Monday, January 31, 2011

State of the Union January 31 2011

Jan. 31, 2011 online at www.uawlocal2250.com

Reminder: As bad weather approaches, the four radio stations that will carry any information about the status of production are: KTRS – 555 AM; KMOX – 1120 AM; WIL – 92.3 FM; and MAJIC – 105 FM. You can also call 877-845-6073 for plant updates. This is NOT the call in number for lates or absences. That is 800-222-8889.

From the Detroit Free Press: If Ford had stuck to a strict interpretation of its profit-sharing formula hourly workers would be receiving no more than an average of $3,000, UAW President Bob King told the Free Press. “What’s really important for our members to know is they didn’t have to do this,” King told the Free Press. “They did much more than they technically would have had to do under our agreement.” Ford and the UAW have had a profit-sharing agreement since 1982. In 1999, when Ford earned $7.2 billion, the average UAW payment was $8,000. However, UAW members ratified a new UAW contract in 2007 that no longer included the profits of Ford Motor Credit, Ford’s financing arm. Consequently, Ford’s profit sharing formula could have resulted in $3,000 or less, King said.( GM is set to announce earnings on Feb. 9)
U.S. News just released their picks for “Best Car for the Money”. Awards were given in 18 categories. GM led all manufacturers with five winners. They are: Chevy Malibu (midsize car); Buick Regal (upscale sedan); Chevy Traverse (midsize crossover); Chevy Tahoe (large SUV); and Chevy Silverado (large pickup). Ford, Honda and Toyota had two each.

From Automotive News: Grim forecasts that a leaner supply chain could hamper the auto recovery are coming true: Parts shortages are shutting down auto assembly plants around the world, derailing automakers' attempts to meet rebounding demand. "It's beyond a trend; it's an epidemic," said Dan Sharkey, a suburban Detroit lawyer who works with many auto suppliers. This week Chrysler Group expects to idle its Windsor, Ontario, minivan plant for at least a week because parts are scarce. And Ford Motor Co. expects to reopen a suburban Detroit plant that builds the F-series pickup after a shortage of parts for V-6 engines forced a weeklong shutdown. On Friday, Ford also closed its Kentucky Truck plant because of a parts shortage.
That factory builds the F-series Super Duty pickups, Ford Expedition and Lincoln Navigator. As of late Friday the shutdown had not been scheduled to extend into this week, a spokesman said. In Europe this week, Volkswagen AG will halt production at its main assembly plants in Wolfsburg, Germany, because of a shortage of engine parts. Ford also took an additional week of downtime at its Chicago assembly plant -- which builds the in-demand redesigned Explorer -- before and after the traditional Christmas shutdown. Ford spokesman Todd Nissen said parts shortages there have ended.

With a winter storm almost upon us – and you’ve probably heard these many times – here are five tips to make the drive less dangerous:
1. Prepare your car. Make sure your battery is fully charged and antifreeze fluid is topped off. Make sure your tires have sufficient tread and, if you drive in the snow often, consider buying a set of winter tires. Carry a good ice scraper, snow brush or broom, a small shovel and a bag of sand for getting unstuck. Also keep a flashlight and extra batteries.
2. Clear the snow. If your car is covered in snow, clear it off completely before leaving. Pay special attention to the windows, headlights and mirrors, and don’t forget that little space between the driver-side mirror and the side of the car. It creates a surprisingly big blind spot.
3. Keep your distance. Get used to leaving a lot more space between your car and others so you’ll have more room to stop or maneuver in an emergency. Look far ahead and try to anticipate what other cars will do and which ones might cause trouble.
4. Watch for ice. All summer long you notice those signs that say “bridge freezes before road surface.” Well, this time of year that warning is meaningful. Ice often forms on bridges when the rest of the rest of the road is in good shape, so watch out for it and avoid lane changes and other maneuvers on bridges.
5. Mind your steering. If your vehicle starts to slide, turn the steering wheel in the direction of the skid, and then gradually straighten it as the car recovers. Skids are startling, and people often remember to “steer into the skid” but forget what to do next. Perhaps the most important thing to remember is to keep looking in your desired direction of travel. If you are looking at the snow bank, guardrail or parked car toward which you are sliding, you are almost certain to crash into it.

Friday, January 28, 2011

State of the Union January 28, 2011

Jan. 28, 2011 online at www.uawlocal2250.com

From the Detroit News: Ford Motor Co. said today net income totaled $6.6 billion in 2010 — its most profitable year in more than a decade — and it will give 40,600 hourly workers profit-sharing checks of about $5,000 each in March. It was Ford’s second consecutive year in the black after three years of losses. The $6.6 billion net income is Ford's best full-year result since 1999 and is a $3.8 billion increase from a year ago; the operating profit of $8.3 billion was the highest since 2000. Net income in the fourth quarter was $190 million, or five cents per share, down $696 million from a year ago in part due to a one-time charge of $960 million to convert some debt into equity.


Here are some comments from AutoWeek staffers on the Nissan Versa compact car: “The silhouette is simply awkward…The interior is plain, and the wood looks a bit cheesy.” “This Versa is nothing if not basic. It reminds me of cars my friends drove back when I was in high school. I was rolling in a Buick Skyhawk, and I would take that car today over this Versa…. The sheetmetal is nondescript. Inside is about the same, except for the wood-grain trim, which is a joke.” And the best one, “The Nissan Versa does one thing well: disappoint.” FYI – this was an $18,685 vehicle with crank windows.


From Automotive News: Fiat Spa has enough cash to boost its stake in Chrysler Group to 51 percent by the end of this year, CEO Sergio Marchionne said. Today’s statements by Marchionne follow comments earlier this month indicating Fiat is on track to lift its share to 35 percent this year from the current 25 percent. Fiat raised its Chrysler holdings to 25 percent from 20 percent this month after the U.S. automaker won approval to build fuel-efficient engines in Dundee, Mich. That was one of three conditions tied to the deal with the federal government that allowed Fiat to rescue Chrysler from a U.S. steered bankruptcy in 2009. The second test requires Chrysler to record a total of $1.5 billion in sales outside North America and to obtain agreements from 90 percent of its dealers in Latin America to carry Chrysler products. The third requires the development of a compact car on a Fiat platform that will achieve 40 mpg. Marchionne has said he expects all those requirements to be met this year. From there, Fiat has an option to boost the holding to 51 percent -- but only after Chrysler repays U.S. and Canadian government bailout loans.

Thursday, January 27, 2011

State of the Union January 27, 2011

Jan. 27, 2011 online at www.uawlocal2250.com

Now that vacation applications are out there are questions about our schedule. One question that can be answered today is that there will NOT be a 2-week summer shutdown. When the details about Fridays and other schedule issues are finalized they will be communicated.

Reminder: Tomorrow is the last day to submit your entries for the VAP program. You can drop them in the box in the cafeteria. The drawing is Monday, 1-31.

From the Detroit News: Ford Motor Co. is recalling 425,000 Windstar minivans in 22 cold-weather states, including Michigan, to fix parts that could corrode. The recall covers 1999-2003 model years and is intended to identify vehicles whose front lower control arm, rear attaching brackets and body mount attachments need fixing. Ford will start repairing vehicles in March and, at its discretion, may buy back some of them. The automaker also may offer some owners loaner vehicles while theirs are fixed. Ford told the National Highway Traffic Safety Administration it was recalling the vehicles, even though it didn't think it was necessary.

From the Wall Street Journal: General Motors Co. said Thursday it is withdrawing its request for $14.4 billion in Department of Energy loans aimed at making its vehicle fleet more fuel-efficient. GM and the DOE had been negotiating loan terms under the $25 billion lending program. Turning down the federal loans could provide an image boost for GM, which is eager to distance itself from the federal government's $49.5 billion bailout in 2009. The auto maker plans to advertise the move to the public, a person familiar with the matter said. The low-interest loans were an attractive option for GM, which first applied for the aid amid its financial troubles in 2009. But the auto maker's financial position has improved dramatically and the company has promised investors it would eliminate virtually all debt over the next few years. GM has since made it a top goal to get out of the practice of borrowing.

