Thursday, April 26, 2012

State of the Union April 26, 2012

April 26, 2012 online at www.uawlocal2250.com

There will be a Civil Rights Committee meeting Monday, April 30 between the shifts at the Union Hall. All are welcome to attend.

Co-chairs Tina Hayes and Mike Danielson would like to thank everyone who donated their time and money to the March for Babies gate drive yesterday. A total of $4,400 was collected!

From the Chaplaincy Committee: There will be a Workers Memorial Service to honor fallen workers Monday, April 30 at lunch time at the chassis chapel located at column C-42. All are welcome to attend.

As it stands now, the following Fridays are scheduled for production: May 4, 11, 25; June 8, 15, 29; July 13, 20. As usual this is subject to change.

From Automotive News: Chrysler Group said its first-quarter net income quadrupled on surging sales as the automaker set a profit target of $1.5 billion for the year. Chrysler earned $473 million in the January-March period, up from $116 million a year earlier. Revenue rose 25 percent to $16.4 billion as U.S. vehicle sales increased 39 percent. The 2012 target of $1.5 billion in net income would far outpace the $183 million earned last year as Chrysler posted its first annual profit since its 2009 bankruptcy. Interest expense on Chrysler debt in the first quarter fell 20 percent from a year earlier to $277 million. The company had $12.6 billion in debt at the end of the quarter. In May 2011, Chrysler privately refinanced the debts it owed from its bankruptcy exit to the U.S., Canadian, and Ontario provincial governments. Its total debt dropped $700 million in the 12 months since March 31, 2011. Chrysler said its worldwide vehicle shipments for the quarter reached 607,000, up 25 percent from the 485,000 units shipped during the first quarter of 2011. Its goal for the year is 2.4 million. Chrysler said its retail sales in the United States climbed 40 percent in the quarter, though it did not identify the total number of retail units sold. Industrywide U.S. sales of light vehicles this year have risen 13 percent through March.

Also: Hyundai boosted sales in the United States and bucked sluggish markets in Europe and China to drive quarterly net profit up by almost a third to $2.15 billion, its highest since changing accounting methods a year ago. Hyundai increased its U.S. sales by 15 percent in January-March, edging the overall market's 14 percent gain, but its market share slipped to 4.7 percent from 5.1 percent as its stretched production capacity meant it couldn't readily boost output.

From the Wall Street Journal: Facing increasing challenges overseas, Ford Motor Co. and General Motors Co. appear headed for slimmer profits this year compared with 2011 although their bottom lines should remain very strong by historical standards. Ford will give investors a glimpse of what's ahead when it reports its first quarter earnings on Friday. Analysts expect the auto maker to report strong income from its North America automotive business, which is getting a lift from a robust rise in U.S. auto sales. At the same time, however, Ford is expected to report lower profit from its financing arm, a higher tax rate in the U.S., and losses in Europe and Asia. For GM, which reports its earnings on May 3, it is a similar picture—increasing demand and higher prices in the U.S., despite high gasoline prices, but trouble in Europe, with increasing competition pressuring profits in South America and China. Not all parts of the two big Detroit auto makers are pulling in the same direction, said Peter Nesvold, a transportation analyst with Jefferies & Co. in New York. "This is going to be an exceptionally strong year in North America. But international is not going to be contributing much to earnings this year." Analysts estimate Ford will report first-quarter earnings of 35 cents a share, according to a consensus compiled by Thomson Financial. That's down from 61 cents a year ago. GM is expected to report a first-quarter operating profit of $1.38 billion on revenue of $37.54 billion, according to Thomson Reuters. In the year ago quarter, GM reported an adjusted operating profit of $2 billion and revenue of $36.2 billion. The consensus estimate for GM is 85 cents a share, Thomson Financial said. In the first quarter of 2011, GM reported earnings per share of 95 cents. In its first quarter, GM sold 608,320 cars and light trucks in the U.S., up 2.7% from a year. The company's Chinese operations posted an 8.7% volume increase in the first quarter, to 745,152 vehicles.

