Borg Warner has announced that 780 people will be losing their jobs by the year 2009. This is certainly terrible for the people who worked there as well as their families. Those who lose good jobs suffer financially as well as emotionally.
America's economy has been going through major changes over the past few years. For most of the 20th century, America was the center for heavy industry, but we're quickly losing that title.
I don't think we know where our place is going to be in the world economy for the next several years but if we don't figure it out soon, more and more people are going to lose good paying jobs.
One of the sectors of business that is suffering the most is the automotive market. Ford Motor Co. recently announced that they are experiencing record losses and General Motors Corp. is not doing very well either. This has a direct and devastating effect on smaller companies such as Borg Warner.
Borg Warner supplies automotive parts to larger automotive companies, specializing in transmissions. When the buyer is losing billions of dollars each fiscal year, they are forced to look for ways to reduce costs. One way to do this is to lay off workers. Another is to look for less expensive components for their products.
There are a number of factors that go into GM and Ford's financial suffering and several solutions that could save a lot of money and in turn save a lot of jobs.
The director's of these companies need to certainly make concessions. Executives are learning the healing power of pay cuts when the company is losing money. While it will in all likelihood not solve the company's problems, executives taking pay cuts at least demonstrates to the employees that they are willing to sacrifice something for the overall good of the company.
The labor unions in the automotive industry are not without fault either. Sometimes in their search for higher wages and better benefits they can ask of the company more than it can afford to give. Although everyone working is entitled to a good wage for the work they do, if the end result is that the company goes under, then everybody loses. If they were willing to give the company more breathing room, the company would likely have a better chance at remaining competitive.
I think the government could do a lot to help these companies out as well. We are constantly hearing that more and more of our jobs are being exported to countries where they can pay their employees far less than any American worker would accept. Tax incentives are always good. Perhaps giving tax incentives to companies who keep jobs in the U.S. would make staying a little more appealing.
Everyone in the auto industry suffers when a factory like Borg Warner closes. Only with innovative solutions and sacrifice will America regain its dominance in the world market. We, as consumers, can all do our part as well.
Every time someone buys a car that is made in America, they are helping to keep good jobs in towns like Muncie. You can ask any of those 780 workers from Borg Warner how valuable a safe, well paying and steady job can be.
Write to Alex at apcarroll@bsu.edu
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