From Automotive News: General Motors plans to launch the Chevrolet Volt in all 50 states by the end of the year, a major acceleration in the rollout of the plug-in hybrid. Chevy plans to have Volts in all of its dealerships by the end of 2011, Rick Scheidt, Chevy vice president of U.S. marketing, said in a statement. Chevy originally planned to deliver the car in select markets this year: California, New York, Connecticut, New Jersey, Texas and Michigan. Deliveries began in December. GM said customers nationwide will be able to order Volts through dealers beginning in the second quarter. Deliveries will begin in Virginia, Maryland, Delaware, Pennsylvania, North Carolina, South Carolina, Georgia, Florida, Oregon, Washington and Hawaii in the third quarter.

UAW sets stage for new union drive in America - Bob King

Every generation of UAW members has taken up the mantle for justice.
Our parents and grandparents engaged in sit-down strikes and demonstrations until 100 percent of the U.S. auto industry was unionized. As a result, a generation of Americans enjoyed a middle-class standard of living, with decent wages, benefits and working conditions. The middle class is in danger of disappearing in this country because the U.S. auto industry is now less than 50 percent unionized. The only way to secure benefits for union members is to secure rights for all working people. This is the essence of solidarity. The right to join a union is a fundamental human right, sacred to any democratic society. The right to organize — freedom of speech and assembly — is the First Amendment for workers. When Congress passed the National Labor Relations Act 75 years ago, the intent was to establish a statutory framework that embodies the right to organize. Unfortunately, the NLRA process for union elections is fatally flawed. The National Labor Relations Board, charged with enforcing the NLRA, does not protect a worker's right to organize. The NLRB is a triumph of hypocrisy — a law intended to protect workers actually prevents them from achieving a voice on the job.

This destruction of workers' rights is not new, and it has been developing for decades. Companies began hiring anti-union consultants in the 1970s to design sophisticated ways to intimidate workers trying to organize. Management consultants train supervisors to put pressure on individual workers. Mandatory captive audience meetings spell out dire consequences if workers exercise their rights. Companies threaten to close the facility if workers vote to unionize. Union supporters are disciplined and sometimes fired. Company lawyers find thousands of excuses for delay. Penalties for violating the law are nonexistent.
Within the UAW, there are hundreds of examples of the ineffectiveness of the NLRB process. In August 2010 — six years after the UAW lost a union election by three votes at Stabilus Inc. in Gastonia, N.C. — the NLRB finally ordered a new election because the employer violated the law in more than a dozen ways, including threatening workers' jobs for voting union, spying on meetings and interrogating workers about union activity. Six years later, not one member of the 25-person organizing committee is there, most of the union supporters have been fired, laid off or have quit, and the election still hasn't been scheduled. The UAW is committed to fight for the rights of all workers to choose to be UAW members without harassment, intimidation and radical tactics from employers. And we're returning to our roots of direct action on behalf of worker rights.
Our new strategy, called "UAW Principles for Fair Elections," sets a framework through which workers can freely decide whether to organize. These 11 principles represent a democratic process that safeguards freedom of speech and association. The UAW demands that all corporations, whether American or foreign-owned, adhere to these principles and respect the rights of workers. This is the battle of our generation and will determine the survival of the labor movement.
It is the mission of our generation of trade unionists to secure these rights for future generations. We must win this fight for our children and grandchildren.

Wednesday, January 26, 2011

State of the Union January 26, 2011

Jan. 26, 2011 online at www.uawlocal2250.com

From Automotive News: Toyota Motor Co. struggling to restore its reputation for top quality, today recalled nearly 1.7 million vehicles globally for a variety of fuel system related problems, including 245,000 Lexus IS and Lexus GS sedans in the United States. The North American vehicles are being called back to inspect for possibly faulty installation of fuel pressure sensors. In cases where the sensor is not fastened tightly enough, fuel can leak between the gasket that connects the sensor to the fuel delivery pipes, Toyota said. Today's actions bring the total number of Toyota recalls since fall of 2009 to 18 million vehicles.

Here’s a recap of Toyota’s recalls for 2010 courtesy of Wards Auto:

Jan. 2010 - Toyota issues a series of recalls covering 5.6 million vehicles in the United States due to sudden acceleration in some vehicles. It is the largest ever recall for Toyota and among the biggest for an automaker in U.S. history.

Feb. 2010 - Toyota recalls a total of 437,000 units of its 2010 Prius, Sai, Prius PHV (plug-in hybrid) and Lexus HS250h hybrids globally, including 155,000 in North America, 223,000 in Japan and 53,000 in Europe.

April 16 - Toyota will recall 870,000 Sienna minivans sold in the United States and Canada because the rear-mounted spare tire could drop into the road. Models years involved are 1998 to 2010.

April 19, 2010 - Toyota also announces a recall for nearly 10,000 Lexus GX 460 vehicles sold in the U.S. and Canada to fix software in the electronic stability control system. The GX 460 is new for 2010 and has only been on sale for a few months.

July 29 - Toyota recalls 412,000 passenger cars and SUVs in the U.S. to fix potential problems with steering. The recall involves older-model Toyota Avalon sedans and Lexus LX470 sport utility vehicles.

Aug. 26 - Toyota recalls 1.3 million Corolla and Matrix cars, from 2005-2008 model years, in the United States and Canada carrying defective engine control modules.

Oct. 21 - Toyota will recall a total of about 1.66 million vehicles, mostly in Japan, the United States and China, for problems involving brakes and fuel pumps.

Tuesday, January 25, 2011

State of the Union January 25, 2011

Jan. 25, 2011 online at www.uawlocal2250.com


The production schedule for February has been released. There are two Fridays off – 2/4 and 2/25. Daily line time, including Fridays, is 10.3 off of the K-line with a target of 469 a day.

From Benefits: Retroactive to January 1, 2011 coverage under the Health Care Program for Hourly Employees as it relates to eligible adult dependent children up to age 26 (through the end of the month in which they turn age 26) will also include dental and vision. All employees who are currently covering dependents age 19 up to age 26 for medical coverage will have dental and vision coverage automatically added to their account retroactive to January 1, 2011. Additional information will be mailed to eligible active hourly participants homes in early February.

The third shift that is being added at Flint is not related to a new product. GM North America President Mark Reuss said a pickup in housing and construction projects encouraged the company to boost production of its rugged work trucks. "Adding a third shift is a response to customer demand for heavy-duty pickups, which most people use to tow, haul and plow." GM estimates 750 new jobs will be added (the current Flint line-speed is 30 jobs per hour). No hiring is expected as a result of this announcement.

From the Wall Street Journal: A disastrous recall in 2010 meant Toyota Motor was unable to make the most of a recovering U.S. auto market. This year, its heavy dependence on manufacturing in Japan could limit the company's potential again. Because of Toyota's still heavy dependence on Japan as a production base, not all of the projected sales growth will find its way back to the bottom line. It imports a third of the cars it sells in the U.S., while rival Honda Motors imports only 13%, making it far less exposed to currency swings. Assuming an exchange rate of 80 yen to the dollar, it will cost Toyota 600,000 yen ($7,500) more to manufacture a vehicle in Japan than in North America in the fiscal year starting in April, CLSA figures. With an estimated two million units of exports next year from Japan, that will translate to nearly $15 billion in additional costs.

VAP – overnight drive update: First of all, there is good news: we will have one of our vans added to the fleet. It will be an 8-passenger, all-wheel drive version with a slider door. Since this is a late addition and the choice is not indicated on the entry forms, the 7th name to be drawn out each day will receive the van. You all should have received the handout covering the VAP program. You need to complete the entry forms and return them in the drop box in the cafeteria. There are no collection boxes at the entrances as stated on the handout. If you need an entry form, contact your group leader. The deadline for submitting entries is this Friday, Jan. 28. The drawing will be held on Monday, Jan. 31.

From Automotive News: Antsy Nissan Leaf customers are voicing impatience with the electric vehicle's slower-than-slow U.S. rollout. In December, when the car was launched, Nissan dealers delivered only 19 Leafs to eagerly waiting buyers. But Nissan says the problem is with customer communication, not production. "There is no production delay," says Katherine Zachary, a Nissan North America spokeswoman. "We didn't do a great job communicating about the delivery process with all of our customers." (Let’s see, there are supposedly 20,000 paying customers waiting for a car who can’t get one and it’s not a production problem?)

