Thursday, May 27, 2010

State of the Union May 27, 2010

• From Chairman Mike Bullock: Those employees who transferred under extended area hire and accepted Basic Relocation are automatically on the list for return to their home plant after 6 months. They can only return when there are permanent job openings at the home plant.

•Reminder: Friday, May 28 is the last day to cancel or opt out of automatic enrollment in the PSP. Call 1-800-489-4646 or go to gmbenefits.com.

•After the 10 recalls, there will be 200 members still laid off.

•From Automotive News: Honda has halted vehicle production at all four of its plants in China at least until Saturday, May 29, after 1,850 workers at a parts-making unit went on strike demanding a pay raise. The employees at the parts plant are demanding monthly pay be boosted to between 2,000 yuan ($293) and 2,500 yuan, from 1,500 yuan ($219), Matsuura said. The workers are requesting they be paid about the same as those at Honda’s car-making factories in China, the company said.

• Memorial Day, originally called Decoration Day, is a day of remembrance for those who have died in our nation's service. Memorial Day was officially proclaimed on May 5, 1868 by General John Logan, national commander of the Grand Army of the Republic, in his General Order No. 11, and was first observed on 30 May 1868, when flowers were placed on the graves of Union and Confederate soldiers at Arlington National Cemetery. The "National Moment of Remembrance" resolution was passed on Dec 2000 which asks that at 3 p.m. local time, for all Americans "To voluntarily and informally observe in their own way a Moment of remembrance and respect, pausing from whatever they are doing for a moment of silence or listening to 'Taps."

Wednesday, May 26, 2010

State of the Union May 26, 2010

•From Chairman Mike Bullock: Ten more employees will be recalled for June 1st. Everyone up to seniority date 9/22/1999, SSN 3800. These are temporary job opportunities. Also, a reminder that Thursday and next Tuesday are VR blackout days.

•Today marks the 73rd anniversary of the “Battle of the Overpass”, which saw Walter Reuther, among other UAW organizers, brutally beaten by “security” thugs hired by Henry Ford. News photographers documented the event, although most were also attacked and had their equipment confiscated or destroyed. Detroit News photographer James Kilpatrick offered useless photographic plates to Ford’s men and hid the good ones under his car seat. Those are the pictures everyone is familiar with and which caused the creation of a Pulitzer prize for photography.

•From the USA Today: The government on Tuesday raised the death toll from what could be Toyota unintended acceleration crashes to 89, but emphasized the incidents haven't been verified. In an update, the National Highway Traffic Safety Administration said it now has 6,200 reports of unintended acceleration in Toyota vehicles from 2000 through May 20. Those include allegations of 71 crashes in which 89 people are said to have died. That's up 71% from NHTSA's previous report that it had allegations of 52 deaths resulting from Toyota unintended acceleration. Safety consultant Sean Kane, often hired by lawyers suing car companies, says the numbers might be a lot higher. He says, "Incidents reported to NHTSA usually represent only a fraction of the total" and that Congress has reports of "nearly 38,000 potential" acceleration incidents involving Toyota vehicles, much higher than NHTSA's 6,200.

State of the Union May 25, 2010

•Now that we’ve seen what the various parties are owed by GM, what is it going to take to make them whole? According to CNNMoney writer Chris Isidore, GM’s market value will need to be $67 billion for taxpayers to get their money back. What about the VEBA? With 17.5% of 500 million shares, a $67 billion market value would equate to around $11.4 billion. Combined with the $6.5 billion in preferred shares and the $2.5 billion promissory note, the $20 billion obligation is met. If, as one analyst estimates, the market value is $90 billion, that would be another $4 billion. Of the four estimates offered by Isidore, the lowest is $64 billion, so it seems possible, if not likely, that the VEBA will in fact be funded to the pre-bankruptcy agreed level of $46.7 billion ($26 billion was transferred at the beginning of this year when the VEBA came on line).
• With last week’s announcement that Toyota and electric car maker Tesla will partner building electric vehicles and reopen the NUMMI plant to produce them, there is renewed hope for UAW members who lost their jobs there a couple of months ago. UAW President Ron Gettelfinger said, “Our union’s hope is that this venture will give first hiring preference to former NUMMI employees who are already trained and highly skilled.” Estimates for employment are around 1000 with job one, a $50,000 Model S sedan, due in 2012.
•Reminder: There will be another blessing of the bikes Tuesday, May 25, by the arch 15 minutes after longest line time or 5:45, whichever comes first.
•Reminder: Friday, May 28 is the last day to cancel or opt out of automatic enrollment in the PSP. Call 1-800-489-4646 or go to gmbenefits.com.

