The final tally of job cuts at the Bridgestone plant in Normal is less than first thought. And United Steelworkers Union Local 787 President Jason Beckett said it does not involve layoffs.
Beckett said 60-64 workers accepted buyout offers of a lump sum $35,000 severance. That’s about a couple dozen people less than the company first targeted for a workforce reduction that could have involved involuntary separations. The workers will depart on various dates through the end of the year.
"Bridgestone regularly evaluates all aspects of its business to ensure it remains sustainable and competitive and to determine the best allocation of resources to support our business objectives," said the company in a statement.
Beckett said he’s pleased the company paused to reassess the numbers and seniority levels of the workers who remain and decided they needed them to operate the plant that makes off-road tires for large vehicles.
As part of the response to what Bridgestone termed changing market forces, the company is also simplifying its shift structure. The plant previously had shifts of varying lengths eight, 10, and 12 hours. Starting in November there will be eight-hour shifts five days a week, Beckett said.
Beckett said those who accepted the buyout fell into two rough categories: people with relatively little seniority and those nearing retirement. He said the split was roughly 60/40 less senior/more senior. Most remaining workers now largely fall in the 10–20-year range of service. A much smaller group of workers with 20+ years on the job remains as well. He said few if any remaining have less than two years on the job.
Given market conditions Beckett said he is “largely satisfied” with the way the company conducted the process, though he expressed “surprise” the buyout was a lump sum for all with no consideration for the length of employment at Bridgestone.
Those who accepted the buyouts have had presentations from the state rapid response group including the Illinois Department of Employment Security, the U.S. Department of Labor, and Career Link.
“They gave valuable information that we will keep on hand for any future need,” said Beckett. “Career Link was super-helpful in identifying re-training and employment options, and the Department of Labor helped people work through insurance issues and COBRA.”
Industry pressures
He declined to predict future employment patterns at the plant but said market conditions are challenging.
“Global markets are rapidly changing in just the last few years. India and China are knocking on our door,” he said. “They won’t stop coming.”
Roughly seven years ago he said the domestic tire industry viewed tires from China as the main threat, and perhaps India as a secondary consideration.
“India is now in front,” said Beckett.
There have also been efforts by both India and China to get around U.S. trade rules by using third countries such as Vietnam as the official source of tires.
“They can make things 40% cheaper than we can and drop stuff on our shores,” said Beckett.
India’s competitive advantage involves low-cost manpower, inexpensive materials, and no government oversight for environmental or worker safety, he said.
“That’s capitalism,” said Beckett. “I do have respect for their greed. They want it all.”
Beckett said U.S. produced tires have a huge quality advantage to imports though that is not always a deciding factor.
“These products have to be just good enough to make people hesitate,” said Beckett.
He said those buyers are taking a gamble that the tires they purchase will last a little more than half as long as U.S. made tires. If they do, it makes the purchases pencil out.
Over the last seven years, Beckett said India and China have made substantial inroads in some product lines.
“Bridgestone and other U.S. makers are hurting,” said Beckett.
A Bridgestone plant in Laverne, Tennessee, closed in July. He said a plant in Des Moines, Iowa, remains “OK” but employment there has fallen from 1,500 to 500 people in the last few years.
Until recently those competitive pressures have not fallen on the goods made in the Twin Cities.
“We’ve been fortunate to be a little insulated,” he said. “That’s changing.”
The Bridgestone plant in Normal makes tires for off-the-road vehicles in several sectors: underground and surface mining, aircraft, cranes, quarry work, and some agricultural uses.
Change has become a part of the normal operating rhythm of our business," said Bridgestone's statement.
Beckett views the company moves to downsize its workforce as the first wave of responses in the off-road tire sector.
“We’re going to have to be sharp to compete. They’re juggernauts,” Beckett said.
