Thursday, August 29, 2013

State of the Union August 29, 2013

August 29, 2013 online at www.uawlocal2250.com

It is unfortunate that we are working extended overtime hours to make up for the lost production from the 12-hour breakdown in trim Tuesday. However, these hours will eliminate the need to work this Saturday and ruin the holiday weekend. Management has the contractual right as defined in the National Agreement, page 239, par. 12, which covers emergencies. One of the definitions of an emergency is “single breakdowns of four hours or more”. It further states that these overtime hours are “limited to production lost as the result of the single breakdowns”, which was 235 units. At the start of first shift today, the plant still needed to make up 143 more units, having made up 92 yesterday. On a related note, the Union and management have had discussions about ways to equalize overtime between the shifts.

Reminder: Friday, Aug. 30 is a VR blackout day. Tuesday, Sept. 3 is a VR blackout day and a holiday pay qualifying day.

More than 100 years after the first Labor Day observance, there is still some doubt as to who first proposed the holiday for workers. Some records show that Peter J. McGuire, general secretary of the Brotherhood of Carpenters and Joiners and a cofounder of the American Federation of Labor, was first in suggesting a day to honor those "who from rude nature have delved and carved all the grandeur we behold." But many believe that Matthew Maguire, a machinist, and later the secretary of Local 344 of the International Association of Machinists in Paterson, N.J., proposed the holiday in 1882 while serving as secretary of the Central Labor Union in New York. What is clear is that the Central Labor Union adopted a Labor Day proposal and appointed a committee to plan a demonstration and picnic. The first Labor Day holiday was celebrated on Tuesday, September 5, 1882, in New York City, in accordance with the plans of the Central Labor Union. The Central Labor Union held its second Labor Day holiday just a year later, on September 5, 1883. In 1884 the first Monday in September was selected as the holiday, as originally proposed, and the Central Labor Union urged similar organizations in other cities to follow the example of New York and celebrate a "workingmen's holiday" on that date. The idea spread with the growth of labor organizations, and in 1885 Labor Day was celebrated in many industrial centers of the country. The first governmental recognition came through municipal ordinances passed during 1885 and 1886. From them developed the movement to secure state legislation. The first state bill was introduced into the New York legislature, but the first to become law was passed by Oregon on February 21, 1887. During the year four more states — Colorado, Massachusetts, New Jersey, and New York — created the Labor Day holiday by legislative enactment. By the end of the decade Connecticut, Nebraska, and Pennsylvania had followed suit. By 1894, 23 other states had adopted the holiday in honor of workers, and on June 28 of that year, Congress passed an act making the first Monday in September of each year a legal holiday in the District of Columbia and the territories.

From Chairman Mike Bullock: Fifty years ago yesterday, one of the greatest speeches in American history was delivered by Dr. Martin Luther King Jr. in Washington DC. But there was another great speech delivered that day – by UAW President Walter Reuther:
Brother Randolph, fellow Americans and friends, I am here today with you because with you I share the view that the struggle for civil rights and the struggle for equal opportunity are not the struggle of Negro Americans alone, but a struggle in which every American must join. For 100 years the Negro people have searched for first-class citizenship and I believe that they cannot and should not wait until some distant tomorrow. They should demand freedom now – here and now. It is the responsibility of every American to share the impatience of the Negro American and we need to join together, to march together, and to work together until we bridge the moral gap between American democracy’s noble promises and its ugly practices in the field of civil rights. American democracy has been too long on pious platitudes, and too short on practical performance in this important area.
One of our problems is that we suffer from what I call too much high octane hypocrisy in America. There is a lot of noble talk about brotherhood; then some Americans drop the “brother” and keep the “hood.”
To me the civil rights question is a moral question which transcends partisan politics and this rally today should be the first step in a total effort to mobilize the moral conscience of America and to ask the people in Congress of both parties to rise above their partisan differences and enact civil rights legislation now. President Kennedy has offered a comprehensive but moderate bill. That bill is the first meaningful step. It needs to be strengthened; it needs FEPC and other stronger provisions. The job question is crucial because we will not solve the problems of education or housing, or public accommodations as long as millions of American Negroes are treated as second class economic citizens. As one American I take the position, if we can have full employment and full production for the negative ends of war, then why can’t we have a job for every American, seeking the pursuit of peace. And so our slogan has got to be “fair employment” – but fair employment within the framework of full employment so that every American can have a job. I am for civil rights as a matter of human decency, as a matter of common morality. But, I am also for civil rights because I believe that freedom is an indivisible value; that no one can be free unto himself. And when “Bull” Connor with his police dogs and fire hoses destroys freedom in Birmingham, he is destroying my freedom in Detroit.
Let us keep in mind since we are the strongest of the free nations of the world, since we cannot make our freedom secure excepting as we make freedom universal so all may enjoy its blessings, let us understand that we cannot defend freedom in Berlin so long as we deny freedom in Birmingham. This rally is not the end, it’s the beginning. It’s the beginning of a great moral crusade to arouse Americans to the unfinished work of democracy. The Congress has to act, and after they act, we have much work to do in the vineyards of modern democracy in every community. Men of good will must join together. Men of all races, creed and color and persuasion are motivated by the spirit of human brotherhood. We must search for answers in the light of reason through rational and responsible action. Because if we fail, the vacuum of our failure will be filled by the apostles of hatred, who will search in the dark of night, and reason will yield to riot, and brotherhood will yield to bitterness and bloodshed, and we will tear asunder the fabric of our American democracy.
So let this be the beginning of the crusade to mobilize the moral conscience of America so that we can win freedom and justice and equality and first-class citizenship for every American, not just certain Americans – not only in certain parts of America, but in every part of America – from Boston to Birmingham, from New York to New Orleans, and from Michigan to Mississippi. Thank You.

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

Tuesday, August 27, 2013

State of the Union August 27, 2013

August 27, 2013 online at www.uawlocal2250.com

This Thursday, Aug. 29 you are being asked to boycott fast food restaurants in support of their workers who are striking for living wages. Organizers are expecting that up to 35 major cities will see protests against the fast food industry, including St. Louis and Kansas City. Show your support for these workers and take a break from fast food this Thursday.

The St. Louis Business Journal is conducting a poll regarding right-to-work for the state of Missouri. We encourage you to vote in this poll. Go to: http://www.bizjournals.com/stlouis/and scroll down and click on the “Business Pulse Survey” with the question, “Should Missouri pass a Right to Work law letting workers decide whether or not to join or financially support a union?”

Reminder: The United Way kickoff is tomorrow in the cafeteria from 8 am to noon and 7 pm to 9:30 pm. Once again, there will be several agencies looking for your help. Here are some quick facts to consider: United Way helps 1 in 3 local people; United Way funds more than 170 local agencies; United Way helps 16 counties in Missouri and Illinois. As you’ve seen on the video, peoples’ lives can be changed with your help.

Hyundai Motor Co.'s South Korean workers plan to extend a partial strike by another two days after the latest round of wage talks failed to produce an agreement, a union spokesman said today. More than 40,000 unionized workers plan to idle the automaker's South Korean plants for eight hours on Wednesday and on Friday, the spokesman said. The workers had already staged a partial strike on Monday and had stopped work for three days last week. Hyundai labor unions have said they're demanding a pay increase of 130,498 won ($117) a month and for 30 percent of net income to be distributed to workers. Last year Hyundai’s net income was $8.1 billion, which would generate payments of over $60,000 per worker if they are successful in getting that 30 percent agreement.

Automotive News looked at future product plans for both Nissan and Toyota this week. No mention of the Nissan NV full-size van. The smaller NV200 is forecast for sales of more than 20,000 a year. New in the 2015-16 model time frame are a lithium ion battery-powered electric version and a gasoline-electric hybrid version. The midsize pickup Nissan Frontier will be “freshened” in 2015. The Toyota Tacoma mid-size pickup “soldiers on until a late 2014 redesign is needed for safety and emissions requirements.”

Consumer Reports magazine rates the 2014 Chevrolet Impala as the most improved redesigned or re-engineered vehicle it has recently tested. The Impala’s overall test score skyrocketed 32 points from 63 in previous testing to 95 on a 100-point scale. The Hyundai Accent hatchback, up 20 points; Audi A6, up 14; Land Rover LR4, up 13; and Mazda6, up 12, round out the magazine’s five most improved redesigned vehicles. Scores are based on more than 50 road tests and evaluations, including emergency handling, fuel economy, interior, braking, control and acceleration. Vehicles are tested on a set course to determine overall performance. The Impala went from being a “dated and inferior rental car option to contemporary, roomy, comfortable and enjoyable to drive. In other words, one of the very best cars on the road today,” Consumer Reports said in a statement. The magazine says it tests about 80 new vehicles a year and in some cases it has been several years since a vehicle was last tested.

From the Detroit Free Press: According to a study by AutoTrader.com. released today at an Automotive Press Association luncheon in Detroit, only 38% of millennials say it’s important to buy a car that was assembled in the U.S. That compares with 53% of generation X and 60% of baby boomers, according to AutoTrader. “It’s important for domestics not to hang their hats on ‘Made in the USA’ to the same extent they did in the past,” said Isabelle Helms, senior director of research and marketing analytics for AutoTrader.com. But that doesn’t mean millennials, defined by AutoTrader as ages 16 to 32, aren’t interested in vehicles made by U.S.-based car companies. General Motors’ Chevrolet brand and Ford have swiped millennial market share from Japanese manufacturers in recent years, according to Edmunds.com and Maritz Research.
That’s because millennials aren’t loyal to auto brands. Only 30% said they were likely to purchase the same brand for their next vehicle, compared with 41% for generation X and 47% for baby boomers. Reaching young people is important because millennials will represent 40% of car purchases by 2020, Helms said. About 48% of millenials said it’s important for their vehicle to reflect their personality, compared with 38% of generation X and 34% of baby boomers, AutoTrader found.
Young millennials said the brands that most fit their personality are, in order, Audi, Honda, Mercedes, BMW and Toyota. Older Millennials picked Audi, Mercedes, Chevrolet, Honda and Toyota. But when actually purchasing a vehicle, the top five brands young millennials considered were Honda, Toyota, Chevrolet, Ford and BMW, while older millennials considered Chevrolet, Ford, Honda, Toyota and Nissan. Problematic for automakers is that many young car shoppers don’t like the current process for buying a vehicle.
About 56% said they would prefer to avoid interacting with a salesperson, compared with 49% of generation X and 37% of baby boomers. Only 47% considered their dealer to be trustworthy, compared with 64% of ages 35 and up. “If they walk through your front door, they know what they want,” said Chevrolet Sonic marketing manger Dora Nowicki. “They want to see how you are going to treat them.” Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Wednesday, August 21, 2013

State of the Union August 21, 2013

August 21, 2013 online at www.uawlocal2250.com

From Chairman Mike Bullock: The United Way kickoff campaign is next Wednesday and a dozen agencies will be in the cafeteria soliciting our help. Among those agencies are American Red Cross, Turning Point, YMCA, St. Louis area foodbank and Girls Incorporated of St. Louis. I want to encourage everyone to speak with the representatives of these agencies and seriously consider supporting them through the United Way. More information will be coming up in the next few days.
Union meeting is today 15 minutes after the longest first shift line time.

Reminder: Production for this Saturday, Aug. 24 has been canceled and is being rescheduled for Saturday, Sept. 14. To clarify, any time over 8 hours on a Saturday is voluntary. Also, 2nd shift line time will change to 5:00 pm next Monday, Aug. 26.

Teams are still needed for Women’s Committee annual golf tournament Saturday, Sept. 7 at Country Lake golf course in Warrenton. It will be a three person scramble with a 1 pm shotgun start. Cost is $70 per person or $210 a team and includes food and beer after the tournament. Prize money will go to the top 3 places in 3 flights and there will be longest drive and closest to the pin prizes as well as an optional skin game. Proceeds will benefit ALIVE (Alternative to Living in Violent Environment). Entry forms are available at the entrances or from committee members. This tournament benefits a great cause and is always a good time so make plans to play. Thanks in advance for your support.

From the Wall Street Journal: More U.S. auto plants are cranking out cars around the clock like never before. As demand for automobiles nearly returns to pre-recession levels, automakers are ramping up production. Ford Motor trains new hires on a simulated factory floor as the company staffs up for expanded factory hours. Nearly 40% of car factories in North America now operate on work schedules that push production well past 80 hours a week, compared with 11% in 2008, said Ron Harbour, a senior partner with the Oliver Wyman Inc. management consulting firm. "There has never been a time in the U.S. industry that we've had this high a level of capacity utilization," he said. The Detroit auto makers closed 27 factories following the financial crisis as GM and Chrysler went through government-led bankruptcies. But U.S. vehicle sales have roared back from the trough of 10.4 million in 2009. In July, U.S. car and light truck sales ran at an annualized pace of 15.8 million, up from a 14.2 million pace a year ago. Auto sales hit a peak rate of 17.5 million in 2005. The industry had 925,700 employees that year. Last year, the workforce stood at 647,600. GM is running six of its U.S. plants through the night on three-shift schedules. Last year, GM produced 3.24 million vehicles in North America compared with 4.52 million in 2007—when it had five more assembly factories.

A Call For America – Bob King, UAW President

It's been 50 years since the March on Washington and though much has changed, what remains the same is the call for America to focus on fairness, racial parity, equality and labor rights for all.
The 1963 March on Washington is remembered greatly for the works and words of Dr. Martin Luther King Jr. and his famous "I Have a Dream" speech. Behind the scenes labor figured prominently. The UAW helped fund and organize the march and put political muscle behind the legislative and policy goals that changed a nation. UAW President Walter Reuther understood the similarities of the two movements. "The jobs question is crucial," Reuther told those gathered between the Lincoln Memorial and the Washington Monument that day. "We will not solve education, or housing, or public accommodations as long as millions of Americans, Negroes, are treated as second-class citizens."
Charles Euchner, in his people's history of the March on Washington, describes two African-American women listening as Reuther rallied the crowd. "Who is that white man?" asked one. The other replied: "Don't you know him? That's Walter Reuther. He's the white Martin Luther King."
Immediately after the march, its leaders visited the White House to meet with President John Kennedy. After being welcomed in the Cabinet Room, King's first words were to ask Kennedy if he had heard Reuther's excellent speech earlier.
The friendship and mutual goals cemented a powerful relationship. A. Philip Randolph, leader of the Brotherhood of Sleeping Car Porters union and the lone black member of the AFL-CIO executive council, sought Reuther's help in advocating the Washington march. Reuther strongly urged the AFL-CIO leader George Meany, to throw the federation's support behind the march, but Meany refused. The UAW chartered trains, buses, and planes to get workers to the event and more. In the 1950s, the UAW donated money for the Montgomery Bus Boycott, and in 1961, paid bail for unjustly arrested Freedom Riders.
Before the march, massive civil disobedience in Birmingham, Ala. resulted in vicious police attacks on demonstrators. More than 800 demonstrators were jailed. The UAW dispatched two officials to Alabama with $160,000 in bulging money belts to free the unfairly detained civil rights activists.
In 1961, King addressed the union's 25th anniversary convention in Detroit where he emphasized the similarities between the UAW's sit-down strikes in auto plants in 1936 with the lunch counter sit-ins waged in the South by black students.
"Perhaps few people can so well understand the problems of autoworkers and others in labor as Negroes themselves," King told the 5,700 UAW delegates and guests, "because we built a cotton economy for 300 years as slaves on which the nation grew powerful, and we still lack the most elementary rights of citizens and workers."
On June 23, 1963, when King previewed his "I Have a Dream" speech in Detroit, more than 125,000 people gathered at the urging of the Trade Union Leadership Council for the "Walk to Freedom." During Washington march, King sounded the call for jobs and a living wage. Black unemployment in 1963 was 10.9 percent -- some 2.2 times the white jobless rate of 5.0 percent. Sadly, African-Americans suffered a similar unemployment rate of 14.0 percent in 2012, compared to a 6.6 percent rate for whites.
With joblessness still far too high, the income gap between rich and everyone else widening, racism and discrimination still festering and cities such as Detroit in the throes of bankruptcy, the words of King and Reutherstill call us to fight harder to achieve the unfinished agenda of civil rights and labor.

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

Wednesday, August 14, 2013

State of the Union August 14, 2013

From Chairman Mike Bullock: The following guests from Fairfax Assembly will be in the plant Wednesday and Thursday to review AA press Stamping operations with our team. Welcome to Wentzville.

Jorge Rodriguez Shop Chairman
Billy Gay First Shift Zone
Omar Williams Second Shift Zone
Johnny McIntire Third Shift Zone
Ben Miller Skilled Trades Rep.
Terry Hawkins Diemaker
Dennis Scott Diemaker
Bob Fenzel Diemaker
Matt Turner Electrician
Mark Antes Electrician
Phil McKindra Production- Core Team

Management has informed us that beginning Monday, August 26, all second shift production employees and body shop skilled trades will be scheduled to report to work at 5 p.m. (Stamping and the other skilled trades employees on second shift will continue with their current starting times.) In addition full operations (production and trades) are scheduled for all shifts on Saturday, August 24.
Things are getting interesting in South Korea. First, Reuters reports that GM is gradually cutting its presence in South Korea after mounting labor costs and militant unionism triggered a rethink of its reliance on the country for a fifth of its global production, according to three individuals familiar with GM's thinking. The country accounts for slightly more than 20 percent of GM's annual global production of some 9.5 million cars. More than 80 percent of those GM cars made in the country are exported. The sources, all privy to high-level discussions inside GM about the future of its South Korean strategy, said labor costs had risen sharply over the past decade, turning the country into a high-cost base -- a problem exacerbated by the South Korean currency's relative strength over the past year. GM Korea's labor union disagrees and believes GM's talk of reducing its presence is a bluff designed to intimidate workers against seeking further pay hikes. Last month, GM Korea reached an annual wage settlement that included bonuses of 10 million won ($9,000) per member, according to the GM Korea labor union. "Our view is that management is making threats to pressure us and make us cooperate," union spokesman Choi Jong-hak said. (continued on back)
And the AP reports that labor unions at Hyundai Motor Co. and its affiliate Kia Motors Corp. said workers voted to strike after talks with management for increased pay and benefits collapsed. Hyundai union spokesman Kwon Oh-il said Wednesday that management refused all demands by the union during three months of annual talks. The union wants workers to get improved benefits, including 10 million won ($8,900) support to help children of unionized workers seek jobs if they don’t go to college, a 130,000 won ($116) increase in monthly base income, bigger bonuses and full reimbursement of medical expenses if workers are diagnosed with cancer. Kwon said 46,000 Hyundai workers will determine the extent of the strike early next week. Kia’s 30,000 workers are taking a similar step. Hyundai said it had offered to resume talks with the union on Friday.

Excerpts from an interview with UAW President Bob King regarding Detroit’s and General Motors’ bankruptcy:
Detroit's current woes are the polar opposite of the prosperity it enjoyed in 1955, when Detroit-based General Motors became the world’s first company to earn more than $1 billion in a single year. At that time, and for two decades afterward, auto employees (along with workers in Detroit’s other industries, who were feeding off the success of the auto boom) were pretty much guaranteed a comfortable, middle-class living followed by a secure retirement. How does the memory of those golden years affect the way the UAW is responding to challenges today?
UAW retirees are saddened by the loss of that era. They want to know what we are going to do to recapture that time. We tell them we appreciate all the achievements and the sacrifices they have made. But we also tell them times have changed. Global competition means we have to drum up new strategies and tactics. We are still committed to creating the best product for consumers. But we have to think outside of the old box, which means extending our reach beyond the memory of the boom and also beyond Detroit. If our industry is going to survive, our first priority has to be building collaborative relationships. We have to do creative problem solving with auto companies not just here, but everywhere. Within the U.S., we have to work to bring back jobs that have been outsourced or sent overseas. And across the globe, we have to build worldwide networks of autoworkers. We need to share best practices. We need to bring unions together to build closer collaborations and strategize. If we see something that is unfair happening in another country, we have to speak up and intervene. Solidarity is the only way we are going to keep our industry strong. That’s how we’re going to continue regaining the jobs that the U.S. auto industry and Detroit have claimed back in recent years.
How has the UAW helped the industry bounce back from the 1980s, when the Big Three auto companies (General Motors, Ford and Chrysler) started implementing a series of layoffs that have, for the moment, ended?
Layoffs are always terrible. But we haven’t had massive ones since 2008-2009. The Big Three companies are not only hiring now, but they’re planning to expand their operations in the U.S. We’re coming out of the woods with this because we worked—and worked hard—to sit down with all parties and negotiate a restructuring of the entire auto industry. [Editor's note: In exchange for $25 billion in government loans, the Big Three recently agreed to “equip or establish facilities to produce ‘advanced technology vehicles’ that would meet certain emissions and fuel economy standards”]. Just a few years ago, laid-off autoworkers would go sit at the bar and moan about how little they had to do on a given day. But now, they are bragging to their friends and families about the new jobs for which they’ve been hired, like manufacturing the Detroit-made Chevy Volt [a hybrid car that was introduced in 2011 and that is now rated the most fuel-efficient vehicle in the U.S.]. If we restructure the city just like we restructured the auto industry, there’s hope that Detroit, too, can see a turnaround. Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Friday, August 9, 2013

