jobs

Detroit
11:53 am
Fri November 18, 2011

Mayor Bing: 1,000 job cuts amid budget crisis

Detroit Mayor Dave Bing says 1,000 job cuts are planned by early next year to help deal with the city's budget crisis.

The mayor's office said in a statement Friday that layoff notices will be delivered the week of Dec. 5. He says the cuts represent 9 percent of the city's about 11,000 employees and will save about $12 million.

On Wednesday, Bing said the city faces a $45 million cash shortfall by the end of its fiscal year in June.

Bing said the positions will be eliminated by Feb. 25. He said additional 2,000 positions have been eliminated since he took office in 2009.

Bing also ordered an immediate hiring freeze for all civil service positions except the Detroit Water and Sewerage Department.

Economy
3:31 pm
Thu November 17, 2011

U-M economic forecast: sluggish job growth

The nation's road to economic recovery will be a marathon, not a sprint. That's according to an economic forecast released today from the University of Michigan's Research Seminar in Quantitative Economics.

The economists write the U.S. economy has been battered by an oil price spike this past spring, the Japanese earthquake, and the European debt crisis.

Despite that, they say the chances of a double-dip recession are lessening:

From the report:

Economic news has improved a bit this fall, lessening the chances of a double dip. Output growth rebounded in the third quarter to register a 2.5 percent pace. Job gains have picked up a notch, averaging 117,000 since midyear. Consumer sentiment has reclaimed part of the ground lost since May. The economy remains vulnerable, however, as the main problems that have plagued this recovery persist.

The Detroit Free Press quoted U-M economist Joan Crary about the slow addition of jobs to the U.S. economy:

On the positive side, the U.S. economy added 700,000 jobs last year and 1.5 million this year, and the U-M economists predicted that the nation will add nearly 4 million jobs over the next two years.

But that will be enough to bring the unemployment rate down only moderately, from its current national rate around 9% to 8.8% in late 2012 and 8.5% in late 2013.

"The unemployment rate begins to creep down but remains uncomfortably high even at the end of 2013— 4½ years after the official end of the recession," Crary said.

In their report, the U-M economists noted the potential impact of a political stalemate in Washington D.C.:

In the current political environment, it also seems unlikely that Congress will pass any new stimulus measures. We have assumed the payroll tax holiday and investment tax incentives will be held over for another year, but neither of those extensions is a sure thing. We may well end up with a fiscal policy that doesn’t address either our short- or long-term problems.

The group is expected to put out a report on Michigan's economy tomorrow.

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Auto/Economy
2:56 pm
Wed November 16, 2011

Michigan's unemployment rate ticks downward

The Michigan Public Radio Network's Rick Pluta reports, "the combination of a slight increase in jobs and a lot of people who quit looking for work led to Michigan's unemployment to drop by half a percentage point last month to 10.6 percent."

More from the Detroit Free Press:

Michigan’s unemployment rate is moving in the right direction again, dropping half a percentage point during October to 10.6%, the state’s Department of Technology, Management & Budget reported today.

But the state’s labor markets remain far from healthy. The jobless rate decline in October was due mainly to fewer unemployed people actively seeking employment, said Rick Waclawek, director of the Bureau of Labor Market Information and Strategic Initiatives. Such “discouraged” workers are no longer counted in the calculation of the unemployment rate.

State Politics
6:52 am
Tue November 15, 2011

Michigan Democrats release jobs plan

Democratic lawmakers at the state Capitol have released a plan that they say would help small businesses grow and hire the unemployed. “The plan includes taking a portion of the money that’s in a state trust fund and investing it in local banks and credit unions to make small business loans… the package would allow small banks and credit unions to pool their finances to invest in larger projects… and also calls for a tax credit for small businesses that hire long-term unemployed people and veterans,” Rick Pluta reports.

On Monday, “State Rep. Kate Segal of Battle Creek, the House Democratic floor leader, and Rep. Vicki Barnett of Farmington Hills proposed their 'Invest in Michigan: Small Business Jobs’ plan',” the Detroit News reports. “Segal said her bills offering incentives for hiring veterans and the long-term unemployed will be introduced when the Legislature returns from its two-week Thanksgiving break on Nov. 29,” the News explains.

It’s unlikely the measures will find support among Republican lawmakers. “Republicans shy away from job creation credits. They say the state should not single out specific businesses for tax breaks,” Pluta explains. Republicans are in the majority in both the state House and state Senate.

