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'Nissan workers could have difficulty in finding new jobs'


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'Nissan workers could have difficulty in finding new jobs' | NISSAN

Nissan is planning to cut 18 percent of its labor force in the next three years.
Workers affected by Nissan North America’s plan to cut 18 percent of its Middle Tennessee manufacturing labor force in three years will likely have difficulty finding jobs in today’s economy, said a local economist.

“Right now it is a tough environment in searching for jobs unless you have some special skills such as healthcare,” said David Penn, director of the Business and Economic Research Center at MTSU.

But he said Nissan’s Wednesday morning announcement isn’t “terribly unexpected” with the downturn of truck and sport utility vehicle sales and nearly $4 gasoline prices.

Nissan is offering a voluntary buyout program to its technicians and salaried employees at its assembly plants in Smyrna and Decherd. Employees are being offered a lump sum payment of $100,000 or $125,000, based on tenure, and medical and car purchase benefits.

Night shift truck production at the Smyrna plant will be eliminated by Aug. 11, Nissan announced.

Rising fuel prices and the slowdown in sales of full-size trucks and SUVs are contributing factors, the company said.

Nissan saw an overall sales decrease of 17.7 percent this June from the same month last year. Truck and SUV sales are down 37.8 percent this June from the same month last year.

In our current economy, the automotive sector is taking a hard hit, particularly sport utility vehicles and trucks,” said Holly Weber, vice president of economic development, Rutherford County Chamber of Commerce. “The decision by Nissan will give current employees the option of pursing alternate career paths while also increasing efficiency of the Smyrna and Decherd facilities.”

Penn said If workers taking the buyout can ride out the economic downtown over the next couple of years, then they could possibly gain employment at the Volkswagen plant coming to Chattanooga or automobile suppliers that may be expanding or entering the market.

The VW plant is expected to employ approximately 2,000. Production could begin as early as 2011.

Weber said there several Middle Tennessee manufacturing companies that are hiring.

A search on job listings Web site Monster.com shows positions available at such companies as Cummins Inc. in Nashville and Adecco Engineering & Technology in Smyrna.

Nissan buyouts will not just have a direct impact on Smyrna and Rutherford County, Penn and Weber said. Nissan’s Middle Tennessee manufacturing plants employ people from all over the midstate.

“We are working with the (Tennessee) Department of Labor, Nashville, Murfreesboro and other career centers in Middle Tennessee to offer alternate career opportunities within the area,” Weber said.

Lump sum payments of between $100,000 and $125,000 could allow some workers to gain more skills by attending college or technical school.

Nissan offered a voluntary buyout last year that about 775 employees took.

Erin Edgemon can be reached at 869-0812 and at eedgemon@murfreesboropost.com.
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Member Opinions:
By: tnbumblebee on 7/30/08
Nissan hasnt hired a production employee with benefits since their last buyout a year or 2 ago. They have found it is cheaper to hire temporary employees with no benefits than hire them fulltime. Pretty sad in my opinion.

By: Gene_O on 7/31/08
tnbumblebee: What's sad is your twisted logic.

I guess it's okay that Wal-Mart (or 150 other businesses in our county) never bothered to paid anyone as much as $10? But "evil old Nissan" paid high school graduates like kings until a couple years ago when NAFTA forced them to compete with China.

So now they're the "villain" for only paying $7/hour more than Wal-Mart now instead of $20/hr. more? That's right, Nissan temps still make far more than you can make anywhere else around here without a degree.

Oh, and instead of just laying them off like GM and Ford, they're offering $125,000 and health care. How heartless of them!

Some people in this county lack the both intelligence or the perspective to ever be taken seriously.

By: tnbumblebee on 7/31/08
Geno 0 Twisted logic???
First of all Walmart doesnt demand property tax relief to buld a walmart superstore as Nissan does.
Walmart deesnt ask the state of tennessee for money to train their workers as Nissan does

Walmart doesnt threaten to move up and leave if they cant get tax cuts for their profits as Nissan does.
If you want to compare apples and oranges fine but to give this company any tax cut is way out of bounds. Now since all they will hire from now on is temporary employees with no benefits(same as Walmart) they shouldnt be entitled to any tax cuts. Mark my work,Rutherford county,the city of smyrna,lavergne and murfreesboro will raise taxes because of this.

By: lupusman on 7/31/08
Another national article in the DNJ today talked about how the Altima Hybrid was named one of the best "green" cars in the US and how great it was. BUT although the car is produced in Smyrna, it is only available in 4 or 5 states - TN NOT one of them. If this vehicle is so awesome and will be in high demand, why not increase their production in Smyrna and NOT payoff all those employees!

By: devolver on 8/2/08
I worked at the Nissan plant in Decherd, TN (as a HMI technician) for 5 years. Nissan is the only auto manufacturer to turn a profit in years. But it's not enough for them. Ever since Bill Krueger took over from Gaudette, things have gone down hill all around. They're thinking in short-term ecomonics. What they're going to find themselves with in a few years, if they keep it up, is the UAW. It would be a shame, for Nissan and the workers, but it will happen. And then we'll see Rutherford County's economy dry up.


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