State of the Union August 9 2013

August 9, 2013 online at www.uawlocal2250.com
  • The warrants for GM stock that the UAW VEBA fund has decided to sell will be priced at $3.85 and will net $171 million for the fund if all 45.4 million are sold. These warrants are completely separate from the 140.2 million shares of GM common stock that the VEBA holds (current value of $5.05 billion).
  • From Wards Auto: The United Auto Workers has set up an organizing committee at the TeslaMotors plant in Fremont, CA, but says it is meeting with resistance from management despite CEO Elon Musk’s pledge to let the workers decide whether they want union representation. UAW President Bob King tells WardsAutohis group is actively looking to recruit workers at the Teslafactory, which is building 400 battery-electric vehicles each week. The plant employs about 2,000 people, but not all are production workers the union is targeting, he says. "It's growing fast," King says of the support for the committee. Establishing a pro-union committee is only the first step in any UAW organizing drive. The UAW has met with Musk, and King says the Tesla founder was “very open and said he would respect what the workers wanted. But his operating management has done the opposite. The operating management has taken a very anti-union stance. “We're trying to go back to Elon and say, ‛You have credibility with us. You're doing a great job from many different perspectives. We need you to really intervene so workers have the right to exercise their right to join a union,’” King says at UAW headquarters in Detroit. Tesla spokeswoman Shanna Hendricks declines to comment on the UAW activity in an email to WardsAuto.
  • Chrysler's Ram truck division has officially begun production of its all-new ProMastervan at the automaker's production facility in Coahuilla, Mexico (better known as the Saltillo plant). To refresh your memory, the van comes in three different wheelbases(118”, 136”, 159”) and two roof heights (65.4” & 85.5”). It is front wheel drive and the base engine for all models is a V6 and the smallest version starts at $29,625. The largest version has 530 cubic feet of cargo space (ours tops out at 314) and starts at $36,150. The only other engine offered is an inline 4-cylinder turbo diesel with 174 hp and 295 lb.ft. of torque (our diesel offers 260 hp and 525 lb.ft. of torque). Maximum gvwr for the cargo van is 9350 lbs vs. 9900 for ours. The Ram can tow up to 5100 lbs. while ours can pull 10,000 lbs. So we have 2 very different takes on a full-size van chasing the same customers.
  • From Bloomberg: Ken Lewenza is stepping down as president of the Canadian Auto Workers as the union prepares to join with the Communications, Energy and Paperworkers Union of Canada to form a group representing more than 300,000 workers. Lewenza, who has headed the CAW since 2008, and Dave Coles, his CEP counterpart, said at a press conference today in Toronto that they are "passing the torch." The CAW and the CEP will hold a founding convention in Toronto on Aug. 30 to elect a leadership team for the combined Unifor union. Lewenza said he has no plans to run for head of the new union.
  • Toyota has announced it will conduct a voluntary safety recall involving approximately 342,000 Toyota Tacoma Access Cab vehicles produced from 2004 to 2011. In the affected pickup trucks, screws that attach the seatbelt pre-tensioner to the seatbelt retractor inside the assembly (for both driver and passenger) can work itself loose over time due to repeated, hard door slams (which apparently is necessary to get the door to close). If the screws loosen completely, the seatbelt pre-tensioner and the retractor spring cover could detach, which can affect retractor and pre-tensioner performance. This could cause harm to the driver or passenger during an accident.
  • Here are some more comments regarding yesterday’s Colorado/Canyon teaser shot and comments from GM CFO Dan Ammann:
  • Tom Libby, an analyst for the North American market with Polk, said the midsize truck segment has continued to decline since GM made its decision to build the new trucks. He said GM may take some share from Toyota in the segment, but he doesn’t think GM’s two new midsize trucks will be able to overtake the Tacoma. “I don’t see them redefining the segment,” Libby told reporters. “I see them being very competitive. Ford will be watching. If the Colorado and Canyon do well without hurting sales of the Silverado and Sierra, Ford will have to reassess,” Libby said.
  • In the Wall Street Journal: The Colorado and Canyon will share some components with others trucks the auto maker sells in Brazil and Thailand. However, they won't be on the same underpinnings which appears to run counterintuitive to GM's aim to control costs by building more vehicles on fewer global platforms. "The art of this is how do you have maximum commonality, whether it's a truck or anything else while at the same time delivering the requirements that different customers have in different markets," Mr. Ammann said. "Having the same car everywhere in the world is not the right answer. Being able to deliver on the requirements that satisfy the customer in each marketplace using as many common components, common architecture and common modules as possible is the optimization between giving the customers what they want and maximizing the scale leverage we have around the world." He added that the auto maker has been successful on using global platforms on more of its cars rather than pickup trucks. "Our goal is to meet the needs of the customers here in North America and we think they are different than the customers in places like Thailand," Mr. Ammann said.

