Guide workers at Anderson plant likely to accept package

The final chapter in Guide Corp.'s 100-year history has been written.

Employees at Guide's Anderson automotive lighting plant appear ready to accept a Special Attrition Plan and a Closure Agreement after a series of meetings on Wednesday.

More than 500 employees filled the Wigwam at 9:30 a.m. for the first of three presentations from Guide, General Motors Corp. and United Auto Workers International Union. At issue were compensation packages for more than 1,200 workers laid off from the plant, which closed abruptly on Jan. 12.

As they left the meeting at nearly 1 p.m., employees slipped written votes into ballot boxes.

"Guide has been working with us and has shown us this Closure Agreement several times," said Steve Lewis, president of UAW Local 663, which represents Anderson Guide workers. "The shop committee does support voting 'yes' for this Closure Agreement."

The Anderson votes will be combined with those of Guide workers in Monroe, La., and the results announced Friday.

"Without a doubt, it's going to pass," said Ollie Dixon, Local 663 vice president. "I've talked to the president and the vice chair in Monroe and they feel the same way. A lot of people are going to vote for it because, if they turn it down, they can't expect anything. I think it's the best we can expect right now."

Guide's Anderson plant and Pendleton headquarters ceased production and dismissed workers on Jan. 12. The Monroe plant followed on Jan. 13, eliminating more than 800 jobs and a $50 million annual payroll.

The shutdown came six months earlier than expected and more than two years short of the March 20, 2009, expiration date of the current contract. Officials from Local 663 attended meetings in Detroit last week in order to discuss an agreement.

Wednesday's Special Attrition Plan was the result of those negotiations. GM representative Dean W. Munger outlined the seven possibilities for employees, including three retirement options, two transfer options, one voluntary buyout and one layoff package.

Employees will have 45 days to decide and another seven days to reconsider. Munger said GM fully backs the offer.

"We're going through a lot of turmoil as a company," Munger said. "We're going through a lot of changes. We just completed attrition to shed 35,000 workers, and we closed five plants last year."

UAW Local 663, which represents Anderson Guide workers, held a membership meeting immediately after the SAP session to discuss the Closure Agreement. It outlines the reallocation of Guide products to suppliers in Canada, China and Mexico and explains transfer options.

Rich Atwood, UAW International representative, said Guide has hurt GM's already sagging bottom line. GM figures put the cost of Guide at $165 million in 2004, $200 million in 2005 and an expected $260 million in 2006, plus another $60 million or more through the sale of assets. Guide was found to be "un-competitive in labor and technology."

That means employees have little choice but to accept the offer.

"A lot of people have asked, 'What happens if this is not ratified?' If it happens, we'll go back and say it's not good enough," Atwood said. "But what leverage do you have? You can't withhold your labor. You can't find a customer for Guide."

Refusing the offer could force Guide into bankruptcy, Atwood said, which would only make matters worse for workers.

"The first thing they do in bankruptcy court is ask companies to set aside labor agreements," Atwood said. "Everybody else gets a bite out of Guide before the workers and retirees do. You're what is considered 'non-secured creditors.' If GM's situation gets worse, I expect they'll do whatever it takes to protect themselves."

Stephanie King, 41, of Anderson joined Guide's production line three years ago. She hopes to transfer to another GM facility, but isn't counting on it.

"Guide was definitely the best job I ever had," King said. "I want to keep working. I'd like to transfer to another plant like Marion, but who knows? With all the plants closing, you may never get a call."

Ollie Dixon said many Guide employees have little chance of getting hired by GM because every GM employee will get preference over any Guide employee.

"It's a tremendous roll of the dice; it's a gamble for those people who have, let's say, four or five years in," Dixon said. "They will accumulate seniority up to 2009, but I don't know if there will be enough openings for all the people. Guide workers are at the bottom of the totem pole."

With just six years of seniority, Rob Hawthorne is leaning toward the buyout or layoff package. Employees with less than 10 years of experience may take a $70,000 buyout, while those with 10 or more years can receive $140,000. Layoff packages, meanwhile, provide 95 percent of a worker's current pay until March 2009.

"It could have been worse," said Rob Hawthorne, 38, of Anderson. "My thing is, I don't want to transfer to another plant just to get laid off again in a couple of years. I'll probably take the voluntary quit or the layoff."

Only after the votes have been tallied will the book close on Guide. Larry Jackson, president of UAW Local 1977 in Monroe, La., said anything could happen.

"There were some disgruntled members, but a majority of the members do not embrace those same opinions," Jackson told the News-Star. "Monroe is a small piece of the pie in regard to the vote. The Anderson vote alone can send (the closing agreement) south."

The closing of Guide effectively signaled the end of the automotive industry in Anderson. Only a few employees remain at Delphi's Plant 20, scheduled to close this year.

Guide was founded in Cleveland, Ohio, in 1906 as a motor vehicle lamp repair shop called Guide Motor Lamp Co. It was later acquired by GM before being spun off in 1998. During its most prosperous years, Guide employed 6,500 people.

A Special Attrition Plan for Guide Corp. employees was announced during a joint presentation from Guide, General Motors Corp. and United Auto Workers International Union. Seven options are on the table: