State of the Union March 23, 2011

March 23, 2011 online at www.uawlocal2250.com

•From Chairman Mike Bullock from the Bargaining convention in Detroit: President Bob King was very animated today in his speech when he spoke about the outrageousness of
Ford President Alan Mulally's bonus. "I don't think any human being in the world deserves that much money." He added that, "I think it’s morally wrong". After Mulally’s $50 million bonus, his accumulated compensation package will rise to more than $300 million. "I think it is outrageous" said President King.

The purpose of the three day convention is to set strategy that the UAW can apply to contract talks with companies in all industries that the UAW represents. President King's remarks suggested that one issue that could rise to the top of the bargaining agenda will be two-tier wages. King says he has wrestled in the past with the idea of entry level wages.

"Quality is too important to be left to managers or the bosses alone - we're going to bargain for the right to build the best quality." President King said. We want to build quality in spite of management's desire to focus on quantity. President King spoke at length about the importance of organizing all of the auto sector into the UAW. This will bring those companies that are non-union up to our standard of living rather than us down to them. This is a fight to rebuild the power of the UAW and the middle class. The way out of this situation is to partner with labor allies in this country and across the globe to make sure that workers in low-wage countries have the power to negotiate improved wages and benefits.

We have made many sacrifices to make this company profitable again, now is the time to reward us for those sacrifices. Wages, benefits, health care will all be at the top of the list. Here are the 8 key issues for this year’s bargaining:
o Winning jobs to create job security
o Improving the standard of living
o Winning justice for new hires, temporary and contingent workers
o Advancing the right to organize and bargain
o Defeating attacks on public sector employees
o Providing health care and retirement security
o Making our workplaces safer
o Advancing our social vision

• From the Chaplaincy Committee: There will be an in-plant memorial service for Tommy Poole at lunch time on Thursday, March 24 at the Chassis Chapel, column C-42. All are welcome.

• Automotive News ran a column entitled, “The next sales dogfight? Full sized vans”. Here are some excerpts: “Looks like Ford is planning a commercial van blitz. The automaker’s execs have their eyes focused on the newest competitor in the full-sized van market, the Nissan NV. Sales began last month. This is a real, strong competitor in a field dominated by Ford…..During a dinner earlier this month at the Geneva motor show, Derrick Kuzak, Ford’s global product development chief, said the automaker will do whatever it takes to maintain its leadership. That includes adopting a European model or models for the U.S. market….“Commercial vehicles are really important to us, and commercial vans in particular are really important to us,” Kuzak said. “We intend to be a leader in that market.” Expect the full-sized van business to turn quickly into a real dogfight.

• Earthquake update: No new changes to US production schedules to report. The Wall Street Journal is reporting that The U.S. auto industry is likely to face sporadic production shutdowns for several months because of shortages of microchips and other parts that had already been scarce prior to Japan's earthquake and tsunami. Tight supplies of microchips and other electronics, sensors, rubber and forged metal parts had already caused auto makers to slow or even temporarily halt production lines before the earthquake. "You are going to see a somewhat higher rate of plant shut downs, but I don't think it's going to be widespread," said Craig Fitzgerald, an automotive supplier analyst with accounting and consulting firm Plante & Moran LLP in Southfield, Mich. "It's going to be sporadic and moving around." The Journal goes on to say that Ford has been battling pinches in its supply base in forged parts and electronic chips for months and that the auto industry isn't the top priority for microchip producers and that demands from consumer electronics companies would likely be met first if there was a choice. Nissan Motor Co. Chief Executive Officer Carlos Ghosn said about 40 component suppliers in Japanremain in difficulty after the nation’s record earthquake, complicating automakers’ efforts to restart car production according to Bloomberg. Nissan’s engine factory in Iwaki, located in the same prefecture where Tokyo Electric Power Co. workers are battling to avert a nuclear meltdown, isn’t getting enough water, electricity and gas to operate, Toshitake Inoshita, a Nissan spokesman, said this week. The carmaker is considering shipping engines from Tennessee to Japan.

•From the Detroit News: General Motors accused a car-hauling company Tuesday of holding hostage more than 1,700 vehicles — including brand new Chevrolet Silverado pickup trucks and Camaro coupes worth almost $47 million. The dispute stemmed from a tiff between the hauler and the Teamsters union, the company said. The dispute apparently began when the Teamsters union told Allied it wasn't going to accept wage concessions and Allied then sought to increase by 15 percent the amount it was charging GM. GM declined to pay more.