From Bloomberg: Volkswagen Group reported a 10 percent gain in first-quarter operating profits on higher demand at its Audi luxury brand. In a statement released earlier today, VW said operating profit rose to 3.21 billion euros ($4.26 billion) from 2.91 billion euros a year earlier. The figure beat the 2.66 billion-euro average estimate of nine analysts surveyed by Bloomberg. Sales gained 26 percent to 47.3 billion euros ($62.46 billion). Operating profit at the core VW brand grew 5.3 percent to 1.1 billion euros ($1.45 billion). Audi's profit rose by 26.6 percent to 1.4 billion euros ($1.85 billion). Volkswagen is thriving despite Europe's debt crisis. The German automaker is stealing market share from rivals with a model lineup that runs from the Up minicars to Lamborghini sports cars and 50-ton trucks. The group's worldwide unit sales increased by 11.3 percent to 2.3 million vehicles in the quarter, boosting the automaker's global passenger car market share to 12.2 percent from 11.9 percent. The automaker stuck to its target of matching last year's record operating profit of 11.3 billion euros ($14.9 billion) as higher revenue and auto deliveries offset increased development spending. Relying on continued expansion of car markets in Asia, the United States, Latin America and Russia, VW also stood by its goal to increase deliveries beyond last year's record 8.3 million vehicles.

Tuesday, April 24, 2012

State of the Union April 24, 2012

April 24, 2012 online at www.uawlocal2250.com

There will be an Education Committee meeting Wednesday, April 25 between the shifts at the Union Hall. Everyone is welcome to attend.

From the Detroit News: United Auto Workers President Bob King says GOP front-runner Mitt Romney is "out of touch" with workers after the former Massachusetts governor recounted his dad's decision to close a large auto plant in Detroit in the 1950s. King and former Ohio Gov. Ted Strickland participated in a conference call with the Obama re-election campaign to discuss the campaign's efforts to tout the auto industry revival in the Buckeye State. "The comments about plant closings to me show how out of touch Mitt Romney is with working people," King said, calling them "cavalier." King noted that in recent years there has been "tremendous suffering across America" in the face of plant closings.

Last month, Romney recounted the decision of his father, George Romney, then CEO of American Motors, to close the company's Hudson plant on Detroit's east side and shift the work to the company's Kenosha, Wis., plant. The move resulted in the layoff of about 4,300 workers. "Now, later he decided to run for governor of Michigan and so you can imagine that having closed the factory and moved all the production to Wisconsin was a very sensitive issue to him, for his campaign," Romney said. Romney has been harshly critical of the UAW — contending that the union got "more than their fair share" during bankruptcy reorganizations of General Motors and Chrysler. The Obama campaign is launching a "Made in Ohio" tour visiting cities like Perrysburg, Akron, and Warren to emphasize the importance of auto jobs in the state. King said the auto industry in Ohio has added about 15,000 jobs since 2009 — and said 80 out of 88 Ohio counties have an auto-related company. "No matter how much Mitt Romney tries to Etch-a-Sketch his way out of wanting the auto industry to go bankrupt, there was not a single financial institution willing to give them the loan they needed to restructure," King said, saying the collapse of GM and Chrysler would have led to a "deep depression" in the U.S. Strickland, the former Ohio governor, said that during the crisis in 2008, Honda executives visited him at the governor's mansion on a Sunday evening to urge him to support aid to U.S. automakers because of the potential impact that the collapse of the two could have had on the supply chain.

The May schedule is out. Daily production is 10 hours, 680 units for days without team meetings or 2013 mvb’s. Monday, May 28 is Memorial Day so that Tuesday is 10.7, Wednesday is 10.7 and Thursday is 10.6 with Friday off.

From Automotive News: The auto industry may soon have a strategy to avoid vehicle production interruptions that could be caused by the critical shortage of a key resin used in a variety of components. General Motors, Chrysler, Ford, Honda, Hyundai-Kia, Volkswagen and 19 parts suppliers have reached a general consensus on how to quickly replace the resin, called nylon 12, according to a statement issued Monday by the Auto Industry Action Group. The trade group is scheduled to hold a meeting to finalize the plan on April 30, the statement said. Nylon 12 supplies have neared critical lows after a March 31 explosion at a chemical plant in Germany. Automakers and suppliers have been meeting to get ahold of the situation as the specter that the material shortage could halt vehicle assembly lines have grown. Nylon 12 is used in a variety of automotive components such as brake lines, fuel lines and other systems.