From the Detroit Free Press: A one-week shutdown at Ford's Dearborn TruckPlant is a symptom of a broader issue facing parts suppliers who are struggling to keep up with increased production demands as the industry recovers, Ford and industry sources said. The 3,000 hourly and salaried workers at Ford's Dearborn Truck plant will be off this week because of a parts shortage affecting engine production for Ford's F-Series pickups at the company's engine plant in Brook Park, Ohio. Although the Ohio plant isn't shut this week, Mike Gammella, president of UAW Local 1250 that represents the engine plant workers, said there have been sporadic one-day shutdowns because of parts shortages from a handful of suppliers. "Suppliers took a lot of capacity out to get through the downturn," said Ford spokesman Todd Nissen. "As volumes have increased for our new, high-volume products, suppliers have had some issues keeping up." Both Nissen and the UAW declined to identify the suppliers or the exact parts.

From Bloomberg News: General Motors Co. Chief Executive Officer Dan Akerson plans to double the 2012 production capacity for the Chevrolet Volt to 120,000 as he works to boost the plug-in hybrid's sales, said two people familiar with the matter. Volt output this year may increase to 25,000 from an original plan of 10,000, Akerson said earlier this month. GM now is working with suppliers to raise 2012 capacity from an earlier target of 60,000. It may not build that many if parts aren't available or demand isn't strong enough, said the people, who didn't want to be named because the plans are private.

Monday, January 24, 2011

State of the Union January 24, 2011

Jan. 24, 2011 online at www.uawlocal2250.com

Correction: Some copies of the State of the Union from Friday, Jan. 21 said that the long February weekend for the VAP Make-A-Wish raffle was the third weekend. That is incorrect. As it stands now, the long weekend is the 4th weekend, or the weekend of Feb. 25, 26 and 27. Since that Friday is tentatively scheduled off, the winners will have the vehicles for 5 days beginning Wednesday, Feb. 23.

From the Detroit News: Small businesses spent big last year to replace their aging cars and trucks, another indication that the auto industry is rebounding. General Motors Co. said Friday that Chevrolet sales to small businesses shot up 36 percent in the fourth quarter of 2010 over the year earlier, outpacing the brand's overall performance. Ford Motor Co. does not specifically track sales to small companies, said George Pipas, a market analyst for the Dearborn automaker. But he said Ford's sales to businesses that buy work vehicles rose more than 70 percent last year. Most businesses buy pickups and cargo vans, according to GM. "A lot of companies have reached a point where the existing trucks they have need to be replaced," said Ron Childress, a commercial truck sales manager at Ed Rinke Chevrolet Buick GMC in Center Line. "In fact, we're stocking more trucks this year just because we believe 2011 is going to be a much better year than 2010."

From the Detroit Free Press: Ford Motor Co. plans to announce year-end financial results Friday and is poised to report a profit for 2010 of about $8 billion excluding onetime charges -- the automaker's biggest annual profit in a decade. Ford usually announces how much annual profit-sharing checks will be that day. The checks, expected in March, could give the local economy a $240-million boost, said David Sowerby, economist and chief portfolio manager for Loomis Sayles. Bernie Ricke, president of UAW Local 600, said the checks will be "fairly significant and more than we've seen in several years."

From the Detroit News: General Motors Co. is expected to announce a major investment Monday to increase truck production at its Flint Assembly plant, adding a third shift and more than 650 jobs, according to sources familiar with the plan. The plant in economically ravaged Flint, builds big trucks, such as the Chevrolet Silverado and GMC Sierra. It employs about 2,000 hourly and salaried workers. GM hourly workers on layoff would be eligible for the jobs added at Flint Assembly. The sources didn't have details on the amount of the investment, or exactly how the money would be used. GM officials declined to comment Friday. Gov. Rick Snyder is scheduled to visit Flint on Monday, but a spokeswoman for the governor declined to divulge details.

From the Wall Street Journal: Even as organized labor's share of America's public and private work force continued to slide last year, unions appeared to be growing in one place, among government managers and high-paid workers. The moves come as union membership as a whole continues to slide in the U.S., both in the public and private sectors. Union members accounted for only 11.9% of the work force in 2010, the Labor Department reported Friday, down from 12.3% in 2009 and far below the peak of 28.3% hit in 1954. The 7.6 million government workers in unions made up more than half of the 14.7 million workers in the U.S. who belonged to a union last year, with the state and local government sectors among the most heavily unionized in the economy.

Friday, January 21, 2011

State of the Union January 21, 2011

Jan. 21, 2011 online at www.uawlocal2250.com

From Chairman Mike Bullock: Management has agreed to delay the layoff of 10 employees until Friday, Feb. 11(the layoff was originally scheduled for Jan. 28). These extra weeks will entitle them to additional health care benefits

Everyone should have received a handout about the VAP (overnight drive) program. If not, contact your group leader. You need to fill out the entry form on the bottom and drop it in the box in the cafeteria. The deadline to submit entries is Friday, Jan. 28. This year, winners will have the vehicle for two nights instead of one. Also, there will be a raffle for the vehicles over the third weekend of February (which will be extended because of the off-day that Friday to 5 days) to benefit this year’s Make-A-Wish dream. Ticket sales will begin Tuesday, Feb. 1. Tickets will be $5 or 3 for $10.

From USA Today: Nissan is looking to jump start its first commercial truck sales by offering companies free graphics slathered on the sides of their Nissan delivery vans. "We're taking an innovative approach to offering...custom exterior graphics right from the launch of the exciting new Nissan NV," said Joe Castelli, vice president, Nissan Commercial Vehicles. "We know commercial vehicle buyers customize their vehicles to meet their business needs, and we want to be part of the solution for them." The deal is being put to companies that buy or lease a new Nissan NV1500, NV2500 HD or NV3500 HD commercial van. The no-charge upgrade program is offered through Nissan Commercial Vehicle dealers to qualified commercial businesses. Prices start at $24,590.(ed. Note: While there has been much coverage of the launch of this van, there have been no sales estimates offered by Nissan. They have only lined up 250 dealers to sell them. The van offers only one wheelbase, two engine choices, and no 60/40 door option on either side. They are banking heavily on a pickup-cab interior and a high roof option.)

Chrysler CEO Sergio Marchionne had this to say when asked about the level of fleet versus retail sales for the compact Dodge Caliber: "To call the Caliber a retail vehicle would be an absolute abomination. It's not true," he said. "But when you tell me, 'Buddy your C-segment car is the Caliber' and it's the only thing I've got and then you want me to tell you how many of those are fleet, that's the day I would prefer to slash my wrists."

Here’s the final part of UAW President Bob King’s speech to the Automotive News Congress seminar:
If a company makes the business decision to engage in anti-union activity and suppress the rights of freedom of speech and assembly, we will launch a global campaign to brand that company as a human rights violator. We are joining with our sister unions in the U.S. and around the world, friends and allies in the U.S. and around the world, and together we will wage a united front to expose and publicize any auto company whose aim is the destruction of the right to organize and the institution of collective bargaining.

We are establishing the UAW Global Organizing Institute whose mission is to recruit young people and other activists to demonstrate globally on behalf of Workers’ Right to Organize Unions.

We do not want to fight with any company. We want to help companies produce the best cars for the best value. We do not want an adversarial relationship. We seek common ground and common goals. We do not want to spend all of our resources to defend the rights of workers to organize; we would rather spend our resources helping to fund innovation and training and collaborative projects.

We do not want to fight, but we will not run from a fight. The UAW will not rest until workers in the United States and globally are guaranteed their First Amendment right to organize and bargain collectively.

Unions are vital to democracy. Unions are essential to social justice. Like any social institution, unions are not perfect. But unions are the sole vehicle throughout history by which working people have gained a voice on the job and a decent standard of living. Just as the UAW helped to build the American middle class, the UAW will now work to build a global middle class. The interests of American workers are inextricably linked to the aspirations and uplifting of the world’s poor.
The best way to achieve global prosperity and as a result global peace is to support workers rights to organize and collectively bargain. We see this need dramatically in China, India, Bangladesh, Mexico, and many other parts of the world.

