Wednesday, March 31, 2010

State of the Union March 31 2010

There will be 13 members recalled Monday, April 5. The new seniority date to hold the plant is 7-23-1985. More members will be recalled April 12 and 19 but the number is still to be determined.
•    As of today, 19 laid off members have accepted transfer to Ft. Wayne effective April 5. The following week, 4-12, 14 laid off members will transfer to Ft. Wayne and 2 will transfer to Fairfax. That will leave 278 members on layoff.
•    Good news from the benefits department: Optional life insurance premium payments will be suspended for May and June and optional dependant life insurance payments will be suspended from May through December.
•    Thanks to everyone who donated their time and money to provide Easter baskets to needy children. There were 75 baskets overflowing with candy and toys that are sure to brighten a child’s Easter holiday.
•    From the Detroit Free Press: For the 15 months ended Sept. 30, 2009, Americans scrapped 1.2 million more vehicles than they bought, a historical first, according to R.L. Polk & Co, which has tracked car owning patterns since 1948. More than 14.8 million cars and light trucks were crushed or recycled in that period, while consumers registered 13.6 million new vehicles. “It foreshadows what may be pent-up demand. The assumption is that those vehicles have to be replaced,” said Lonnie Miller, Polk vice president for marketing and industry analysis. The average vehicle on U.S. roads was 10.2 years old during the 15 months of Polk’s most recent analysis. That is the oldest fleet in at least 14 years.
•    From Automotive News: Two leading U.S. economists today predicted a return to more normal economic conditions by the end of 2010. As a result, they forecast U.S. light-vehicle sales will reach 14 million units in 2011 and grow to old levels of 17 million and above by middecade. However, market share among automakers will remain extremely fluid. Once the economy is rolling, by 2013 about 70 to 75 million young consumers will enter the market. In addition, while scrappage demand may not return to high percentages -- thanks to constantly improving quality lengthening the ownership cycle -- there is significant pent-up demand that will see more replacement purchases in the near term, George Magliano, IHS Global Insight director of automotive research said.

State of the Union March 30, 2010

 The Community Services committee will be putting Easter baskets together after first shift today in the cafeteria. Anyone who wants to help is welcome. Thanks to body shop for collecting $317 for baskets.
•    From the Detroit Free Press: The ranks of UAW members fell to a new post-World War II low in 2009 as the bankruptcies of General Motors and Chrysler led to thousands of manufacturing job losses. According to its annual report filed with federal overseers Monday, the UAW had 355,191 members at the end of 2009, a loss of 75,846 members, or 18%, from the 431,037 it reported at the end of 2008. The union's net assets shrank by $69 million to $1.12 billion. UAW President Ron Gettelfinger was paid $173,065 in salary and other compensation, a slight decrease from the $174,098 he received in 2008. The union's overhead costs fell slightly, as did its political lobbying, to $9.7 million from $10.6 million in 2008.
•    From the Detroit News: The U.S. Transportation Department will launch two major investigations to discover whether vehicle electronics or electromagnetic interference are to blame for unintended vehicle acceleration incidents. The investigations, one by the National Academy of Sciences and the other with the help of the NASA, will help get to the bottom of the issue, U.S. Transportation Secretary Ray LaHood said in an interview with The Detroit News Monday. "Many members of Congress think it's electronics and I heard enough of that -- not only from members but from Toyota drivers ... and so we felt we really needed to get outside experts," LaHood said. "We are tapping the best minds around."
•    The UAW plans to offer for sale all of its 362 million warrants for FordMotor Co. stock today -- a move that could generate about $1.3 billion for the union's retiree health care trust fund. The stock warrants constitute an 11 percent ownership in Ford. Ford issued the warrants to the UAW in December to help cover its obligation to the Voluntary Employees' Beneficiary Association. Ford will receive no proceeds from the transaction, nor will the UAW's gains reduce the automaker's remaining obligations, about $7 billion, to the VEBA.

