Tuesday, August 14, 2012

State of the Union August 14, 2012

August 14, 2012 online at www.uawlocal2250.com

Tickets for a 50-50 raffle to support the SOS ride this Saturday will go on sale Thursday. Trustee Wanda Richard will be in the cafeteria at first break and then on the shop floor selling tickets on first shift and Kim Davis will be selling tickets on 2nd shift.

General Motors is recalling more than 10,000 full-size vans in the U.S. and Canada because the fuel filler pipes can rust, leak and cause fires. The recall affects Chevrolet Express and GMC Savana vans from the 2003 and 2004 model years with left-side cargo doors. It covers vans sold in 20 states, Washington, D.C., and in Canada, where salt and chemicals are used to clear snow from roads. GM said Tuesday salt and chemicals can get trapped in a conduit that covers the fuel filler pipe and cause corrosion. Gasoline may leak and cause a fire. The company said it doesn’t know of any fires or injuries from the problem. GM dealers will fix the problem free of charge.
Dealers are expected to be notified in October when parts become available. GM said in documents filed with the National Highway Traffic Safety Administration that owners already have been sent letters detailing special repair coverage for the problem. Owners know to take their vans to dealers if a leak develops. The vans were sold in all 50 states, but the recall affects only those sold or registered in Canada and the following states: Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia and Wisconsin. Owners with questions can call Chevrolet at (866) 694-6546 and GMC at (866) 996-9463. (The plant has been aware of this issue and a service bulletin had been issued to dealerships to correct the problem if it had occurred.)

The GM Korea Union has a tentative wage deal. Union members will vote on the tentative agreement on Thursday and Friday, union spokesman Choi Jong-hak told Dow Jones Newswires. The union agreed to a basic pay increase of 92,000 Korean won ($82) per person, performance-based bonus worth KRW5 million (about $4500) to be paid at the end of the year, and a lump-sum incentive payment of KRW3 million (about $2700), GM Korea spokesman Park Hae-ho said. On the issue of ending night shifts, the two parties have agreed to decide on the time frame for the new shift system in the first half of next year, Mr. Choi said.

Gov. Jay Nixon and the governors of Michigan, Tennessee and Illinois have founded the National Governors Auto Caucus to grow the auto industry and its suppliers, Gov. Nixon announced. The bi-partisan caucus, composed of Gov. Nixon, Gov. Richard Snyder (R-MI), Gov. Bill Haslam (R-TN), and Gov. Pat Quinn (D-IL), was introduced at an annual conference sponsored by the Center for Automotive Research in Traverse City, Michigan. "I look forward working with fellow Governors and experts in the industry to seek new ways to continue the recent growth in automotive manufacturing," said Gov. Nixon. "This partnership will help to strengthen the nation's economy and create more jobs in each of our states." A significant player in the U.S. economy, the automotive industry employs eight million people in manufacturing, suppliers and dealers. This industry generates $500 billion in income for its employees and $70 billion in tax revenues. Missouri's automotive industry comprises 5.3 percent of the state labor force with 190,000 employees throughout the state.
In Missouri, the growing automotive supply chain was bolstered by recent announcements by Ford and General Motors of expansion to their manufacturing facilities. Last year, Ford announced a $1.1 billion investment in its Kansas City Assembly Plant, adding a second manufacturing line for the F-150 pickup truck in 2012 and bringing in a new product, the Transit commercial van, in 2013-an investment that will create 1,600 new jobs. Earlier this year, GM broke ground on a $380 million expansion at its Wentzville plant, adding 1,660 jobs and a new pickup line for the Chevy Colorado. "The rebirth of the American auto industry is happening right here in Missouri," Gov. Nixon said. "We have an unprecedented opportunity to create jobs by growing our network of automotive suppliers throughout the state. Already we've seen great progress with the new projects and expansions at Magna International, Johnson Controls, Spartan Light Metals, Bodine Aluminum, and TG USA. These are the types of new jobs we want to bring to every community across Missouri."

From the Detroit Free Press: The Canadian Auto Workers union expects to reach agreements with Detroit’s three automakers this fall without a work stoppage, CAW President Ken Lewenza said at the opening of bargaining in Toronto today. CAW contracts with General Motors, Ford and Chrysler expire at midnight Sept. 17. The CAW is usually serious about sticking to the deadline. Lewenza said it is too early to talk about the target. GM’s opening proposal expressed the importance of operations in Canada but called for changes to reduce hourly costs because Canada has become one of the most expensive places to build vehicles. The handshake opening with Chrysler was to occur late today and Ford follows on Wednesday. A big factor is the strength of the Canadian dollar, Lewenza said, something that cannot be bargained. And its high value is “unsustainable,” he said, so companies should not bargain a long-term agreement based on current rates which the union thinks is 20% overvalued. Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

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