class, read this)

[Omaha Steve]

http://www.tribunechronicle.com/page/content.detail/id/506120.html?nav=5021

New car would be boon to GM plant, but buyouts could hurt local economy

By JOE GORMAN / Tribune Chronicle

POSTED: June 1, 2008

LORDSTOWN — The tentative labor agreement between the local United Auto Workers union at the Lordstown General Motors plant and management is a mixed bag, a local labor expert says.

Dr. John Russo, a professor who specializes in labor issues at Youngstown State University, said Saturday while news the plant will probably receive a new product that would keep it operating for another 10 to 15 years is welcomed, the fact that more workers are taking buyouts or are leaving early does not bode well for the middle class.

Asking workers to take buyouts affects the economy because those workers are often forced to look for a second job — a second job that a younger person in the workforce will be losing out on, Russo said.

That will cause a decline in middle class wages which will also lead to a decline in purchase power, Russo said.

‘‘It works both ways,’’ Russo said.

Workers gathered for informational sessions inside the UAW Local 1112 union hall Saturday to learn about the proposed labor pacts. Workers will begin voting on the labor agreement at 5 a.m. Monday until 5 a.m. Tuesday. One key to the contract are reports from labor leaders that the plant could see a new car to build after production of the Cobalt ends in 2009.

FULL story at link.