August 24, 2011 online at www.uawlocal2250.com
From Chairman Mike Bullock: The National Agreement on Page 242 details management's right to require employees to work daily overtime past 11 hours during model change. Management can work us past 11 hours two weeks before model change (August 17) and for the week it launches the new model and three weeks thereafter or until the line reaches scheduled production, whichever is later (September 9). The additional overtime this week has been due to breakdowns in the glass area.
This year’s Labor Day Parade will be Monday, Sept. 5 with the theme of “We Are One”. The UAW location in the parade lineup is 8th. Line up begins at 7 am on 18th Street north of Olive Street where we will decorate the float. All are invited including friends and family.
From the Flint Journal: Saturday work is about to gear up at General Motors' Flint Assembly plant even as the company reins in production at its truck plant in Indiana. Workers at Flint Assembly have been told to expect to work five Saturdays in the next two months because of high demand for 2012 heavy- and light-duty Chevrolet Silverado and GMC Sierra pickups. The Saturday shifts will continue in addition to the start of a new, permanent third shift that started Sunday night. "We are trying to manage the total number of trucks (in inventory), and we need to make sure we have the right mix of trucks," said Jim Cain, a General Motors spokesman. "The pickup truck market is complex because of different bed and cab configurations." Flint Assembly, the city's last remaining GM assembly plant, will operate Sept. 10 and 24, and Oct. 1, 15, and 22, according to a notice sent to employees last month. Cain confirmed that GM is simultaneously adding the Saturday shifts here and extending a temporary shutdown of its Fort Wayne, Ind., area truck plant. Like Flint, that plant builds the Silverado and Sierra but it will close the last week of 2011 and the first week of 2012, according to this online report in Transport Topics. Saturday shifts at the plant have already been canceled for the year, the same report said. Cain said the difference in plans for the two plants is a simple difference in the type of trucks each produce. "It's not unusual that not every plant builds every (variation)," Cain said. The GM spokesman said the automaker not only wants to end this year with approximately 200,000 trucks in inventory -- equal to a 90-day supply -- it also wants to have every vehicle type available in sufficient numbers.
From Edmunds: Several participants at a session at the Center for Automotive Research Management Briefing Seminars earlier this month dissected the possibilities for the 2011 contract talks and settled on these probable primary aspects: the UAW will pursue an increase in the number of jobs – UAW membership has sunk to a 70-year low of around 111,000 – and better wages and benefits for all workers after a historic contract provision in 2007 that provided for a lower wage for new workers. The automakers want to retain their new, more-competitive labor-cost structure and increased operating and work-rule flexibility. One solution both the UAW and the automakers seem to agree could be an answer: more-generous and wider-ranging profit-sharing schemes. The groundbreaking two-tier wage structure agreed to in the 2007 UAW-Detroit Three contract has been the subject of endless discussion, but few organized-labor experts expect whatever accord comes this year to backtrack on that historic point. Newly-hired UAW workers are paid about $15-17 per hour, while more seasoned workers make about $28 per hour or more before benefits, but there are specific and complex limitations on the ratio of new, lowered-paid workers each automaker’s assembly plants can employ – and currently, only a small portion of the UAW’s rank and file are paid at the lower wage level. Nonetheless, hourly labor costs in 2010 were $20 to $29 lower than in 2006, said Kristin Dzicezek, CAR’s labor and industry group director, a substantial figure that still could not keep GM and Chrysler from bankruptcy court in 2009. Most experts now speculate the UAW will seek to bring these new entry-level workers to a higher overall pay by seeking more-remunerative profit-sharing provisions in the 2011 contract. Union president Bob King was quoted by the New York Times as saying the automakers should improve their profit-sharing formulas. At the CAR conference earlier this month, several auto-company executives mentioned “flex pay” in seemingly positive terms. Whatever the eventual structure, King is adamant that the Detroit auto companies are rebounding and everybody should be working to ensure an agreement that improves overall pay. “I don’t think you should be working in the auto industry at poverty-level wages when the companies are doing well,” King was quoted by the NYT, while also telegraphing in no uncertain terms that the UAW’s era of givebacks has come to an end. “There is no justification for any concessions in this round of bargaining. That is just not going to happen,” King insisted.
From the Detroit News: The most remarkable thing about this year's contract negotiations between the Detroit's Big Three automakers and the United Auto Workers is how unremarkable they are. There has been none of the usual drama, and both sides seem determined to keep it that way. UAW President Bob King said the companies and his union want to show American taxpayers that they appreciate the help they provided the industry, by negotiating win-win contracts without strikes, vitriol or eleventh-hour bargaining. King said the current system does not provide new workers with a living wage. "They're tough issues. They're complicated issues. But I'm confident that we have the history of creative problem-solving now to work through them," King said. "We've got good companies that we're dealing with…It's really important for the American public to know that both the companies and our membership really appreciate the loans that we got," King said. "We take very seriously the long-term success of these companies because of the impact it has on everybody in society." And while King has said he would like to announce an agreement with all three automakers by next month's deadline, he said it's not the most important thing. "What's more important than the deadline is a good result for our members, for the community, for creating jobs in America," he said. "We want consumers and the public to know that labor and management, community and government can all work together to make a better country — to rebuild the middle class in this country — so we do look at it as a great opportunity to demonstrate that."
Wednesday, August 24, 2011
State of the Union August 23, 2011
August 23, 2011 online at www.uawlocal2250.com
From UAW Vice President Joe Ashton: During contract talks, everyone wants to know, “What is going on?” With this in mind we are creating a new communication network that will provide regular updates to the UAW-GM team electronically. Initially, the messages will deal with contract negotiations. We will pilot the system through the end of the year. Based on your feedback we will consider expanding the network and the type of information available. All UAW-GM members will be receiving a letter around the end of August that will have a temporary user name and password as well as instructions for how to sign up for the site. You can visit the site at www.uawgmnow.com; however you cannot sign in until you receive your temporary user name and password. You will be receiving a letter at home from the UAW-GM that contains your personalized username and password to access this site. Participation is completely voluntary and you can opt-out at anytime. (Also) For the past two years, the UAW and GM have collaborated on a Facebook page to highlight all the great news coming out of our plants and warehouses. Visit http://www.facebook.com/uawgm.org.
Reminder: The deadline to sign up for the Women’s Committee golf tournament is Tuesday, Aug. 30. It will be held Saturday, Sept. 10 at Country Lake Golf Course in Warrenton. It is a three person scramble with a 1:30 shotgun start. Entry fee is $70 per person or $210 per team and will include food and beer after the tournament. There will also be longest drive and closest to the hole prizes as well as a skin game. The top three places in three flights will be paid. All proceeds will go to the Women’s Safe House. Entry forms are available from any committee member or at the entrances. The Women’s Committee is also selling raffle tickets for a board full of lottery tickets. Price is $1 per ticket or 6 for $5 and available from any committee member.
From Automotive News: UAW President Bob King says transplant automakers that pay workers more at some U.S. plants than at others are providing an opening for UAW organizing. In an interview Friday, King said the UAW would equalize pay and benefits for transplant workers in the Deep South who earn $5 to $6 less an hour in wages and benefits than co-workers farther north. It's a key point that King said he wants transplant workers to take from the current Detroit 3 contract negotiations. King said Toyota pays workers less at its San Antonio pickup plant than it does at Georgetown, Ky., where the Camry, Avalon and Venza are built. "If you go to San Antonio, to Canton, Mississippi, to Honda in Indiana, to any of the newer facilities, they're dramatically lower than what we are and dramatically lower than their own co-workers in the same corporation," King said. "That should really be bothersome."
From the Chattanooga Times Free Press: A powerful Volkswagen labor leader says he will not actively promote UAW efforts to organize the automaker’s Chattanooga factory, according to Reuters. Bernd Osterloh, who represents labor on the German car maker's supervisory board, said while he’s keen to see organized labor representation at the Chattanooga plant, he would not actively promote UAW efforts to broaden its membership there. Osterloh said in Hamburg, Germany, that it was up to the employees themselves to decide which union should represent them.
From Autoblog: Chrysler is officially killing the 2011 Ram Dakota this week, which the UAW fears may lead to nearly 150 hourly positions getting the chop. The move has already spelled the end for 39 temporary positions at Chrysler's Warren Truck Plant. Chrysler brass say they still haven't figured out who's getting cut, but if says if there are layoffs, the workers would likely be reassigned to another operation. According to Chrysler CEO Sergio Marchionne, the Dakota will likely be replaced with a "lifestyle vehicle." Chrysler sold a scant 13,000 Dakotas last year. By contrast, Dodge moved 177,000 of the midsize pickups in 2000.
Here’s some more Q and A from the Dan Akerson interview:
Q.One of the things you have been able to do, Mr. Akerson, as GM has gotten more profitable and begun selling more cars in the past couple of years, is to hire back some of the people who you were forced to lay off as you closed plants. Do you worry that the economic weakness now might force you to rethink some of those hires?
Akerson: Well, I don't think so. I mean I worry about it -- about everything. I think we've been very prudent in hiring people back and obviously we can't control everything, and if things were to get a lot worse, obviously we're going to have to review the bidding. But we've been cautious in our hiring. That being said, we've hired back a fair number of folks, and we've gone to double and triple shifts in some of our plants. Of course, the question might be asked, "Why aren't you opening additional plants?" We want to make sure the demand is there and sustainable, because you open another plant and it takes a couple hundred, $300 million to $500 million in tooling and that's a difficult decision to recover from. So we have been prudent, but at the same time, we have hired folks back and we've invested another $5.5 billion roughly in new plant and equipment in this country, in the United States particularly, to try to make sure that we are as efficient and quality based as we can be. I think, as you say, we've made great progress but the future is always difficult to read and we just don't want to overextend ourselves in the current economic environment.
Q.Yeah, you've said a couple of times though that you're looking toward September and the rest of the year to keep up the pace that you guys have established since January. How are you going to do that when consumers aren't spending, when they're watching the stock market, and saying, "Oh my goodness! I have to stick everything under my mattress"?
Akerson: This is a team effort, it's a team game and as I say we've got a couple new products coming out that we think could be intriguing. We believe there is a fair amount of pent up demand. The average fleet, the age of the average car on the road, truck on the road in the United States is at a 25-, 30-year high. We know people have postponed purchasing over the last couple of years, with all of the turmoil going back to the start of the Great Recession in 2008. So as I say, we keep our breakeven point as low as we possibly can. We continue to invest in new products, new development, whether it be new cars, new models, but also new propulsion, advanced propulsion and technologies. We're playing for the long run, not the next three, four months, but over the next five, 10, 15, 20 years. That's one of the things I have tried to bring to the company, is to project forward to 2025, and 2050: Where do I want this company to be out five, 10, 50 years from now, so that we can be proud that GM is a national champion, if you will, here in the United States, North America, more generally; to grow and to embellish our brand, our reputation on a global basis as well. That's not going to happen in the next four months or the next four years, it's going to happen over the next 25 to 50.
From UAW Vice President Joe Ashton: During contract talks, everyone wants to know, “What is going on?” With this in mind we are creating a new communication network that will provide regular updates to the UAW-GM team electronically. Initially, the messages will deal with contract negotiations. We will pilot the system through the end of the year. Based on your feedback we will consider expanding the network and the type of information available. All UAW-GM members will be receiving a letter around the end of August that will have a temporary user name and password as well as instructions for how to sign up for the site. You can visit the site at www.uawgmnow.com; however you cannot sign in until you receive your temporary user name and password. You will be receiving a letter at home from the UAW-GM that contains your personalized username and password to access this site. Participation is completely voluntary and you can opt-out at anytime. (Also) For the past two years, the UAW and GM have collaborated on a Facebook page to highlight all the great news coming out of our plants and warehouses. Visit http://www.facebook.com/uawgm.org.
Reminder: The deadline to sign up for the Women’s Committee golf tournament is Tuesday, Aug. 30. It will be held Saturday, Sept. 10 at Country Lake Golf Course in Warrenton. It is a three person scramble with a 1:30 shotgun start. Entry fee is $70 per person or $210 per team and will include food and beer after the tournament. There will also be longest drive and closest to the hole prizes as well as a skin game. The top three places in three flights will be paid. All proceeds will go to the Women’s Safe House. Entry forms are available from any committee member or at the entrances. The Women’s Committee is also selling raffle tickets for a board full of lottery tickets. Price is $1 per ticket or 6 for $5 and available from any committee member.
