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Brown Calls GM Decision ‘Corporate Greed’

WASHINGTON – U.S. Sen. Sherrod Brown today blasted General Motors’ decision to lay off its final shift of workers and close its Lordstown plant in March 2019.

Earlier this year, GM announced plans to build the new Chevy Blazer in Mexico on the same day the company ended the second shift at a plant. GM received record tax breaks as a result of the GOP’s tax bill last year, and has eliminated jobs instead of using that tax windfall to invest in American workers, Brown said.

“The workers at Lordstown are the best at what they do, and it’s clear once again that GM doesn’t respect them. Ohio taxpayers rescued GM, and it’s shameful that the company is now abandoning the Mahoning Valley and laying off workers right before the holidays. Even worse, the company reaped a massive tax break from last year’s GOP tax bill and failed to invest that money in American jobs, choosing to build its Blazer in Mexico,” Brown said in a statement. “GM owes the community answers on how the rest of the supply chain will be impacted and what consequences its disastrous decision will have on the Mahoning Valley and our state. My office stands ready to do everything we can to help these workers. This decision is corporate greed at its worst.”

GM has eliminated nearly 3,000 jobs at the plant over the last two years. After the GOP tax overhaul, GM was able to bring $6.9 billion in overseas cash back to the U.S. at less than half of the tax rate the corporation would formerly have paid, and immediately deduct the cost of any new investments in plant and equipment. Despite these tax cuts and the company’s record revenues as reported in its 2016 SEC filing, GM is still moving forward with the Lordstown layoffs, Brown noted.

In April, when GM announced plans for layoffs in Lordstown, Brown wrote to GM CEO Mary Barra condemning the layoffs and urging GM to reverse its decision by using the tax windfall the company received from the recent tax cuts to invest in the Lordstown facility and its workers. Brown also took to the Senate floor to call on GM to invest in Ohio workers.

Brown has demanded answers from GM, arguing that Ohioans deserve answers as to why the Lordstown plant is cutting jobs despite having more cash on hand following the GOP tax cuts. Brown said GM cannot pocket billions of dollars in tax cuts and turn around and fire Ohio workers whose livelihoods depend on these jobs.

Brown has spoken with GM CEO Mary Barra and President Trump about the plant directly. Brown and Barra met in Brown’s office June 5.

COMPREHENSIVE COVERAGE:
GM to Close Lordstown Plant In March
Inside Union Hall, GM Announcement ‘A shot in the Gut’
Amid GM Fallout, Leaders Focus on Next Steps
Workers Face Uncertainty After GM Decision
Chevy Dealers Not Surprised by Cruze Cancellation
Brown Calls GM Decision ‘Corporate Greed’
Ryan on Plant Closing: ‘New Black Monday’
Read Full Text of GM Closings Announcement
Ryan Wants Congressional Hearing on GM Tax Windfall

WATCH VIDEO:
Leaders React to Lordstown Closing
‘3 Minutes With’ Greg Greenwood, Chevrolet dealer

 

Published by The Business Journal, Youngstown, Ohio.