Monday, March 29, 2010

State of the Union March 29, 2010

Anyone wishing to accept nomination for Vice President or delegate to the Constitutional Convention may do so at the Union Hall April 5 – 7, from 7 am through 6 pm (one hour later than posted due to extended line times) and April 8 from 7 am to 4:30 pm. Elections will be April 27 from 4:30 am to 8:30 pm.
•    In order to meet growing customer demand for Chevrolet Equinox and GMC Terrain models, GM is implementing a unique plan to add a third shift at the Oshawa Assembly Plant to support new Equinox production there. The Equinox and Terrain are currently produced at GM’s CAMI Automotive plant in Ingersoll, Ontario. Under the plan, CAMI’s Body Shop capacity will be expanded to produce extra Chevrolet Equinox units beyond the plant’s existing capacity to paint and assemble them. These Equinox body assemblies will then be shipped to the Oshawa plant (about 150 miles) for paint and final assembly alongside the current Chevrolet Impala production. “This plan for CAMI and Oshawa allows us to meet customer demand for hot products while avoiding a potential production over-capacity situation by creatively using our assets and facilities,” said Mark Reuss, president of GM North America. The third shift to support Equinox production in Oshawa will be added in October and is expected to return approximately 600 employees to the plant. At CAMI, all laid off employees will soon be recalled and the additional body shop volume is expected to result in the need for approximately 70 new jobs at CAMI by August of this year.

Friday, March 26, 2010

State of the Union March 25, 2010

 From the UAW website: American Axle and Manufacturing Inc. violated the job security clause in its agreement with the UAW and must make whole the workers affected by its 2009 decision to outsource work to Mexico, an arbitrator has ruled. The decision, issued Wednesday by umpire Paul E. Glendon, found that the company violated the terms of its 2008 National Agreement with the union when it moved its 8.25 axle production to its facility in Guanajuato, Mexico. "This is a major victory for these workers, and we're very gratified that the umpire upheld our strong outsourcing language reached in the 2008 agreements," said UAW President Ron Gettelfinger. "Our American Axle members went on strike for three months in part to win this measure of job security." Glendon ordered the parties to determine the exact number of workers affected by the outsourcing, how many were laid off because of the improper outsourcing, and how much those workers are due in wages and benefits. American Axle had claimed it retained broad discretion about what products to make and where and when to produce them. The company also claimed the contract language merely required it to keep its tooling and equipment on hand in Detroit to produce the 8.25 line if it decides to do so. This argument, Glendon wrote, "constitutes mere grasping, ingeniously but unconvincingly, at semantic straws. It clearly and categorically committed to produce the specified 'Product Programs' at the designated plants, not merely to keep tools and equipment that might be used for that purpose."
•    From the Detroit Free Press: GM plans to make another round of $1.19-billion loan payments to the U.S. and Canadian governments next Wednesday, the company said yesterday. GM is expected to release its fourth quarter financial results from last year soon. Thursday, industry analyst Eric Selle of J.P. Morgan Chase estimated in a note to investors that GM could post $2 billion in earnings before interest, taxes, depreciation and amortization for the fourth quarter. He also said GM’s enterprise value in 2011 could be $67 billion.

Wednesday, March 24, 2010

State of the Union March 24, 2010

From the International Union UAW: The corrections bill (a budget reconciliation measure that makes changes to the health care bill previously passed by the Senate) that was passed yesterday, will now go to the Senate, which must consider it under the budget reconciliation procedures that require an up or down vote after 20 hours of debate. This bill cannot be filibustered. The Senate is expected to begin debate on the corrections bill today. The 20 hours of debate will expire late Wednesday or early Thursday. At that point, the Senate will begin a so-called "vote-a-rama" -- that is, non-stop voting on amendments offered by Republicans. This could go on for several days. Thus, the vote on final passage of the corrections bill is expected to take place on Friday or Saturday. UAW activists should contact their senators right away to urge them to vote to pass the corrections bill using the following toll-free number: (866) 960-0611.
There is a Solidarity Committee meeting today after first shift in the cafeteria. Everyone is invited to attend.
The Community Services Committee will be accepting donations for the annual Easter Basket Collection until March 29. They are in need of Easter candy, games toys, baskets or any kind of Easter basket items. Donations can be dropped off at the Union Hall, Bob Wheeler’s office, the Benefits office or any Community Services committee member.
From the Detroit News: Toyota's incentives have nearly doubled since the beginning of the year, while the industry average has increased by just 3 percent, according to proprietary data from J.D. Power and Associates obtained by The Detroit News. Toyota was offering an average of $1,542 in rebates and other incentives on each vehicle it sold in January, compared to $2,651 for all automakers in the United States. But by the end of the first week of March, Toyota's average had soared to $2,722, while the industry average had inched up to $2,730.
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State of the Union: March 23, 2010