From Automotive News: UAW President Bob King says transplant automakers that pay workers more at some U.S. plants than at others are providing an opening for UAW organizing. In an interview Friday, King said the UAW would equalize pay and benefits for transplant workers in the Deep South who earn $5 to $6 less an hour in wages and benefits than co-workers farther north. It's a key point that King said he wants transplant workers to take from the current Detroit 3 contract negotiations. King said Toyota pays workers less at its San Antonio pickup plant than it does at Georgetown, Ky., where the Camry, Avalon and Venza are built. "If you go to San Antonio, to Canton, Mississippi, to Honda in Indiana, to any of the newer facilities, they're dramatically lower than what we are and dramatically lower than their own co-workers in the same corporation," King said. "That should really be bothersome."
From the Chattanooga Times Free Press: A powerful Volkswagen labor leader says he will not actively promote UAW efforts to organize the automaker’s Chattanooga factory, according to Reuters. Bernd Osterloh, who represents labor on the German car maker's supervisory board, said while he’s keen to see organized labor representation at the Chattanooga plant, he would not actively promote UAW efforts to broaden its membership there. Osterloh said in Hamburg, Germany, that it was up to the employees themselves to decide which union should represent them.
From Autoblog: Chrysler is officially killing the 2011 Ram Dakota this week, which the UAW fears may lead to nearly 150 hourly positions getting the chop. The move has already spelled the end for 39 temporary positions at Chrysler's Warren Truck Plant. Chrysler brass say they still haven't figured out who's getting cut, but if says if there are layoffs, the workers would likely be reassigned to another operation. According to Chrysler CEO Sergio Marchionne, the Dakota will likely be replaced with a "lifestyle vehicle." Chrysler sold a scant 13,000 Dakotas last year. By contrast, Dodge moved 177,000 of the midsize pickups in 2000.
Here’s some more Q and A from the Dan Akerson interview:
Q.One of the things you have been able to do, Mr. Akerson, as GM has gotten more profitable and begun selling more cars in the past couple of years, is to hire back some of the people who you were forced to lay off as you closed plants. Do you worry that the economic weakness now might force you to rethink some of those hires?
Akerson: Well, I don't think so. I mean I worry about it -- about everything. I think we've been very prudent in hiring people back and obviously we can't control everything, and if things were to get a lot worse, obviously we're going to have to review the bidding. But we've been cautious in our hiring. That being said, we've hired back a fair number of folks, and we've gone to double and triple shifts in some of our plants. Of course, the question might be asked, "Why aren't you opening additional plants?" We want to make sure the demand is there and sustainable, because you open another plant and it takes a couple hundred, $300 million to $500 million in tooling and that's a difficult decision to recover from. So we have been prudent, but at the same time, we have hired folks back and we've invested another $5.5 billion roughly in new plant and equipment in this country, in the United States particularly, to try to make sure that we are as efficient and quality based as we can be. I think, as you say, we've made great progress but the future is always difficult to read and we just don't want to overextend ourselves in the current economic environment.
Q.Yeah, you've said a couple of times though that you're looking toward September and the rest of the year to keep up the pace that you guys have established since January. How are you going to do that when consumers aren't spending, when they're watching the stock market, and saying, "Oh my goodness! I have to stick everything under my mattress"?
Akerson: This is a team effort, it's a team game and as I say we've got a couple new products coming out that we think could be intriguing. We believe there is a fair amount of pent up demand. The average fleet, the age of the average car on the road, truck on the road in the United States is at a 25-, 30-year high. We know people have postponed purchasing over the last couple of years, with all of the turmoil going back to the start of the Great Recession in 2008. So as I say, we keep our breakeven point as low as we possibly can. We continue to invest in new products, new development, whether it be new cars, new models, but also new propulsion, advanced propulsion and technologies. We're playing for the long run, not the next three, four months, but over the next five, 10, 15, 20 years. That's one of the things I have tried to bring to the company, is to project forward to 2025, and 2050: Where do I want this company to be out five, 10, 50 years from now, so that we can be proud that GM is a national champion, if you will, here in the United States, North America, more generally; to grow and to embellish our brand, our reputation on a global basis as well. That's not going to happen in the next four months or the next four years, it's going to happen over the next 25 to 50.
Monday, August 22, 2011
State of the Union August 22, 2011
August 22, 2011 online at
uawlocal2250
To avoid paying dual imputed income taxes on UAW-GM Legal Services, those members with both spouses working or have coverage as a retiree and surviving spouse from either GM or Delphi should call (800)521-7818, ext. 2389 and indicate they are calling regarding dual plan coverage. Please have names, ssn’s, locations of employment and local union numbers at the time of the call.
Here is this week’s build information: 67 E-26s; 146 slider doors; 252 15-pass vans; 417 Onstar; 67 diesels; 60 YF7; 28 brake deck spare tire; 390 Enterprise rent-a-car; 83.9% white vans.
From Automotive News: UAW President Bob King said today that the union is negotiating with the Detroit 3 for higher entry-level wages and to improve the health of parts suppliers. In an interview with Automotive News, King said the $14 an hour wage paid most entry-level workers at the Detroit 3 is not "a livable wage." King said a profitable Detroit 3 can afford to pay those workers better or risk losing them to other jobs if they don't see improvement. He declined to give a target. "We've got to raise those wages so workers will want to stay and workers can support their families by working full-time in the auto industry," said King, who made his comments following a labor panel hosted by the Rev. Wendell Anthony, the Detroit NAACP chief. King revealed today that the compensation of parts supplier workers also is a big issue in this year's talks. He said consolidation in the sector has caused wages and benefits to stagnate or fall at nonunion and union shops alike. "That industry has really slipped in terms of income and equality. That's a major part of our consideration," King said.
From the Tennesseean: Union officials hope a new national contract being negotiated between General Motors and the United Auto Workers — due by Sept. 14 — could include a restart of the idled autoassembly line at the company’s Spring Hill plant. There’s no deal yet, though, and recent comments by a top GM executive suggest that the Middle Tennessee plant might not be getting a new vehicle to build anytime soon. “We are hopeful that Spring Hill will get a new product under the contract, and there are multiple options in the negotiations,” said Gary Casteel, director of UAW District 8, which covers most of the Southeast, including Tennessee. “The union’s position, which we announced before the start of negotiations, was that we would be vigorously pursuing a product for Spring Hill,” Casteel said. “But it’s still a long way from that happening.” In a session with analysts last week, Diana Tremblay, GM’s global chief manufacturing officer, specifically referred to Spring Hill, saying that despite its near-ready status, the plant is not yet needed. “We look at (manufacturing capacity) on a continual basis,” she said. “…We have our Spring Hill facility, still sitting there, that is very flexible. If we should find that we would be short of something, we can quickly get that plant started up. Right now, we don't see any need to do that.”
GM CEO Dan Akerson recently gave an interview to Public Radio. In the next few days we will review some of the more relevant questions and answers from a transcript of the broadcast:
Q. Step back from GM for a minute and look at the broader economy and help me understand when major companies in this economy might start investing.
Akerson: Well, you know, job creation is critical to any recovery and central to any recovery and any incremental job growth is productivity -- you must be productive -- and innovation. So you're going to have to invest capital to gain productivity, and you're going to have to spend on research and development to create some dimension of innovation. I think what I've been trying to do, and I think met with at least some preliminary success, is to view our industrial relations with the UAW in a completely different way. They are partners. They are our employees, they're General Motors employees. They're part of the family. They may be represented by the UAW, but the UAW then is a partner. And we want to have constructive dialogue. For example, we are in midst of negotiations now, but one of the aspects of that that I have tried to espouse and time will tell if we see any real progress or success in this area, is let's not increase our structural cost by having commitments to x percent increase in salary every year. I think what would be good in America, to incent management and labor to have a more productive and more constructive dialogue is to say, "You know, let's all pull in the same oar." We have four metrics before management gets any bonus at General Motors. I might parenthetically say that the top 25 people don't get any bonus, period, because of our government ownership and I think that's fair. It's reasonable. But for the average manager in the company, say middle-level manager, he or she is measured in four metrics, one of them being quality. It's a composite; it's everything from J.D. Power initial quality to our warranties and whatnot and we run up a composite to measure the quality, which quite frankly is second to none. Our quality right now I would put against any of the foreign transplants or any of our domestic competitors and we are proud of that and we want to keep it. So we are going to incent our people alone those lines. What we are trying to do is say, "Look, if management gets a bonus, then I think our hourly people ought to get a bonus." It's, if you will, profit-sharing or success-sharing. Of course one of the concerns is how are we going to know that you are not going to game it? Well, if we have a great year and management gets a bonus then you will get a bonus. And we will argue about how to feather that in and what's the mechanism for determining the amount, but let's agree in principal on that. By the way, if we have a bad year and management doesn't get a bonus, it's very clear then that the union wouldn't get a bonus. And that way we share in each other's success, we are all motivated along the same lines. And I think that would make it easier for companies to say, and tech companies in Silicon Valley have a different paradigm than we do in industrial America, but this would be a way to open up a new era I think of more productive dialogue between management and labor and not have this great divide, but rather let's close the divide and all be on the same team and we all would be incented on the same four things. Going into the bankruptcy of one portion of your employees by virtue of a union contract, and no, not saying this has happened to General Motors, but it seems strange somebody would be getting a raise whether it would be 1, 2 or 3 percent while at the same time you're slashing head count and salaries for management. So let's all get us on the same sheet and let's all get everybody aligned so I think whether it would be on a microeconomic basis within a company or quite frankly on a global basis or on a national basis. I think America is known for its generosity, and quite frankly in the past, I think we've been known for our ability to compromise and play on the same team and that's the environment here that I hope to, and the management team hopes to create here at General Motors.
uawlocal2250
To avoid paying dual imputed income taxes on UAW-GM Legal Services, those members with both spouses working or have coverage as a retiree and surviving spouse from either GM or Delphi should call (800)521-7818, ext. 2389 and indicate they are calling regarding dual plan coverage. Please have names, ssn’s, locations of employment and local union numbers at the time of the call.
Here is this week’s build information: 67 E-26s; 146 slider doors; 252 15-pass vans; 417 Onstar; 67 diesels; 60 YF7; 28 brake deck spare tire; 390 Enterprise rent-a-car; 83.9% white vans.
From Automotive News: UAW President Bob King said today that the union is negotiating with the Detroit 3 for higher entry-level wages and to improve the health of parts suppliers. In an interview with Automotive News, King said the $14 an hour wage paid most entry-level workers at the Detroit 3 is not "a livable wage." King said a profitable Detroit 3 can afford to pay those workers better or risk losing them to other jobs if they don't see improvement. He declined to give a target. "We've got to raise those wages so workers will want to stay and workers can support their families by working full-time in the auto industry," said King, who made his comments following a labor panel hosted by the Rev. Wendell Anthony, the Detroit NAACP chief. King revealed today that the compensation of parts supplier workers also is a big issue in this year's talks. He said consolidation in the sector has caused wages and benefits to stagnate or fall at nonunion and union shops alike. "That industry has really slipped in terms of income and equality. That's a major part of our consideration," King said.
From the Tennesseean: Union officials hope a new national contract being negotiated between General Motors and the United Auto Workers — due by Sept. 14 — could include a restart of the idled autoassembly line at the company’s Spring Hill plant. There’s no deal yet, though, and recent comments by a top GM executive suggest that the Middle Tennessee plant might not be getting a new vehicle to build anytime soon. “We are hopeful that Spring Hill will get a new product under the contract, and there are multiple options in the negotiations,” said Gary Casteel, director of UAW District 8, which covers most of the Southeast, including Tennessee. “The union’s position, which we announced before the start of negotiations, was that we would be vigorously pursuing a product for Spring Hill,” Casteel said. “But it’s still a long way from that happening.” In a session with analysts last week, Diana Tremblay, GM’s global chief manufacturing officer, specifically referred to Spring Hill, saying that despite its near-ready status, the plant is not yet needed. “We look at (manufacturing capacity) on a continual basis,” she said. “…We have our Spring Hill facility, still sitting there, that is very flexible. If we should find that we would be short of something, we can quickly get that plant started up. Right now, we don't see any need to do that.”
GM CEO Dan Akerson recently gave an interview to Public Radio. In the next few days we will review some of the more relevant questions and answers from a transcript of the broadcast:
Q. Step back from GM for a minute and look at the broader economy and help me understand when major companies in this economy might start investing.