In conclusion I want to emphasize what we see as the fundamental question of this moment in history. The question is not whether unions are perfect. We are not. The question is not whether management would prefer to operate without a union. No doubt, many managers would. The fundamental question is a question of freedom and democracy: whether societies will allow workers who want unions to form unions. The UAW will not rest until that freedom is secured for workers in America and throughout the world.

We are saying to global corporations that the best moral decision AND the best business decision is to work with the UAW and to respect workers democratic right to choose to form their local union or not to! If management and labor in the automotive industry work together we can create a strong global middle class just as the UAW and automotive companies created the U.S. middle class. I believe this is our calling, this is our opportunity: We will together build a better world by together building a global middle class.

Wednesday, January 19, 2011

State of the Union January 18, 2011

Jan. 19, 2011 online at www.uawlocal2250.com

Reminder: Union meeting is today at 1 pm, 3 pm and 15 minutes after the longest first shift line time.

From Bloomberg News: Ford Motor Co. plans to invest $400 million and build a new model at its factory in Claycomo, Missouri, after moving production of the Escape small sport- utility vehicle to another state. All 3,750 hourly workers at the plant will be retained, Marcey Evans, a Ford spokeswoman, said today in an interview. Missouri lawmakers met in special session last year to grant Ford tax breaks after the company said it would begin manufacturing the Escape at a Kentucky factory this year. Ford may build the full-size Transit van, now sold in Europe, on a new assembly line at the plant near Kansas City, Missouri, said Michael Robinet, a consultant with IHS Automotive in Northville, Michigan. Evans wouldn’t confirm the new model. The plant will continue to build Ford’s F-150 pickup, she said. “Bringing the Transit to Kansas City gives Ford more flexibility to meet new fuel-economy and emissions standards with a more efficient, light commercial vehicle,” Robinet said in an interview. “The Transit has been a star of Ford’s fleet in Europe for years. The new Transit was designed for global markets.” Ford will continue to offer its Econoline full-size commercial van in the U.S., in addition to the Transit and the compact Transit Connect van, Robinet said. Econoline sales are likely to decline substantially as Ford introduces the full- sized Transit to U.S. commercial buyers, he said.

From the Wall Street Journal: Azure Dynamics Corp., an electric- and hybrid-vehicle maker, said it has received an order for 600 hybrid-electric delivery vans from Purolator Courier Ltd., the Canadian logistics and delivery company. The order should help to triple the company's revenue this year over 2010 and will make Azure the dominant player in the U.S. for medium-duty commercial vehicle hybrids, said Scott Harrison, the company's chief executive officer, in an interview. Mr. Harrison said the order is believed to be the largest order for this size of commercial hybrids by a single company. Azure also has begun delivering all-electric versions of Ford Motor Co.'s Transit Connect van this month. The company has orders for 150 of the electrified Transit Connects so far. Azure takes the body of the vans from Ford and integrates an electric drive system. Purolator's order of 600 vans, based on a Ford E450 chassis, will be spread out over three years, with the majority of the first 200 coming later this year, and then proceeding with 200 the following two years. Azure said the hybrids improve fuel economy by 40% over the existing models in the fleet.

Part three of UAW President Bob King’s speech to the Automotive News Congress:
We have reached out to the non-union auto companies in a spirit of respect to ask that they agree to these principles. We hope that they do, and if so, we look forward to engaging their employees in a free, democratic election process free of acrimony, tension, fear and discord. If employees make a free choice not to join the UAW, we will of course respect that decision, and hope that in the future we will make a better case for the importance of a union for all autoworkers. If the employees do vote to unionize, the UAW will add value and do everything within our power to make the company competitive and successful.

We will closely examine the responses of the non-union companies to this outreach. Actions speak louder than words. A company cannot truthfully say that it respects the right of its employees to organize and at the same time hold mandatory meetings condemning and misrepresenting the UAW. A company cannot truthfully say that is respects the right to organize and at the same time suggest that it would close a plant if employees vote to unionize. A company cannot truthfully claim to respect the right to organize and at the same time tell the employees that a unionized company cannot survive in a competitive environment or that the UAW would jeopardize their benefits. A company cannot truthfully claim to respect the right to organize and at the same time separate out, harass and pressure union supporters.

Why do we propose these principles instead of using the NLRB election process? The National Labor Relations Board election procedures are outdated and ineffective. American labor law simply does not provide a fair framework for union elections. Companies can intimidate, threaten and coerce employees with impunity. There cannot be a fair vote when workers are afraid of losing their jobs. There cannot be a fair vote when workers can hear only one side. There cannot be a fair vote when union supporters are routinely harassed, disciplined, and in some cases even fired. There cannot be a fair vote when supervisors pressure workers one-on-one. There cannot be a fair vote when management can delay the process indefinitely.

There is nothing ethical or moral about the fear-mongering, intimidation and coercion that are a routine part of NLRB elections. Anyone familiar with how union election campaigns take place in this country knows that the single dominant factor in a worker’s decision is fear. The Labor Board election process is fatally, hopelessly flawed.

We intend to hold companies accountable to allow their employees to freely and democratically choose whether or not to join the UAW. There is no more pressing issue of social justice than the right of workers to organize unions. Freedom of association is a global human right. It is the First Amendment right of workers. Free and independent unions are an essential feature of a democracy. It is the sacred mission of the UAW to hold corporations accountable for respecting this right, both in the United States and around the world. Without the right to organize and bargain there will be no strong, sustainable middle class. Power corrupts and absolute power corrupts absolutely. The right to organize and bargain collectively creates the important balance of power between workers and global corporations!

If a non-union automaker violates workers’ democratic rights and rejects these principles, we will commit the entire resources of our union to expose this company’s anti-democratic behavior. We will not stand quietly by while a foreign corporation treats Americans as second class citizens. We will not stand quietly by while a corporation threatens workers for trying to organize a union. We will not stand quietly by in the face of a concerted assault on the middle class and on the institution of collective bargaining

Tuesday, January 18, 2011

State of the Union January 18, 2011

Jan. 18, 2011 online at www.uawlocal2250.com

The Dr. Martin Luther King Jr. Scholarship program was a great success Saturday. A total of 34 students received awards for their essays that equaled $12,600 this year.(since its inception, the Scholarship program has given out $214,000!) The Civil Rights and Martin Luther King steering committees did another outstanding job in coordinating this event. An inspirational speech was given by Bishop Dr. Lawerence Wooten, who said, “Good, better, best. Never let it rest until your good is better and your better is best.” Also, yesterday was the 33rd annual Dr. Martin Luther King Jr. human rights award banquet, sponsored by the Coalition of Black Trade Unionists (CBTU). There were 14 of our members who belong to the CBTU in attendance of this celebration. Thanks to all who donated their time and money to these great causes.

Reminder: Union meeting is tomorrow, Jan. 19 at 1 pm, 3 pm, and 15 minutes after the longest first shift line time.

Many of you saw the short article in last Thursday’s Post Dispatch alluding to profit sharing payments for Ford and GM workers. The article cited a NY Times estimate of $5000 for Ford employees and less for GM workers. A Ford official told the Detroit Free Press that the New York Times estimate is too high. In a statement, Ford said, "It is too early to talk yet about the calculation of possible profit sharing payments. Amounts are based upon full year financial results, which are still being finalized, and the current profit sharing formula." GM North American President Mark Reuss said, "I want to make sure we're paying our employees not for effort, but results and performance. When we perform and we have good results, then every employee in this company ought to know that we're going to do good things for them on a pay basis." A Ford spokesperson said they expect to release the profit sharing amount “soon”. No word from GM on timing of an announcement.

From Automotive News: As a lack of production capacity restrains its growth, Hyundai will consider a second U.S. assembly plant. "That's something that we're going to look at," John Krafcik, Hyundai Motor America CEO, said last week at the Detroit auto show. "We'll look at how we do in 2011 and make our decision probably after this year." Executives expect continued strong demand for the Sonata and redesigned Elantra that went on sale last month. Both are built at Hyundai's plant in Montgomery, Ala. The Alabama plant, which produced 300,500 vehicles in 2010, already is at full capacity. It's running two 10-hour shifts five days a week and weekend shifts "whenever possible," Krafcik said.