From the Detroit Free Press: Nobel Peace Prize laureate Lech Walesa will visit Chrysler's Jefferson North Assembly Plant on Thursday and speak to the company's workers. Walesa, 68, got his start as a labor organizer in Poland and led the push for democracy in the former communist nation. He became president of Poland from 1990-95. Chrysler Chairman and CEO Sergio Marchionne along with UAW Vice President General Holiefield also are scheduled to attend the event. Mike Smith, a labor historian at the Walter P. Reuther Library in Detroit, said Marchionne's willingness to bring Walesa into the plant stands in contrast with his reputation in Italy for clashing with unions. "I think it speaks to some open-mindedness on his part that he would allow Lech Walesa in to speak to the workers on the line," Smith said. Walesa founded Solidarity in 1980 and went on to receive the Nobel Peace Prize in 1983.

From Automotive News: General Motors CEO Dan Akerson won't rule out closing factories as he restructures GM's loss-making Opel unit and said it will be "a while" before Opel turns a profit. Describing the carmaker's European operations as a "four-alarm fire," Akerson declined to comment when asked if he would have to shutter plants. He cited ongoing union negotiations over restructuring options. But Akerson said Germany-based Opel won't recover until excess production capacity is balanced with shrinking light-vehicle demand across Europe. "Until capacity or production is matched with demand, we're not going to be in a very enviable position," Akerson said in a keynote address Tuesday at the Automotive News China Conference. "Unless you have a strong export model in Europe, you're not making money," he said. Akerson added it would be "a while" before GM's European unit returns to profitability. But he declined to give a specific timeline. The European auto market is forecast to shrink between 3 and 5 percent this year. In Western Europe, sales have fallen 14 percent since 2007, saddling the region with an excess supply of auto factories.

Tom Brune UAW/GM Communications Coordinator Wentzville Assembly 636-327-2119

Thursday, April 12, 2012

State of the Union April 12, 2012

April 12, 2012 online at uawlocal2250.com

There have been questions about the schedule around Memorial Day. Per the Local Agreement, a week with a holiday will be a 40-hour week, and management has decided to go with a 10.7, 10.7, 10.6 three-day schedule for that week. Therefore, we will be working Tuesday 5/29, Wednesday 5/30 and Thursday 5/31 and will be off Friday, June 1. The 2 out of 3 Fridays schedule will resume on June 8.

The annual $1000 Performance Bonus payment date this year is June 10, 2012. The eligibility date is May 15. Per the National Agreement, “Eligible employees are defined as those whose status with the Company as of the eligibility date is one of the following: active with seniority; on temporary layoff status; on leave pursuant to Family and Medical Leave act; on one of the following leaves of absence which has not exceeded 90 days as of the eligibility date – informal, formal, sickness and accident, military, and educational.”

Reminder: There will be a Recreation Committee meeting this today at the Union Hall between shifts to discuss plans for this year’s Union Picnic. Topics of discussion will include the date of the picnic – which is complicated by the 4-week shutdown at the end of this summer – and the location (either Rotary Park or Quail Ridge). All members are welcome to provide their input.

As you may have heard, there was an explosion at the GM battery testing lab at the Warren Tech Center yesterday. It was caused by gases venting from an experimental battery pack. Five employees were injured and one employee was hospitalized overnight for observation. The 8:45 a.m. incident inside a small room at the lab was likened by GM to a natural gas explosion, as gases from a battery gathered in the room during extreme testing and ignited in an enclosed chamber. GM said the battery pack remained intact. The battery tested and the incident have no connection with the Chevrolet Volt or any other current GM production vehicle. To avoid spreading misinformation, employees are asked to refrain from commenting on the incident in public forums including websites, blogs and other social media. GM Communications will take the lead in answering questions and providing updated information as necessary.

From the Tennesseean: The United Auto Workers union has begun passing out cards to employees of the Volkswagen plant in Chattanooga to determine whether there is enough support to hold a union representation election. But the cards are not the official instruments the union would have to collect from at least 30 percent of the plant’s hourly workers to force a union vote, said Gary Casteel, director of the UAW’s District 8, which includes Tennessee. “We have not started an official organizing campaign,” he said, refuting some national media reports. “What got some people up in arms is that we passed out some cards, but they were never about setting up an election,” Casteel said. “The cards were just gauging the level of support.” That characterization was confirmed by Volkswagen spokesman Guenther Scherelis at the plant, which has about 2,700 workers employed directly by the German automaker to build the midsize Passat sedan. “We heard that they had distributed those cards, but it is an initiative of the union and not something that Volkswagen is involved in,” Scherelis said. Some employees said they had seen the cards or were aware of the union’s interest in organizing the plant, but there seems to be no clear consensus on whether there would be enough support to force a union election, much less on whether the UAW could win that vote if it occurred. While it takes only 30 percent of the workforceto sign cards requesting a union vote — which would then have to be held by secret ballot within 40 days — the UAW has said it would want to see a much higher percentage than that before calling for a vote.

From Automotive News: Twenty-seven years after breaking away from the United Auto Workers, the once-mighty Canadian Auto Workers may disappear, subsumed into a new mega union as jobs vanish in Central Canada's manufacturing sector. The CAW's membership has fallen almost 30 percent in the past six years, and its leaders see a merger with the Communications, Energy and Paperworkers (CEP), another major private-sector union, as the best way to stay relevant. "If unions do not change, and quickly, we will steadily follow U.S. unions into continuing decline," the two unions said in a joint discussion paper released last month. "We must reverse the erosion of our membership, our power, and our prestige." In a move that underlines the seriousness of the threat, CAW and CEP leaders want to build a new 300,000-strong union, the private sector's largest by far, with a new name that has yet to be decided. It would span more sectors, tap into sentiment that has driven the Occupy movement, and do more to appeal to non-unionized workers. CAW President Ken Lewenza says the union has the resources to survive without CEP, but says the union should do something more ambitious -- try to boost unionization rates nationally, and shift trade policy to protect high-quality jobs. (GM and the CAW will begin negotiations on their contract this summer)

General Motors Co. is recalling 58,000 crossover SUVs worldwide, including in cold-weather states where windshield wipers could become inoperative because of snow or ice buildup. In a notice posted Thursday on the National Highway Traffic Safety Administration website, the Detroit automaker said it is recalling 50,001 2011-12 Buick Enclave, Chevrolet Traverse and GMC Acadia to fix some faulty wipers. GM said a buildup of snow or ice could loosen the wiper arm nut and cause the wipers to fail. GM said a review of warranty claims started in November had discovered the problem. GM dealers will tighten the bolts on the recalled SUVs and will notify owners later this month. The recall is limited to 28 states and the District of Columbia where the vehicles are registered and where snowfall can be heavy.

Tuesday, April 10, 2012

State of the Union April 10, 2012

April 10, 2012 online at www.uawlocal2250.com


There will be a meeting this Thursday, April 12 at the Union Hall between shifts to discuss plans for this year’s Union Picnic. Topics of discussion will include the date of the picnic – which is complicated by the 4-week shutdown at the end of this summer – and the location (either Rotary Park or Quail Ridge). All members are welcome to provide their input.

From the Detroit News: GM will bring its redesigned midsize truck to the U.S. market after it launches all-new versions of its full-size pickups next year, GM North America President Mark Reuss told The Detroit News on Wednesday at the New York auto show. Reuss said the midsize truck, which may no longer be named the Colorado, will come immediately after the full-size truck redesigns come out in 2014. GM is working on a major redesign of its popular selling full-size pickups, the Chevrolet Silverado and GMC Sierra. Reuss also said that Chevrolet's all-new 2014 Impala will be targeted at both retail and fleet customers. More than half of Impala sales today are to fleet buyers. "The reason why we're selling a lot of fleet on the car we have is simply because it's an old car," he said. The all-new Impala, which will be built beginning in early 2013 at both GM's Detroit-Hamtramck plant and in Oshawa, Ontario, looks more expensive than it really is but will be affordable, Reuss said. He confirmed the price will be higher than today's model, which starts at $25,760. But he declined to provide specifics. Reuss also confirmed the Buick LaCrosse sedan will get a major refresh. The LaCrosse was last enhanced for the 2010 model year.
•    From the Detroit Free Press: The public is far more supportive of the auto industry bailouts than the government’s decision to bail out distressed financial giants in 2009, according to a Harris poll released this morning. About 45% of those polled said the federal government’s decision to extend more than $77 billion in emergency loans and bankruptcy financing to General Motors and Chrysler in 2009 “helped” the economy, according to the online poll conducted by market research firm Harris Interactive between March 12 and 19. Harris surveyed 2,451 adults and found that about 29% of Americans say the auto bailouts “hurt” the economy. About 5% were unsure. The bailouts have generated fierce debate in the presidential campaign. President Barack Obama has cited the auto industry’s return to profitability and hiring as proof of the bailouts’ success. Republican contenders, led by likely nominee Mitt Romney, have criticized the bailouts. “These findings suggest that the 2008 and 2009 bailouts may provide some useful political ammunition in the presidential and congressional election campaigns,” Harris said in a statement. Some 23% of Americans say the bank bailouts helped the economy, while 48% said the bailouts hurt the economy and 6% were unsure, according to the poll. About 15% of Americans said insurance industry bailouts helped the economy, while 42% said they hurt and 9% were unsure.