Akerson: Well, you know, job creation is critical to any recovery and central to any recovery and any incremental job growth is productivity -- you must be productive -- and innovation. So you're going to have to invest capital to gain productivity, and you're going to have to spend on research and development to create some dimension of innovation. I think what I've been trying to do, and I think met with at least some preliminary success, is to view our industrial relations with the UAW in a completely different way. They are partners. They are our employees, they're General Motors employees. They're part of the family. They may be represented by the UAW, but the UAW then is a partner. And we want to have constructive dialogue. For example, we are in midst of negotiations now, but one of the aspects of that that I have tried to espouse and time will tell if we see any real progress or success in this area, is let's not increase our structural cost by having commitments to x percent increase in salary every year. I think what would be good in America, to incent management and labor to have a more productive and more constructive dialogue is to say, "You know, let's all pull in the same oar." We have four metrics before management gets any bonus at General Motors. I might parenthetically say that the top 25 people don't get any bonus, period, because of our government ownership and I think that's fair. It's reasonable. But for the average manager in the company, say middle-level manager, he or she is measured in four metrics, one of them being quality. It's a composite; it's everything from J.D. Power initial quality to our warranties and whatnot and we run up a composite to measure the quality, which quite frankly is second to none. Our quality right now I would put against any of the foreign transplants or any of our domestic competitors and we are proud of that and we want to keep it. So we are going to incent our people alone those lines. What we are trying to do is say, "Look, if management gets a bonus, then I think our hourly people ought to get a bonus." It's, if you will, profit-sharing or success-sharing. Of course one of the concerns is how are we going to know that you are not going to game it? Well, if we have a great year and management gets a bonus then you will get a bonus. And we will argue about how to feather that in and what's the mechanism for determining the amount, but let's agree in principal on that. By the way, if we have a bad year and management doesn't get a bonus, it's very clear then that the union wouldn't get a bonus. And that way we share in each other's success, we are all motivated along the same lines. And I think that would make it easier for companies to say, and tech companies in Silicon Valley have a different paradigm than we do in industrial America, but this would be a way to open up a new era I think of more productive dialogue between management and labor and not have this great divide, but rather let's close the divide and all be on the same team and we all would be incented on the same four things. Going into the bankruptcy of one portion of your employees by virtue of a union contract, and no, not saying this has happened to General Motors, but it seems strange somebody would be getting a raise whether it would be 1, 2 or 3 percent while at the same time you're slashing head count and salaries for management. So let's all get us on the same sheet and let's all get everybody aligned so I think whether it would be on a microeconomic basis within a company or quite frankly on a global basis or on a national basis. I think America is known for its generosity, and quite frankly in the past, I think we've been known for our ability to compromise and play on the same team and that's the environment here that I hope to, and the management team hopes to create here at General Motors.
Friday, August 19, 2011
State of the Union August 19, 2011
August 19, 2011 online at
UAW Local 2250
Open House Update: The plant tour route has been finalized. It will begin in the Tour Holding Room, where there will be displays from stamping, body and paint shop as well as the environmental group. Then it’s on to the shop floor, heading east down the A-aisle until the 26 aisle, where there will be a hands-on electrical display and the return of the famous Dancing Robots. The tour will continue south down that aisle to the P aisle, where it turns right (west) and will go to the 40 aisle. Visitors will go right (north) up that aisle that bisects GA, see a display at cab set and then go to the bleachers, where they will be treated to videos of the plant, displays from UAW Committees and live music from a special plant band.
From Crain’s Detroit Business: A day after unionized workers at its Cheektowaga, N.Y., plant announced that they had rejected a contract offer, American Axle & Manufacturing Holdings Inc. said it would close the plant. Two months ago, after it was unable to reach a labor contract with the UAW, American Axle announced it was closing its Detroit manufacturing complex. The closing in New York affects 66 employees represented by the UAW and up to 34 salaried employees. Negotiations broke down when the workers rejected American Axle's offer, according to the UAW. "Shifts in market demand toward more fuel-efficient passenger cars and crossover vehicles significantly reduced customer production volumes for the programs supported by this facility," Chris Son, director of corporate and investor relations, said in a statement to Crain's Detroit Business. In June, Son told Crain's that American Axle, a former General Motors Co. unit, continued to seek a competitive labor contract with the UAW that was much like a pact in place at the supplier's Three Rivers plant in southwest Michigan. Axle wanted to reduce total compensation to $30 an hour from $45 at its Detroit plant, which is likely what the supplier was seeking in New York. The Detroit complex and Cheektowaga plant will close after Feb. 26, 2012, when the current UAW contracts expire. Said UAW Vice President Cindy Estrada: "Here is a business that started out as an American company providing good-paying jobs to 6,000 employees. As a result of the hard work of these employees, it has grown to an international company with 32 factories worldwide. All of this success was achieved off the backs of the original 6,000 hard-working Americans." Said Scott Adams, director of UAW Region 9, which includes the Buffalo area: "The men and women in Cheektowaga stepped up to the plate and made huge sacrifices when the company was in trouble. Clearly, American Axle CEO Dick Dauch is more concerned with advancing his pay from millionaire to billionaire status at the continued expense of his employees."
From the Detroit News: Forecasting firm J.D. Power and Associates lowered its auto sales outlook Thursday, saying the uncertain economic outlook will hinder the market's recovery not only this year, but also next. The firm shaved its 2011 sales forecast to 12.6 million cars and light trucks from 12.9 million estimated previously. It lowered its 2012 forecast to 14.1 million units from 14.7 million. "The economy and automotive industry continue to wrestle with a series of unsettling developments, which are now likely too strong to overcome within 2011," said John Humphrey, senior vice president of automotive operations at J.D.Power. "Ascending from the recession is proving to be just as bumpy as the decline into it, and a full recovery in vehicle sales is further down the road than previously thought," he said. J.D. Power estimated this month's selling pace at 12.1 million light vehicles, up from 11.4 million in August 2010, but little changed from last month's 12.2 million units. Commenting on J.D. Power's August sales estimate, Itay Michaeli, analyst at Citi Investment Research and Analysis, said: "In light of the current market volatility, this is actually an encouraging data point suggesting that auto sales have not been significantly impacted thus far in the month." Edmunds.com, an online research firm, estimated this month's selling pace at 12.2 million vehicles. "Since the industry maintained sales in the face of last week's turmoil and uncertainty, then it is likely that confidence has not been undermined enough to prevent the release of pent-up demand this fall," said Lacey Plache, chief economist at Edmunds.com.
From the Detroit Free Press: Matt Blunt, Washington lobbyist-in-chief for the Detroit Three automakers, made his first visit to the Motor City this week since taking over in February as president of the American Automotive Policy Council. And for a "conservative Republican," as the former Missouri governor insists he is, Blunt said a bunch of nice things about the Obama administration, about the federal bailouts of General Motors and Chrysler -- and even about the UAW. Of the widely held perception that nonunion foreign-owned auto plants are more efficient than those of UAW-represented GM, Ford and Chrysler, Blunt said, "That's wrong." "There are great partnerships between management and labor" at the Detroit Three, he added in an interview with the Free Press. He did caution, though, that a strike or other labor strife during current UAW contract talks would be very damaging. Blunt applauded President Barack Obama's administration for standing by the auto industry and for forcing a restructuring of companies that enables them to be profitable even at today's low sales levels. Perhaps the most jarring episode for Detroiters in the near-demise of their hometown industry was the scorn heaped upon auto company CEOs and the UAW's Ron Gettelfinger by members of Congress who rejected rescue proposals in late 2008. Many, but not all, of the critics were from Southern states where Toyota, Nissan, Hyundai, BMW, Mercedes and others have nonunion plants. What nobody articulated clearly during those hearings were facts such as these:
• The three Detroit-based car companies have 41% of their worldwide work forces in the U.S., versus only 6% for their 13 major competitors.
• Domestic content in GM, Ford and Chrysler vehicles is 67%, compared with 32% for foreign rivals.
• GM and Ford spent, respectively, $6 billion and $5 billion in 2009 on research and development, dwarfing the amount spent by tech hotshots Google ($2.8 billion) and Apple ($1.4 billion).
UAW Local 2250
Open House Update: The plant tour route has been finalized. It will begin in the Tour Holding Room, where there will be displays from stamping, body and paint shop as well as the environmental group. Then it’s on to the shop floor, heading east down the A-aisle until the 26 aisle, where there will be a hands-on electrical display and the return of the famous Dancing Robots. The tour will continue south down that aisle to the P aisle, where it turns right (west) and will go to the 40 aisle. Visitors will go right (north) up that aisle that bisects GA, see a display at cab set and then go to the bleachers, where they will be treated to videos of the plant, displays from UAW Committees and live music from a special plant band.
From Crain’s Detroit Business: A day after unionized workers at its Cheektowaga, N.Y., plant announced that they had rejected a contract offer, American Axle & Manufacturing Holdings Inc. said it would close the plant. Two months ago, after it was unable to reach a labor contract with the UAW, American Axle announced it was closing its Detroit manufacturing complex. The closing in New York affects 66 employees represented by the UAW and up to 34 salaried employees. Negotiations broke down when the workers rejected American Axle's offer, according to the UAW. "Shifts in market demand toward more fuel-efficient passenger cars and crossover vehicles significantly reduced customer production volumes for the programs supported by this facility," Chris Son, director of corporate and investor relations, said in a statement to Crain's Detroit Business. In June, Son told Crain's that American Axle, a former General Motors Co. unit, continued to seek a competitive labor contract with the UAW that was much like a pact in place at the supplier's Three Rivers plant in southwest Michigan. Axle wanted to reduce total compensation to $30 an hour from $45 at its Detroit plant, which is likely what the supplier was seeking in New York. The Detroit complex and Cheektowaga plant will close after Feb. 26, 2012, when the current UAW contracts expire. Said UAW Vice President Cindy Estrada: "Here is a business that started out as an American company providing good-paying jobs to 6,000 employees. As a result of the hard work of these employees, it has grown to an international company with 32 factories worldwide. All of this success was achieved off the backs of the original 6,000 hard-working Americans." Said Scott Adams, director of UAW Region 9, which includes the Buffalo area: "The men and women in Cheektowaga stepped up to the plate and made huge sacrifices when the company was in trouble. Clearly, American Axle CEO Dick Dauch is more concerned with advancing his pay from millionaire to billionaire status at the continued expense of his employees."
From the Detroit News: Forecasting firm J.D. Power and Associates lowered its auto sales outlook Thursday, saying the uncertain economic outlook will hinder the market's recovery not only this year, but also next. The firm shaved its 2011 sales forecast to 12.6 million cars and light trucks from 12.9 million estimated previously. It lowered its 2012 forecast to 14.1 million units from 14.7 million. "The economy and automotive industry continue to wrestle with a series of unsettling developments, which are now likely too strong to overcome within 2011," said John Humphrey, senior vice president of automotive operations at J.D.Power. "Ascending from the recession is proving to be just as bumpy as the decline into it, and a full recovery in vehicle sales is further down the road than previously thought," he said. J.D. Power estimated this month's selling pace at 12.1 million light vehicles, up from 11.4 million in August 2010, but little changed from last month's 12.2 million units. Commenting on J.D. Power's August sales estimate, Itay Michaeli, analyst at Citi Investment Research and Analysis, said: "In light of the current market volatility, this is actually an encouraging data point suggesting that auto sales have not been significantly impacted thus far in the month." Edmunds.com, an online research firm, estimated this month's selling pace at 12.2 million vehicles. "Since the industry maintained sales in the face of last week's turmoil and uncertainty, then it is likely that confidence has not been undermined enough to prevent the release of pent-up demand this fall," said Lacey Plache, chief economist at Edmunds.com.
From the Detroit Free Press: Matt Blunt, Washington lobbyist-in-chief for the Detroit Three automakers, made his first visit to the Motor City this week since taking over in February as president of the American Automotive Policy Council. And for a "conservative Republican," as the former Missouri governor insists he is, Blunt said a bunch of nice things about the Obama administration, about the federal bailouts of General Motors and Chrysler -- and even about the UAW. Of the widely held perception that nonunion foreign-owned auto plants are more efficient than those of UAW-represented GM, Ford and Chrysler, Blunt said, "That's wrong." "There are great partnerships between management and labor" at the Detroit Three, he added in an interview with the Free Press. He did caution, though, that a strike or other labor strife during current UAW contract talks would be very damaging. Blunt applauded President Barack Obama's administration for standing by the auto industry and for forcing a restructuring of companies that enables them to be profitable even at today's low sales levels. Perhaps the most jarring episode for Detroiters in the near-demise of their hometown industry was the scorn heaped upon auto company CEOs and the UAW's Ron Gettelfinger by members of Congress who rejected rescue proposals in late 2008. Many, but not all, of the critics were from Southern states where Toyota, Nissan, Hyundai, BMW, Mercedes and others have nonunion plants. What nobody articulated clearly during those hearings were facts such as these:
• The three Detroit-based car companies have 41% of their worldwide work forces in the U.S., versus only 6% for their 13 major competitors.
