Tuesday, October 6, 2015

State of the Union October 6, 2015

State of the Union October 6, 2015

• From Chairman Mike Bullock: “Health Care Co-op” language was included in the tentative agreement between the UAW and FCA. The language in the FCA highlights said that a health care co-op would be established to focus on improving health care benefits in a manner that increases quality, lowers cost, produces less waste, and provides better patient care and outcomes. UAW Vice President Cindy Estrada further explained that a health care co-op would not be a VEBA or VEBA- like plan. It will not be a Taft-Hartley plan or a pool of money or any other type of multi-employer health plan. Vice President Estrada said that all active members remain and will remain insured by the Company sponsored health plan.
The purpose of the Co-op is to address the health care crisis that continues to be a huge problem and is a big part of the economic pie when it comes to negotiations. The co-op is an attempt to be pro-active regarding health care costs so we can help minimize its impact on future negotiations. Currently health care cost the company $8.00 per hour per employee, with the expectation that it will rise to $13 per hour per employee over the next 4 years.
The Health Care Co-op is a mechanism to study innovative ways to improve health care. The company will continue to sponsor the current health care plans for active UAW membership.
We are still awaiting word on the next step at UAW/FCA negotiations. We continue to meet locally on our issues. I have told management that I expect to vote on a local contract at the same time as the National contract. If this were not to happen, I would have to consider what our next step would be.

• There will be Education Committee meetings Thursday, October 8 at the following times: 6:45 am for 3rd shift; 1:00 pm for 2nd shift; 2:45 pm for 1st shift. All meetings will be held at the Union Hall and all are welcome to attend.

• Unfortunately, negotiators have put the finishing touches on the Trans Pacific Partnership (TPP) trade agreement and it is set to go to Congress for a straight up or down vote. Due to the passing of fast track authority, no amendments will be allowed to this agreement. Here is a statement from UAW President Dennis Williams regarding this agreement:
“TPP is a sweeping agreement that touches nearly every aspect of your daily life. It impacts the food you eat, the air you breathe, the medicines you take, and the cars you drive. It will impact demand for the world-class farming equipment tens of thousands of UAW members build. If factories close revenue shortfalls and budget cuts will ensue and UAW members whose jobs serve the public would suffer.
“The more than 100,000 UAW members who work for auto suppliers might be faced with a flood of subsidized imports. In fact, auto suppliers produce hundreds of billions of goods and support more than three and a half million U.S. jobs directly and indirectly.
Fair rules are needed for all countries to truly compete. Countries from around the world sell cars in America without unfair trade barriers. Yet, while domestic auto companies sell less than half of all vehicles in the U.S, the same cannot be said for many countries in the TPP. Some Asian-Pacific countries have closed auto markets importing less than 7% while undervaluing their currency, making their exports cheaper. Time and time again companies who game the system shift more and more work to low wage countries. Non-TPP countries like China, Philippines or Thailand must not unjustly receive benefits under this agreement.
We as a country have an opportunity to craft an agreement that is good for American families and creates economic stability. The administration should return to the table to ensure we have an agreement that strengthens American families and creates economic stability.” The fight is not over yet. While we can’t amend the agreement, we can weigh in with our representatives in Washington and urge them to vote against this agreement, which will probably not see a vote until next spring. We will keep you informed as the vote draws nearer.

• As expected, the year over year comparisons for van sales are coming into line. Going forward, this should be the rule rather than the exception. Here’s a look at how the van and pickup segments fared in September: (click on image for larger picture)
For the first time since our pickups started selling in numbers, Tacoma sales actually fell, while the Frontier continues to plummet. Our combined sales now trail the Tacoma in market share by only 7.5 points. Looking at field supplies, as measured in days, the van dropped from 51 at the end of August to 42 days at the end of September. The delay in 2016 passenger vans has created an acute shortage as Chevy supplies are at 547 units total (for some 3500 Chevrolet dealers). Colorado supplies continue to creep up as we work to fill the product pipeline. At 30 days supply, it is the lowest of any GM retail product. Canyon supplies stand at 61 days, getting closer to normal, which for pickups is between 70 and 90 days due to the numerous configurations. And the number one customer complaint about the Colorado? CAN’T FIND ONE!

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

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