State of the Union August 4, 2010

August 4, 2010 online at www.uawlocal2250.com

From Chairman Mike Bullock:

Management requested of the union to approve three more production Fridays over and above the 12 that are already scheduled between September 7 and December 23, 2010. The union has agreed to this proposal. The three additional Fridays, 9/24, 11/5, and 12/17 will be tentatively scheduled as 8 hours.
The scheduled Fridays will be September 10,17,24, October 1,8,22,29, November 5,12,19, December 3,10,17.

Management has agreed to add one additional employee per group leader’s area in trim, chassis, body, paint, final, quality, and material. These 24 additional employees will allow more or our membership excused time off during the “off peak” period.

This decision does not come lightly. I want to thank you for your input and your patience in resolving this important decision. Keeping more of our members working has been the primary goal of this committee, now all we need is additional orders to secure our 2nd shift.

Here are van sales numbers and industry results for July:
2010 2009 Change Share

Ford Econoline 8649 7792 +11% 52.1%

GM 7272 5471 +33% 43.8%

Ford Transit 2633 417 +531%

Mercedes Sprinter 684 --- 4.1%




(click for larger image)


Part 2 of UAW President Bob King’s speech:

At Ford, GM, and Chrysler, we have already demonstrated this new vision and achieved important, dramatic improvements in quality. We now produce the highest quality vehicles in the world. In productivity we have made just as important and dramatic improvements achieving billions of dollars of annual cost savings and global competitiveness. We achieved global best in quality and productivity by working in creative partnership with management using innovative problem solving discipline.
When it became necessary for the companies to consolidate, we took a strong proactive role in making sure that quality did not suffer from the workforce reductions and churning. At Ford, for example, the UAW raised strong concerns about quality and persuaded management to work together aggressively on quality training and discipline to process and as a result quality not only did not suffer, it actually improved even when 30,000 members left Ford and 30,000 members had to learn new jobs! We also launched a joint UAW Ford Lean Suppler Optimization Team, through which we were able to find millions of dollars of annual savings in numerous supplier facilities. We also began to work as a team on long-term product development, contributing to finding ways to keep costs down and find workforce solutions to efficiently produce innovative products. As the auto industry moves towards green technology and electrification, we are committed to contributing our creativity, our initiative and our dedication to the new world of cars of the future.
And we are not just global leaders in quality and productivity; we are working together and setting new standards in attendance and knowledge driven workforces. Highly trained certified black belts and Quality Operating System Operators — hourly UAW members — drive quality in our products.
I truly believe that employers would be wise to re-examine their instinctive resistance to the notion of unionization, and consider some of the advantages of a positive, productive relationship with a union. Unions can and should play a positive role — and the results show the UAW is doing exactly that! Union workers feel secure enough to speak up when they have an idea of how to improve a process. Unions improve morale and reduce absenteeism. They support, rather than obstruct, accountability from both management and the workforce. The UAW of the 21st century is a force for innovation; we are committed to the success of the employers who are our partners. Making the best product or providing the best service at the best price is a primary mission of the union in the interests of our members.
The UAW and our members have a moral obligation to our customers to build the best vehicles at the best price. Our first loyalty is ultimately to our customers. If we have to we will fight for the highest quality and highest customer safety for the customer as strongly as we fight for our own safety and well being!
This commitment to fundamental change is not just a tenet of the new administration, but is permeating the entire culture of the union. I can tell you that there is no group of people more committed to the success of the auto industry than the union and our members. Our members know that the success of their employers is in their own essential long-term interest. They won’t be jumping ship to grab onto a golden parachute. They are in this for the long haul. They are ready, willing and able to do what it takes to make their companies successful.

So the keywords of the 21st-century UAW are flexibility, innovation, quality, teamwork, productivity, continuous cost-savings, and respect. The rigid demarcation between management and labor that was so entrenched in the old model is discarded. Layers of management can be eliminated because the workers are dedicated to managing their own processes.

State of the Union August 3, 2010

August 3, 2010 online at www.uawlocal2250.com

Reminder: Today is primary election day with many offices up for grabs. Please make an effort to vote.

