State of the Union April 29, 2014

April 29, 2014 online at www.uawlocal2250.com
• This Saturday, May 3 is the Cinco De Mayo celebration at the Union Hall. Doors open at 6:30 pm with dinner at 7 pm. Music by the Hauser Band will run from 8 pm until midnight. Beer and setups will be provided. Come out to share some fun and fellowship.

• Today only – the Pre-Post Retirement class for 1st shift will run from 6 pm – 8 pm due to extended line times.

• The drawing for the VAP (overnight drive) program is complete. A small schedule is posted in the cafeteria where the drop box was. A larger schedule will be posted as soon as it is ready. Check the schedule to see if you were drawn and when you will have a vehicle. For the first weekend, beginning Friday, the winners are: John Hake, John Hartweck, Kevin Kamper, Bill Graves, Mike Wozniak, Ed Tichy, Paul Harvey and Jaymes Thomas. You will need to go to Pat at Suggestions to fill out your driver’s pass and get instructions. The sale of raffle tickets for the Memorial Day weekend will continue through next week. Proceeds will benefit Habitat for Humanity. Tickets are $5 apiece or 3 for $10 and available from Women’s Committee members, Suggestions, Kandi Kinsler, Personnel, Benefits and Wanda Richard in the cafeteria at lunch time.

• From Automotive News: It's never easy for a labor union to walk away from a fight, but for the UAW, surrender offered a way to salvage a long-term opportunity from the wreckage of Chattanooga. It was a sign that UAW President Bob King, who has favored strategy over bluster throughout his four-year tenure, is looking a few moves ahead in this chess match. By withdrawing the appeal, King aimed to drive home the message that the union is looking out for U.S. workers, not just its membership rolls. "It was going to be problematic for Volkswagen if the UAW continued with this appeal," said Erik Loomis, a labor historian at the University of Rhode Island who has written about the UAW campaign in Chattanooga. "The UAW wants to be seen as Volkswagen's friend, and Bob King seems to think that's going to be the ticket to ultimately organize the plant." Now that the appeal has been withdrawn, the onus for securing the crossover shifts to Tennessee. If the production order goes to Mexico instead of Chattanooga, state politicians, not the UAW, would be in line for the blame. The results from February's vote were certified last week, so the UAW must wait only a year to call a new vote. Even if it can't win a majority, it may explore other options, such as setting up a "minority union" that would represent its members only, rather than the plant's entire work force.

UAW observes Workers Memorial Day with zero fatalities
DETROIT – While mourning for so many workers who died in the U.S. last year, the UAW is thankful that none of its members died on the job in 2013. Each year, the UAW, along with the rest of the labor movement, observes Workers’ Memorial Day on April 28 to honor those workers who have died on the job, to acknowledge the suffering of their families and to recommit ourselves to fighting for safer workplaces.

“While we celebrate the fact that no UAW members died on the job in 2013, there are still more than 4,000 work-related deaths in the U.S. every year since 1970,” said UAW President Bob King. “Research shows that unions make the workplace safer by negotiating changes at the work site that prevent on-the-job accidents, injuries, and fatalities.”
The UAW has made important safety gains in many UAW contracts over the years. Examples include:

• requiring employers to recognize union health and safety representatives who speak out for the health and safety of our members and get management to correct hazards;
• identify health and safety issues and develop joint solutions;
• demanding joint union-management investigations of fatalities, serious injuries and near-misses to identify their causes and fix problems;
• establishing health and safety complaint and grievance procedures to address issues;
• recognizing an employee’s right to refuse dangerous assignments without retaliation or loss of pay;
• calling for safety review of equipment and materials before they enter into the workplace;
• offering training and technical assistance to local unions and their members.