• Domestic content in GM, Ford and Chrysler vehicles is 67%, compared with 32% for foreign rivals.
• GM and Ford spent, respectively, $6 billion and $5 billion in 2009 on research and development, dwarfing the amount spent by tech hotshots Google ($2.8 billion) and Apple ($1.4 billion).
Thursday, August 18, 2011
State of the Union August 18, 2011
August 18, 2011 online at www.uawlocal2250.com
From Chairman Mike Bullock: In the event that we get a sechttp://www.blogger.com/img/blank.gifond shift, there will be a need for roughly 50 additional team leaders. If you are interested in becoming a team leader go to personnel and sign up for the assessment test. Also, there would be many new openings in each department that will be filled in part with 63B transfers, so you need to have a transfer request on file, which you can get at personnel.
From the Benefits Department: If you are a Tier 2 employee that recently became eligible for dental and eye exams, you need to see your benefit representative for assistance in contacting Fidelity to add any dependants as they are not automatically enrolled.
If you wish to check on the status of your employee referral you can call DDI at 1-800-973-1465.
Open House update: The Wentzville Assembly Center Open House – scheduled for Sept. 14 from 10 am to 5 pm – will feature many activities for our guests. Outside the plant, there will be a classic car display featuring vehicles from a couple of local groups; the Ambassador ride-and-drive featuring 2 Chevy Volts along with nearly the entire GM vehicle lineup; two of the Transformers vehicles – Bumblebee and Stingray; Safe Kids and NY Life child ID service: vendor tents for Make-A-Wish, Harrison’s Hope, United Way and Re-Store; a Harley Davidson display; a variety of our vans in upfitted fashion; a UAW/GM retiree’s booth and food specials from Pete’s Drive-In. The ride-and-drive route is still under discussion and when it is finalized you will be informed. Tomorrow we will cover the activities going on inside the plant. Flyers will be available at the entrances. No invitations required.
From the Veteran’s Committee: Veterans Commemorative Bricks are now on sale. The price is $35 per 4” by 8” brick and they will be used to construct a walkway at the Veterans Memorial in the front of the plant. Each brick will be limited to one name and 18 characters (including spaces) per line. The name on the brick shows your support of the Memorial and does not have to be a veteran. Order forms are available from members of the Veterans Committee and you can see Steve Melson at column C-40, front seat install.
According to an article at Automotive News, Ft. Wayne will be cancelling all Saturday overtime for the remainder of the year and have an additional downweek after Christmas break. The report cited a notice on the UAW Local 2209 website, which has subsequently been removed. GM has no official comment on the report, but it is widely known that pickup inventories are running high and GM VP of Sales Don Johnson has said that inventories would be adjusted through production moves as opposed to increased incentives.
From Bloomberg: Mike Sussman is one of the buyers helping General Motors Co. (GM) come back in the small-car business. The 45-year-old systems analyst just traded in a Toyota Prius for a Chevrolet Cruze, seeking both high mileage and more pep. “I was very, very leery about buying U.S., to be honest,” said Sussman, who lives in Greensboro, North Carolina. “They got me with the mileage. It actually drives like a regular car. With a Prius, you always feel like you’re driving a science experiment. It just doesn’t have a lot of guts.” The Cruze was the best-selling U.S. compact in July at 24,648 cars, beating the Toyota Corolla, Hyundai Elantra and Ford Focus, and it outsold cars of any size in June. GM has found the sweet spot in the market, pricing the Cruze at as little as $16,525, between the Corolla and the Prius, and delivering mileage of 30 mpg or more. The Cruze helped make GM the world’s top seller of vehicles in the first half, a ranking it lost on an annual basis in 2008, the year before the company’s government-backed bailout. The company’s rise in the small-car market, where GM has traditionally been a laggard, is emblematic of a turnaround for the automaker. GM’s U.S. market share rose to 20 percent in this year’s first seven months, from 19.2 percent in the year-earlier period. Passenger cars accounted for 42 percent of the Detroit- based company’s sales, compared with 39 percent last year, according to Autodata Corp. of Woodcliff Lake, New Jersey. While GM’s small-car revival has followed the March 11 natural disasters that delayed production at Toyota Motor Corp. (7203) and Honda Motor Co., the spurt may not be an anomaly. GM is benefiting from improved cars and new advertising plus missteps by the Japanese rivals, analysts and executives said. “We’re competitive for the first time ever,” Joel Ewanick, GM’s chief marketing officer, said in an interview. “The buyers are completely different than we’ve seen before.” GM has sold 147,620 Cruzes in the U.S. this year through July, more than the 74,427 Prius sold during that period while still trailing Corolla at 154,324. Cruze sells for $16,525 to $22,920. Prius sells for $23,520 to $30,000 while Corolla’s price range is $15,900 to $17,770. It’s a profitable car for GM, said Jim Hall, principal of consulting firm 2953 Analytics Inc. in Birmingham, Michigan. The Cruze’s average price is $4,200 more than Cobalt, the GM model it replaced. Cobalt lost money on all but the most- expensive trim levels, Hall said.
From the Wall Street Journal: Honda Motor Co.'s U.S. dealers say they are headed for their most difficult month of sales since the March 11 earthquake in Japan disrupted production at the automaker's factories at home and in North America. The Japanese automaker, which has been slower to lift production than rivals' Toyota Motor Corp. and Nissan Motor Co., is suffering from depleted inventories on U.S. dealer lots, leaving its retailers bracing for a significant decline in sales this month. "This will definitely be the worst month as it relates to Honda dealers," said Florida dealer Rick Case, whose Fort Lauderdale Honda store is one of the largest in the U.S. by sales. Mr. Case said his dealership has about one-fifth its normal level of supply and sales are falling dramatically as a result. "We're out of Civics, we are out of Accords, we don't have any Odysseys," Mr. Case said. He usually sells between 400 and 500 Hondas a month and keeps 1,000 cars and light trucks on his lot. He has fewer than 200 vehicles in inventory, he said. Honda's U.S. sales fell 28% in July and the company ended the month with 84,705 vehicles, enough to last 27 days at the current rate of sales, according to Autodata Corp. At the beginning of the year it had 227,438 vehicles in stock.
From Chairman Mike Bullock: In the event that we get a sechttp://www.blogger.com/img/blank.gifond shift, there will be a need for roughly 50 additional team leaders. If you are interested in becoming a team leader go to personnel and sign up for the assessment test. Also, there would be many new openings in each department that will be filled in part with 63B transfers, so you need to have a transfer request on file, which you can get at personnel.
From the Benefits Department: If you are a Tier 2 employee that recently became eligible for dental and eye exams, you need to see your benefit representative for assistance in contacting Fidelity to add any dependants as they are not automatically enrolled.
If you wish to check on the status of your employee referral you can call DDI at 1-800-973-1465.
Open House update: The Wentzville Assembly Center Open House – scheduled for Sept. 14 from 10 am to 5 pm – will feature many activities for our guests. Outside the plant, there will be a classic car display featuring vehicles from a couple of local groups; the Ambassador ride-and-drive featuring 2 Chevy Volts along with nearly the entire GM vehicle lineup; two of the Transformers vehicles – Bumblebee and Stingray; Safe Kids and NY Life child ID service: vendor tents for Make-A-Wish, Harrison’s Hope, United Way and Re-Store; a Harley Davidson display; a variety of our vans in upfitted fashion; a UAW/GM retiree’s booth and food specials from Pete’s Drive-In. The ride-and-drive route is still under discussion and when it is finalized you will be informed. Tomorrow we will cover the activities going on inside the plant. Flyers will be available at the entrances. No invitations required.
From the Veteran’s Committee: Veterans Commemorative Bricks are now on sale. The price is $35 per 4” by 8” brick and they will be used to construct a walkway at the Veterans Memorial in the front of the plant. Each brick will be limited to one name and 18 characters (including spaces) per line. The name on the brick shows your support of the Memorial and does not have to be a veteran. Order forms are available from members of the Veterans Committee and you can see Steve Melson at column C-40, front seat install.
According to an article at Automotive News, Ft. Wayne will be cancelling all Saturday overtime for the remainder of the year and have an additional downweek after Christmas break. The report cited a notice on the UAW Local 2209 website, which has subsequently been removed. GM has no official comment on the report, but it is widely known that pickup inventories are running high and GM VP of Sales Don Johnson has said that inventories would be adjusted through production moves as opposed to increased incentives.
From Bloomberg: Mike Sussman is one of the buyers helping General Motors Co. (GM) come back in the small-car business. The 45-year-old systems analyst just traded in a Toyota Prius for a Chevrolet Cruze, seeking both high mileage and more pep. “I was very, very leery about buying U.S., to be honest,” said Sussman, who lives in Greensboro, North Carolina. “They got me with the mileage. It actually drives like a regular car. With a Prius, you always feel like you’re driving a science experiment. It just doesn’t have a lot of guts.” The Cruze was the best-selling U.S. compact in July at 24,648 cars, beating the Toyota Corolla, Hyundai Elantra and Ford Focus, and it outsold cars of any size in June. GM has found the sweet spot in the market, pricing the Cruze at as little as $16,525, between the Corolla and the Prius, and delivering mileage of 30 mpg or more. The Cruze helped make GM the world’s top seller of vehicles in the first half, a ranking it lost on an annual basis in 2008, the year before the company’s government-backed bailout. The company’s rise in the small-car market, where GM has traditionally been a laggard, is emblematic of a turnaround for the automaker. GM’s U.S. market share rose to 20 percent in this year’s first seven months, from 19.2 percent in the year-earlier period. Passenger cars accounted for 42 percent of the Detroit- based company’s sales, compared with 39 percent last year, according to Autodata Corp. of Woodcliff Lake, New Jersey. While GM’s small-car revival has followed the March 11 natural disasters that delayed production at Toyota Motor Corp. (7203) and Honda Motor Co., the spurt may not be an anomaly. GM is benefiting from improved cars and new advertising plus missteps by the Japanese rivals, analysts and executives said. “We’re competitive for the first time ever,” Joel Ewanick, GM’s chief marketing officer, said in an interview. “The buyers are completely different than we’ve seen before.” GM has sold 147,620 Cruzes in the U.S. this year through July, more than the 74,427 Prius sold during that period while still trailing Corolla at 154,324. Cruze sells for $16,525 to $22,920. Prius sells for $23,520 to $30,000 while Corolla’s price range is $15,900 to $17,770. It’s a profitable car for GM, said Jim Hall, principal of consulting firm 2953 Analytics Inc. in Birmingham, Michigan. The Cruze’s average price is $4,200 more than Cobalt, the GM model it replaced. Cobalt lost money on all but the most- expensive trim levels, Hall said.
From the Wall Street Journal: Honda Motor Co.'s U.S. dealers say they are headed for their most difficult month of sales since the March 11 earthquake in Japan disrupted production at the automaker's factories at home and in North America. The Japanese automaker, which has been slower to lift production than rivals' Toyota Motor Corp. and Nissan Motor Co., is suffering from depleted inventories on U.S. dealer lots, leaving its retailers bracing for a significant decline in sales this month. "This will definitely be the worst month as it relates to Honda dealers," said Florida dealer Rick Case, whose Fort Lauderdale Honda store is one of the largest in the U.S. by sales. Mr. Case said his dealership has about one-fifth its normal level of supply and sales are falling dramatically as a result. "We're out of Civics, we are out of Accords, we don't have any Odysseys," Mr. Case said. He usually sells between 400 and 500 Hondas a month and keeps 1,000 cars and light trucks on his lot. He has fewer than 200 vehicles in inventory, he said. Honda's U.S. sales fell 28% in July and the company ended the month with 84,705 vehicles, enough to last 27 days at the current rate of sales, according to Autodata Corp. At the beginning of the year it had 227,438 vehicles in stock.
State of the Union August 17, 2011
August 17, 2011 online at www.uawlocal2250.com
Union Meeting is today at 1pm, 3pm, and 15 minutes after the longest first shift line time.