UAW President Bob King gave what is being called by some a “watershed” speech at the annual Center for Automotive Research Conference. We will run the speech in its entirety here the next three days:

In the past year, we have emerged from the most dramatic and historic crisis that has ever faced the industry and our union. We are deeply grateful to the Obama administration and to the American people for saving the American auto industry. Enabling our companies to survive and turn around has saved hundreds of thousands of good jobs that would have been gone forever. Everyone made enormous sacrifices to emerge from this crisis. UAW members took wage cuts of $7,000 to $30,000 a year. Benefits were also reduced significantly. Restructuring resulted in the loss of nearly 200,000 jobs.

The crisis of 2008-2009 dramatized the necessity of fundamental change in the UAW. Although triggered by the financial meltdown, the crisis in the auto industry also had its roots in behaviors and cultures – both within the companies and within the union – that were outmoded and unsuited for the 21st century. We had already begun to change and to revise our practices, but the crisis proved that we had not moved quickly or dramatically enough.

The UAW of the 21st century must be fundamentally and radically different from the UAW of the 20th century.

This is a new world, and we must reinvent our union with bold new strategies.
Our union began 75 years ago as a movement for social justice for all working people. In the mid-20th century, the UAW played a critical role in building the middle class in this nation. It would be a betrayal of the bold and pioneering heritage of our union if we did not engage in bold and dramatic change to address the challenges of rebuilding a global middle class for the 21st century.

The 20th-century UAW grew in an era of national rather than global economics, where employers did not face the intense pressure of global competition. The 21st-century UAW recognizes that flexibility, innovation, lean manufacturing and continuous cost improvement are paramount in the global marketplace.

The 20th-century UAW was dealing with a market dominated by the Big 3. The 21st-century UAW is dealing with at least the Big 7 and probably more.

The 20th-century UAW joined with the companies in a mindset that it was the company’s job to worry about profits, and the union’s job to worry about getting the workers their fair share. The 21st-century UAW embraces as our own the mission of producing the highest quality, best value products for our customers.

The 20th-century UAW was not primarily focused on the needs of the consumers, and we failed to champion forcefully or effectively enough the goals of preserving our environment for future generations through green manufacturing. The 21st-century UAW makes as a priority the interests of consumer safety, energy efficiency, and environmental protection.

The 20th-century UAW fell into a pattern with our employers where we saw each other as adversaries rather than partners. Mistrust became embedded in our relations, and as a result we signed onto ever more lengthy and complicated contracts with work rules and narrow job classifications that hindered flexibility, hindered the full use of the talents of our members and promoted a litigious and time-consuming grievance culture. The 21st-century UAW has welcomed the openness, collaboration, and creative problem solving partnerships that we have forged with Chrysler, GM, and Ford. Out of the ashes of the cataclysm of 2008 and 2009, a new, more visionary and stronger 21st-century UAW is being born. The 21st-century UAW no longer views these managements as our adversaries or enemies, but as partners in innovation and quality. Our new relationships with these employers are built upon a foundation of respect, shared goals, and a common mission.

The 20th-century UAW tried to find ways to achieve job security, such as job banks, that in the end did not achieve the result we were seeking. The 21st-century UAW knows that the only true path to job security is by producing the best quality product, the safest product and the longest lasting product, at the best price.
The 20th-century UAW reacted with hostility and resistance to the historic changes brought about by the globalization of the economy. The 21st-century UAW is adopting a constructive and positive approach to global trade and global development, and we are committed to being citizens of the world and achieving trade that spreads prosperity and lessens poverty.

State of the Union August 2, 2010

August 2, 2010 online at www.uawlocal2250.com

Reminder: Tomorrow is primary election day with many offices up for grabs. Please make an effort to vote.

