GM Closes Down Its Janesville, WI Plant
Tuesday, December 23, 2008PAUL KANGAS: This morning the last Chevy Tahoe produced in Janesville, Wisconsin rolled off the assembly line. General Motors is closing that plant and moving the work to Texas. It is a devastating blow to Janesville, which once counted on GM for 10 percent of its jobs. As Diane Eastabrook reports, the repercussions of the closing are rippling through every corner of the community.
DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: At the Wal- Mart store in Janesville, Wisconsin, shoppers are dropping spare change into the Salvation Army Christmas kettle, but not like they did in past years. As the sun sets on 2008, the quiet community of Janesville is at a crossroads. Twelve hundred people are losing their jobs when GM ends production at its assembly plant. Another 1,200 workers at auto suppliers Lear and LSI are also being pink slipped. The strain of economic uncertainty is already weighing on the Salvation Army. The number of needy residents lining up for free lunches and other services is growing. But Captain Carolyn Scheutz says at a time when the community is counting on the charity more, the Salvation Army is cutting its budget, cutting staff and cutting hours to compensate for declining donations.
CAROLYN SCHUETZ, CAPTAIN, ROCK COUNTY SALVATION ARMY: Those are the things that we're going to have to do to make sure that we can still provide the services. We just have to do it with less people and less time.
EASTABROOK: GM has been a part of Janesville for nearly 90 years. In its heyday, about 8,000 peopled worked at the plant, but, in recent years the number slipped to just a few thousand. Still GM and its employees continued to be huge contributors to United Way of North Rock County, donating more than $400,000 last year. President Gail Graham says the loss of GM is forcing United Way to cut financial aid 25 percent next year to all of the nonprofit groups it supports.
GAIL GRAHAM, PRESIDENT, UNITED WAY OF NORTH ROCK COUNTY: Will we make up a $400,000 loss? No, not in one year. There isn't any way unless a benefactor comes to our rescue will we make up $400,000.
EASTABROOK: If Janesville residents can't get help from local charities, they might turn more to government agencies for help. But Rock County Administrator Craig Knutson fears some state-funded programs might not be available.
CRAIG KNUTSON, ADMINISTRATOR, ROCK COUNTY: At a time when the demand for these services is going up, the state is facing a massive budget deficit estimated at $5.4 billion.
EASTABROOK: Increasingly these days, Janesville churches are where many residents are finding sanctuary from the economic storms. At New Life Assembly of God church, Pastor Michael Jackson offers encouragement and often weaves the GM plant closing into his weekly bible study.
MICHAEL JACKSON, PASTOR, NEW LIFE ASSEMBLY OF GOD CHURCH: I love to say to people, I trust so strongly in the sovereignty of God that he would not have allowed this had it not been for some greater purpose.
EASTABROOK: Jackson says many members have confided that they won't be donating as much money to the church next year as they have in the past because of lost jobs. The church has responded by cutting its budget. But, Jackson says he and his staff won't cut back on their commitment to the community.
JACKSON: Counseling them is not going to cost us money, listening, being in their homes, encouraging them, that doesn't cost anything extra. God has everything under control. It's going to work out.
EASTABROOK: Diane Eastabrook, NIGHTLY BUSINESS REPORT, Janesville Wisconsin.