From the Detroihttp://www.blogger.com/img/blank.gift News: General Motors Co. has leaped ahead of the other Detroit automakers and begun discussing the key issue of flexible compensation with the United Auto Workers, according to multiple sources close to the contract negotiations. With less than a month left before its contract with the UAW expires, they said Ford Motor Co. and Chrysler Group LLC are still working to clear the decks of lesser issues before tackling the big ones of profit sharing and entry-level wages. So is GM, but it reportedly is eager to negotiate its own terms without reference to what the other two companies want. GM North America President Mark Reuss hinted at as much at an industry conference in Traverse City two weeks ago. "We're pursuing common hourly and salary quality rewards for excellence in our negotiations," he said, making it clear that GM wants to tie variable compensation to more than just profits. Reaching an agreement on those metrics will take time. GM would not comment on the specifics of the negotiations. "We're working with our partners and in discussion on issues that are important to our employees and the business," GM spokeswoman Kimberly Carpenter said Tuesday. "Talks are progressing." The UAW had no comment. "GM always wanted to be the lead," said Art Schwartz, former GM negotiator and president of Labor and Economics Associates in Ann Arbor. "Companies want to control their own fate." One person close to the talks said the UAW has yet to make its own wage proposal. Talks on new national agreements officially began three weeks ago. Sources say they are proceeding amicably at all three companies. There have been no late-night sessions. "In the early stages, they work on the very tedious work of carry-over language from the previous agreement," said labor expert Kristin Dziczek of the Center for Automotive Research. That includes everything from the definition of an employee, to payroll schedules and compensation for jury duty. The entire text runs hundreds of pages. "They go down every one of them and say, 'Do we still agree on this?'" she said.
From the Detroit Free Press: The UAW’s top Fordnegotiator Jimmy Settles said today that talks with the Dearborn automaker are ahead of schedule and the union has asked all its Ford UAW locals to hold routine strike authorization votes by Sept. 2. “This is something we do every four years,” Settles told the Free Press. “We do this because we have the right to strike. We always do this before the expiration of the agreement. It is nothing unusual.” Settles and UAW President Bob King announced the decision to hold a strike authorization vote Tuesday at a gathering of UAW officials in Chicago. The UAW began negotiations with Ford in late July to replace a four-year contract that expires Sept. 14. For the most part, Settles said negotiations with Ford have been productive but remain in the early stages. “We are ahead of the pace that we have had historically,” Settles said. However, he noted that the two sides have not started talking about major issues, such as expected changes to the profit-sharing formula.
From the Toronto Globe and Mail: Hourly labor costs for General Motors of Canada Ltd. will rise by $14 to more than $70 an hour if a plan for a health care trust is rejected and the auto maker is forced to finance health care costs for its retirees, the Canadian Auto Workers union says. “That will make it very hard to win new investments in GM’s Canadian plants,” warns a leaflet distributed by CAW local 222, which represents workers at the company’s two assembly plants in Oshawa, Ont., and is in favor of the trust. GM Canada would contribute about $2.5-billion to the trust, but would be relieved of any future costs of financing retiree health care. The high Canadian dollar means the costs of producing vehicles in Canada are already the highest General Motors Co. faces around the world, the leaflet from local 222 says. The debate about the creation of the health care trust, which was one of the requirements demanded by the federal and Ontario governments when they contributed $10.8-billion to the GM bailout in 2009, comes as the CAW tries to persuade GM to reverse a decision to close one of the two Oshawa plants in 2013. The union is also waiting for GM to confirm publicly that it will continue to build the Chevrolet Impala in Oshawa when the car is redesigned in 2013. The discussion about the health care plan and whether it will relieve GM Canada of the continuing costs of financing health care for about 30,000 retirees also comes as the U.S. market appears to be slowing. American consumers buy about 80 per cent of the vehicles assembled in Oshawa. “We’re not out of the woods yet,” Chris Buckley, president of local 222, said Tuesday. Current hourly labor costs for active employees – which include wages of about $32 an hour, plus vacations, pension contributions and other benefits – are about $60 at GM’s Canadian operations, Mr. Buckley said. That compares with about $57 (U.S.) at GM’s U.S. operations, according to a presentation CAW economist Jim Stanford made at an industry conference earlier this month.
Union Meeting is today at 1pm, 3pm, and 15 minutes after the longest first shift line time.
From the Detroihttp://www.blogger.com/img/blank.gift News: General Motors Co. has leaped ahead of the other Detroit automakers and begun discussing the key issue of flexible compensation with the United Auto Workers, according to multiple sources close to the contract negotiations. With less than a month left before its contract with the UAW expires, they said Ford Motor Co. and Chrysler Group LLC are still working to clear the decks of lesser issues before tackling the big ones of profit sharing and entry-level wages. So is GM, but it reportedly is eager to negotiate its own terms without reference to what the other two companies want. GM North America President Mark Reuss hinted at as much at an industry conference in Traverse City two weeks ago. "We're pursuing common hourly and salary quality rewards for excellence in our negotiations," he said, making it clear that GM wants to tie variable compensation to more than just profits. Reaching an agreement on those metrics will take time. GM would not comment on the specifics of the negotiations. "We're working with our partners and in discussion on issues that are important to our employees and the business," GM spokeswoman Kimberly Carpenter said Tuesday. "Talks are progressing." The UAW had no comment. "GM always wanted to be the lead," said Art Schwartz, former GM negotiator and president of Labor and Economics Associates in Ann Arbor. "Companies want to control their own fate." One person close to the talks said the UAW has yet to make its own wage proposal. Talks on new national agreements officially began three weeks ago. Sources say they are proceeding amicably at all three companies. There have been no late-night sessions. "In the early stages, they work on the very tedious work of carry-over language from the previous agreement," said labor expert Kristin Dziczek of the Center for Automotive Research. That includes everything from the definition of an employee, to payroll schedules and compensation for jury duty. The entire text runs hundreds of pages. "They go down every one of them and say, 'Do we still agree on this?'" she said.
From the Detroit Free Press: The UAW’s top Fordnegotiator Jimmy Settles said today that talks with the Dearborn automaker are ahead of schedule and the union has asked all its Ford UAW locals to hold routine strike authorization votes by Sept. 2. “This is something we do every four years,” Settles told the Free Press. “We do this because we have the right to strike. We always do this before the expiration of the agreement. It is nothing unusual.” Settles and UAW President Bob King announced the decision to hold a strike authorization vote Tuesday at a gathering of UAW officials in Chicago. The UAW began negotiations with Ford in late July to replace a four-year contract that expires Sept. 14. For the most part, Settles said negotiations with Ford have been productive but remain in the early stages. “We are ahead of the pace that we have had historically,” Settles said. However, he noted that the two sides have not started talking about major issues, such as expected changes to the profit-sharing formula.
From the Toronto Globe and Mail: Hourly labor costs for General Motors of Canada Ltd. will rise by $14 to more than $70 an hour if a plan for a health care trust is rejected and the auto maker is forced to finance health care costs for its retirees, the Canadian Auto Workers union says. “That will make it very hard to win new investments in GM’s Canadian plants,” warns a leaflet distributed by CAW local 222, which represents workers at the company’s two assembly plants in Oshawa, Ont., and is in favor of the trust. GM Canada would contribute about $2.5-billion to the trust, but would be relieved of any future costs of financing retiree health care. The high Canadian dollar means the costs of producing vehicles in Canada are already the highest General Motors Co. faces around the world, the leaflet from local 222 says. The debate about the creation of the health care trust, which was one of the requirements demanded by the federal and Ontario governments when they contributed $10.8-billion to the GM bailout in 2009, comes as the CAW tries to persuade GM to reverse a decision to close one of the two Oshawa plants in 2013. The union is also waiting for GM to confirm publicly that it will continue to build the Chevrolet Impala in Oshawa when the car is redesigned in 2013. The discussion about the health care plan and whether it will relieve GM Canada of the continuing costs of financing health care for about 30,000 retirees also comes as the U.S. market appears to be slowing. American consumers buy about 80 per cent of the vehicles assembled in Oshawa. “We’re not out of the woods yet,” Chris Buckley, president of local 222, said Tuesday. Current hourly labor costs for active employees – which include wages of about $32 an hour, plus vacations, pension contributions and other benefits – are about $60 at GM’s Canadian operations, Mr. Buckley said. That compares with about $57 (U.S.) at GM’s U.S. operations, according to a presentation CAW economist Jim Stanford made at an industry conference earlier this month.
Wednesday, August 17, 2011
State of the Union August 16, 2011
August 16, 2011 online at www.uawlocal2250.com
Union Meeting is this Wednesday, Aug. 17 at 1pm, 3pm, and 15 minutes after the longest first shift line time.
Motor Trend reports that both the Nissan NV van and the Mercedes (nee: Dodge and Freightliner) Sprinter are being recalled. With the Nissan, the issue is air bag control units that were assembled, or more acchttp://www.blogger.com/img/blank.gifurately, wired incorrectly, potentially rendering them useless. The Sprinters, vintage 2002 and 2003, could have problems because, while they were designed for current ultra-low sulfur diesel fuel, were sold in the U.S. prior to the introduction of same here. The result is corrosion of the intake manifold, which could lead to damage to the fuel return line and firewall around the manifold.
From Automotive News: General Motors Co.'s Cadillac brand and Toyota Motor Corp.'s namesake division and luxury Lexus line topped the American Customer Satisfaction Index's annual ranking of automakers. Toyota was the only non-premium brand in the top five, tying Cadillac and Lexus with 87 on a scale of 100, followed by Lincoln and Mercedes-Benz with 86. BMW was No. 11, receiving an 83, dropping three points to its lowest mark since an 80 in 1997. The auto industry improved by 1 point to 83, its second- highest mark. Chrysler Group LLC's Chrysler brand was the lowest-rated nameplate in the survey at 76. The index is scored on a 0-100 scale. The Ford brand rose 2.4 percent to 84, and Chevrolet rose 2.5 percent to 82.
From the Detroit News: The past 15 years have seen a steady increase in the average age of vehicles. In 2010, the average was 11 years old, up more than 2½ years from 8.4 years old in 1995, according to Polk. Likewise, customers are holding on to their cars longer. Based on data from the second quarter of 2010, owners kept their vehicle an average of 63.9 months, or more than five years, an increase of 4.5 months from the same time in 2009, Polk, a Southfield auto research firm, reported. The aging of cars on the road coincided with an industry-wide decrease in new-car sales during the recession, but the trend didn't cause the sales decline, said General Motors Co. spokesman Tom Henderson. He predicted pent-up demand will continue to drive new vehicle sales higher as the economy recovers. In addition, two-car families still are looking to replace at least one vehicle, said Lonnie Miller, vice president of marketing and industry analysis for Polk.
Union Meeting is this Wednesday, Aug. 17 at 1pm, 3pm, and 15 minutes after the longest first shift line time.
Motor Trend reports that both the Nissan NV van and the Mercedes (nee: Dodge and Freightliner) Sprinter are being recalled. With the Nissan, the issue is air bag control units that were assembled, or more acchttp://www.blogger.com/img/blank.gifurately, wired incorrectly, potentially rendering them useless. The Sprinters, vintage 2002 and 2003, could have problems because, while they were designed for current ultra-low sulfur diesel fuel, were sold in the U.S. prior to the introduction of same here. The result is corrosion of the intake manifold, which could lead to damage to the fuel return line and firewall around the manifold.
From Automotive News: General Motors Co.'s Cadillac brand and Toyota Motor Corp.'s namesake division and luxury Lexus line topped the American Customer Satisfaction Index's annual ranking of automakers. Toyota was the only non-premium brand in the top five, tying Cadillac and Lexus with 87 on a scale of 100, followed by Lincoln and Mercedes-Benz with 86. BMW was No. 11, receiving an 83, dropping three points to its lowest mark since an 80 in 1997. The auto industry improved by 1 point to 83, its second- highest mark. Chrysler Group LLC's Chrysler brand was the lowest-rated nameplate in the survey at 76. The index is scored on a 0-100 scale. The Ford brand rose 2.4 percent to 84, and Chevrolet rose 2.5 percent to 82.
From the Detroit News: The past 15 years have seen a steady increase in the average age of vehicles. In 2010, the average was 11 years old, up more than 2½ years from 8.4 years old in 1995, according to Polk. Likewise, customers are holding on to their cars longer. Based on data from the second quarter of 2010, owners kept their vehicle an average of 63.9 months, or more than five years, an increase of 4.5 months from the same time in 2009, Polk, a Southfield auto research firm, reported. The aging of cars on the road coincided with an industry-wide decrease in new-car sales during the recession, but the trend didn't cause the sales decline, said General Motors Co. spokesman Tom Henderson. He predicted pent-up demand will continue to drive new vehicle sales higher as the economy recovers. In addition, two-car families still are looking to replace at least one vehicle, said Lonnie Miller, vice president of marketing and industry analysis for Polk.