The UAW and other unions help to make all workers safer by fighting to pass legislation that protects both union and nonunion workers on the job. Since OSHA’s passage in 1970, workplace fatalities decreased by more than 65 percent and occupational injury and illness rates have declined by 67 percent. At the same time, U.S. employment has almost doubled. In 1970, on average, about 38 workers were killed on the job each day. Today that number is down to 12.
“Virtually every safety and health protection on the books today is there because of working men and women who joined together in unions to win these protections,” said King. “This year the UAW is working hard for an improved OSHA standard to protect workers from deadly diseases of the lungs and other organs that result from exposure to silica dust. We are also demanding essential safety technology to prevent chemical disasters, such as the fertilizer explosion that happened in West Texas last April.
“The UAW believes all workers should be able to go to work and return home safely to their families at the end of the day. No worker should have to sacrifice life, limb or health to earn a day’s pay. And we’re going to keep fighting to make sure that workers come home to their families every day,” King said.

State of the Union April 25, 2014

April 25, 2014 online at www.uawlocal2250.com
• From Community Services: Thanks to everyone who donated their money or time to the March of Dimes/March for Babies gate drive. A grand total of $4611 was collected! • As you heard, GM announced financial results for the 1st quarter yesterday. What was essentially a very good quarter was undermined by the charges related to the recalls. Those charges totalled $1.3 billion and reduced North American earnings to $557 million, which equates to $500 in profit sharing. Looking at global operations, China produced a little over $600 million in profits and Europe lost around $100 million not counting a $200 million restructuring charge. South America is a money loser and currency devaluations in Venezuala cost GM over $400 million. GM Chief Financial Officer Chuck Stevens was optimistic that we would not see any more charges related to the recalls but could not rule any more out. On a positive note, GM increased average transaction prices by $2000 over the 1st quarter last year, and pickup transaction prices were up $5000. GM did, however, sacrifice market share by holding the line on incentives as US share dropped to 17% from 17.7% last year.

• General Motors Co. today filed the proxy statement for its 2014 annual meeting of stockholders with the U.S. Securities and Exchange Commission and announced the nomination of UAW Vice President Joe Ashton to its board of directors. Ashton, designated for nomination to the GM board by the UAW Retiree Medical Benefits Trust, or VEBA, plans to retire from his current position in June following the UAW constitutional convention. If elected, he will begin his board term in August. Steve Girsky, formerly GM vice chairman, was previously designated for nomination to the GM board by the VEBA Trust and has served as a director since the new company began operations in July 2009. GM’s board nominated him to remain a director. Ashton, who joined the UAW in 1969, has been a member of the UAW International staff since 1986, serving in a variety of leadership roles. Active in labor and civic affairs, he is executive vice president of the Pennsylvania AFL-CIO Executive Council, executive vice president of the New Jersey AFL-CIO and a former director of the Western New York Federal Reserve Bank. “Joe brings a wealth of knowledge from his work across many industries, especially his deep understanding how labor strategy can contribute to a company’s success,” said GM Chairman Tim Solso.

• For the second year in a row, General Motors dominates the “Made in America” Automotive Index produced by American University’s Kogod School of Business. GM’s Chevrolet Corvette Stingray tied for No. 1 and 17 other GM vehicles tied for places in the Top 10. In addition to the Stingray, seven other Chevrolets made the Top Ten including: Traverse, Equinox, Express, Malibu, Impala, Suburban and Tahoe. Other GM vehicles that ranked in the Top 10 were the GMC Acadia, Acadia Denali, Terrain, Savana and Yukon; Cadillac CTS, Escalade and ATS and Buick Enclave and LaCrosse (Express and Savana tied for 4th place). You would have to go down 29 spots before you found a foreign branded vehicle (Honda Odyssey minivan).

The index is authored by Frank DuBois, a global supply chain management expert and professor at American University. DuBois developed the list based on data from the National Highway Traffic Safety Administration along with the location of headquarters, design, research and development, and where the profits go. More comprehensive than other studies of its kind, the Kogod index ranks 318 car models based on seven weighted data points. These criteria include several factors, unaddressed by the American Automotive Labeling Act, which is the basis for “made in America” automotive studies:

• Profit Margin: Location of the automaker’s global headquarters
• Labor: Location of assembly
• Research & Development: Location of R&D activities
• Transmission: Location of production
• Inventory, Capital and Other Expenses: Location of assembly
• Engine: Location of production
• The Labeling Act “Domestic Content” Score

