That doesn’t mean the community has been indifferent to the fate of the some-500 production employees whose jobs have been in limbo as they worked without a contract since their contract expired Oct. 1. It’s just that the ripple effect of those possible layoffs or a strike would not be as devastating as when the company’s payroll exceeded 7,500.
Economists estimate that for every job lost in a community, there’s another two-thirds of a job lost in support or indirect services.
“To keep it all in perspective, the labor force in Clark County is over 75,000, so even if all 500 jobs are lost and 250 additional (indirect jobs are lost) that’s still a relatively small portion of the entire labor force in Clark County,” said Jeff Ankrom, professor of economics at Wittenberg University.
The reduction in force has not only affected Navistar’s and the union’s influence on the economy, but, combined with an uncertain economy, it has likely affected the way they are negotiating the recently expired contract, Ankrom said.
“I think both sides are pretty nervous,” he said. “There’s a lot of things on the table, and they want to make sure both of their perspectives are understood.
“This is not the time to play games or make threats one way or the other.”
That was not the case in 1979 when then-International Harvester CEO Archie McCardell demanded concessions and the UAW answered with a shocking six-month walkout. The company lost $479.4 million during the strike. Two years later, the company consolidated its Fort Wayne truck production to Springfield, which resulted in the loss of 2,200 jobs in Fort Wayne.
In 1995, the Springfield plant had 6,000 employees building 350 to 400 trucks per day. After the 2006 contract was signed, less than 1,000 workers returned to the plant. Three years later, about 500 people have been building about 76 trucks per day.
As this contract’s expiration date approached, the company moved all truck production out of the plant, leaving workers to repair trucks on the yard. Sources inside the plant said the last truck was repaired on Friday, leaving production employees with no trucks to build or repair when they return to work on Monday. Contract talks between the collective UAW and Navistar are scheduled to resume Monday after a four-day recess.
Clark County has diversified its employer portfolio, said Tom Franzen, City of Springfield economic development administrator. The area’s employment base is now spread throughout the service, tech, health and education sectors.
The diversification reduces the area’s dependence on Navistar, but does not eliminate its hope that the company will increase its operations here, Franzen said.
Ron Rhine, former UAW International Union representative, agreed.
“I don’t think we should ever let go of something like International Harvester/Navistar Industries,” he said. “The things are in place. All we need now is for the work to come in so we can build a quality product.
“By doing that we increase employment, (union) membership and it helps the company become more profitable.”
About the Author