Monday, May 24, 2010

State of the Union May 24, 2010

• From Chairman Mike Bullock: The Missouri Career Center is signing up laid off Missourians for training for "Green Jobs". UAW laid off members receive priority on the training. Call John Arthur Miller at 636-278-1360 ext 293 to be put on the list.

• Reminder: There will be another blessing of the bikes Tuesday, May 25, by the arch 15 minutes after longest line time or 5:45, whichever comes first.

•Reminder: Friday, May 28 is the last day to cancel or opt out of automatic enrollment in the PSP. Call 1-800-489-4646 or go to gmbenefits.com.

•The recent GM repayment of the government loans has raised many questions about how much various parties are owed. Here’s the breakdown: President Bush approved a bailout plan on December 19, 2008, which would give loans of $17.4 billion to U.S. automakers GM and Chrysler. Bush initially provided $13.4 billion, with another $4 billion available in February 2009. Of that, GM got $9.4 billion and Chrysler $4 billion. GM did not take the second payout scheduled in February. GM filed for Chapter 11 Bankruptcy on June 1, 2009. The Feds provided $49.5 billion in what is called “Debtor-In-Possession” financing. The U.S. provided $6.7 billion in loans and took 61% of the company’s equity in exchange for $42.8 billion in cash. The Canadian government gave GM $1.4 billion in loans, and $8.1 billion cash in exchange for 12% of the company’s equity. So the total General Motors received from the U.S. was $59 billion, including the $9.4 billion before the bankruptcy. As part of the bankruptcy deal, the UAW’s Voluntary Employee Beneficiary Association Plan (VEBA), which pays healthcare benefits to GM retirees, agreed to forgive $20 billion GM owed the VEBA during GM’s bankruptcy proceedings. The union agreed to accept a 17.5% stake in the new GM, plus $6.5 billion in preferred shares and a $2.5 billion promissory note from the U.S. government. Holders of GM’ corporate bonds were owed $27.2 billion before the bankruptcy. Those bonds were backed by hard assets of GM, such as factories and real estate. In order to get to them to agree to the bankruptcy terms, bondholders received a 10% equity stake, plus so-called stock “warrants” that could eventually give them a 15% stake.

State of the Union May 21, 2010

•In case you haven’t heard, we will be producing compressed natural gas (CNG) and liquid propane gas (LPG) versions of the van for the 2011 model year. Tryouts will start in early September. There are no estimates on volumes yet. More details to come.

•There will be another blessing of the bikes Tuesday, May 25, by the arch 15 minutes after longest line time or 5:45, whichever comes first.

• The Susan G. Komen Race for the Cure will be Saturday, June 12. The team name this year is UAWLOCAL2250-GM. You can go to the website komenstlouis.org for more information and registration.

•GM President Mark Reuss had this to say to a group of commercial and fleet buyers in Detroit: “You’re a big part of that effort (moving forward profitably) and we want you to be an even bigger part. Make no mistake: I want your business. No matter what you may think, and especially no matter what you may hear. I’ve been told that one competitor in particular has even gone so far as to tell you, our fleet customers, that GM is getting out of the fleet business. I’ve heard that our competitors are saying GM’s not out of the woods yet, GM’s not stable, don’t buy GM’s products because they may not be around, and so on …Ladies and gentlemen… bunk. That’s what that is. One hundred percent processed and packaged baloney.”

• General Motors Co.'s retail sales are up 9% so far this month while rival Toyota Motor Corp. has seen a 12% drop, according to a report from car-buying research Web site Edmunds.com on Thursday. "We're noticing that Toyota's incentive program is starting to fall on deaf ears since most of the people who were open to getting deals from the automaker already made their purchases," analyst Jessica Caldwell said. "Our Toyota cross-shopping data indicates that the brand has not yet recovered from recent image problems."

Wednesday, May 19, 2010

State of the Union May 18, 2010

•Union Meeting is this Wednesday, May 19 at 3 pm and 15 minutes after the longest first shift line time.

•Reminder: The 10th Annual Blessing of the Bikes will be this Thursday, May 20th. The blessing will be held on the visitor’s parking lot by the arch 15 minutes after the longest line time or 5:45, whichever comes first. All bikes and bikers are welcome with or without your bikes.

•From Wards Auto: SRG Global Inc., a supplier of chrome-plated plastic parts, has developed a prototype louvered grille for General Motors Co. aimed at improving the efficiency of the auto maker’s fullsize pickup trucks to help meet upcoming stringent U.S. emissions and fuel-economy regulations. “What we heard is that GM is moving 100% of their vehicles to louvered grilles,” VP Jon DeGaynor said. In theory, the louvers would be connected to the engine control module, opening and closing per engine temperature.