Based on the Labeling Act, if 75 percent of a vehicle’s value or more of a car’s parts come from the U.S. or Canada, it’s considered a domestic product. Nearly 80 percent of Americans would rather buy an American-made product, according to a Consumer Reports National Research Center survey. Furthermore, a recent 2013 Consumer Reports article pointed to the 2013 AU/Kogod study as the study to use when trying to decipher which vehicles are American made. “This index undoubtedly provides Americans with a more defined explanation of the actual origin of a vehicle and its purchasing impact on the U.S. economy,” said Gerald Johnson, GM North America Manufacturing vice president.

• From Automotive News: Ford Motor Co. today said its first-quarter net income fell 39 percent from the same period a year ago to $989 million, on weaker pricing in the United States and higher warranty expenses. It was Ford’s 19th consecutive profitable quarter. Profit margins in North America declined 35 percent, due to higher incentives and a $400 million increase in warranty reserves related to previously announced recalls and other service campaigns involving vehicles from past model years. Ford also said “weather-related costs” cut North American earnings by about $100 million. Ford’s pretax operating profit dropped 36 percent to $1.38 billion. In North America, Ford earned $1.5 billion before taxes, down 37 percent from a year earlier. Revenue in North America declined 5 percent to $20.4 billion on lower sales, an unfavorable mix lower net pricing and the adverse effect of a weaker Canadian dollar. Margins for the region were 7.3 percent, compared to 11.1 percent in the same period of 2013.

State of the Union April 22, 2014

April 22, 2014 online at www.uawlocal2250.com

• From Community Services: There will be a Gate Drive for March of Dimes/March for Babies on Thursday April 24. We know you will support this generously as you always have.
• From the Civil & Human Rights Committee: Mexican Heritage day will be Thursday, May 1st in the cafeteria on both shifts. We are seeking donated items to be put on display for one day. See Larry Mosby, 2nd shift frame line or Denise Black on 1st shift. All items will be returned after the one day display. Thanks in advance for your continued support.
• The $1000 Lump Sum Bonus will be payable during the week ending June 8. The eligibility date for this bonus is Thursday, May 15. 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 (Par. 103)
• Formal (Par. 104)
• Sickness and Accident (Par.106/108)
• Military (Par. 112 or 218[a])
• Educational (Par. 113)

• From Automotive News: Citing his company's 4 percent U.S. sales gain in March and a "decent start" for sales in April, General Motors President Dan Ammann said the company's ignition switch recall has had no "measurable impact" on sales. "It's hard to say that there's a measurable impact there," Ammann said today on the sidelines of the Beijing auto show. "March sales were pretty solid. We gained retail share in March. April seems to be off to a pretty decent start as well." Bolstered by increased sales of full-sized pickups, GM's U.S. light-vehicle sales rose 4 percent in March from a year earlier to 256,047 units. The company also reported that retail sales rose 7 percent to help it gain retail market share. Ammann said he couldn't rule out future impact from the recall crisis, which began in February with the recall of 778,600 Chevrolet Cobalts and Pontiac G5s and has since swollen to 2.6 million vehicles globally. "We'll see with the passage of time," he said. "As of right now, it's difficult to pinpoint an impact." GM's 4 percent advance in March slightly trailed a 6 percent increase in overall U.S. industry volume. But other big manufacturers fared worse, including Ford Motor Co. with a 3 percent gain and American Honda with a 2 percent decline.

UAW withdraws Volkswagen election objections
The UAW announced Monday it is withdrawing objections filed with the National Labor Relations Board (NLRB) regarding February's vote at the Volkswagen plant in Chattanooga, effectively terminating the NLRB review process.

UAW President Bob King said the decision was made in the best interests of Volkswagen employees, the automaker, and economic development in Chattanooga. King said the UAW based its decision on the belief that the NLRB’s historically dysfunctional and complex process potentially could drag on for months or even years. Additionally, the UAW cited refusals by Tennessee Gov. Bill Haslam and U.S. Sen. Bob Corker to participate in a transparent legal discovery process, which undermines public trust and confidence.