You only get what you are willing to accept
By Bob King

We must not be willing to accept relentless and unconscionable cuts in funding for K-12 education. For our children, these budget cuts have resulted in crumbling schools, skyrocketing class sizes and teachers being denied the support they need to do their best.

We must not be willing to accept workers being told we cannot afford decent wages, health care and pensions because we are giving more and more tax breaks to the wealthiest and already extremely profitable corporations.

We must not be willing to accept banks, bailed out with our tax dollars, foreclosing on hardworking Americans who are out of work or working for far less because of the financial crisis these banks created.

We must not be willing to accept one in four American children living in poverty and hunger.

There are so many more examples of the growing injustice in America and, sadly, this is no accident. It is a result of rampant greed — the deliberate manipulation of our democracy and economy by a tiny minority in the 1 percent who amass ever more wealth and power at our expense.

We are at a crossroads as a country. We have a choice to make: greater wealth for a few or opportunity for many; tax breaks for the richest or a fair shot for the rest of us; a government that can be bought by the highest bidder or a democracy that is truly of the people, by the people and for the people. The choice is in our hands. We must not be complicit with the suffering in our neighborhoods and communities for another year. We must come together to rebuild a fair America for all.

I know great change is possible. We inherited a great American history of everyday people standing up for their own dignity, freedom, and self-determination, shaping our direction as a country by people like the seamstress in Alabama who launched a bus boycott; the farmers in New England and Virginia who imagined we could be a free nation; the workers in Flint who occupied their plant to win collective bargaining rights; the farm workers in California who liberated our fields; the women in New York who dreamed they could one day speak with equal voice; the mother who stood up in Love Canal to stop the poisoning of her community; and the students who risked their lives during Freedom Summer to register voters.

In the last year alone, we watched people of conscience in Wisconsin stand for the rights of workers. We were inspired by Occupy Wall Street to stand with the 99 percent. We will rise this spring, because we do hold these truths to be self-evident — that all men and women are created equal, that we are endowed by our Creator with certain unalienable rights, among which are life, liberty and the pursuit of happiness.

We invite everyone who is unwilling to accept the growing injustice and inequality in America to join us in the 99 percent spring initiative. If you want to join with us to rebuild a fair economy for all, visit www.spring99.com for details on times and locations for this great initiative.

Will you join us April 9-15 to stand with the 99 percent for America?

Tuesday, April 3, 2012

State of the Union April 3, 2012

April 3, 2012 online at www.uawlocal2250.com

From Chairman Mike Bullock: Negotiations have been finalized and I have signed off to bring in temporary workers for vacation coverage. They will be hired as soon as possible. There will also be some temporary workers hired to cover the anticipated return of Spring Hill employees to their home plant in June. The language dealing with the conversion of temporary employees to permanent status has been changed. Now, “conversion of temps to regular hire will be completed on a ‘first in, first in’ basis (first in to temporary assignment, first in to regular employment) considering their last continuous date of temporary hire.” In case of same seniority date, GMIN will be used as the tiebreaker. This now places the emphasis on seniority. I expect that after exhausting national hire, some of the temps that get hired to replace Spring Hill employees will become permanent. Also, the reason for the shorter line time on first shift today is due to Missouri Statute 115.639, which mandates that “Any person entitled to vote at any election held within this state shall, on the day of such election, be entitled to absent himself from any services or employment in which he is then engaged or employed, for a period of three hours between the time of opening and the time of closing the polls for the purpose of voting”. The polls are open from 6 am to 7 pm. Please take the time to vote. Finally, tomorrow is a VR blackout day and the holiday pay qualifying day and Monday, April 9 is a VR blackout day.