Toyota is using one of their favorite methods to discount vehicles while trying to avoid watering down their value with cash discounts – cut rate leases. With prices like $189 a month for a Corolla, Toyota is banking on that car retaining 63% of its value after the three-year lease is up. But Automotive Leasing Guide, the industry standard, puts the value of that car at 53% (an $1800 difference) and those estimates are being revised downward as the drumbeat of recalls continues to take their toll on Toyota’s image. According to auto pricing information company Edmunds.com, the average transaction price of a used Toyota fell 1% in June to $15,073 compared with an industry average gain of 9%. Meanwhile, the average price of a used Chevrolet rose 12% to $15,452. The average for a used Fordrose 14% to $14,716. And leasing now makes up 30% of Toyota’s business, up from 21%. Ever in denial, Toyota offered this statement: "We believe strongly that our residual numbers are the most accurate, in large part, because we use more refined data than perhaps other sources."

From the Detroit News: Chrysler Group LLC said Friday it will keep its Sterling Heights Assembly Plant operating and add 900 jobs. That plant, which had been scheduled to shut in 2012, makes the Chrysler Sebring sedan and convertible and the DodgeAvenger. Workers from factories that Chrysler is closing in Twinsburg, Ohio; Racine, Wis., near Milwaukee; and in Detroit will be offered jobs in Sterling Heights, Chrysler spokeswoman Jodi Tinson said. "The achievement is due in large part to the tremendous sacrifices and efforts of UAW members to help productivity at the plant," said UAW President Bob King. He added it is more proof the union and Detroit area plants can "compete in the global marketplace," he said.

State of the Union July 30, 2010

July 30, 2010 online at www.uawlocal2250.com

President Obama will visit the Hamtramck (Volt) plant today to tout the progress of GM. White House spokesman Robert Gibbs defended the president’s decision to intervene, saying “The president didn't think that walking away from a million jobs and people in these communities made a lot of sense.” Noting that radio host Rush Limbaugh and other critics had called for letting GM and Chrysler collapse, Gibbs added: "I'll let those that sat in the cheap seats a year ago and wanted to walk away from a million explain to every one of those workers why they made that decision."

UAW President Bob King had these comments concerning the good news regarding the turnaround of the domestic auto industry: “The reports show what is possible with cooperative, collaborative relationships. The commitment, sacrifices and hard work of the men and women at UAW-represented companies is an enormous part of the positive news coming from Ford, GM and Chrysler where UAW members are producing best-in-class quality results and building vehicles that hands-down beat global competition. These achievements are more than news stories. They represent the commitment and hard work that helps our members provide for the families and contribute to the economic stability of their community and our country. Thanks to the Obama administration and leaders who understand how vital auto manufacturing jobs are to every community in this country, these companies and UAW workers can and will continue to succeed.”

From the Detroit Free Press: While auto sales have rebounded since last year's downturn, that surge is being driven by fleet sales to rental companies and other businesses, said Roger Penske, CEO of Penske Automotive Group. Fleet sales were up 60% during the second quarter, compared with the same year-ago period, while retail sales were up only 9%, Penske said in an interview Thursday, after the company reported its second-quarter performance. "We continue to be optimistic about the recovery and our business," Penske said.

State of the Union July 28, 2010

July 28, 2010 online at www.uawlocal2250.com

From Chairman Mike Bullock: Congress finally passed a bill extending Unemployment benefits to the end of November on July 22, 2010. Republicans held up this funding for two weeks while many General Motors laid off employees were without benefits. Now that it has passed, laid off employees can apply for the extended benefits. What this has done for many of the GM laid off employees is left them without unemployment benefits or sub pay. Now that it has passed it will take several weeks for both the unemployment and sub to catch up. Any questions can be directed to benefits at 636-327-2112 or 2314.

Here are some common questions and answers regarding TAP:
Q. The guidelines state degree program classes are eligible. What degree programs?

A. Classes in a curriculum earning credit towards the following degrees are generally TAP eligible: GED, Associate’s Degree, Bachelor’s Degree, Master’s Degree, Post Graduate Degree.

Q. The guidelines state sports, games and hobbies are no longer eligible. What personal enhancement classes are?

A. The classes that are designed to improve your skills and knowledge in applicable work related subject matter. A good example is computer related classes like learning Windows or various software products. Other classes could be test preparation or learning a language.