“The unprecedented political interference by Gov. Haslam, Sen. Corker and others was a distraction for Volkswagen employees and a detour from achieving Tennessee’s economic priorities,” King said. “The UAW is ready to put February’s tainted election in the rearview mirror and instead focus on advocating for new jobs and economic investment in Chattanooga.”

UAW Region 8 Director Gary Casteel, who directs the union’s Southern region, echoed that the UAW’s focus is advocating for Volkswagen to create more jobs in Tennessee by adding a new SUV line at the Chattanooga plant. The Haslam administration in August offered nearly $300 million in incentives to bring the new SUV to Chattanooga, but attempted to make the investment contingent on whether the Chattanooga plant is organized. The Haslam administration’s contingency is contrary to Volkswagen’s successful business model, which is premised on worker representation.

“The UAW wants to help create quality jobs and build world-class products for American consumers,” Casteel said. “With this in mind, we urge Gov. Haslam to immediately extend the incentives that previously were offered to Volkswagen for this new SUV line, and do so unconditionally.”

King said the UAW has accomplished a major goal with its election objections. “The UAW’s objections informed the public about the unprecedented interference by anti-labor politicians and third parties who want to prevent workers from exercising their democratic right to choose union representation,” he said.

King also said that outdated federal laws governing the NLRB never contemplated the level of extreme intimidation and interference that occurred in Chattanooga. Even if the NLRB ordered a new election — the board’s only available remedy under current law — nothing would stop politicians and anti-union organizations from again interfering.

Looking ahead, the UAW believes the congressional inquiry into the Haslam administration’s incentives threat to Volkswagen provides the best opportunity for additional scrutiny. The UAW will ask Congress to examine the use of federal funds in the state’s incentives threat, in order to protect Tennessee jobs and workers in the future.

“Frankly, Congress is a more effective venue for publicly examining the now well-documented threat,” King said. “We commend Congressmen George Miller and John Tierney for their leadership on this matter, and look forward to seeing the results of their inquiry.”

State of the Union April 8, 2014

April 8, 2014 online at www.uawlocal2250.com

• Reminder: Runoff elections for Financial Secretary, Recording Secretary and Trustee are today. Polls are open until 4:30 am Wednesday morning.

• From the Women’s Committee: We will be stuffing Easter eggs this Wednesday and Thursday from 3 pm to 6:30 pm at the Union Hall. Any help will be greatly appreciated. Our annual Easter Egg Hunt will be this Sunday, April 13 at the Union Hall. Doors open at noon and the hunt will begin promptly at 2:30 pm. There will only be ONE hunt. From noon to 2:30 the Easter Bunny will be available for pictures and there will also be a balloon artist, face painting and clowns. There will also be hot dogs and soda. Bring the kids and grandkids out for a great time and bring your cameras! Hope to see you there.

• From the Veterans Committee: There will be a Veterans Committee meeting this Thursday, April 10 between shifts at the Union Hall. Also, the 26th Annual Run for the Wall will be Monday, May 19. You are invited to come and welcome more than 500 motorcycles making their way across the heartland of America to the Vietnam Veterans Memorial Wall in Washington DC to honor the men and women still unaccounted for, from all of our wars. We will meet at the Wentzville VFW Post 5327, located on Hwy Z ½ mile south of I-70 at 6 pm. Please remember all of our Veterans and pray for the troops who are currently in harm’s way.

• The Chevrolet Equinox and GMC Terrain with available forward collision alert technology, earned 2014 Top Safety Pick+ ratings from the Insurance Institute for Highway Safety, the only midsize SUVs of nine evaluated to earn Good ratings in the Institute’s small overlap front crash test. The Equinox and Terrain join the 2014 Chevrolet Malibu midsize sedan in earning the institute’s highest safety rating. The test, in which 25 percent of a vehicle's front end on the driver side strikes a 5-foot-high rigid barrier at 40 mph, is designed to replicate what happens when the front corner of a vehicle strikes another vehicle or an object like a tree or a utility pole. “Having the only two midsize SUVs that earned the Top Safety Pick Plus designation speaks to GM’s focus on improving our vehicles by offering advanced crash avoidance technologies that can help avoid a crash, and by enhancing vehicle structure and occupant protection if a crash occurs,” said Gay Kent, director of General Motors Global Safety Strategy and Vehicle Programs. “We are very pleased that the IIHS has recognized the safety of both the Chevrolet Equinox and GMC Terrain with this prestigious rating.”