Monday, August 15, 2011
State of the Union August 15, 2011
August 15, 2011 online at www.uawlocal2250.com
Union Meeting is this Wednesday, Aug. 17 at 1pm, 3pm, and 15 minutes after the longest first shift line time.
At the start of today, there were roughly 1100 vans lehttp://www.blogger.com/img/blank.gifft of the 2011 model year. Build out should be around 6:30 Wednesday morning off of K-line. Body shop will be building the first 2012 this morning. With that in mind the weekly build information will reflect the first 1307 vans of the 2012 model year scheduled for this week: 192 15-pass vans; 87 slider doors; 697 Enterprise rent-a-car; 226 OnStar; 29 government vans; no E-26 or exports.
From Automotive News: In the week after Standard & Poor's downgraded U.S. government debt, credit remained both available and affordable for the auto industry. But even as automakers say they'll stay the course on production and sales for the rest of the year, consumer confidence remains a big worry. "Consumer confidence is pretty fragile right now," Don Johnson, General Motors' U.S. sales chief, told analysts last week. "It's been ebbing and flowing throughout the year." But, he added, "We know that there is continuing pent-up demand in the market." Tom Doll, COO of Subaru of America, said the market plunge "appears to be an overreaction to the downgrade. At this time, we do not believe this is going to have any impact on our sales or production plans," Doll said. Mike Jackson, CEO of AutoNation Inc., the nation's largest dealership group, agrees, citing the pent-up consumer demand that should have the industry on the right track in the fourth quarter. "By October I think things will be booming," Jackson said. "It's all based on need." Ford Motor Co. and GM said they are sticking by their full-year sales projections. Spokesman John Stoll said that Ford still expects U.S. industrywide sales to "come in at the lower end of the 13 to 13.5 million range, including medium and heavy-duty vehicles."
From the Wall Street Journal: The Obama administration has put on hold plans to sell the rest of its stake in General Motors Co. because the auto maker's shares have slumped this year amid turbulence in the stock market, people familiar with the situation said Tuesday. The U.S. Treasury aimed to sell more of its 26.5% stake in GM by August or September. But GM stock for months has remained stuck below $30, and Wall Street's recent gyrations have made the market's future course uncertain. As a result, the Treasury is unlikely to move forward with a sale of shares until later this year, at the earliest, these people said. So far this year, GM stock is down 31%. Shares of rival Ford Motor Co. are down 35% year to date.
From Automotive News: With a big lift from its Fiat partner, Chrysler Group's Ram truck brand is moving beyond its core pickup truck business into commercial vans. The first entry will be the Ram CV cargo van, a panel van without rear windows. The Ram CV is a version of the Dodge Grand Caravan minivan that has been reworked for cargo use and rebranded as a Ram. These vehicles have been sold in the past as Dodge Caravans. Following that, more commercial vans are on the way for Ram from Italian partner Fiat. Ram is planning its own version of the Fiat Doblo, a Ford Transit Connect-sized small commercial van, and a larger commercial van to replace the Mercedes-built Dodge Sprinter. The Sprinter disappeared from Dodge dealerships after Fiat assumed control of Chrysler in 2009. The new large van is also likely to appear in 2013 as a 2014 model. Between Fiat and its Iveco commercial vehicle unit, Chrysler has two large commercial vans to choose from: the front-drive Fiat Ducato and rear-drive Iveco Daily. The most likely engines for the van are diesels. Diesels equipped the Sprinter, and Fiat has an array of diesel engines in its European commercial van fleet.
From the Detroit Free Press: General Motors is recalling certain 2012 model year Buick LaCrosses and Chevrolet Impalas in the United States and Canada over two separate defects related to steering. GM is recalling 4,293 LaCrosses, including 4,077 in the United States, because of an incorrect calibration of the StabiliTrak electronic stability system. A malfunction in the system could cause it to “falsely activate, resulting in sudden changes in the vehicle handling and deceleration,” according to the National Highway Traffic Safety Administration. This could “result in a crash without warning.” GM said today it knows of no crashes or injuries related to the defect. Separately, GM is recalling 11,905 model year 2012 Chevrolet Impalas, including 10,334 in the United States, to check for faulty installation of the power steering hose. GM said a wrongly placed hose could be damaged and “spray fluid onto hot parts of the engine creating potential for a fire.” The company said it knows of no crashes or injuries related to the steering hose problem, and that the condition was discovered at its Oshawa Assembly Plant in Ontario, Canada. The 16,198 owners affected by the recalls of both vehicles are being sent notifications this month.
http://www.blogger.com/img/blank.gif
From UAW Gimme Five: The war on collective bargaining goes on, this time at Verizon. Despite making $19.5 billion in profits and paying out $258 million to its top 5 executives in the last four years, Verizon wants to take back more than 50 years of collective bargaining and destroy middle class jobs. Verizon has refused to move from a long list of nearly 100 concession demands. CWA and IBEW have taken the unprecedented step of striking until Verizon stops its Wisconsin-style tactics and starts bargaining seriously. Verizon’s demands include: freeze pensions for current workers and eliminate them for future workers, allow contracting out and offshoring of more jobs, slash sick leave, completely gut health care plans for current and retired workers, and eliminate disability payments for injured workers.
How You Can Help: Adopt Verizon Wireless stores to picket and leaflet. Download the leaflet at cwa-union.org/Verizon, Sign our petition at cwa-union.org/verizongreed.
Union Meeting is this Wednesday, Aug. 17 at 1pm, 3pm, and 15 minutes after the longest first shift line time.
At the start of today, there were roughly 1100 vans lehttp://www.blogger.com/img/blank.gifft of the 2011 model year. Build out should be around 6:30 Wednesday morning off of K-line. Body shop will be building the first 2012 this morning. With that in mind the weekly build information will reflect the first 1307 vans of the 2012 model year scheduled for this week: 192 15-pass vans; 87 slider doors; 697 Enterprise rent-a-car; 226 OnStar; 29 government vans; no E-26 or exports.
From Automotive News: In the week after Standard & Poor's downgraded U.S. government debt, credit remained both available and affordable for the auto industry. But even as automakers say they'll stay the course on production and sales for the rest of the year, consumer confidence remains a big worry. "Consumer confidence is pretty fragile right now," Don Johnson, General Motors' U.S. sales chief, told analysts last week. "It's been ebbing and flowing throughout the year." But, he added, "We know that there is continuing pent-up demand in the market." Tom Doll, COO of Subaru of America, said the market plunge "appears to be an overreaction to the downgrade. At this time, we do not believe this is going to have any impact on our sales or production plans," Doll said. Mike Jackson, CEO of AutoNation Inc., the nation's largest dealership group, agrees, citing the pent-up consumer demand that should have the industry on the right track in the fourth quarter. "By October I think things will be booming," Jackson said. "It's all based on need." Ford Motor Co. and GM said they are sticking by their full-year sales projections. Spokesman John Stoll said that Ford still expects U.S. industrywide sales to "come in at the lower end of the 13 to 13.5 million range, including medium and heavy-duty vehicles."
From the Wall Street Journal: The Obama administration has put on hold plans to sell the rest of its stake in General Motors Co. because the auto maker's shares have slumped this year amid turbulence in the stock market, people familiar with the situation said Tuesday. The U.S. Treasury aimed to sell more of its 26.5% stake in GM by August or September. But GM stock for months has remained stuck below $30, and Wall Street's recent gyrations have made the market's future course uncertain. As a result, the Treasury is unlikely to move forward with a sale of shares until later this year, at the earliest, these people said. So far this year, GM stock is down 31%. Shares of rival Ford Motor Co. are down 35% year to date.
From Automotive News: With a big lift from its Fiat partner, Chrysler Group's Ram truck brand is moving beyond its core pickup truck business into commercial vans. The first entry will be the Ram CV cargo van, a panel van without rear windows. The Ram CV is a version of the Dodge Grand Caravan minivan that has been reworked for cargo use and rebranded as a Ram. These vehicles have been sold in the past as Dodge Caravans. Following that, more commercial vans are on the way for Ram from Italian partner Fiat. Ram is planning its own version of the Fiat Doblo, a Ford Transit Connect-sized small commercial van, and a larger commercial van to replace the Mercedes-built Dodge Sprinter. The Sprinter disappeared from Dodge dealerships after Fiat assumed control of Chrysler in 2009. The new large van is also likely to appear in 2013 as a 2014 model. Between Fiat and its Iveco commercial vehicle unit, Chrysler has two large commercial vans to choose from: the front-drive Fiat Ducato and rear-drive Iveco Daily. The most likely engines for the van are diesels. Diesels equipped the Sprinter, and Fiat has an array of diesel engines in its European commercial van fleet.
From the Detroit Free Press: General Motors is recalling certain 2012 model year Buick LaCrosses and Chevrolet Impalas in the United States and Canada over two separate defects related to steering. GM is recalling 4,293 LaCrosses, including 4,077 in the United States, because of an incorrect calibration of the StabiliTrak electronic stability system. A malfunction in the system could cause it to “falsely activate, resulting in sudden changes in the vehicle handling and deceleration,” according to the National Highway Traffic Safety Administration. This could “result in a crash without warning.” GM said today it knows of no crashes or injuries related to the defect. Separately, GM is recalling 11,905 model year 2012 Chevrolet Impalas, including 10,334 in the United States, to check for faulty installation of the power steering hose. GM said a wrongly placed hose could be damaged and “spray fluid onto hot parts of the engine creating potential for a fire.” The company said it knows of no crashes or injuries related to the steering hose problem, and that the condition was discovered at its Oshawa Assembly Plant in Ontario, Canada. The 16,198 owners affected by the recalls of both vehicles are being sent notifications this month.
http://www.blogger.com/img/blank.gif
From UAW Gimme Five: The war on collective bargaining goes on, this time at Verizon. Despite making $19.5 billion in profits and paying out $258 million to its top 5 executives in the last four years, Verizon wants to take back more than 50 years of collective bargaining and destroy middle class jobs. Verizon has refused to move from a long list of nearly 100 concession demands. CWA and IBEW have taken the unprecedented step of striking until Verizon stops its Wisconsin-style tactics and starts bargaining seriously. Verizon’s demands include: freeze pensions for current workers and eliminate them for future workers, allow contracting out and offshoring of more jobs, slash sick leave, completely gut health care plans for current and retired workers, and eliminate disability payments for injured workers.
How You Can Help: Adopt Verizon Wireless stores to picket and leaflet. Download the leaflet at cwa-union.org/Verizon, Sign our petition at cwa-union.org/verizongreed.
Friday, August 12, 2011
State of the Union August 11, 2011
August 11, 2011 online at www.uawlocal2250.com
• The 2 members returning from Ft. Wayne will, unfortunately, not be released by that plant to arrive here until Monday, Aug. 29.
• The following committees will be having meetings after first shift tonight at the Union Hall: Veterans, Union Label, CAP and Education.
• VCAP cruise raffle tickets are currently being sold. If you currently give to VCAP you will receive raffle tickets at a discounted rate. If you don't give to VCAP now is the time to sign up and receive bonus raffle tickets. If you haven't bought your tickets yet, see Van Simpson, Bill Loretto or your committeeman.
• Sunday, Aug. 14 is General Motors Families and Friends night at the Shoe Carnival in O’Fallon. From 6:30 pm to 9:30 pm you will receive an additional 30% off all prices, including sale prices, by presenting your employee ID (does not apply to buy 1, get 1 half off sales). The store is located at O’Fallon Retail Walk, 2209 Highway K – (636) 240-5810.
• Despite reporting what was the best quarter of earnings in most of our GM careers, GM stock has fallen to new lows ($23.92 as of yesterday). Undeterred, CEO Dan Akerson bought another 10,000 shares Tuesday. After that day’s presentation to analysts, there was unanimity among them that the stock is undervalued. A Bloomberg News average of about a dozen analysts predicts GM's stock price will be $42.42 in a year. Individually, Goldman Sach’s Patrick Archambault predicted a $40 price. Barclays analyst Brian Johnson is at $40 and Citi analyst Itay Michaeli predicts $48. Jefferies analyst Peter Nesvold is the most pessimistic. He put the price at $33. Citi’s Michaeli wrote that in context, GM shares look inexpensive under reasonable downside scenarios, and the company has a low break-even point that would allow it to generate cash in a down economy, unlike the past. GM, he wrote, will benefit from new products coming to market in the next year, strong cash reserves and efficiencies gained from cutting engineering and development costs by selling more models worldwide. "We still consider GM as the most compelling 1 to 3-year auto turnaround story," he wrote. GM executives said the company has $37.9 billion in cash and other liquidity, but the U.S. pension plan is $10.8 billion short of its obligations. "Depending on the extent of parts commonality between vehicles, we believe that the global platforms can drive significant operating leverage," Johnson wrote. He also wrote that stronger new products would help GM command higher prices for its vehicles, helping GM to grow earnings before interest and taxes.(a $53 share price is necessary to make the taxpayers whole)
• Leftlane News compiled an interesting list of popular and common vehicle features that are strangely absent from vehicles in price ranges you would expect to find them. For example, At $17,295, the cheapest Focus definitely delivers more space, pace and refinement than is typical in the compact sedan class, but only front seat passengers are treated to power windows unless you step up to the $18,195 SE model. The Honda Civic, whose redesign has drawn the ire of Consumer Reports among others, is the most expensive “normal” car to come tunes-free that they could come up with. The price - $17,375 - also doesn’t buy you air conditioning or power adjustable mirrors. Going futher upscale, a Land Rover Range Rover Sport cannot be had with a power rear liftgate. And buyers of a BMW 335i, Lexus IS350 or a Mercedes-Benz E550 will not be entitled to split folding rear seats as standard equipment.