Politics
1:34 pm
Mon November 14, 2011

Michigan Democrats promote small business measures

The Michigan House of Representatives.
Lester Graham Michigan Radio

LANSING, Mich. (AP) - Democrats in the Michigan House are promoting legislation they say is designed to help small businesses hire more workers.

One measure detailed by Democrats on Monday would provide tax credits of up to $4,000 per person for small businesses that hire unemployed workers. The tax credits would be largest for hiring military veterans who have been jobless for a long time.

Other bills are aimed at developing a pool of money to loan to small businesses. The money would come through investments of a small percentage of state trust funds with Michigan credit unions and community banks, which in turn would make loans available to small businesses.

Democrats are in the minority in the House. The legislation could face an uphill climb to gain traction in the Republican-led chamber.

Politics
1:30 pm
Sat November 12, 2011

Stronger fireworks may soon be available in MI

A Roman Candle
Flickr/jcarter

Michigan could soon expand the lineup of legal fireworks that consumers can buy without special permits.

The state Legislature has approved measures that would allow some consumer fireworks such as firecrackers, bottle rockets and Roman candles to legally be sold in the state. Governor Snyder likely will sign the bill in time for it to become law in 2012.

Newspapers
5:11 pm
Wed November 2, 2011

Booth papers, MLive.com form new company, cut home delivery

Dan Gaydou announces the formation of a new company, MLive Media Group
MLive.com

According to a press release by Booth Newspapers Publisher Dan Gaydou, Booth Newspapers and MLive.com will now operate as one consolidated company, MLive Media Group.

Distribution and administrative operations will move to Advance Central Services Michigan, a newly formed subsidiary company.

The restructuring will most likely mean job cuts as the organization increases its focus on digital content.

From the announcement on MLive.com:

Many of our newspaper employees will have a place in the MLive Media Group and will still work in your local community at the MLive Media Group office. Many others will have a place at Advance Central Services Michigan. While we believe these changes will create growth opportunities for our current employees, the reality is they will also lead to reductions in our work force. We will provide as much notice and consideration to our employees as possible. We’ll strive throughout this process to treat all our employees with the professionalism and respect they deserve.

Gaydou says MLive Media Group will open new offices and hire people to produce content for its online products and its newspapers. Employees affected by the layoffs will be able to apply for those jobs.

Home delivery will be reduced to three days a week for the following newspapers, with daily content available in an online format.

  • The Grand Rapids Press
  • The Kalamazoo Gazette
  • The Muskegon Chronicle
  • The Jackson Citizen Patriot

Other Booth newspapers including the Flint Journal, Saginaw News, Bay City Times, and AnnArbor.com will also move under the MLive Media Group name but delivery changes at those papers are not expected.

John Klein Wilson - Michigan Radio newsroom

Economy
12:45 pm
Fri October 28, 2011

Whirlpool to cut 5,000 jobs to reduce costs

Whirlpool

Update 12:45 p.m.

Jeff Noel, a Whirlpool company spokesman, would not give Michigan Radio reporter Lindsey Smith a number. When pressed further about the job losses expected in Michigan, Noel said it would be “a commensurate amount."

10:06 a.m.

In a cost cutting measure, the Benton Harbor-based company Whirlpool says it will cut 5,000 jobs. There's no word yet on how many of those job cuts will be in Michigan.

Michigan Radio's Lindsey Smith is following the story and will have more for us later.

From the Associated Press:

Appliance maker Whirlpool Corp. says it will cut 5,000 jobs in an effort as it faces soft demand and higher costs for materials.

The jobs to be cut are mostly in North America and Europe. They include 1,200 salaried positions and the closing of the company's Fort Smith, Ark., plant.

The company expects the moves will save $400 million by the end of 2013.

Whirlpool also says its third-quarter net income more than doubled to $177 million, or $2.27 per share, from $79 million, or $1.02 per share. Adjusted earnings of $2.35 per share fell short of analyst expectations for $2.75 per share.

The company, whose brands include Maytag and KitchenAid, has been squeezed by higher costs for materials such as steel and copper.