• From the Detroit Free Press: Daimler is hoping its updated Mercedes/Freightliner Sprinter will hold off competition from Ford and Chrysler in the competitive and profitable commercial van segment. The third-generation 2014 Mercedes Sprinter, shipped in kit-form from Germany and assembled at the Freightliner plant in Charleston, S.C., faces a new round of competition that looks strikingly similar to what it faced more than a decade ago. Ford is replacing the E-Series that accounts for 51% of the market with the European Transit after spending $1.1 billion to retool its Kansas City plant to build the full-size van. Chrysler is selling the Ram ProMaster. Nissan entered the segment in 2011 with the NV cargo van it builds in Canton, Miss. “A major change is happening,” Glaser said. “Core competitors are updating their fleets to Euro-style vans.” General Motors will be alone in offering traditional American styling with the Chevrolet Express and GMC Savana. The 2014 model, starting at $37,000, has a new grille and flat hood, new safety features to assist with parking, staying in the lane, blind-spot detection, counteracting strong wind and avoiding collisions. The infotainment system has a better screen, navigation and Bluetooth, said Antje Williams, Sprinter brand manager. Mercedes added a new 4-cylinder diesel engine and 7-speed transmission which will offer 18% better fuel economy than the 6-cylinder diesel and 5-speed transmission that will continue to be offered for an extra $910. Starting early next year, Mercedes will offer four-wheel drive for the first time in the U.S.

• From the AP: Expansion talks at Volkswagen's lone U.S. plant have ground to a halt amid disagreements about the role of organized labor at the factory in Tennessee. Labor representatives on Volkswagen's supervisory board were "indignant at the strong attempts made by outside forces to influence the outcome" of the vote, Bernd Osterloh, the head the company's global works council, said in a letter read to all the workers at the Chattanooga plant 10 days after the vote. "Local Republican politicians such as Mr. Corker and (Gov) Mr. Haslam interfered outrageously with the ballot," said Osterloh, who reiterated the company position that only economic factors would decide whether the plant would be expanded. "We want you to see that people like Mr. Corker can have no influence over the decisions made by an international group," Osterloh added. By German law, labor representatives make up half of the company's 20-member supervisory board, meaning they have veto power over major management initiatives including the expansion or construction of plants.

• From Automotive News: The average fuel economy of new U.S. light vehicles sold in March rose to 25.4 mpg, according to University of Michigan researchers, the highest since they began collecting data in October 2007. The 25.4 mpg figure is up 0.3 mpg from the revised figure for February and 5.3 mpg from the October 2007 average, a monthly report from the university's Transportation Research Institute said. Average sales-weighted fuel economy was calculated using the monthly sales of individual models and the combined city-highway fuel economy ratings from the EPA Fuel Economy Guide for each model. In a separate study, fuel consumption by American drivers was found to be 11 percent lower in 2012 than in 2004. The reduction, said researcher Michael Sivak, "reflects the decline in distance driven and the improvement in vehicle fuel economy." He said: "The combined evidence from this and the previous studies indicates that -- per person, per driver and per household -- we now have fewer light-duty vehicles, we drive each of them less and we consume less fuel than in the past."

