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January 29, 2010
Bach Phan
The close of the Fremont NUMMI Plant affects WHS students. Sophomore Billy Burgendall’s father has been working in this plant for 24 years. Burgendall blames the recession and the decline for the demand of automobiles.
“I’m stressed out. It’s the first time that I’ve had to look for a job in over 24 years. A lot of changes are going to happen,” Burgendall said.
His next move is uncertain. The family expects to adjust spending habits. He is worried about finding a job because of the recent downturn of the economy, which has caused demand for his job trade to decrease.
The closing of the plant will greatly affect the 4,700 employees that are currently employed by NUMMI. There are also around five to seven employees part of various other companies that are connected to the NUMMI plant, working for supplier firms for parts and other goods. According to Burgendall, this could result in the overall loss of 21,000 jobs after March 31.
The massive amount of employment lost will be hurtful to the state’s budget as well. California provides unemployment insurance for every person that has been laid off. According to the National Center for Children in Poverty (NCCP) will have to pay up to $450 per unemployed person per week. For the predicted lost 21,000 jobs, that is upwards of $9.45 million for unemployment insurance every week. Many have seen the NUMMI sign while driving on the freeway, but people missed see the importance it had cemented in this community as a key provider of employment.