Bloomberg News reports that Whirlpool employs 71,000 people around the world "at 66 manufacturing and research sites.":

Whirlpool follows European rival Electrolux AB (ELUXB) with a more muted outlook for the year. The Swedish company said today that it will deepen cost cuts after lowering a forecast for growth in Europe and North America this year. Whirlpool said reductions in Europe and North America account for about 10 percent of all employees in those regions. The company has a global workforce of 71,000 at 66 manufacturing and research sites.

Changing Gears
11:28 am
Tue October 18, 2011

Magic bullets in the form of advanced battery manufacturing (Part 2)

General Motors Battery Lab in Warren, Michigan.
John F. Martin General Motors

Three years ago, the advanced battery industry in the United States existed only in the imagination.

Plenty of people believed electric cars would be the next big thing, and they would be powered by lithium ion batteries; the same kind of batteries that are in cell phones and laptops.

But in 2008, almost all of the lithium ion batteries in the world were made in Asia.

Randy Thelan heard that might be about to change.

Batteries come to Michigan

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Changing Gears
12:49 pm
Mon October 17, 2011

Obama, werewolves and silver…er…magic bullets

Curtis Sullivan says silver bullets are for killing werewolves.
Kate Davidson

While we’re on the subject of magic bullets, please indulge this brief sidebar.

Schisms happen.  There was once a tremendous split between the (now) Roman Catholic Church and the (now) Eastern Orthodox Church.  Today there’s also a Great Schism in the bullet world.

Namely, between those who say magic bullet and those who say silver bullet — both parties referring to an economic quick fix.

On one side, you have President Obama, who may be the highest profile proponent of the term silver bullet. While pitching his jobs plan to a recent joint session of Congress he said, “It should not be nor will it be the last plan of action we propose. What’s guided us from the start of this crisis hasn’t been the search for a silver bullet. It’s been a commitment to stay at it, to be persistent, to keep trying every new idea that works.”

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Changing Gears
12:11 pm
Mon October 17, 2011

A very brief history of the Midwest magic bullet (Part 1)

Memorabilia from the now defunct AutoWorld in Flint.

History is full of the search for magic bullets, those quick tickets to jobs and economic prosperity. Cities across our region have put great hopes and resources into magic bullets.

Some have soared; many have backfired.

This week, we’re bringing you stories of magic bullets past and present. We start with this look back.

Magic bullets are kind of like imaginary friends. We all have them in our past, but most people deny they exist.

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Politics
4:02 pm
Fri October 14, 2011

Governor visits U of M, touts pro-immigration stance

Governor Rick Snyder
Michigan Municipal League flickr

Governor Rick Snyder says he considers himself "probably the most aggressive pro-immigration governor in the country." Snyder says Michigan should work to attract immigrants with advanced degrees, especially in biomedical sciences and high-tech industries.

He reminded students, researchers and educators at University of Michigan today that some of the state’s most successful businesses – such as Meijer and Dow – were founded by immigrants.

“We tend to forget they’re Michigan names. Dow was a Canadian emigrant and Meijers was a Dutch emigrant. And now they’re household words that we consider them Michiganders,” said Snyder.

State Demographer Ken Darga says one of the big reasons Michigan was the only state to lose population in the past decade is because of a failure to attract immigrants.

Meanwhile, there are several Republican proposals in the Legislature aimed at enacting regulations to discourage illegal immigration.

Snyder also stated that too many college graduates in Michigan are leaving the state to pursue careers. He says part of that is because there are not enough jobs available for young workers. He says revitalizing urban areas will help reverse the so-called “brain drain.”

“It’s absolutely critical for Detroit to begin on the path to be a great city again because many of our young people are looking for that urban environment. And there are good things going on in Detroit. They’re good enough going on today that I like to ask young people – and you might appreciate this – I say ‘Do you want to be another yuppie in Chicago, or do you want to stay and make a difference in Detroit?’” said Snyder.

*Correction - an earlier version of this story was titled "Governor visits U of M, touts anti-immigration stance." He was highlighting his "pro-immigration" stance. The headline has been changed.

Changing Gears
11:49 am
Thu October 13, 2011

Nonprofit company uses science to turn ideas into jobs

Woody Cook, Battelle National Security, next to a pool that is used to test underwater robotic devices.
Niala Boodhoo Changing Gears

(We're having technical problems with the "audio processing" file above. To listen, please click on the second file.)

Steve Job’s death last week has reminded everyone firsthand the notion that everyone has ideas, and very few become actual products.