• From the Wall Street Journal: The auto industry isn't taking its foot off the gas in the wake of the turbulence on Wall Street, at least not yet. Auto makers, dealers and industry analysts are all still expecting the pace of new-car sales to pick up in the second half of the year, undeterred by recent stock-market gyrations. "The only question is the rate of the recovery in auto sales, not if there is going to be a recovery," Michael J. Jackson, chairman and chief executive of AutoNation Inc., the country's largest chain of car dealerships, said during an interview. He added that he is sticking to his forecast that U.S. auto sales will total roughly 12.5 million cars and light trucks this year. That would represent about an 8% rise from 2010. In a presentation Tuesday for financial analysts, General Motors Co. reiterated its forecast for U.S. industry sales between 13 million and 13.5 million vehicles this year, including medium and heavy trucks. Making note of the turmoil on Wall Street, GM Chief Executive Dan Akerson said, "My personal expectation is on the low end of that." Toyota Motor Corp. and KBB.com, an auto-information website, also reaffirmed their 2011 sales forecasts of about 12.5 million light vehicles. Industry analysts said auto sales are underpinned by good credit availability. Most consumers with good credit records have no trouble getting car loans right now—a key difference from two years ago, during the recession, when the lack of credit helped drive down auto sales. Many consumers also deferred purchases of new vehicles during the recession and are now shopping for new wheels to replace aging vehicles.
• From AutoblogGreen: A team of researchers from the University of Michigan and Ford has assessed the global availability of lithium and compared it to the potential demand from widespread use of electric vehicles. The result? Don't you worry your pretty little head about it. The researchers concluded that sufficient lithium exists to power electric vehicles until 2100 or beyond. The researchers compiled data on 103 lithium-containing deposits. The data collected included deposit location, geologic type, dimensions and lithium content. Using this data, the researchers estimate global lithium reserves at 39 million tons. Additionally, the study examined lithium demand for a 90-year period (2010-2100) and estimates that total demand for the silver-white metal is in the range of 12 to 20 million tons, depending on assumptions regarding economic growth and recycling rates. These findings led the research team to conclude that: Even with a rapid and widespread adoption of electric vehicles powered by lithium-ion batteries, lithium resources are sufficient to support demand until at least the end of this century. Lithium, it seems, won't be the bottleneck in the plug-in vehicle push
• The 2 members returning from Ft. Wayne will, unfortunately, not be released by that plant to arrive here until Monday, Aug. 29.
• The following committees will be having meetings after first shift tonight at the Union Hall: Veterans, Union Label, CAP and Education.
• VCAP cruise raffle tickets are currently being sold. If you currently give to VCAP you will receive raffle tickets at a discounted rate. If you don't give to VCAP now is the time to sign up and receive bonus raffle tickets. If you haven't bought your tickets yet, see Van Simpson, Bill Loretto or your committeeman.
• Sunday, Aug. 14 is General Motors Families and Friends night at the Shoe Carnival in O’Fallon. From 6:30 pm to 9:30 pm you will receive an additional 30% off all prices, including sale prices, by presenting your employee ID (does not apply to buy 1, get 1 half off sales). The store is located at O’Fallon Retail Walk, 2209 Highway K – (636) 240-5810.
• Despite reporting what was the best quarter of earnings in most of our GM careers, GM stock has fallen to new lows ($23.92 as of yesterday). Undeterred, CEO Dan Akerson bought another 10,000 shares Tuesday. After that day’s presentation to analysts, there was unanimity among them that the stock is undervalued. A Bloomberg News average of about a dozen analysts predicts GM's stock price will be $42.42 in a year. Individually, Goldman Sach’s Patrick Archambault predicted a $40 price. Barclays analyst Brian Johnson is at $40 and Citi analyst Itay Michaeli predicts $48. Jefferies analyst Peter Nesvold is the most pessimistic. He put the price at $33. Citi’s Michaeli wrote that in context, GM shares look inexpensive under reasonable downside scenarios, and the company has a low break-even point that would allow it to generate cash in a down economy, unlike the past. GM, he wrote, will benefit from new products coming to market in the next year, strong cash reserves and efficiencies gained from cutting engineering and development costs by selling more models worldwide. "We still consider GM as the most compelling 1 to 3-year auto turnaround story," he wrote. GM executives said the company has $37.9 billion in cash and other liquidity, but the U.S. pension plan is $10.8 billion short of its obligations. "Depending on the extent of parts commonality between vehicles, we believe that the global platforms can drive significant operating leverage," Johnson wrote. He also wrote that stronger new products would help GM command higher prices for its vehicles, helping GM to grow earnings before interest and taxes.(a $53 share price is necessary to make the taxpayers whole)
• Leftlane News compiled an interesting list of popular and common vehicle features that are strangely absent from vehicles in price ranges you would expect to find them. For example, At $17,295, the cheapest Focus definitely delivers more space, pace and refinement than is typical in the compact sedan class, but only front seat passengers are treated to power windows unless you step up to the $18,195 SE model. The Honda Civic, whose redesign has drawn the ire of Consumer Reports among others, is the most expensive “normal” car to come tunes-free that they could come up with. The price - $17,375 - also doesn’t buy you air conditioning or power adjustable mirrors. Going futher upscale, a Land Rover Range Rover Sport cannot be had with a power rear liftgate. And buyers of a BMW 335i, Lexus IS350 or a Mercedes-Benz E550 will not be entitled to split folding rear seats as standard equipment.
• From the Wall Street Journal: The auto industry isn't taking its foot off the gas in the wake of the turbulence on Wall Street, at least not yet. Auto makers, dealers and industry analysts are all still expecting the pace of new-car sales to pick up in the second half of the year, undeterred by recent stock-market gyrations. "The only question is the rate of the recovery in auto sales, not if there is going to be a recovery," Michael J. Jackson, chairman and chief executive of AutoNation Inc., the country's largest chain of car dealerships, said during an interview. He added that he is sticking to his forecast that U.S. auto sales will total roughly 12.5 million cars and light trucks this year. That would represent about an 8% rise from 2010. In a presentation Tuesday for financial analysts, General Motors Co. reiterated its forecast for U.S. industry sales between 13 million and 13.5 million vehicles this year, including medium and heavy trucks. Making note of the turmoil on Wall Street, GM Chief Executive Dan Akerson said, "My personal expectation is on the low end of that." Toyota Motor Corp. and KBB.com, an auto-information website, also reaffirmed their 2011 sales forecasts of about 12.5 million light vehicles. Industry analysts said auto sales are underpinned by good credit availability. Most consumers with good credit records have no trouble getting car loans right now—a key difference from two years ago, during the recession, when the lack of credit helped drive down auto sales. Many consumers also deferred purchases of new vehicles during the recession and are now shopping for new wheels to replace aging vehicles.
• From AutoblogGreen: A team of researchers from the University of Michigan and Ford has assessed the global availability of lithium and compared it to the potential demand from widespread use of electric vehicles. The result? Don't you worry your pretty little head about it. The researchers concluded that sufficient lithium exists to power electric vehicles until 2100 or beyond. The researchers compiled data on 103 lithium-containing deposits. The data collected included deposit location, geologic type, dimensions and lithium content. Using this data, the researchers estimate global lithium reserves at 39 million tons. Additionally, the study examined lithium demand for a 90-year period (2010-2100) and estimates that total demand for the silver-white metal is in the range of 12 to 20 million tons, depending on assumptions regarding economic growth and recycling rates. These findings led the research team to conclude that: Even with a rapid and widespread adoption of electric vehicles powered by lithium-ion batteries, lithium resources are sufficient to support demand until at least the end of this century. Lithium, it seems, won't be the bottleneck in the plug-in vehicle push
Wednesday, August 10, 2011
State of the Union August 10, 2011
August 10, 2011 online at www.uawlocal2250.com
One more member will return to Wenzville Monday, Aug. 15, bringing the total to 7.
There will be a St. Louis City Cap meeting tonight at 7:30 pm at the Union Hall. Refreshments will be served and all are welcome.
The Women’s Committee meeting for Thursday is cancelled. There will be a CAP meeting Thursday after first shift at the Union Hall.
There will be a Veterans Committee meeting Thursday after first shift at the Union Hall. This year’s SOS “Support Our Soldiers” motorcycle ride and rally will be Saturday Sept. 17. Registration begins at 9:30 am at the Union Hall with last bike out at 11 am. Cost is $20 per bike, $5 per passenger and $5 for each extra hand. Proceeds go to Operation Homefront and Operation Undergarment. Flyers are at the entrances and you can contact Steve Melson at 636-262-1234 or Judy Guzdial at 636-373-0730 for any questions.
From August 12 through 14 the road next to Lot 3 will be closed; Gate 3 will be closed; the PEP lot all the way to medical will be closed and Lots 4 and 5 will be closed – all for resurfacing.(weather permitting)
From the Detroit Free Press: General Motors has blown $1 billion annually on projects that later get canceled. Too many GM engineers do work that isn't for cars or trucks. Too often, GM has started vehicles from scratch, rather than borrowing underpinnings from other products. So the company is seeking to make product development more efficient, executives told analysts Tuesday at the automaker's second-annual business conference, held in Warren. The automaker has posted six straight quarterly profits in a weak global auto market, but it is still working to improve its profit margins from middle-of-the pack to best-in-class, Chief Financial Officer Dan Ammann said. He cited Morgan Stanley forecasts that say GM will make 5% on its operations this year, while competitors Hyundai and BMW will make 10%. "All of the things we need to do are, by and large, in our control," Ammann said. "We're not relying on heroic market-share gains. We're not relying on substantial economic recovery." GM can start eliminating those mistakes, executives said, by keeping product-development spending constant despite economic troubles. "We'd be deep -- halfway, two-thirds of the way through -- on a project, and we'd cancel it because of a weakening economy," GM CEO Dan Akerson said. "The start-stop, on-again, off-again, herky-jerky nature of our product development process was very disruptive, and it produced poor products." Delays in development because of financial troubles added a year-and-a-half delay to the launch of the Lansing-built large crossovers such as the ChevroletTraverse, she said. With these sorts of holdups, she said, "we end up being second, third, or really at the back of the pack." GM is also seeking to simplify its product-development process to help improve speed, engineering costs and quality. For instance, in 2010, GM had 30 vehicle "architectures," or underpinnings, and it will have 14 by 2018, Barra said. The number of engine architectures should fall from about 20 to 10 by the end of the decade, she said.
From Wards Auto: General Motors’ manufacturing operations won’t be caught off-guard should the U.S. market rebound from today’s stagnant sales pace to pre-recession levels of 16 million-plus units a year, says a top executive. Diana Tremblay, global chief manufacturing officer, says despite taking out 1.5 million units of North American capacity post-bankruptcy, GM has several tricks up its sleeve to keep pace should the market make a comeback. Speaking during GM’s Second Annual Global Business Conference for financial analysts, Tremblay says the auto maker’s North American manufacturing capacity utilization should close in on 100% by the end of this year. But as demand increases further, third shifts could be added across the board to push plant utilization rates as high as 133%. “At that point, we could respond to a 16 million-unit market,” she says, noting overtime could push utilization even further, to 150%. The ability to build multiple vehicles at one plant also is essential, Tremblay says, noting by 2015 more than 50% of production will come out of a network of flexible assembly plants.