The Women’s Committee is hosting a Women’s History Day celebration in the cafeteria today. Take the quiz about women past and present for a chance to win a gift basket. Popcorn and other information about women’s history will be available in the cafeteria. Please return the quizzes to the cafeteria or a member of the Women’s Committee by the end of the shift to be graded. Prizes will be awarded after the shift ends today.
•    With the passage of the health care bill, many questions are being raised. One item of particular interest is the excise tax on high-cost insurance. Here’s what we know: the tax doesn’t begin until 2018 and applies to policies that exceed $10,200 for singles and $27,500 for families. The tax would be 40% on the excess premium. We believe that our insurance premiums are in the $15,000 range for families and this tax would likely not apply to our health care plans. When we acquire an accurate number as to the cost of our health insurance for both single and families, we will pass it on.

Monday, March 22, 2010

State of the Union: March 22, 2010

March 22, 2010

•    Thanks to everyone who called their representatives urging them to pass health care legislation. President Obama will now sign a bill that will extend coverage to another 32 million Americans and cut $118 billion from the deficit the next ten years.
•    The members of UAW Local 2244 ratified the closing agreement with NUMMI with 90% approval. "We are grateful to the members for the solidarity they've shown throughout this process," said UAW Region 5 Director Jim Wells. "We also want to thank our brothers and sisters in the labor movement, community leaders and consumers across the country for the support they've given the NUMMI workers."
•    In case you weren’t aware, we have three Fridays scheduled for April, the 9th, 16th and 30th, as well as10.8 off the K-line every day.
•    The Arlington SUV plant, with two shifts, is working max overtime plus. In addition to working 5-10 hour days every week through April, they will also work two 10-hour Saturdays in March and April. Enrique "J.R." Flores, president of United Auto Workers Local 276, said “We have been told we can expect overtime for the foreseeable future. Since mid-September, when we went on the four-day workweek, we have only worked a four-day week once."
•    Speaking of overtime, the Fairfax plant (Malibu, LaCrosse) has 24 Saturdays scheduled between now and the end of the year.
•    Toyota shareholders are lining up to sue the automaker, in this case over the lost value of their shares due to the sudden acceleration recalls. This seems pretty frivolous, but there is precedent – Enron and Worldcom had to cough up $7 billion and $6 billion respectively to shareholders after it was determined they had committed corporate fraud in misleading investors.

State of the Union: March 18, 2010

Reminder: Easter Egg hunt is Sat. March 20 at the Union Hall. Doors open at 10:30 and the hunt begins at 12 noon sharp.
•    The 4400 members of UAW Local 2244 of NUMMI voted yesterday on the tentative agreement covering the shutdown of operations there by Toyota. According to the Detroit News, local Union officials said there would be minimum payouts to each worker of $21,175 plus undisclosed payouts based on years of service. One worker with 21 years said they would get a lump sum of about $65,000 and be eligible for unemployment and retraining services. Local 2244 President Sergio Santos also said that Toyota is leaving a $131-million pension shortfall to the Pension Benefit Guaranty Corp.
•    The 2010 JD Power Vehicle Dependability study was released this morning. The study surveys owners of 3-year-old models that were purchased new and ask them to identify problems that have arisen during the previous 12 months. GM had the most top 3 finishers – 13 – than anyone else and also had the highest rated overall vehicle, the Cadillac DTS as well as the all-important most dependable midsize sedan, the Buick LaCrosse. Ford and Toyota came in second with 11 top 3’s. Honda had 4 and Nissan had 1.
•    From the Detroit Free Press: Toyota is considering how to fix computer flaws in up to 1.2 million 2005 through 2007 model-year Corolla and Matrix cars that can cause engines to stall, but has told federal auto safety regulators the problem does not pose "an unreasonable risk" to safety. Several owners said the problem happened without warning and in some cases, the engine was hard to restart or kept stalling. There were no reports of injuries or crashes linked to the incidents. As of earlier this month, the NHTSA had received 76 complaints from Corolla or Matrix owners of stalling problems, including one fire. Several owners who complained said the vehicles died at intersections or as they were merging onto highways.

Thursday, March 18, 2010

State of the Union: March 17, 2010

March 17, 2010

•Union meeting today at 3 pm and 15 minutes after first shift.

•There are currently 336 laid off members and 76 on sick leave.

State of the Union: March 16, 2010

March 16, 2010

•    From the International Union UAW: This week the House and Senate are expected to begin a process leading to final consideration of the health care reform legislation that was debated and approved by both bodies last year. The UAW and our progressive allies believe it is imperative that Congress act now to pass these historic health care reforms. Without these reforms, millions of Americans will continue to be uninsured, and costs will continue to escalate at unsustainable rates, placing increasing burdens on working families, businesses and government. Please contact your representative and senators right away. Tell them that it is imperative for Congress to move forward now to complete action on health care reform legislation. Urge your representative to pass the health care reform bill previously approved by the Senate. At the same time, urge representative and senators to approve the "corrections bill" to fix various problems in the Senate legislation. Let your representative and senators know that you attach the highest importance to passage of these health care reform bills! You can use the following toll-free number to call your representative and senators: 1-866-960-0611.
•    From Automotive News: Toyota Motor Corp. said it had found no evidence to support James Sikes’ version of a widely publicized "runaway" Prius episode a week ago, suggesting that authorities examine whether the incident happened as reported to police. U.S. safety investigators said earlier on Monday that they had found no evidence to support or disprove Sikes' version of events. Toyota said an examination of Sikes' Prius showed the car was being driven with the brakes lightly and repeatedly applied -- some 250 times over a 30-mile stretch of highway.
•    More Automotive News: Automotive Lease Guide, which sets leasing residual values for the auto industry, said Toyota plunged from No. 1 to No. 6 among mainstream brands in its semiannual Perceived Quality Study. On a scale of 1 to 100, Toyota’s perceived-quality score dropped to 67.6 in the guide company’s spring 2010 survey, down from 84 in fall 2009.
•    Union Meeting Wednesday, March 17 at 3 pm and after first shift.

Monday, March 15, 2010

State of Union: March 15, 2010

Union meeting is this Wednesday, March 17 at 3 pm and after first shift.
•Reminder: The annual Easter Egg Hunt, sponsored by the Women’s Committee, will be Saturday, March 20, at the Union Hall. Doors open at 10:30 am and the hunt will begin at 12 noon sharp.

Thursday, March 4, 2010

State of the Union March 4

Reminder: The deadline for submitting articles for the next issue of the Newsline is Friday, March 5. You can submit your articles at the Union Hall or e-mail them to newsline2250@centurytel.net.
•Here are some comments from Van Marketing Manager Andrew Reyntjes about the positives he sees going forward:
o We have some better incentives targeted at over aged inventory that will hopefully get dealers looking to turn and replace their inventory.
o The seasonality of our segment means that we are likely to have increased volumes in coming months (but remember that our objectives will be higher too).
o There is built up demand for vehicles as business owners have been stretching the life of their existing vehicles due to economic conditions.
o We already have 400+ orders in the order bank for Diesel Vans since pricing was announced a few days ago (SOP is May 24th),
o We had some large profitable Commercial Fleet orders placed last week and this week (e.g 1500 Direct TV, 900 Sears, and a couple of thousand for Penske and U-Haul etc).
o Our schedule is pretty much full through May.
• Toyota said it’s providing $250 million for workers who will lose their jobs when a former joint-venture auto- assembly plant in California closes next month. The money is for bonuses to salaried and hourly workers who keep building vehicles through April 1, when Toyota’s production contract with the New United Motor Manufacturing Inc. venture ends, the automaker said today in a statement. The plant has 4,700 employees, said Lance Tomasu, a spokesman for the factory. In case you’re wondering, that’s $53,191 each if divided equally.

Wednesday, March 3, 2010

State of the Union March 2

March 2, 2010

•The annual Easter Egg Hunt, sponsored by the Women’s Committee, will be Saturday, March 20 at the Union Hall. The doors will open at 10:30 and the egg hunt will begin at 12 noon sharp. This is always a lot of fun for the kids so come on out.
•The annual Easter Monday golf tournament will move to Good Friday, April 2, this year. We need 25 teams paid up by March 14 to secure a caterer. It is a 3-man scramble at $50 a person, which includes dinner and prize money. It will be held at the Warrenton Golf Course with a 12:30 shotgun start. If you are interested contact Bill Chancellor at x2350 or at 636-456-2460.
•GM announced their February sales this morning. Overall, sales were up 11.5%, with the four core brands up 32.2% compared to last February. Van sales came in at 4619, up 24.6%. The other manufacturers report later today. There will be a full recap of the van market tomorrow.
Yesterday GM announced a joint program with the UAW called the GM Vehicle Plant Tour. As part of the tour, GM is sending four semi-trucks with six vehicles each – Chevy Equinox, Malibu and Camaro, Buick LaCrosse, GMC Terrain and Cadillac CTS Sport Wagon – on a tour that will make monthly stops at major GM plants across the United States and Canada. “The hardworking men and women at these plants are focused each day on producing high-quality vehicles,” said Cal Rapson, vice president and director, UAW International. “The UAW is proud to support a program that enlists the help of our members to play an active role in promoting these vehicles in their communities.” The vehicles will be used by the plants for overnight employee test drives, shorter ride-and-drive programs and community events that showcase the vehicles. Wentzville is scheduled to have the vehicles here beginning May 5 and running through June 2. More details to come.
• Minutes from the weekly diagonal slice meetings with Mike Bullock and John Dansby are available in the Wentzville Newsline at the plant entrances.

State of the Union March 3

March 3, 2010

From Chairman Mike Bullock: There are two points that need clarifying regarding our work schedule. First, according to the alternative work schedule in the National agreement, any work time over 11 hours is voluntary. Second, under Plan A (which we are currently on), all Saturdays are voluntary. Fridays can only be scheduled 2 on and one off.
Here’s the rest of the story on van sales:
2010 2009 Change Share
Ford Econo. 7981 6349 + 25.7% 63.1%
GM 4619 3705 + 24.6% 36.5%
Ford Transit 1338 --- ---
Sprinter 52 378 - 86% .4%
Field supply: Net stock of 10,039 = 52 days supply

Jim "Don’t Ask Me" Lentz did actually have more to say than “I don’t know” last week. Using the old juvenile argument of “they do it too”, he pointed out that all auto manufacturers have issues with sudden unintended acceleration. Yes, that’s true. But are you sure you want to go there, Jimbo? Here’s the NY Times analysis: All told, from 2000 through 2009, Toyota had one speed-control crash complaint per 20,454 vehicles sold in the United States. Ford had one complaint per 64,679 vehicles. Honda had one per 70,112 and G.M. one per 179,821. Sorry, Jim, you still get detention.
From Automotive News: Nissan Motor Co. said it will recall 540,000 vehicles worldwide due to potential defects in brake pedal pins and fuel-gauge components. The automaker says brake pedals on some 2008 to 2010 Titan pickups and Armada SUVs and some 2008 and 2009 Quest minivans can come loose and cause reduced braking force. All but 79,000 of the problem vehicles were sold in the U.S.

Monday, March 1, 2010

State of the Union March 1

March 1, 2010

There are 2 job openings currently posted:A sprayer in Paint dept. that is
a replacement job that runs through March 4 and an assembler job in Body Shop
that is a sick-leave opening that runs through March 2. If you have a 63b
application for either of those departments and do not want to transfer, you
need to withdraw your application prior to the expiration of these postings.
This includes return-to-former-group applications.
The deadline for the next issue of the Newsline is Friday March 5. You can
submit your articles at the Union Hall or e-mail them to
newsline2250@centurytel.net.
The Toledo powertrain plant will begin recalling laid off workers in April as
they ramp up production of the 6-speed automatic transmission for the Chevy
Cruze. There are currently around 300 laid off employees and all are
expected to be recalled before the end of the year.
As Toyota continues their effort to sell themselves as an American company,
there is plenty of evidence to the contrary. For example, Toyota imports
more vehicles both in real terms and on a percentage basis than any of the
“big 3” Japanese automakers as well as the American “Big 3”. Here are the
numbers for 2009:
Domestic Imported
Toyota 1,106,303 663,844
Honda 970,310 180,474
Nissan 529,564 240,539
GM 1,991,093 80,656
Ford 1,606,965 70,269
Chrysler 930,903 499

Text message of the day: From Osama Bin Laden to Akio Toyoda – "Will take
all used Toyotas you can spare – make excellent car bombs."
Nothing in this message is intended to constitute an electronic signature
unless a specific statement to the contrary is included in this message.