That’s because ideas need a push. In some cases, a big push from science to become reality.

It sounds obvious, but when we’re talking about actual products, that translate into actual jobs, and actual economic activity, it’s worth exploring.

That’s why I was so interested to learn more about Battelle Memorial Institute.

Innovation can strike in a variety of ways.

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Agriculture
1:12 pm
Tue October 11, 2011

Agriculture industry is growing, but can't find white collar workers

An image problem may be keeping the agriculture industry from being able to find enough workers.
United States National Archives

The Midwest’s persistently high unemployment rate isn’t expected to fall anytime soon.

But as Changing Gears' Kate Davidson reported, temporary employment agencies across the Midwest can’t seem to find enough people to fill all the open factory jobs they have waiting. These agencies are busier than they’ve been in years, because manufacturing has more open jobs than candidates willing or able to fill them.

Now, another industry finds itself in a similar position: agriculture. It's a big business all across the Midwest. In Michigan, agriculture is said to be the state’s second largest industry and is still growing.

But, Jim Byrum of the Michigan Agri-Business Association says agriculture producers can’t find enough people to fill jobs now, and he’s even more worried about the future.

“The industry demand is pretty solid, and it’s an increasingly severe problem,” Bryum says.

A large group within the agriculture industry -- white collar workers at agri-business companies -- is getting ready to retire soon. His concern is that a new generation of workers is not ready to replace those workers getting ready to leave.

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Auto/Economy
10:16 pm
Mon October 10, 2011

Gov. Snyder wants to attract immigrants ready to start businesses

Governor Rick Snyder tells the 'World Affairs Council of Western Michigan' he wants immigrants with talent and money who are willing to invest in the United States to come to Michigan.
Lindsey Smith Michigan Radio

Governor Rick Snyder says he wants to attract more foreign entrepreneurs to the state. Snyder told a gathering of “The World Affairs Council of Western Michigan” he’d would like to leverage a federal immigration program to attract new jobs and investments.

The EB-5 immigration program

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Politics
5:24 pm
Mon October 10, 2011

Vice President Joe Biden coming to Michigan on Wednesday

Vice President Joe Biden
(Official portrait)

Vice President Joe Biden will visit Flint and Grand Rapids on Wednesday.   He’ll promote the Obama administration’s efforts to spur jobs growth.  

 The Vice President is scheduled to make two public stops on Wednesday.   Biden’s first stop will be in Flint, where he’ll talk about how the President’s jobs plan would spend $5  billion to hire and retain firefighters and police officers.   Flint’s police and fire departments have seen deep cuts as the city has struggled with a rising budget deficit.  

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Auto/Economy
5:00 pm
Thu October 6, 2011

UM economist expects slower job growth in 2012

A Ford assembly plant.
Ford Motor Company

In his economic forecast for Michigan released today, George Fulton, Director of the University of Michigan's Research Seminar in Quantitative Economics wrote that Michigan's economy is recovering from hitting bottom in late 2009, "but it has not been a smooth climb, especially during 2011."

The Detroit Free Press writes that Fulton cut his jobs forecast for 2012.

...he expects just 33,000 new jobs next year, down sharply from his earlier forecast of 61,500 positions.

Fulton expects the total number of jobs created from late 2009 through 2013 to be 187,000.

From the report summary:

The continuation of the recovery is supported by steadily rising vehicle sales and an improved U.S. economy over the next two years. Manufacturing continues to grow through 2013, but the largest job gains are in the service industries, led by health services and professional and business services. Government continues to shrink over the period.

Changing Gears
12:16 pm
Wed October 5, 2011

Help Wanted: Why manufacturing temps are in demand

Becky Hall and Shannon Burkel of Staffing Inc. say hiring is off the charts.
Kate Davidson Changing Gears

Here are four very bad words you hear a lot these days:

There.  Are.  No.  Jobs.

But it turns out, that’s not entirely true.

Yes, the manufacturing sector lost six million jobs last decade.  But now, staffing agencies that place temporary workers in manufacturing say business is booming.

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Auto/Economy
1:03 pm
Tue October 4, 2011

Ford-UAW deal includes more jobs and U.S. investment

John Fleming, Ford executive vice president of Global Manufacturing and Labor Affairs discusses the UAW agreement with reporters this morning.
screen grab fordahead.com

Update 1:03 p.m.

More details of the UAW-Ford agreement emerged after the UAW's press conference. UAW vice president Jimmy Settles reports winning a "a $6,000 settlement bonus for workers and $7,000 in inflation protection and competitive lump-sum payments over the term of the agreement."

Settles said workers will receive a payment averaging $3,700 this year.

Entry-level wages for new Ford workers are similar to the GM agreement. Their hourly pay was raised to $19.28 over the term of the agreement.

The union details where the investments in jobs and upgraded auto plants will occur in the U.S. saying that "jobs, investment and product guarantees in the tentative agreement include":

  • Flat Rock, Mich., second source for the next generation Fusion and next-generation Mustang.
  • Kansas City, Mo., in-source Transit Commercial Van from Europe.
  • Louisville, Ky., new unnamed vehicle in addition to 2012 Escape.
  • Wayne, Mich., in-source C-Max from Europe in both hybrid and plug-in hybrid models.
  • Avon Lake, Ohio, in-source medium truck and frame assembly from Mexico, along with in-source Motorhome Chassis.

The agreement with Ford was recommenced to the union's larger membership. Now all UAW members will vote for or against ratification this week.

10:27 a.m.

The agreement reached between Ford Motor Company and United Auto Worker representatives will lead to more jobs and investment in the U.S., according to the Detroit News.

Alisa Priddle of the Detroit News reports that many of those jobs will be in Michigan:

The figure includes 7,000 jobs previously announced as well as 5,000 additional jobs - the majority of them new and paying the lower, entry-level wage. Ford officials declined to break down the exact split between new and saved jobs. Some the jobs are from in-sourcing of work that has been previously done in other countries, including Mexico, Japan and China.

The UAW says that "proposed agreement also includes $16 billion of investment to produce new models and upgraded vehicles and components by 2015, of which, $6.3 billion will be invested directly into retooling and upgrading plants."

Ford's union workers are demanding more from Ford compared to the workers at GM and Chrysler.

Part of it has to do with bargaining from a position of power. Ford's union workers could strike should an agreement not be reached. Chrysler and GM workers do not have that option. Both Chrysler and GM took loans from the federal government's Troubled Asset Relief Program (TARP). A condition of those loans stipulated that its workers could not strike.

Brent Snavely reports in USA Today on the other reasons workers at Ford hope to achieve more in their negotiations with the company.

Entering contract talks, the UAW and Ford had an unresolved grievance, signed by 35,000 of the automaker's 40,600 workers, alleging that Ford had violated equity of sacrifice promise by restoring merit pay to white-collar workers but not to hourly workers.

But Ford workers say they have more reasons to expect more than UAW members at GM. Ford has made $14.2 billion in profits since the end of 2008. Ford CEO Alan Mulally and Executive Chairman Bill Ford each made $26.5 million in 2010, an amount that many workers find excessive since production workers have gone eight years without a base wage increase. That high executive pay has become a rallying point for discontents in Ford's factories.

Comparing previous contracts, Snavely reports that "Ford pays $58 an hour for wages and benefits, which is about $2 more per hour than GM and $9 an hour more than Chrysler were paying..."

More details of the tentative 4-year agreement between Ford and the UAW will be revealed at an 11:30 press conference. The contract will not be ratified until the UAW membership votes on it.

Auto/Economy
5:26 pm
Wed September 28, 2011

At auto plants, a reversal of fortune

Auto workers and brothers - Justin (left) and Derick Jewell. In September of 2010, Justin Jewell made $16 an hour. Derick Jewell, his older brother, made $28 an hour.
Kate Davidson Changing Gears

*Editors note - This story by Kate Davidson of Changing Gears was first broadcast last year (September 22, 2010). Now that GM and the UAW have agreed to a new contract that will allow GM to hire more "two-tier" workers (newly hired workers paid a lower wage than traditional workers), we thought we'd bring her story on "two-tier" workers back. As Micki Maynard of Changing Gears points out, only about 4 percent of GM's workforce is "two-tier" now - under the new contract, that number could go up to 25 percent.

The American Dream is that each generation will do better than the last.  But many families of auto workers no longer have that expectation.  As Detroit car makers sped towards financial ruin, their union agreed to a dual wage structure, plus deep cuts in benefits.

Now, new hires earn about half what traditional workers make.  This reversal of fortune has altered their lives.

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