State of the Union April 3, 2014

April 3, 2014 online at www.uawlocal2250.com

• March van sales were up 6% at 7444 units despite the stop sale order. Here’s how the rest of the segment fared:

2014 2013 Change Share Ford Econoline 11,642 11,316 +2.9% 49.0% GM 7,444 7,020 +6.0% 31.3% Mercedes Sprinter 1,915 1,529 +25.2% 8.1% Nissan NV 1,645 1,290 +27.5% 6.9% Ram ProMaster 1,106 --- --- 4.7% Ford Transit connect 3,046 3,655 -16.7% --- Nissan NV200 1,090 47 --- ---

Field supplies as measured by days fell slightly from 57 at the end of February to 55 at the end of March. Net field stock in units was down 600 with cargo vans accounting for the lion’s share of the decline. Chevy passenger vans are at a 17 day supply. Looking at midsize pickups, Toyota sold 14,445 Tacomas, down 5% from last year while Nissan sold 7140 Frontiers, up 4.7%. And in full size pickup sales, the Ram 1500 outsold the Silverado for the first time since 1999 - 42,532 vs. 42,247. Commenting on that development, GM spokesman Jim Cain said, “The 1980s called. They want their marketing strategy back. It’s really easy to deeply discount your truck, mine the subprime market and offer cheap lease deals to buy market share.”

• From the International Union UAW: UAW members in Missouri: Earlier this week, Jefferson City extremists ignored voter demands and passed Paycheck Deception through the Missouri House. There is overwhelming evidence that Paycheck Deception and Right to Work harm working families and the economy. But state lawmakers are now just one vote away from turning this dangerous bill into law. Call your legislators right now and tell them to stop this attack on Missouri workers. Paycheck Deception will be a major step backward for working families. Not only will this law attack free speech, but it will stifle job creation and bring more outsourcing. Time is of the essence to protect the middle class: dial (888) 825-1418 to defeat this anti-worker bill.

• From Reuters: The UAW on Tuesday asked a U.S. agency to stay an April 21 hearing related to a mid-February union vote it lost at a Tennessee Volkswagen plant, citing what it called new evidence of collusion between Republican lawmakers and anti-union groups. The union was referring to a report aired on Nashville's NewsChannel5 late on Monday that cited email exchanges between anti-union groups, members of the staffs of Tennessee Gov. Bill Haslam and U.S. Senator Bob Corker and other public officials. According to the broadcast, the correspondence showed that Haslam's administration offered $300 million in economic incentives to help VW expand its operations in Chattanooga so long as the plant did not unionize. The parties also discussed anti-UAW messaging strategies in the days leading up to the union vote, according to the report. The UAW told the National Labor Relations Board in its filing on Tuesday that the news report was further evidence that outside groups were working on behalf of politicians who oppose organized labor. Tennessee Democrats called for a full investigation of the Volkswagen financial incentives initiative, called "Project Trinity", and questioned why the documents in the broadcast had not been produced when legislators filed a request last September for public documents related to the election. Clint Brewer, assistant commissioner of the Tennessee Department of Economic and Community Development, said in a statement on Tuesday, "The offer did not preclude the creation of a works council or union representation as a condition for the incentives." He said the incentive offer had been withdrawn in January before the UAW filed for an election at the plant. Last September, Rep. Mike Turner, head of the Democratic Caucus in the Tennessee House, requested that Haslam release documents of communication between the governor's office and VW officials regarding incentives. At the time, the governor's office said it would work to fulfill Turner's request. On Tuesday, Turner asked the leader of the Republican-controlled Tennessee house for an investigation into the incentives issue.

• From Automotive News: Wholesale prices of General Motors vehicles with faulty ignition switches are unscathed by the highly publicized recall of the vehicles, analysts say. That's because the recalled 1.6 million 2003-07 small cars are valued at about $2,000 to $5,000 each in the wholesale market so there is little room for the prices to fall, says Larry Dixon, an analyst with NADA Used Car Guide. Dixon says he doubts the recalled vehicles' wholesale prices will impact GM vehicles' general residual values because the recalled units are "light-years" from the vehicles the company builds today in terms of quality and technology. Since the recall was announced in February, wholesale auction prices of the recalled vehicles have held up better than those of their peers. For example, NADA guide data show that the average price of a 2007 Chevrolet Cobalt, one of the recalled nameplates, rose 14 percent from Feb. 10, the week the recall was announced, until March 10. During the same period, the average price of 2007 compact cars increased 7 percent.