Saginaw mayor reacts to TRW plant closure - ABC 12 – WJRT – Flint, MI

Saginaw mayor reacts to TRW plant closure

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(12/18/13) - A plant closure in Saginaw will leave hundreds jobless, and cost the city of Saginaw a lot of money.

Tuesday, TRW Automotive announced it plans to close its doors on Feb. 16, leaving 600 people unemployed.

Workers at the plant assemble parts for automotive brake systems.

TRW released a statement, Tuesday, saying this closure is happening because the company hasn't been able to secure new work, and because General Motors is pulling its business.

Saginaw's mayor, Dennis Browning, says the closure won't just hurt the employees at the plant; it will also cost the city of Saginaw a lot of money, in the form of lost tax revenues from the company and from the people who work at TRW.

"These are union employees that will be without a job, and that's devastating to them and it's devastating to the city of Saginaw," he said. "This could be a reduction in revenue for the city of Saginaw anywhere from a quarter to a half a million dollars."

All due to a loss in taxes, and that lost revenue means more cuts are likely.

"That's a large chunk of change that we been use to using, we've been planning on that and counting on that, we count on all our businesses to remain if they can," Browning said.

Browning says Saginaw's budget has already been set for the year based on anticipated revenue. Council members will likely re-adjust those numbers to accommodate for the TRW plant closing.

Company and union officials aren't speaking publicly at this point. We tried calling officials at the UAW 467, but they didn't return our calls. We also went inside, but they didn't want to offer reaction. TRW officials also declined an on-camera interview.

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