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

Tuesday, August 6, 2013

State of the Union August 6, 2013

August 6, 2013 online at www.uawlocal2250.com

There will be a Women’s Committee meeting this Thursday, August 8 between the shifts at the Union Hall. Speaking of the Women’s committee, they will be hosting their annual golf tournament Saturday, Sept. 7 at Country Lake golf course in Warrenton. It will be a three person scramble with a 1 pm shotgun start. Cost is $70 per person or $210 a team and includes food and beer after the tournament. Prize money will go to the top 3 places in 3 flights and there will be longest drive and closest to the pin prizes as well as an optional skin game. Proceeds will benefit ALIVE (Alternative to Living in Violent Environment). Entry forms are available at the entrances or from committee members. This tournament benefits a great cause and is always a good time so make plans to play. Thanks in advance for your support.

One other project of the Women’s Committee that took place while the plant was shut down was the Habitat House home building project. Fifty people worked for two hot days putting up roof sheeting, outside insulation and house wrap, setting windows and blocking drywall to build houses for two deserving families. Thanks to everyone who participated. A check will be given to the charity at a later date.

The United Auto Workers trust that pays for retired auto workers’ health care will conduct a secondary public offering of all of its General Motors Co. stock warrants on Tuesday. GM confirmed the offering Monday. The UAW trust is offering up to 45,454,545 warrants to purchase GM stock. Each warrant represents the right to buy one share of GM’s common stock at an exercise price of $42.31 per share. The warrants expire Dec. 31, 2015.
Bidding opens at $3.50 per warrant to a maximum of $7.50 per warrant. If all of the warrants are sold at the maximum bid, the offering would raise $340.9 million for the trust. GM will not get any proceeds from the sale. Deutsche Bank Securities Inc. will conduct the offering. The trust currently administers health care benefits to 536,000 GM hourly retirees and their families. The trust also pays benefits for 316,000 retirees at Ford Motor Co. and Chrysler Group.
The trust reported $52.1 billion in assets at the end of 2011. It paid out $4.37 billion in benefits that year, including $2.6 billion for GM retirees. The offering won’t change GM’s ownership structure. The trust currently owns about 10 percent of the company, or 140 million shares. GM shares are up 83 percent from this time last year, and have risen 27 percent from Jan. 1.
Warrants are a way for investors to gain access to a company’s shares without spending the amount it would require to buy the shares outright. But there is a risk that the shares won’t reach the exercise price and the warrants will expire.

General Motors today increased to $350 million planned spending for new vehicles to be produced at its Spring Hill assembly plant. The new investment adds $167 million to a previously announced $183 million pledge and is expected to create or retain about 1,800 jobs. The new investment is for two projects:
  • An additional $40 million added to the earlier announced $183 million investment to support a future mid-size vehicle program, bringing the new total investment to $223 million. This program is expected to create or retain approximately 1,000 jobs.
  • A second mid-size vehicle program with an investment of $127 million that will create or retain approximately 800 jobs.

Timing and product specifications for both programs will be shared closer to start-of-production. The new programs will add to existing manufacturing operations at the site that include vehicle assembly, stamping, engine and component parts production. Located 40 miles south of Nashville, GM Spring Hill Manufacturing operates as a flexible-assembly plant, capable of building a variety of products on a range of platforms. The facility is designed to supplement production for plants being retooled for new products or add production to meet sales spikes in real time.
Chevrolet Equinox production began at the site in the third quarter of 2012 to meet growing consumer demand and support GM’s Canada operations. “I would like to thank General Motors for its confidence that the highly skilled members of UAW Local 1853 can successfully build mid-size vehicles with high quality here at Spring Hill,” said UAW Vice President Joe Ashton, who directs the union’s GM Department. “The hard work and dedication of our members once again proves that we can competitively manufacture vehicles for the future right here in Tennessee.”

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