Part two of UAW President Bob King’s speech to the Automotive News Congress:
Working with the UAW is a smart business decision. Every day in every way, the UAW is dedicated to doing whatever it takes to help our employers through innovation, flexibility, continuous cost-saving, quality, and productivity.
With our unionized employers, we have created a culture of trust, teamwork and openness. We have completely discarded the outdated remnants of the “us versus them” mentality that resulted in rigid work rules and narrow job classifications. We have dramatically reduced classifications -- many facilities only have one main production classification. Our members like and embrace the challenge and the flexibility. An observer coming into many of our plants and talking to an employee can't tell which worker belongs to management and which worker is a member of the union because we are all focused on producing the highest quality and best value for customers.

This is all indicative of the UAW’s commitment to taking the high road in all of our dealings with the corporate community. Our mindset is not adversarial. We do not seek conflict. Our agenda is a positive one of shared responsibility and shared prosperity. We do not believe the United States can successfully compete in the global economy if we are divided and polarized.

Our positive and constructive approach and outlook extends to our attitude towards the foreign-owned non-union automakers. We take note of the fact that all of the German, Japanese and Korean automakers have a long history of recognizing and working with unions in their home countries. These relationships show that the transnational companies operating in the United States accept the fundamental right of workers to organize. We want to restart our relationship with these companies by presenting them with an ethical framework that states that American workers have the same right to form unions as the workers in their home countries. American workers, after all, are NOT second-class global citizens.

We call this ethical framework the UAW Principles for Fair Union Elections. This document embodies common sense principles inherent in any democratic election. The underlying principle is that the right to organize a union is a fundamental human right. Workers cannot exercise this right in an atmosphere of fear. Therefore, there must be no threats, intimidation or coercion -- explicit or implicit -- in order to gain votes. Employees have the right to hear equally from both sides. If management gives a 10-minute speech, then the union can give a 10-minute speech. If management posts a notice, the union can post a notice in the same location. Neither party should demonize or disparage the other or engage in untruths. If employees vote to unionize, the parties should promptly bargain for a fair, responsible agreement that keeps the employer competitive. The UAW commits to being a strong partner in making the company competitive and successful.

We have reached out to the non-union auto companies in a spirit of respect to ask that they agree to these principles. We hope that they do, and if so, we look forward to engaging their employees in a free, democratic election process free of acrimony, tension, fear and discord. If employees make a free choice not to join the UAW, we will of course respect that decision, and hope that in the future we will make a better case for the importance of a union for all autoworkers. If the employees do vote to unionize, the UAW will add value and do everything within our power to make the company competitive and successful

Thursday, January 13, 2011

State of the Union January 13, 2011

Jan. 13, 2011 online at www.uawlocal2250.com

From Chairman Mike Bullock: As we enjoy this holiday weekend, let’s reflect on the life and words of Dr. Martin Luther King Jr. As many of you know, he was in Memphis to support striking sanitation workers, members of AFSCME Local 1733, when he was assassinated on April 4, 1968. Dr. King gave many memorable sermons and speeches. This is a quote from an early sermon he gave: “All I'm saying is simply this, that all life is interrelated, that somehow we're caught in an inescapable network of mutuality tied in a single garment of destiny. Whatever affects one directly affects all indirectly.” And this is from his famous “I Have a Dream” speech, which seems especially relevant today given the recent events in Tuscon: “We must forever conduct our struggle on the high plane of dignity and discipline. We must not allow our creative protest to degenerate into physical violence. Again and again we must rise to the majestic heights of meeting physical force with soul force.”

Reminder: The Dr. Martin Luther King Scholarship Awards Ceremony will be held Saturday, Jan. 15 at 1 pm here at the plant in the Tour Holding room. All winners and parents should arrive between 12:30 and 12:45 pm for check in and photo/video preparation.

The Vehicle Advocate Program (VAP or overnight drive) will be kicking off next week with entry forms being made available in the plant OnLine newsletter, which will be distributed and available at the entrances. You will need to fill out the form and drop it in the boxes in the cafeteria. The deadline to submit entry forms will be Friday, Jan. 28 and the drawing will be Monday, Jan. 31. This year the winners will have the vehicle for two nights to give you more time with the vehicle and create more opportunities to promote the vehicle by showing it to family, friends and neighbors. Also, there will be a raffle for the vehicles for the long weekend of Feb. 25 to support this year’s Make-A-Wish dream. Ticket will be $5 or 3 for $10 and can be purchased from suggestions, benefits, personnel, PMN or WIM officers or anyone on the vehicle advocate committee.

Part One of UAW President Bob King’s speech yesterday at the Automotive News World Congress seminar in Detroit: What is the Role of the UAW in a Global Economy?
Fundamental changes in the global economy demand fundamental change in the labor movement. The UAW of the 21st century remains dedicated to the core mission of the labor movement – to create, support and sustain a strong middle class with dignity and respect for every person who works hard and plays by the rules. History clearly demonstrates that democracy cannot survive without a strong middle class, and a strong middle class is built and maintained through the institution of collective bargaining and strong unions. We understand that globalization has radically altered the competitive environment facing the auto sector. Indeed, we have paid the price for failing to learn this lesson quickly enough. The UAW has learned from the past and has embraced dramatic and radical change. To achieve our mission in this new environment, the UAW of the 21st century has a dual responsibility. One responsibility is to partner with our UAW employers to create growth, strength, competitiveness, and profitability. Our other responsibility is to advocate for a Fair Deal for all workers. A Fair Deal means fair middle class sustaining wages, benefits and pensions. A Fair Deal means a regular employee status vs. temporary status. A Fair Deal means retirement with dignity. A Fair Deal means sharing in the good times as well as sacrificing in the bad times. A Fair Deal means safe neighborhoods and good schools for our kids through fair taxes on good wages and profits. And we know that without the financial success of our employers, there is no economic foundation for a middle class and a Fair Deal. We also know that without a real, enforceable right to organize and collective bargaining, unfettered corporate power will undermine responsible companies and destroy the middle class and any chance for a Fair Deal for all Americans.

The success of the collaboration between the UAW and the unionized automakers demonstrates beyond any doubt the authenticity and intensity of the union’s commitment to our corporate partners. We have shown that cooperation, creative problem solving, mutual respect and common goals can produce extraordinary victories.

Success in a global economy requires innovation. The UAW and our membership celebrate innovation and creativity. Success in a global economy requires flexibility. The UAW and our membership embrace flexibility and openness. Success in a global economy requires producing the highest quality products. The UAW and our membership make quality our top priority and we champion the needs of consumers.
The results are in on the UAW’s positive impact working with our UAW-represented employers:
•    We are making the highest quality vehicles.
•    We have the most productive plants.
•    We have best-in-industry attendance by our members.
•    We have extremely high commitment and dedication by UAW members on the shop floor to maintaining the highest quality, the highest productivity and delivering the best product at the best value to consumers.

Wednesday, January 12, 2011

State of the Union January 12, 2011

Jan. 12, 2011 online at www.uawlocal2250.com

Reminder: Sign-ups for the election committee election are at the Union Hall and run through Thursday, Jan. 13. Also, the deadline for submitting resolutions to the National Agreement is Friday, Jan. 14. You can get forms from – and return them to – the work center, the Union Hall, or your committee person.

From the Detroit Free Press: As General Motors seeks to fully fund its pension funds, its chief financial officer plans to change the assets to more bonds and fewer equities -- a move that will bring more stability to GM's own market value. GM has a $100-billion pension plan to provide for its 700,000 U.S. retirees, who outnumber current employees 10-1. That U.S. pension plan is twice the size of GM's market value, calculated by multiplying the number of outstanding shares by the current price. "Small swings in the pension plan have massive changes in the value of the company," Chris Liddell told journalists Tuesday. "That's just not a good way to run it." Most pension plans consist of stock and debt investments, with high expected returns, Liddell said. GM wants to move to more fixed assets. In Liddell's ideal pension plan, "the assets exactly match the liabilities, in their maturity and their risk profile," Liddell said. GM's U.S. pensions were underfunded by $17.1 billion at the end of 2009. At the end of last year, the company made a $6-billion contribution -- $4 billion in cash and $2 billion in stock -- to lower that number. GM is to update its underfunding number when it reports fourth-quarter earnings in the coming weeks.