From the Chaplaincy Committee: There will be a Resurrection Day Celebration on Wednesday, April 4 at lunch time on both 1st and 2ndshift. The 1st shift services will be held at the Pre-Trim Chapel at column S-40 and the 2nd shift services will be at the Chassis Chapel at column C-42. All are welcome.

From Community Services: Thanks to everyone who donated their time and money to make Easter Baskets this year. A total of 172 baskets were put together and delivered to the homeless and shelters. You definitely helped make a difference in less fortunate children’s lives this Easter!

From the AP: The United Auto Workers union on Wednesday said its president, Bob King, had been appointed to the supervisory board of Opel AG, General Motors's loss-making German unit. King was appointed by IG Metall, the German's metalworkers union, to serve as a labor representative on Opel's supervisory board, UAW spokeswoman Michele Martin told AFP. The appointment takes effect on June 1. King's presence on the board was quietly promoted by Opel's parent General Motors, which had worked closely with King during a sweeping restructuring of GM in 2009 and 2010.

From Reuters: The United Auto Workers added members for a second straight year in 2011 despite its failure to organize U.S. auto plants operated by foreign automakers, a goal that remains at the heart of the UAW's longterm survival strategy. UAW membership increased by 4,107, or 1 percent, to 380,719 last year as Detroit's three automakers added jobs amid a 10 percent increase in U.S. auto sales, the UAW's annual financial filing with the U.S. Labor Department shows. Still, membership is just a quarter of the union's peak size in 1979, when it boasted nearly 1.5 million members. The Center for Automotive Research projects that by 2015, General Motors Co, Ford Motor Co and Chrysler Group LLC will employ 201,000 in the United States, up 17 percent from 2010, but still short of 2008 levels. The UAW reported assets of $1.04 billion in 2011 and liabilities of $7.1 million. Cash receipts and disbursements both fell about 6 percent to roughly $258 million each.

General Motors Co. today reported total March sales of 231,052 vehicles in the United States, up 12 percent year over year. The monthly total includes a record 100,000 cars and crossovers that achieve an EPA-estimated 30 mpg highway rating or better. “The economic recovery and a deep bench of fuel-efficient cars and crossovers have been driving our sales for more than a year, but the combined impact has never been stronger than it was in March,” said Don Johnson, vice president, U.S. Sales Operations. “Since the last time fuel prices spiked, both the economy and GM’s product portfolio are undeniably stronger. We’re now strong across the board in cars, crossovers and trucks.” Total GM passenger car sales increased 22 percent, with small and compact car sales up a combined 62 percent. Compact crossover sales were up 47 percent and mid-size car sales were up 38 percent. Full-size pickup sales were up 14 percent. The Chevrolet brand increased its sales 17 percent year over year, and every Chevrolet car line was up. Sales of the Sonic have increased steadily since it launched in August 2011, with March reaching 8,251 vehicles. Volt sales of 2,289 were 50 percent higher than December 2011, which had been the vehicle’s best month since launch. Cruze deliveries of 21,607 marked the car’s seventh month of sales exceeding 20,000 units and its seventh consecutive month of higher year-over-year sales. Other March highlights include a 12 percent year-over-year increase in GMC sales driven by strong Sierra and Terrain results, a 34 percent increase in Chevrolet Equinox sales, a 15 percent increase in Cadillac CTS sales, and a very strong month for the new Buick Verano, with sales of 2,497 units. The company’s retail deliveries increased 14 percent compared with March 2011 and accounted for 74 percent of GM sales. Deliveries to fleets increased 6 percent. Van sales were 7,952, up 11.2% over last March. At the New York International Auto Show this week, the company will unveil five new or redesigned vehicles, including 2013 Chevrolet Traverse, Cadillac SRX, Buick Enclave and GMC Terrain Denali crossovers, as well as the all-new 2014 Chevrolet Impala sedan. By the end of 2012, GM will have all-new or redesigned cars and crossovers in segments that represent 60 percent of the retail light vehicle industry.