From Bloomberg: General Motors is unsure whether stock-market volatility will put its forecast for U.S. vehicle sales out of reach this year, Chief Executive Officer Dan Akerson said yesterday. "There's a lot of turmoil in the business and turmoil means uncertainty, so we're a little unsure of these numbers," Akerson said of Detroit-based GM's forecast for at least 13 million vehicle sales this year. The worst stock-market rout since 2008 has exacerbated a decline in GM's shares, wiping out $6.7 billion from the value of the stock held by the U.S. Treasury Department. GM rose 97 cents, or 4 percent, to $25.54 at 4 p.m yesterday in New York Stock Exchange composite trading. (GM stock was down $1.21 today in early morning trading) The U.S. Treasury holds 500 million shares of GM, a stake that was worth $19.5 billion on Jan. 7, when the stock peaked at close of $38.98. At yesterday's closing price, Treasury's holdings were worth $12.8 billion. The government planned to evaluate GM's second-quarter earnings and the market's reaction before deciding whether to sell more of its investment, a person familiar with the matter said last month. The department wants to sell its stake for at least the November initial public offering price of $33 a share and would prefer to sell in the high-$30 range, said the person, who asked not to be identified because the plans are private.
From Automotive News: General Motors said Tuesday that 96 percent of its U.S. dealerships are enrolled in a program that offers financial rewards to those who meet training and customer service goals and carry out facility renovations. The program includes about 99 percent of the automaker's U.S. retail sales volume. The automaker projects that 460 of its dealerships will have been refurbished by the end of this year, and more than 4,000 will have been renovated by the end of 2014, said Don Johnson, GM vice president in charge of U.S. sales operations. Johnson, citing numbers from GM, R.L. Polk & Co. and the National Automobile Dealers Association, said GM's roughly 4,500 U.S. dealers are better off on a number of fronts: 92.8 percent are profitable, up 15 points since 2009, when GM slashed its dealer ranks as part of its bankruptcy; Their 2011 annualized new-vehicle throughput is estimated at 493 units, up 49 percent since 2009 and the highest of any domestic automaker's dealers.
One more member will return to Wenzville Monday, Aug. 15, bringing the total to 7.
There will be a St. Louis City Cap meeting tonight at 7:30 pm at the Union Hall. Refreshments will be served and all are welcome.
The Women’s Committee meeting for Thursday is cancelled. There will be a CAP meeting Thursday after first shift at the Union Hall.
There will be a Veterans Committee meeting Thursday after first shift at the Union Hall. This year’s SOS “Support Our Soldiers” motorcycle ride and rally will be Saturday Sept. 17. Registration begins at 9:30 am at the Union Hall with last bike out at 11 am. Cost is $20 per bike, $5 per passenger and $5 for each extra hand. Proceeds go to Operation Homefront and Operation Undergarment. Flyers are at the entrances and you can contact Steve Melson at 636-262-1234 or Judy Guzdial at 636-373-0730 for any questions.
From August 12 through 14 the road next to Lot 3 will be closed; Gate 3 will be closed; the PEP lot all the way to medical will be closed and Lots 4 and 5 will be closed – all for resurfacing.(weather permitting)
From the Detroit Free Press: General Motors has blown $1 billion annually on projects that later get canceled. Too many GM engineers do work that isn't for cars or trucks. Too often, GM has started vehicles from scratch, rather than borrowing underpinnings from other products. So the company is seeking to make product development more efficient, executives told analysts Tuesday at the automaker's second-annual business conference, held in Warren. The automaker has posted six straight quarterly profits in a weak global auto market, but it is still working to improve its profit margins from middle-of-the pack to best-in-class, Chief Financial Officer Dan Ammann said. He cited Morgan Stanley forecasts that say GM will make 5% on its operations this year, while competitors Hyundai and BMW will make 10%. "All of the things we need to do are, by and large, in our control," Ammann said. "We're not relying on heroic market-share gains. We're not relying on substantial economic recovery." GM can start eliminating those mistakes, executives said, by keeping product-development spending constant despite economic troubles. "We'd be deep -- halfway, two-thirds of the way through -- on a project, and we'd cancel it because of a weakening economy," GM CEO Dan Akerson said. "The start-stop, on-again, off-again, herky-jerky nature of our product development process was very disruptive, and it produced poor products." Delays in development because of financial troubles added a year-and-a-half delay to the launch of the Lansing-built large crossovers such as the ChevroletTraverse, she said. With these sorts of holdups, she said, "we end up being second, third, or really at the back of the pack." GM is also seeking to simplify its product-development process to help improve speed, engineering costs and quality. For instance, in 2010, GM had 30 vehicle "architectures," or underpinnings, and it will have 14 by 2018, Barra said. The number of engine architectures should fall from about 20 to 10 by the end of the decade, she said.
From Wards Auto: General Motors’ manufacturing operations won’t be caught off-guard should the U.S. market rebound from today’s stagnant sales pace to pre-recession levels of 16 million-plus units a year, says a top executive. Diana Tremblay, global chief manufacturing officer, says despite taking out 1.5 million units of North American capacity post-bankruptcy, GM has several tricks up its sleeve to keep pace should the market make a comeback. Speaking during GM’s Second Annual Global Business Conference for financial analysts, Tremblay says the auto maker’s North American manufacturing capacity utilization should close in on 100% by the end of this year. But as demand increases further, third shifts could be added across the board to push plant utilization rates as high as 133%. “At that point, we could respond to a 16 million-unit market,” she says, noting overtime could push utilization even further, to 150%. The ability to build multiple vehicles at one plant also is essential, Tremblay says, noting by 2015 more than 50% of production will come out of a network of flexible assembly plants.
From Bloomberg: General Motors is unsure whether stock-market volatility will put its forecast for U.S. vehicle sales out of reach this year, Chief Executive Officer Dan Akerson said yesterday. "There's a lot of turmoil in the business and turmoil means uncertainty, so we're a little unsure of these numbers," Akerson said of Detroit-based GM's forecast for at least 13 million vehicle sales this year. The worst stock-market rout since 2008 has exacerbated a decline in GM's shares, wiping out $6.7 billion from the value of the stock held by the U.S. Treasury Department. GM rose 97 cents, or 4 percent, to $25.54 at 4 p.m yesterday in New York Stock Exchange composite trading. (GM stock was down $1.21 today in early morning trading) The U.S. Treasury holds 500 million shares of GM, a stake that was worth $19.5 billion on Jan. 7, when the stock peaked at close of $38.98. At yesterday's closing price, Treasury's holdings were worth $12.8 billion. The government planned to evaluate GM's second-quarter earnings and the market's reaction before deciding whether to sell more of its investment, a person familiar with the matter said last month. The department wants to sell its stake for at least the November initial public offering price of $33 a share and would prefer to sell in the high-$30 range, said the person, who asked not to be identified because the plans are private.
From Automotive News: General Motors said Tuesday that 96 percent of its U.S. dealerships are enrolled in a program that offers financial rewards to those who meet training and customer service goals and carry out facility renovations. The program includes about 99 percent of the automaker's U.S. retail sales volume. The automaker projects that 460 of its dealerships will have been refurbished by the end of this year, and more than 4,000 will have been renovated by the end of 2014, said Don Johnson, GM vice president in charge of U.S. sales operations. Johnson, citing numbers from GM, R.L. Polk & Co. and the National Automobile Dealers Association, said GM's roughly 4,500 U.S. dealers are better off on a number of fronts: 92.8 percent are profitable, up 15 points since 2009, when GM slashed its dealer ranks as part of its bankruptcy; Their 2011 annualized new-vehicle throughput is estimated at 493 units, up 49 percent since 2009 and the highest of any domestic automaker's dealers.
Tuesday, August 2, 2011
State of the Union July 29, 2011
July 29, 2011 online at www.uawlocal2250.com
No State of the Union next week due to ISO audit.
There is a new media website for the ongoing contract talks – www.uawgmtalks.com. In addition to updates about negotiations, there are contacts for both UAW and GM spokespersons as well as company news, plant information and other media stories.http://www.blogger.com/img/blank.gif
Reminder: There is still time to opt out of the automatic enrollment in the PSP program. You can do so by accessing gmbenefits.com or contacting the GM Benefits & Services Center at 1-800-489-4646. You have until 4 pm eastern time today to do this. The first payroll deduction into the PSP (3%) will occur on August 5, 2011.
From Reuters: July auto sales should show an improvement from the past two months as the industry recovers from supply chain disruptions in Japan, but it could be a long time before the industry is fully back on track. "We think we're probably going to be into late August, early September before we get back on trend," General Motors Co's (GM.N) U.S. sales chief Don Johnson said in an interview last week. Auto sales are an early indicator each month of U.S. consumer demand. The final tally for U.S. sales in July is scheduled to be reported on August 2. GM is also due to report second-quarter earnings on August 4. July sales, expected to hit an annual rate of about 12 million vehicles, should mark the beginning of a recovery from a bottom in June, they said. That is still less than the 13 million-plus pace from earlier in the year. GM and rival Ford Motor Co (F.N) have forecast sales for the year at the low end of 13 million to 13.5 million vehicles. That includes medium and heavy trucks that make up about 300,000 vehicles. Not everyone is as cautiously optimistic. TrueCar.com forecasts light vehicle sales in July to finish at an annual rate of 11.4 million vehicles, which would be slightly worse than June's 11.45 million.
• From the Detroit News: President Barack Obama — joined by Detroit's Big Three CEOs, the California governor and the head of the United Auto Workers union — is expected to unveil a landmark deal today to boost fuel efficiency standards of cars and light trucksto 54.5 miles per gallon by 2025 in a move that will reshape what Americans drive. Last-minute haggling over final details was still taking place late Thursday, but automakers were confident a final deal would be reached before today's late morning event. The deal would extend a May 2009 agreement that boosted fuel efficiency standards to 34.1 mpg by 2016, costing the auto industry $51.5 billion over five years. As part of that deal, California and a dozen other states agreed not to impose state standards through 2016. Executives from nine automakers, including General Motors CEO Dan Akerson, Ford Motor CEO Alan Mulally and ChryslerGroup CEO Sergio Marchionne, are expected to attend. Also expected is UAW President Bob King, who is planning to fly from Detroit with Mulally. The pair pushed back the kickoff of contract talks until late Friday afternoon to attend.
No State of the Union next week due to ISO audit.
There is a new media website for the ongoing contract talks – www.uawgmtalks.com. In addition to updates about negotiations, there are contacts for both UAW and GM spokespersons as well as company news, plant information and other media stories.http://www.blogger.com/img/blank.gif
Reminder: There is still time to opt out of the automatic enrollment in the PSP program. You can do so by accessing gmbenefits.com or contacting the GM Benefits & Services Center at 1-800-489-4646. You have until 4 pm eastern time today to do this. The first payroll deduction into the PSP (3%) will occur on August 5, 2011.
From Reuters: July auto sales should show an improvement from the past two months as the industry recovers from supply chain disruptions in Japan, but it could be a long time before the industry is fully back on track. "We think we're probably going to be into late August, early September before we get back on trend," General Motors Co's (GM.N) U.S. sales chief Don Johnson said in an interview last week. Auto sales are an early indicator each month of U.S. consumer demand. The final tally for U.S. sales in July is scheduled to be reported on August 2. GM is also due to report second-quarter earnings on August 4. July sales, expected to hit an annual rate of about 12 million vehicles, should mark the beginning of a recovery from a bottom in June, they said. That is still less than the 13 million-plus pace from earlier in the year. GM and rival Ford Motor Co (F.N) have forecast sales for the year at the low end of 13 million to 13.5 million vehicles. That includes medium and heavy trucks that make up about 300,000 vehicles. Not everyone is as cautiously optimistic. TrueCar.com forecasts light vehicle sales in July to finish at an annual rate of 11.4 million vehicles, which would be slightly worse than June's 11.45 million.
• From the Detroit News: President Barack Obama — joined by Detroit's Big Three CEOs, the California governor and the head of the United Auto Workers union — is expected to unveil a landmark deal today to boost fuel efficiency standards of cars and light trucksto 54.5 miles per gallon by 2025 in a move that will reshape what Americans drive. Last-minute haggling over final details was still taking place late Thursday, but automakers were confident a final deal would be reached before today's late morning event. The deal would extend a May 2009 agreement that boosted fuel efficiency standards to 34.1 mpg by 2016, costing the auto industry $51.5 billion over five years. As part of that deal, California and a dozen other states agreed not to impose state standards through 2016. Executives from nine automakers, including General Motors CEO Dan Akerson, Ford Motor CEO Alan Mulally and ChryslerGroup CEO Sergio Marchionne, are expected to attend. Also expected is UAW President Bob King, who is planning to fly from Detroit with Mulally. The pair pushed back the kickoff of contract talks until late Friday afternoon to attend.
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