From the Detroit News: General Motors Co. is seeking to tie workers' pay to improvements in vehicle quality — an incentive the Detroit automaker's North American president, Mark Reuss, says will apply to both hourly and salaried employees. "I want to make sure we pay people for superior results," Reuss told reporters on the sidelines of the North American International AutoShow on Monday. "Period." "When we're not performing, I'm not going to be paid out and neither is anyone else," he added. The Detroit automakers' contracts with the United Auto Workers union expire in September. UAW President Bob King, who attended Monday's press preview of the auto show, said his union will consider the proposal. "We're going to discuss a lot of things," King said. "Our members deserve tremendous credit for the sacrifices they made, and for their tremendous personal commitment to quality and continuous improvement." King told The Detroit News last week the UAW is seeking ways for its workers to share in the automakers' rising fortunes, but declined to elaborate further on how it would go about that.

There has been a lot of talk about profit sharing recently as GM continues to rack up earnings. When VP of Manufacturing/Labor relations Diana Tremblay was asked in a recent chat whether profit sharing would be paid out, she answered “yes, as long as we continue to get great results”. Manufacturing Manager Jim Glynn basically said the same thing in a diagonal slice meeting two months ago. So it seems certain that there will be a profit sharing payout. The next question is – how much?

Our profit sharing agreement stipulates that only profits from US operations are used to calculate any payout. Unfortunately, GM does not break out US operations numbers from the North American numbers. Looking at the assembly plants in the US, besides Wentzville, there is: Lansing Grand River (Cadillac CTS), Lansing Delta Township (Chevy Traverse, Buick Enclave, GMC Acadia), Flint (Chevy Silverado, GMC Sierra), Lake Orion (Chevy Sonic, Buick Verano this fall), Hamtramck (Chevy Volt, Buick Lucerne, Cadillac DTS), Fort Wayne (Chevy Silverado, GMC Sierra), Lordstown (Chevy Cruze), Arlington (Chevy Tahoe, Cadillac Escalade, GMC Yukon), Fairfax (Chevy Malibu, Buick LaCrosse), and Bowling Green (Corvette). These plants account for 62 % of the production in North America.

Profits are defined as “income earned by US operations before income taxes and ‘extraordinary items’ (with extraordinary items defined as under generally accepted accounting principles)…..Profits are before any profit sharing charges are deducted.” (Art. 2, section 2.14 of profit sharing agreement in 2007 National Agreement)

Total profit share is the result of the formula spelled out in Art. 2, section 2.17. It will be the sum of 6% of the sales and revenues between 0 and 1.8%; 8% of the sales and revenues between 1.8% and 2.3%; 10% of the sales between 2.3% and 4.6%; 14% of the sales and revenues between 4.6% and 6.9%; and 17% of the sales and revenues above 6.9%.

Through the first 3 quarters this year, North American revenues are $61.1 billion and profits are $4.935 billion. GM executives are saying at the Detroit Auto Show this week that the 4th quarter was “good”. We won’t know how good until sometime in February.

To qualify for a full payment you must have at least 1850 compensated hours, which include vacation, holiday and bereavement time as well as approved leaves of absence. Payment will be made “no later than the third month following the end of the plan year”.

So what’s the conclusion? Obviously, there are too many unknowns to accurately predict a profit share amount, but it could be the biggest payout we have ever seen. So break out the calculators and give it your best shot.

Tuesday, January 11, 2011

State of the Union January 10, 2011

Local 2250
State of the Union

Jan. 10, 2011 online at www.uawlocal2250.com

Reminder: Sign-ups for the election committee election begin today at the Union Hall and run through Thursday, Jan. 13.

From Automotive News: The Chevrolet Volt sedan and Ford Explorer crossover were named 2011 car and truck of the year today by a panel of automotive journalists. The Volt, Nissan Leaf and Hyundai Sonata were finalists for 2011 North American Car of the Year, while the Explorer, Jeep Grand Cherokee, and Dodge Durango were Truck of the Year finalists. The awards are judged by 49 automotive journalists from the United States and Canada -- representing magazines, newspapers, Web sites, television and radio. The criteria used to judge the winners include innovation, design, safety, handling, driver satisfaction and value for the dollar.

From the Detroit News: Sen. Bob Corker, who in late 2008 tried to broker a deal to rescue General Motors and Chrysler, returned to Detroit on Sunday to herald their turnaround and praise another automaker bringing work to his home state. "Detroit is doing very well," Corker said. "I really do think the automotive industry in our country is going to come back very strong." Corker, a former mayor of Chattanooga, said he's rooting for Detroit. "At heart, I am a mayor and I know this city has had difficulties," he said. "I love urban revitalization. I want Detroit do well." In recent weeks, Corker bought two new vehicles: a Volkswagen Touareg (made in Germany) and a Ford Transit Connect van (made in Turkey) for his wife, an interior decorator. Corker said the debate over the auto industry bailout is over. "Once a decision is made in this world, you move on," he said. "I'm glad that in spite of feelings at the time, the companies are doing well, people are being employed and taxpayers are getting some money repaid." (Gee, Bob, we don’t know what we’d have done without you)

More Automotive News: Transplant carmakers that violate the UAW's election guidelines can expect blowback from consumers, UAW President Bob King said. With an organizing budget of $60 million, the UAW will respond "aggressively" to any transplant automaker that interferes with union organizing at their U.S. assembly and engine plants in the coming months, he said. King said the union will launch global demonstrations and publicity aimed at punishing offending carmakers, including convincing sympathizers in the civil rights, church and environmental communities to not buy vehicles.

Here’s the month and year end report from van Marketing Manager Andrew

Reyntjes:December was a strong month for us. We delivered 7,624 vans which was 118% of our total objective. Our volume over November grew by 33.5% and we gained 1.4 percentage points of share over November. On a CY basis we delivered 7,229 units more or + 10.9% from our volume in 2009. Unfortunately we lost 3 percentage points of segment share to Ford Econoline for the CY. Looking back over the year we exceeded our monthly sales objectives 8 out of 12 times endding up netting an additional 4357. We exceeded dealer Consensus every month last year, I do not believe that this has happened in years (if ever). In looking back at 2010 there were many events that helped us achieve these results:

•New photography assets for our brochures and catalogs that hadn't been updated in years
•A Vocational based Marketing Initiative that includes grass roots worksite events and community outreach programs
•The successful launch of the new 2010i MY Duramax Diesel that meets the new emission standards (Ford dropped out !!)
•Very positive steps forward in the integration of the Chevrolet division in terms of go-to-market incentive announcements and corporate displays and promotions
•A conquest of a significant number of Penske and Budget Truck Rental orders
•A significant number of re-conquests by our Fleet Account Executives when Ford could not deliver on promises
•The quick actions of the Engineering organization to re-establish the driver armrest (a major customer dissastisfier and example of cost-reduction gone mad). This quick action secured the Sears account.
•The introduction of OnStar as an available feature on our vans (finally)
•Partnerships with GM Communications and external suppliers such as Autonet, Adrian Steel, Leggit & Platt and many others
•An increased push and emphasis on the growing and profitable Mobility market
•A comprehensive team effort from Purchasing to Wentzville to the Fleet Sales organization to secure the Fedex account with the ability to provide orange safety belts
•Positive changes to the Business Choice and Business Central programs
•An increased Marketing Budget -although I'm never going to have enough !! :)
•An increased number of dedicated team members
•The Wentzville team playing gracious host to several high-profile customer visits
•Wentzville and Distribution departments helping to push the occasional high-profile VIP dealer or customer order through to secure goodwill and win more business
•The way that the entire team reacted to chase every sale with challenges of large orders effecting volume, production and timing of our orders.
•An excellent Product Preview for our major customers hosted in Detroit and the availability of key Engineering staff to participate and interact with the customers
•A win of a significant portion of the VPSI van pool account following a special invitation and relationship building event at the Van PET
•Increased Express Awareness with the Pink-Wings Breast Cancer team van that supported the 1st place Chicago team raising $68,000
•The positive momentum as the new GM emerged from bankruptcy

Unfortunately our competition is fierce. Ford continues to be aggressive on price and has an integrated portfolio of commercial vehicles from Transit Connect all the way to Medium Duty. Nissan launches their NV commercial van this year. A product investment and marketing launch into this business does not come cheap. We expect Nissan to do everything it can to make a splash, and take business to recoup their investment and grow share. As one of only 2 major players in the segment Nissan's share gains will come out of our market share. We have no new retail (small business related) content for 2012 and our design has remained the same in over a decade so we have to do our best to go to market with carryover content until 2013MY. Fortunately we have a lot of opportunity. We have a CNG offering with a warranty backed by GM that is just waiting on final Ship-to-commerce approval. This is perfect for a time of rising gasoline prices and environmental awareness. We already have 150 orders in the bank even though we have not yet been able to get demonstrator/Marketing vehicles out of Michigan. We will continue to put a lot of media attention on this vehicle.

