Wednesday, June 1, 2005

More changes, turmoil await Visteon workers

Request to approve the UAW-endorsed disposal of plants stresses sense of loss.

By Eric Mayne / The Detroit News

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SALINE -- Automotive supplier Visteon Corp. was split from Ford Motor Co. in 2000. But for many of the parts maker's 17,400 hourly workers at 15 U.S. plants, the biggest changes lie ahead.

United Auto Workers in Michigan and five other states are voting this week on an agreement that would transfer the plants to a holding company owned by Ford. Many of the factories will be sold to other suppliers, two will be reabsorbed into Ford and a small number could eventually close.

It's the second time in five years that Visteon workers have found themselves in the eye of the storm as the U.S. auto supply industry struggles to stay competitive.

"It makes me feel very uncomfortable," said Gaylord Knauss, 52, who works at Visteon's plant in Saline.

"There was always some linkage between Ford and Visteon. But this, by being sold, if the place is sold ... we're not sure anymore as to what's going to happen."

UAW national and local leaders endorsed the deal last week and recommended that rank-and-file workers ratify it. When complete, struggling Visteon will pay its North American workers average of $17 in wages and benefits on average, down from $38.

Ford has guaranteed that Visteon plant workers transferred into the new holding company will keep their current pay.

"It's pretty much the lesser of two evils," said Stan Carrico, 38, a 12-year veteran at Visteon's plant in Sandusky, Ohio. "It's going to pass. You've got to hand it to the (UAW) for protecting its members in today's manufacturing climate."

Hourly workers in Visteon plants never truly cut their ties with Ford after the 2000 spinoff because they remained technically Ford employees. Only new hires made after the spinoff were full-fledged Visteon employees.

"Nobody thought less of their jobs because they were at a Visteon plant," Carrico said. "But if you started aligning yourself as a Visteon employee, someday you might just be one. That could possibly mean less wages, less benefits."

Now if the deal is approved, they'll be Ford employees working for the as-yet-unnamed holding company.

"It's the right direction for us to go," said Mark Caruso, president of UAW Local 892, which represents about 1,600 Saline workers who make parts for vehicle interiors.

Some 900 workers transferring back to Ford will actually see their wages nearly double under the new plan. These workers were hired in the past year or so at a lower pay scale negotiated in 2003 between Visteon and the UAW. The agreement allowed Visteon to pay new hires about $14 an hour compared to the $23 paid to existing workers.

"That is typical -- nobody gets left behind," said Sean McAlinden, analyst with the Center for Automotive Research in Ann Arbor.

When Visteon began hiring employees at the lower pay scale, it first selected from candidates referred by current employees.

"It's very possible that they would have had supporters -- parents and uncles -- who wouldn't have liked them to be left behind," McAlinden said.

The workers also will retain the right to transfer back to Ford plants when openings are available. To some, the closer they are to Ford, the more secure they feel.

"Everybody considers themselves Ford," said John Reisig, 34, who has worked at Visteon's Monroe plant for 15 years. But the apprentice electrician says there are fewer openings in Ford factories for skilled trades workers than line workers.

"The pickings for skilled trades are real slim," he said. "I will go back to production before I would give up my Ford status."

Two Visteon plants that employ about 5,000 -- one in Sterling Heights and one near Rawsonville Road in Ypsilanti -- are returning permanently to Ford.

"It's as good a deal as we're going to get," said Ron Wilson, 52, who is on medical leave from the Rawsonville Road plant, where he has 32 years of service.

Some Visteon workers wonder why Ford chose to take back the Rawsonville Road and Sterling Heights plants, which they say are among the supplier's poorest performers.

"We were surprised Ford wasn't keeping us," said Michael Steele, 51, who has 27 years' seniority at Visteon's Milan plant.

"When we flew under the blue, our plant always made money," Reisig said, referring to Monroe's days as a Ford plant.

Union officials who met last week were told the two plants were returning to Ford because they could not be sold.

The ratification vote is expected to conclude on Sunday. If workers vote to reject the deal, the UAW could go back to Ford and Visteon for more talks.

The trepidation of Visteon workers is already being felt in communities where plants are located. Bob Wallace runs The Little Store, a corner convenience shop in Milan.

"My business is down," Wallace said. "The people are worried."