State of the Union June 13, 2011

June 13, 2011 online at www.uawlocal2250.com

•    Union meeting is this Wednesday, June 15 at 7:15 am, 1 pm, 3 pm and 15 minutes after the longest first shift line time.
•    This week’s build information: 367 slider doors; 53 E-26; 494 r/h door delete; 131 Enterprise Leasing; 84 exports; 204 diesels; 280 On-star; 503 special paints; 69.8% white vans.
•    From the Wall Street Journal: The United Auto Workers union is open to discussing wider use of profit-sharing plans instead of fixed pay increases for its members, a key shift as the union nears contract talks with Detroit auto makers. UAW President Bob King said in an interview Thursday that the union will broach the subject when formal negotiations with Ford Motor Co., General Motors Co. and Chrysler Group LLC start in late July. "It would be an advantage if you can guarantee to the [Detroit] companies certain things on fixed costs so that they would remain competitive," Mr. King said. He acknowledged that greater use of profit-sharing plans entails risk for his members. "When you're successful, that's good. But if you're sharing more of the risk, you need to have more of the upside."
•    Auto news briefs: An Ohio state court awarded $2 billion in damages to commercial truck dealers who sued Ford Motor Co., saying that a program that offered unpublished discounts effectively overcharged some dealers. Ford is appealing the decision; Ford also announced that they will not be building a 7-passenger version of the C-Max minivan for the U.S. They will instead build only hybrid versions of the 5-passenger model in the Wayne assembly plant in Michigan. It had been rumored that the Ford plant in Clay County, Missouri would get the C-Max. There has been no official word on what product that plant will build; Chevrolet dealers in all 50 states can now take orders for the Volt. The Volt is now available in six different models, rather than three, with the lowest listed at $39,995, or about $1,000 less than the 2011 price. The high-end model with leather, backup camera and navigation system is $46,265.
•    From Wards Auto: The annual labor-management negotiations are under way in the Korean auto industry, and this year includes high-stakes bartering as the unions ask for tens of thousands of dollars in bonus compensation. Hyundai held the first bargaining session with its workers union June 8, kicking off what some analysts predict could become a turbulent summer. The union is raising the ante this year, reportedly seeking a 7.2% wage increase and a bonus of about 8-months pay. The bonus, alone, could amount to 32 million-43 million won ($30,000-$40,000) or more per worker. Last year, the union settled for a 4.87% wage increase, 3-months pay as a performance bonus, a one-time special bonus of 5 million won ($4,600) and 30 shares of Hyundai common stock – currently valued at 238,000 won ($220) per share.

Final part of UAW President Bob King’s speech to the Detroit Area Chamber of Commerce:
Federal labor laws in the United States do not protect the right of workers in the private sector to join unions. Employers can with impunity create a climate of fear by implying dire consequences if workers choose to form a union. It is vital that progressive and moderate voices in the business community speak out against union-bashing extremism and the terrifying vision of a union-free America. An America without unions is an America with no middle class. An America with no unions and no middle class is an America that is no longer the beacon for democracy and freedom in the world.

Just as the UAW has chosen fundamental change and a vision of cooperation between government, business and labor, I urge you in the business community to partner with the UAW of the 21st century, to reject ideology and to embrace pragmatism, moderation and the search for common ground and common good for all in society.

Let us work together to build a prosperous Michigan. Let us work together for a strong middle class. Let us work together to create good jobs and to rebuild our manufacturing sector. Let us work together to rebuild infrastructure and invest in research and development. Let us work together to provide dignity and security to our elderly. Let us work together to build a strong public education system and preserve our world-class public universities. Let us work together – government, business and labor – to find creative and pragmatic solutions to our economic challenges. This is the Michigan way, and this is the American way.