Monday, May 17, 2010

State of the Union May 17, 2010

•Union Meeting is this Wednesday, May 19 at 3 pm and 15 minutes after the longest first shift line time.

• General Motors Company today announced its first quarter 2010 results, marked by revenue of $31.5 billion and operating income of $1.2 billion. Net income attributable to common stockholders was $0.9 billion, resulting in earnings per share on a diluted basis of $1.66. GM’s first quarter adjusted earnings before interest and tax (EBIT) was $1.7 billion, after adjusting for the favorable impact of the sale of the Saab brand. GM North America had EBIT in the first quarter 2010 of $1.2 billion (the same as Ford), up from a loss of $3.4 billion in the fourth quarter 2009. GM Europe had a loss before interest and taxes of $0.5 billion; an improvement of $0.3 billion from the fourth quarter. GM International Operations posted EBIT of $1.2 billion, up $0.5 billion from the fourth quarter. Cash flow from operating activities was $1.7 billion and after adjusting for capital expenditures of $0.7 billion, free cash flow was $1.0 billion. GM ended the first quarter with $35.7 billion in cash and marketable securities, including funds in escrow.

• Reminder: If you have received notification of automatic enrollment in the GM Personal Savings Plan (PSP) and do not wish to participate, you have until May 28 to opt out. You may do so by accessing www.gmbenefits.comor by calling the GM Benefits & Services Center at 1-800-489-4646. If not the first payroll deduction will occur on June 4, 2010, and will be at a 3% pre-tax contribution rate.

Thursday, May 13, 2010

State of the Union May 11, 2010

From the Benefits Department: MetLife will conduct a Life Insurance Enrollment from June 7 through June 18, 2010. During this Enrollment, eligible employees will have the following enrollment options:
o Increasing their current amount of Optional and/or Dependent Life Insurance by one level, without providing proof of good health.
o Enrolling for Optional and/or Dependent Life Insurance at the lowest coverage level, without providing proof of good health.
o Applying for any higher level of coverage by answering five questions regarding health status.

MetLife will prepare and mail an enrollment kit to the address of record for eligible employees beginning June 1. Employees will receive instructions in their kits for accessing the MetLife website to enroll on-line or instructions to complete required paper enrollment forms.

State of the Union May 12, 2010

Reminder: The Annie Malone Parade is this Sunday, May 16, at 1 pm. The parade route will begin at 20th and Market and proceed east on Market to Broadway. Those who wish to participate must meet at the parking lot of the Behlmann dealership located at 270 & McDonnell Blvd. NO LATER than 10:15. Vehicle decoration will be inside the staging area between 11:30 am and noon – admittance by sticker only. We will be in Section A-2 and only have space for 20 participants so arrive early. For questions or detailed directions call Dan Williams at 314-616-2271.
•From the Janesville Gazette: The clock is ticking for more than 100 laid-off employees at the General Motors plant in Janesville who recently were offered jobs at the automaker’s facility in Lordstown, Ohio. GM spokeswoman Kim Carpenter said Monday that most of the workers must decide today whether to accept or decline GM’s offer of a transfer to Ohio. A handful face a deadline of later this week, she said. Carpenter couldn’t say for sure Monday how many Janesville employees still are laid off. But she did say that the 100-plus offers made last week wouldn’t exhaust the local layoff list.
•From USA Today: The cheapest car to insure isn't a car, it's a work van, the Ford E350 Econoline. The second cheapest car to insure isn't a car either, it's a small SUV, the Mercury Mariner. Next? Chevrolet Traverse. The basic idea behind the list is that some vehicles are cheaper to fix if you crash them, and that difference is reflected in their insurance costs. The report is based on losses of insured vehicles for the models years 2007 to 2009, says the National Highway Traffic Safety Administration. So that Econoline van is 61% cheaper to insure than the average vehicle. The Mariner is 59% cheaper to insure. Traverse is 57%.(surprisingly, there were no Toyota models listed among the cheapest to insure. I wonder why….)

Monday, May 10, 2010

State of the Union May 10, 2010

There were 15 members recalled today. The new seniority date to hold the plant is 8-30-99 with a last four of 8600.

•The Annie Malone Parade is this Sunday, May 16, at 1 pm. The parade route will begin at 20th and Market and proceed east on Market to Broadway. Those who wish to participate must meet at the parking lot of the Behlmann dealership located at 270 & McDonnell Blvd. NOLATER than 10:15.

