Auto strike poses threat to GM plants
Business First of Buffalo - by Tom Hartley Business First
The impact of the three-week-old Canadian auto strike against General Motors Corp. threatens a pipeline that pumps more than two-thirds of a billion dollars into the area economy.
Layoffs have spread to scattered U.S. locations since the strike started Oct. 2, when contract talks stalemated. In the Buffalo area, 1,050 of the 4,200 employees at the Powertrain Division engine plant in the Town of Tonawanda have been idled since Oct. 4.
Spokesman Marilyn Rowe said it is "impossible to speculate" about the possibility of additional layoffs.
The 6,800 employees at Delphi Harrison Thermal Systems in Lockport -- Western New York's largest industrial employer -- have escaped layoffs, though 5,936 employees of other Delphi Automotive Systems facilities have been sent home. Worldwide, Delphi has 178,000 employees.
Delphi Harrison has dodged the worst consequence of the strike so far, spokesman John Anderson said, "because our customers have not been affected by it. That is the bottom line. We are up and running because our customers are up and running."
He would not comment on the prospect of layoffs if the strike continues. "We do not make predictions," Anderson said.
Delphi Harrison had a payroll of $340 million in 1995. The Tonawanda engine plant's payroll was $330 million. Combined, the two area GM operations paid employees more than $670 million.
Besides their payroll dollars, here is a breakdown of what Delphi Harrison and GM Powertrain contributed to the area economy in 1995:
Delphi Harrison
• Sales, property and school taxes -- $3.65 million.
• New York supplier purchases -- $147 million.
• 1995 United Way contributions -- $643,000 (corporate and employee contributions combined).
GM Powertrain
• Sales, property and school taxes -- $2.60 million.
• 1995 United Way contributions -- $404,000 (corporate and employee contributions combined).
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