Friday, January 7, 2011

State of the Union January 7, 2011

Jan. 7, 2011 online at www.uawlocal2250.com

From Chairman Mike Bullock: There is not an announcement scheduled for today. I wish there was. Understand this: IF and WHEN there is an announcement scheduled I will personally be up and down every aisle screaming at the top of my lungs "WE GOT IT!!" It will be on every TV screen and there will be a roar in this plant never before heard. I believe we are on the verge of something big, but until the MAN who signs our paychecks calls and tells me the news, there is no announcement. I have heard from people throughout this plant: " I have a neighbor who works for Company XYZ who says they have been contracted to do this"; " I have a brother in law who owns a construction company and he's been told....."; " I have an uncle who works for supplier xyz and they have been asked to supply widgets for a new product". I hear all these great stories and they could all be true. BUT... until the person from the corporation calls with the news, there is no announcement. WE have done everything possible to put us in the best position to secure a new product. You have given many sacrifices to put us in this position. If we get a new product it is because of you. WE need some good news and I think it is just around the corner.

From President Dan Howell: The skilled trades delegate election will be held Wednesday, Jan. 12. Polls will be open from 4 am – 4 pm at the Union Hall.

Morgan Stanley issued a 21-page report about GM’s future prospects and concluded that a stock price of $100 per share. In summary, it said:
The confluence of cyclical recovery in N. America (where GM derives two-thirds of its cash flow) and secular growth in emerging markets (the rest of its cash flow) drives their estimate for GM’s net cash to improve from $19bn at the end of 2010 to $29bn by 2012 and $71bn by 2015. Morgan Stanley’s current $50 price target is based on GM being a relevant ‘global player’ in the industry, but only keeping up with a cyclical recovery in the US light vehicle market while riding secular growth in emerging markets. With the historic impediments on costs substantially eliminated, the firm sees no structural reason why GM cannot one day be a dominating force in the global auto industry. While it’s too early to give the company the benefit of the doubt, they believe GM has the potential to one day produce the earnings and cash flow required to justify a valuation closer to $100 than $50. (GM stock closed at $38.90 yesterday, up about 18% from the issue price of $33)


There were 45 members who retired last year. Of those, 18 were pre retirements. Here are the names of the active members that retired:

Body Shop
Tracy Crossno
Victor McGill
Glenda Langley
Sue Kowalske
Patricia Powell
Antonio Sangster

Paint
Ella Clay
Harry Jackson
Flora Dukes

Trim
Ora Wall
Mike McBroom
Barbara Johnson
Frederick “Butch” Estes
Joseph Miller

Chassis
Marion Duff
Sam Braddock
Howard Huff
Robert Bortz

Material
Albert Bromley
Eugene Washington
Joseph Brooks
Michael Hill

Others:
Eugene Brown – tractor repair
Chester Wheeler – stamping maintenance
Linda Smart – quality
James Leffeler – general stores
Quitman Dukes – general stores

Thursday, January 6, 2011

State of the Union January 6, 2011

State of the Union January 6, 2011

From Chairman Mike Bullock: The deadline to turn in resolutions for the National Agreement is Friday, Jan. 14. You can get forms from – and return them to – the work center, the Union Hall, or your committee person.

From the Civil Rights Committee: The Dr. Martin Luther King Jr. Scholarship Awards Ceremony will be held Saturday, Jan. 15 at 1 pm here at the plant in the Tour Holding room. All winners and parents should arrive between 12:30 and 12:45 pm for check in and photo/video preparation. Congratulations to all the winners and thanks to everyone for their continued support of this great program! (List of winners on back)

You may have noticed that December was the first month in some time that we sold more vans than were built. As a result, our field supplies dropped. Net field stock stood at 13,964 or a 56 day supply. This is down 559 units from November. Total stock is 21,032, or an 86 day supply, and is down 1484 from November. The year-end marketing report will be out tomorrow.

From Wards Auto: The first Nissan NV light commercial vehicle (LCV) is scheduled to roll off the Canton, Miss. plant’s assembly lines Jan. 19, says company spokesman Brian Brockman. The vans are aimed at small businesses of all stripes that need larger vehicles to transport their goods. It's Nissan's first foray into domestic LCV production. The vehicles' starting prices range from about $24,000 for standard roof design to $27,000 for a higher

From DriveOn/USA Today: Earlier in the year, we didn't think it was going to happen. The two cars were hubcap to hubcap through much of the early part of the year -- one month, they were three cars apart -- then Camaro broke loose. Finally tally: Camaro, 81,299; Mustang, 73,716. Autoblog says it's the first time that Camaro beat its rival since 1985. We think the news is going down pretty hard in Dearborn where officials yesterday sputtered when asked a straightforward question about it.

Wednesday, January 5, 2011

State of the Union January 5, 2010

Jan. 5, 2011 online at www.uawlocal2250.com
From President Dan Howell: Sign-ups for the Election Committee election will be from Monday, Jan. 10 through Thursday, Jan. 13. If you are interested you can sign up at the Union Hall.

Reminder: There is a Veterans Committee meeting today 15 minutes after first shift at the Union Hall.
•    The van sales numbers are in for December and the calendar year. They are:
2010 2009 Change Share
Ford Econoline 9774 8556 +14.2% 52.1%
GM 7624 6208 +22.8% 40.6%
Mercedes Sprinter 1379 --- --- 7.3%
Ford Transit 2811 1992 +41.1%

For all of 2010:

Ford Econoline 108,258 85,735 +26.3% 56.8%
GM 73,695 66,466 +10.9% 38.7%
Mercedes Sprinter 8,559 --- --- 4.5%

From Automotive News: Seven automobile insurance firms have followed Allstate Insurance Co. in suing Toyota Motor Corp. to recover money they paid in claims for car crashes blamed on unintended acceleration of Toyota vehicles. The insurers' court action has opened a new front in U.S. civil litigation mounting against the Japanese automaker. The seven latest companies to bring such subrogation actions against Toyota are: American Automobile Insurance Co., Fireman's Fund Insurance Co., National Surety Corp., Ameriprise Insurance Co., IDS Property Casualty Insurance Co., Motorists Mutual Insurance Co. and American Hardware Mutual Insurance Co. Their suits, brought in three separate filings, come nearly two weeks after it was disclosed that Toyota agreed to pay $10 million to settle legal claims from the family of a California state trooper and three relatives whose fatal car wreck in 2009 helped trigger the automaker's recalls.

Automaker Dec. 2010  Dec. 2009 Pct. chng. 12 month
2010 12 month
2009 Pct. chng.
General Motors 224,147 207,538 8% 2,211,699 2,071,749 7%
Ford Motor Co. 190,191 183,701 4% 1,964,059 1,677,234 17%
Toyota 177,488 187,860 -6% 1,763,595 1,770,147 0%
Honda (American) 129,616 107,143 21% 1,230,480 1,150,784 7%
Chrysler Group LLC 100,702 86,523 16% 1,085,211 931,402 17%
Nissan 93,730 73,404 28% 908,570 770,103 18%
Hyundai Group 75,246 54,845 37% 894,496 735,127 22%
Volkswagen 34,610 29,582 17% 359,889 297,537 21%
BMW Group 27,626 23,645 17% 266,069 242,053 10%
Subaru 26,694 23,074 16% 263,820 216,652 22%
Daimler AG 22,044 20,905 5% 230,934 205,199 13%
Mazda 21,479 18,255 18% 229,566 207,767 11%
Jaguar Land Rover 4,875 4,841 1% 45,204 38,261 18%
Mitsubishi 4,874 4,357 12% 55,683 53,986 3%
Volvo Cars North America 4,756 - -% 21,423 - -%
Suzuki 2,647 1,885 40% 23,994 38,695 -38%
Porsche 2,567 2,118 21% 25,320 19,696 29%
Saab Cars North America 1,074 - -% 4,837 - -%
Other (estimate) 294 308 -5% 3,528 3,680 -4%
Maserati 180 115 57% 1,897 1,273 49%
Isuzu - - -% - 165 -100%
TOTAL 1,144,840 1,030,099 11% 11,590,274 10,431,510 11%

Tuesday, January 4, 2011

State of the Union January 4, 2011

Jan. 4, 2011 online at www.uawlocal2250.com

There will be a Veterans Committee meeting Wednesday, Jan. 5 at the Union Hall 15 minutes after first shift. We have been informed that the plant has a new digital security camera system that is now capable of zooming in on every corner of every parking lot in high definition. The UAW/GM Lifesteps program will be in the cafeteria Tuesday, Jan. 4 and Wednesday, Jan. 5 from 8 am – 11:30 am and 2 pm – 5 pm. This month’s topic is nutrition.

