State of the Union July 28, 2011

July 28, 2011 online at www.uawlocal2250.com

National contract negotiations between the UAW and GM officiallhttp://www.blogger.com/img/blank.gify kicked off yesterday. Here is a joint press release from the National Parties: The UAW and General Motors opened 2011 contract talks Wednesday together on the factory floor at the Detroit-Hamtramck assembly plant, replacing the traditional formal handshake with a crowd of plant workers and the GM cars they build. "We want the new GM to succeed and when it does, everyone will benefit,” said Chairman and CEO Dan Akerson. “We are playing to win, and we’re counting on our work force -- hourly and salaried -- to take on the challenges together and forge new partnerships as a competitive advantage." UAW President Bob King noted the importance of focusing on products. “Our members bring a lot to any organization – a commitment to quality and producing the best product for the best price,” King said. “Our talks will center on the needs of our members and the need to continue to build great products.” A joint donation of $25,000 to the Wounded Warrior Project extended the ceremonial start of talks. UAW Vice President Joe Ashton, who directs the union's GM Department, and Cathy Clegg, GM vice president of Labor Relations, announced the contribution and recognized other charitable partnerships the UAW-GM team has with non-profit organizations across the country. GM also announced a commitment to increase the number of veterans in the work force as the company prepares for hiring new employees. Military service will be among factors considered in the screening process. On May 10, GM announced $2 billion of investment at 17 plants in eight states, creating or retaining about 4,000 jobs over the next 18 months. “Our work force is dedicated to producing great cars, trucks and crossovers every day,” Clegg said. “We’ll be working with our UAW partners to ensure our team continues to have the tools they need to build quality products and share in the success of the new GM.” Ashton commented on the energy across the UAW and GM team. “GM’s positive momentum has been outstanding,” Ashton said. “I was there when GM started trading again on the New York Stock Exchange and I have participated in many U.S manufacturing announcements. Our membership plays a critical role in the success of this company and I’m proud to represent this work force.”

With the opening of negotiations, many news outlets are reporting on the topic. Here are some of the quotes and comments offered up:

From the Detroit Free Press - “We certainly wish the UAW success in their (organizing) efforts,” Clegg said. “We’ve enjoyed a good partnership and a good relationship and it is going to be a key ingredient to making our company successful for the long term.” UAW Vice President Joe Ashton said the union will ask for cost-of-living increases to be reinstated. “We cannot be successful if we are not competitive,” Akerson said. “The world is quite brutal. It does not tolerate weakness.” However, Akerson said he doesn't expect health care to be a major issue in this year's contract talks. "We have the same challenges and the same opportunities as any company our size," Akerson said of health care for hourly workers. "I would say that is not a major issue in my mind."

From Automotive News: Appearing with GM CEO Dan Akerson, King said these collaborative contract talks with the Detroit 3 will prove that management and the union can work together to improve productivity, quality and competitiveness at transplant operations. "Those managements are going to understand that when they work together with their work forces -- when they treat them with respect and give them fair contracts and a middle-class standard of living -- that's the best way to be the most competitive country in the world," King said. During the ceremony, Akerson said GM now has competitive labor costs. He said he hoped that after negotiations that still would be true.

From Wards Auto: United Auto Workers union chief Bob King says a seat for labor on the board of directors at General Motors will be a key proposal during labor talks with the auto maker. “That is definitely one of our proposals – we think corporate governance is important. Nobody has a stronger long-term interest in the success of a company than the hourly workforce, and really the salary workforce, in the plant,” King said.

From the Detroit News: "We have a sacred obligation, all of us, to deliver on the promise and the helping hand the American public extended to this company," said GM's CEO Dan Akerson, an auto industry newcomer, leading the company through his first round of labor talks. Union and GM officials acknowledged a complicated set of talks ahead, but say it is crucial to forge a contract that keeps them competitive with their nonunion foreign rivals in the South. "I'm sure we won't agree on everything, but I'm sure we can find common ground that will sustain this company for years to come," Akerson said. UAW President Bob King reiterated his pledge to organize the transplant factories, which generally have lower labor costs, and level the competitive playing field for Detroit's Big Three. He cautioned his members that one of the union's most important tools in this organizing effort is to show cooperation. "We're proving that labor and management and government and community can work together," he said.

From Automotive News: Hyundai Motor Co.(which includes Kia) had a 37 percent gain in second-quarter profit as the company increased production to fill the void left by disruptions at Japanese rivals. Net income was 2.3 trillion won ($2.2 billion) in the three months ended June 30, compared with 1.68 trillion won a year earlier, the Seoul-based company said in an e-mailed statement today. Second-quarter sales volume rose 13 percent to 1.04 million units, according to the company's statement. Domestic sales gained 16 percent, and overseas sales rose 12 percent.

From Wards Auto: Negotiations between Kia and its workers union are in limbo after union members rejected a tentative wage agreement reached last week. And bargainers are making no progress in wage talks at sister company Hyundai. Securities analysts in Korea thought the Kia deal, which included record-high bonuses, was extremely generous. But only 47% of voting union members approved it. The pact included record-high bonuses of 7 million won ($6,666) per worker and 80 shares of Kia stock, valued at close to 6.8 million won $6,000). Analysts believe unionists are hoping management will put in an additional sweetener bonus, as has happened in the past when a preliminary wage agreement is rejected. Meanwhile, negotiations between Hyundai and its union broke off in acrimony when dissatisfied union bargainers abruptly ended the session.

From the Wall Street Journal: Volkswagen AG's net profit more than tripled in the second quarter as surging demand for its cars and trucks, particularly in emerging markets, kept the company on track for record sales in 2011. Europe's largest auto maker by sales said net profit in the second quarter rose to €4.67 billion ($6.71 billion) from €1.25 billion in the same period a year earlier, while revenue climbed to €40.3 billion from €33.2 billion. Volkswagen Chief Executive Martin Winterkorn told reporters earlier this month the company could sell eight million vehicles this year. In 2010, Volkswagen sold a record 7.14 million cars and trucks.