Vehicle decoration will be inside the staging area between 11:30 am and noon – admittance by sticker only. We will be in Section A-2 and only have space for 20 participants so arrive early.For questions or detailed directions call Dan Williams
at 314-616-2271.

Thursday, May 6, 2010

State of the Union May 5, 2010

Special Notice
The Shop Committee and myself met with Plant Manager John Dansby this morning on management's request to add three Fridays to the 8 that we are already scheduled to work during the 13 weeks between May 31 and August 27. This request from management was to build an additional 150 units.

The Union offered many alternatives to management to achieve this extra production without adding any additional overtime. These ideas included bringing back 2nd shift, adding a 2nd shift to body shop only, increasing speed, and tag relief. Management considered all these options to be "cost prohibitive" and were unilaterally denied.

The Union informed management that any additional overtime will put an undue and unreasonable stress on our membership. Additional manpower to cover requests for excused time off without pay during this time period was requested by the Union and also was denied by management.

The Union finally requested that all 224 laid off employees be returned to work before any additional overtime, above and beyond what is contractually obligated to, will be agreed to by the Union. This request was also denied. Myself and the Shop Committee have gone out of our way to find creative ways to agree to management's request of additional production - all to no avail.

Brothers and Sisters, there are 224 of our members currently laid off from our plant, over half have lost their health insurance benefits and sub benefits. We as a Union cannot turn our back on them.

Management has the right to discontinue the alternative work schedule and revert back to Plan B with a two week advance notice.

In solidarity

Mike Bullock

Tuesday, May 4, 2010

State of the Union May 4, 2010

 Reminder: The informational meeting for those who were picked in the overnight drive (VAP) program is today at 5:15 pm in the tour holding room. It is necessary for you to attend, if at all possible, to receive instructions and fill out the proper forms.
•    April sales results were reported yesterday. Overall industry sales were up 19.8% over last year. GM sales rose 7.2%, but fleet sales were down 2%. Here are the van market results:
2010 2009 Change Share
Ford Econoline 10,167 8813 +15.4% 59.5%
GM 6,304 6490 - 2.9% 36.9%
M.B. Sprinter 600 --- --- 3.5%
Dodge Sprinter 20 287 - 93% .1%
Ford Transit 2,229 --- ---

Net field stock for the van declined 347 units to from March to stand at 10,654, or a 53 day supply. Pickups have a 90 day supply and full size SUVs have a 62 day supply.
•    From Automotive News: Nissan recalled Infiniti G35 sedans and coupes because of faulty airbags that may not deploy during a crash, U.S. regulators said. The National Highway Traffic Safety Administration said as many as 134,215 G35 sedans from model years 2005-2006 and G35 coupes from model years 2005-2007 are subject to the recall. Nissan has yet to inform federal officials how the problem will be fixed, the agency said.
•    From the Detroit News: GMAC Inc. reported net income of $162 million in the first three months of the year today -- its first profitable quarter since 2008. The company, which is 56.3 percent owned by the U.S. Treasury, will rename itself after its online banking arm next Monday as Ally Financial Inc. GMAC financed 34 percent of GM sales in the first quarter, up from 30 percent the prior three months, and 42 percent of Chrysler sales, up from 26 percent.

State of the Union May 3, 2010

•    The runoff for Vice President is tomorrow, May 4. The candidates are Marlon Brown and Tom Brune. Polls are open from 4:30 am to 8:30 pm at the Union Hall. Please come out and vote one more time.
•    There will be a VAP meeting Tuesday, May 4, after first shift in the tour holding room for everyone who was drawn for an overnight drive vehicle to go over the instructions of the program. Special meetings will be held for those of you who can’t attend this one due to different work schedules. The completed matrix for the program with all the winners is in the cafeteria.
•    There will be a town hall meeting today after first shift with plant manager John Dansby at the bleachers at column D-38. Among the topics of discussion will be the schedule.
•    A UAW/GM LifeSteps representative will be in the cafeteria Tuesday May 4 and Wednesday May 5 from 9 am to 12 noon and 2:45 pm to 4:45 pm. The topic will be stretching and injury prevention, which is very pertinent information with the long hours being worked.
•    From Automotive News: Proposed auto safety legislation being circulated in Washington would require new technology and sharply raise penalties for violators -- potentially one of the biggest overhauls since rollover regulations were passed a decade ago. One provision would remove the existing $16.4 million cap on civil penalties against vehicle manufacturers for violations of safety laws and boost the fine for each violation to $25,000 from the current $6,000. NHTSA's recent record $16.4 million fine against Toyota for violations of U.S. law could have been as high as $57.5 billion if the proposed Waxman law had been in effect at the time.