From the Wall Street Journal:
The United Auto Workers union said it is prepared to spend hundreds of millions of dollars in a bid to organize employees, including a new push for hourly factory workers at foreign-owned car plants in the U.S. UAW President Bob King signaled in an interview the union is willing to take a much less confrontational approach to foreign car makers than it did decades ago in battles to become established at the Big Three. But if the companies don't agree to a set of rules being promoted by the union to ensure what it calls free and fair union elections, he indicated the fight could turn nasty—and global. The UAW, he said, would hold demonstrations at the corporate headquarters of these companies outside the U.S. as well as at their U.S. plants. In addition, it would picket their dealerships in the U.S. and abroad, and sports events globally that are sponsored by the car companies. Mr. King said he will tap the union's strike fund of more than $800 million for the push, calling it the best way to protect his current membership. "We have, in many ways, pretty deep pockets in terms of what we're willing to spend," said Mr. King, adding that the union already approved spending $60 million on organizing at its convention in June. "We have really unlimited resources to devote to this. It's unlike anything that's been seen in the UAW in many, many years." The new strategy under Mr. King, a lawyer by training who was elected to the union's top job last summer, is built on a set of 11 principles to be presented to the targeted companies. The principles, which were made available to the Journal, including pledges to refrain from coercion, intimidation and threats to workers from either side. Another provision calls for both union and management to avoid promising better wages or benefits based on a worker's vote for or against the UAW.

December sales numbers are coming out and General Motors reported 223,932 total sales, a 16-percent increase from a year ago for the company’s four brands. The gain was driven by solid retail sales which were 27 percent higher than a strong December a year ago. For the calendar year, total sales for GM’s four brands increased 21 percent to 2,202,927, while retail sales rose 16 percent for the year. GM’s four brands sold 118,435 more vehicles this year than the company did with eight brands in 2009, and will gain total and retail market share for the year. Regarding van sales, they came in at 7624, up 22.8% over last December. For the year, sales came in at 73,695, up 10.9% over 2009. More details to come.

General Motors sales in China rose 29% last year to a record 2.35 million vehicles, making GM the first foreign auto maker to surpass the two-million-unit mark for annual sales in the country, the Detroit-based company said. GM's sales last year came as the auto maker introduced 11 new or upgraded models in China, which is now GM's largest market. Sales of Chevrolet, one of GM's best-selling brands in China, increased 63% to 543,709 vehicles.

Bright Automotive announced it is hiring 200 people to fill various positions which include vehicle and manufacturing engineering in the areas of design, body, interior, chassis, electrical, powertrain and vehicle development as well as key business functions such as supply chain management, information technology, sales, marketing and finance. To refresh your memory, the IDEA is a commercial fleet van with an all-electric range of 40 miles. After that distance it turns into a conventional hybrid, in which it gets about 40 mpg, according to Bright, who has also applied for a $450 million low-interest loan from the Department of Energy to help mass produce the IDEA. No launch date has been set.

From Bloomberg News: Daimler AG, the maker of Mercedes- Benz cars, predicts U.S. sales of its commercial vans this year will match 2009 deliveries after distribution was shifted to luxury retailers from truck-savvy Dodge dealers. Sprinter’s U.S. sales through November at Mercedes and Freightliner dealerships fell a combined 8.1 percent compared with the same period last year at Dodgeand Freightliner stores, according to Autodata Corp., a Woodcliff Lake, New Jersey-based researcher. U.S. Mercedesdealers sold 3,917 Sprinter vans during the first 11 months while deliveries by Freightliner outlets more than tripled to 3,263. A year earlier, more than 300 Dodge dealers accounted for 87 percent of the 7,817 sold. A total of 8,353 Sprinter vans were sold last year through Dodge and Freightliner stores in the U.S., according to Mercedes, part of Stuttgart, Germany-based Daimler.

State of the Union January 3, 2011

Jan. 3, 2011 online at www.uawlocal2250.com

The television modulator that drove channel 36 for television programming, rolling screen information and radio is not functioning. As a result, this content is only available on channel 34. If your TV does not have this channel loaded, let your team leader or group leader know what the column location is.

From Automotive News: UAW President Bob King wants union representation on the boards of the Detroit 3, and sees the German auto industry as a model for a closer partnership with the domestic automakers. "We have asked for them in the past. And I expect that we will continue to ask" for board seats, King told Automotive News, as he talked about this year's contract negotiations. Indirectly, the UAW has a representative on the board of General Motors Co., King said. But that representative, Steve Girsky, represents the UAW-GM Voluntary Employee Beneficiary Association, an independent trust that manages retiree health care for GM hourly retirees and their spouses. And when UAW President Bob King launches the union's organizing drive of Asian and German automakers next month, he is counting on help from his friends.

Civil rights leader Jesse Jackson said last week that he was eager to hear from King on how his Rainbow PUSH coalition can serve the cause. The organization has thousands of members and supporters in 50 major U.S. markets.

From the L.A. Times: Driver complaints to federal highway safety regulators soared this year, spurred by a slew of Toyota Motor Corp. recalls and a rush by other automakers to announce fix-it campaigns that focused the public's attention on auto defects. The National Highway Traffic Safety Administrationreceived more than 40,000 complaints through Dec. 14, according to an analysis by automotive research firm Edmunds.com. That's four times the volume of recent years. Toyota, long considered one of the most reliable brands, was the subject of more than a quarter of the complaints. Its ratio of complaints to 100,000 vehicles sold jumped to nearly 87 so far in 2010 from 37 a year earlier. Nissan Motor Co. had the second-worst ratio, at nearly 62 complaints per 100,000 vehicles sold; Volkswagen was third at nearly 58. The industry average was 47 complaints per 100,000 vehicles sold, up from fewer than 30 in 2009.

Every year from now on, vehicle manufacturers will have to meet progressively higher fuel economy mandates from the EPA. Here’s a look at where we are now and where we have to be:
2010 model year CAFE rankings

Domestic passenger cars mpg
1. Tesla 346.8
2. Toyota 36.4
3. Nissan 34.8
4. Honda 34.7
5. Ford 32.3
6. Mazda 31.4
7. GM 30.6
8. Chrysler 28.0


Imported passenger cars mpg
1. Toyota 44.4
2. Honda 40.9
3. Kia 36.6
4. Hyundai 36.0
5. Mazda 34.5


Light trucks mpg
1. Hyundai 30.0
2. Subaru 29.9
3. Mitsubishi 28.3
4. Honda 26.9
5. Mazda 26.6
9. GM 25.4
12. Chrysler 24.1
13. Ford 24.0

The EPA calculates CAFE based on gas mileage estimates for each car in an automaker's lineup and the number of those cars produced that year.
The lineups are split into three groups: Domestic passenger cars, which includes cars built using mostly domestically sourced parts, for either an American or foreign nameplate; imported passenger cars, built mostly with parts from abroad; and light trucks, which includes everything from pickups and minivans to crossover SUVs, no matter where their parts come from.

Federal fleet-average mpg standards, by model year:

2012 2013 2014 2015 2016
Cars 33.8 34.7 36 37.7 39.5
Light trucks 25.7 26.4 27.3 28.5 29.8
Fleet 30.1 31.1 32.2 33.8 35.5
Source: NHTSA, EPA