Examples of classes not eligible include commercial driver license, cosmetology, financial planning, real estate, gaming, medical, bar tending and insurance.

Important: All classes must be approved by TAP administrators prior to start date even if seeking reimbursement. Tuition reimbursement is only available when the approved school does not accept a TAP voucher.

State of the Union July 29, 2010

July 29, 2010 online at www.uawlocal2250.com

From the Detroit Free Press: Toyota is recalling 412,000 passenger cars, mostly the Avalon model, in the U.S., and another 16,420 vehicles in Japan for steering problems, the automaker said Thursday. The 373,000 Avalons being recalled in the U.S. range from the 2000 model year through to 2004 and have improper casting of the steering lock bar - a component for the steering system - causing cracks to develop on the surface. In some cases, the crack can cause the lock bar to break, potentially leading to a crash if the steering wheel locks. Also being recalled in the U.S. are 39,000 Lexus luxury model LX 470s for the 2003-2007 model years because of a steering shaft problem, which is different from the Avalon steering problem, according to Toyota.

Financial results from the second quarter are coming out for various automakers. Volkswagon AG, who has set a goal of surpassing Toyota by 2018, made $1.63 billion, quadrupling the prior year’s profit. Nissan reported profits of $1.22 billion, which was double analysts estimate. And Hyundai Group said profits rose 71% to $1.17 billion. GM is expected to report second quarter results the second week of August.

Here’s Rush Limbaugh’s rambling from his radio show yesterday about the Chevy Volt and GM, with total disregard for the facts: "The charging station is your house, so that 40-mile range has gotta include you getting home and then staying home for three to four hours to charge the thing," Limbaugh said. "It's 20-mile range. So I'm saying to myself, I can't in good conscience recommend that." (actually, the Volt’s backup engine serves as a generator and will power the batteries for another 300 miles after the initial 40)

"...Why wouldn't you use the backup first and use the battery as the backup is the point? Well, because you're making a statement, you're out there saying you're better than everybody else." (interpret that drivel however you wish).

State of the Union July 27, 2010

July 27, 2010 online at www.uawlocal2250.com


From Chairman Mike Bullock: We all know the choices we have for meeting our schedule are not good except one – bringing back second shift. Unfortunately we are not at that point yet. It would take volume of 120,000 vans annually to support two shifts at a line speed of 32 an hour net. With the 700 additional vans we will reach 90,000 for this year. By month, that two-shift scenario produces 10,200, while the new line speed of 42 an hour, 10.5 hour shifts and every Friday would produce 8,820. And we have yet to top 10,000 vans in sales for even one month.

More information on TAP: Members who are on indefinite layoff, with a minimum of 1 year seniority as of the date of the layoff and have recall/rehire rights are eligible for tuition assistance under the ITAP for inactive workers. Maximum eligibility under this plan is $8400 for the duration of the layoff (not to exceed four years) for a member with 4 or more years seniority. Those with 3-4 years are eligible for $7400 and 1-3 years seniority is $6400. When returning from indefinite layoff, the active status maximum per calendar year ($5000) will apply.

From Automotive News: Nissan is recalling 51,100 Cube compacts in North America after U.S. safety regulators said a fuel leak could cause fire after a crash, the regulator and the automaker said on Monday. The chance that 2009 and 2010 model year Cubes could leak fuel if struck from the rear at 50 miles per hour led to the recall, documents from the National Highway Traffic Safety Administration show. Last week, Nissan suspended sales and shipments of Cubes from Japan to the United States and Canada.

In covering Chrysler Group’s future product plans, Automotive News reports that two different vans will be offered starting in 2012 under the Ram truck brand. First will be a Fiat-sourced full-size van that will be either a unibody, a la Sprinter, or a body-on-frame and will be assembled in an unidentified plant in North America. The second will be a re-badged version of the Fiat Doblo, a small Transit Connect type van that will be imported from Turkey (just like the Transit) and be sold as a 2013 model.