Wednesday, September 29, 2010

State of the Union September 28, 2010

Sept. 28, 2010 online at www.uawlocal2250.com

From Chairman Mike Bullock: A Policy grievance has been written by the Union for all employees concerning management’s decision to run line time longer than 11.0 hours.

From Community Services: The Make-A-Wish event last Thursday exceeded everyone’s expectations, especially the family. The generosity and genuine affection of this workforce was apparent to everyone who was involved and comments like “overwhelming” and “unbelievable” were heard at every stop along the way. There are too many people to thank to list here but you need to know that you have touched people’s lives in a way that they will never forget. Be proud of yourselves. You have set a new standard for Make-A-Wish events.(for the record, the gifts filled the family’s Dodge Durango and a Chevy Suburban)


Part two of Detroit Free Press interview with UAW President Bob King :

Q: Paint a picture of what bargaining does look like if pattern bargaining is reduced.
A: Between Ford and General Motors and Chrysler, you do have to keep fairness. ... Overall, we are not going to put one company at a disadvantage to the other companies. That wouldn't be right. That wouldn't be fair. What we don't have the ability to do right now is to make sure that that pattern stays throughout the whole industry.
Q: Across most of America, when you say 'UAW' you conjure a lot of negatives. I wonder if you could paint a picture of how you would like to see the union thought of.
A: I want to create and build all of the documentation in the world that (shows) ... if they are a UAW employee, you know that you are going to get the best quality possible ... that is, long-term, what will give us the greatest security and the greatest stability to get good contracts and good wages and benefits for our membership? ...
So the people attack the labor movement and say we are holding competitiveness back -- I don't think that is accurate. ...I would say to those folks, why are you recommending continuing hundred-thousand-dollar tax breaks to people making millions a year and not putting the money into the infrastructure? It's wrong.
Q: You are working a little bit in Mexico with the labor unions at the (Johnson Controls) plant there, so I was wondering if you would talk a little about that and how much resources the UAW has to dedicate to your big dream of global economic justice?
A: We will be doing more internationally. We are in some exciting planning now about, how do we do that? We will be rolling that out hopefully in the next 30 days.
We are setting up some meetings ...with people who have spent a lot of time in China ... I'm afraid the labor effort could get crushed if there is not outside support.
Q: A year after the government rescue and the bankruptcies, walk us through your verdict.
A: I'm very appreciative of President Obama and the Democratic leadership. It was not the politically popular thing to do. ... He invested in American companies and American workers. And that investment is paying off.
I don't know how you ever recoup the loss to the communities, the families, all of the jobs that we lost ... The way you learn from that is you make sure you don't get back into the same box or the same downward cycle ... The challenge is to make sure that as volumes increase, as new capacity is needed, it is built in the U.S. -- not other places.
Q: For UAW membership today, is job security the trump issue?
A: I think clearly that is the biggest thing. ...Job security, getting investment in our facilities, pushing forward on the newest technology -- all of those things are important.

Monday, September 27, 2010

State of the Union September 27, 2010

Sept. 27, 2010 online at www.uawlocal2250.com

From the Wall Street Journal: The U.S. government needs to sell all its stock in General Motors Co. at an average price of $133.78 a share to fully recoup the $49.5 billion it spent to rescue the auto maker, according to the Obama administration official overseeing the Troubled Asset Relief Program. GM was reorganized in bankruptcy court last year with the help of $49.5 billion in U.S. aid. GM has paid back $6.7 billion in cash and $2.1 billion was converted to preferred shares. An additional $1 billion went to help wind down so-called old GM. The remaining $39.7 billion has been converted into a 61% stake in the car maker. The stake amounts to 304 million GM shares. (With a 17.5% stake, the UAW health care trust fund would be worth $11.7 billion if it was sold for that average price)

From Businessweek: General Motors Co. has cut costs and improved its products so much that an analyst expects it to be "printing money" when vehicle sales return to normal in the next few years. Morningstar analyst David Whiston, in a note to investors Monday, wrote that GM's initial public stock offering, which is likely to occur in November, could be a good investment. He set a preliminary fair value of the shares at $134 each. Whiston wrote that GM finally has healthy North American operations, and saved about $3 billion a year alone when it shifted retiree health care costs to a United Auto Workers union trust fund. The company can break even before taxes even if U.S. vehicle sales slump to 10.5 to 11 million vehicles, he wrote. So far this year sales are running around 11.5 million. "We think the normative demand for U.S. light vehicles is about 16 million-17 million units, so we expect GM to be printing money as vehicle demand comes back over the next few years," he wrote.

Part one of Detroit Free Press interview with UAW President Bob King

Bob King discusses challenges in a wide-ranging interview with Free Press editors and reporters. The following is an edited account of the discussion.

QUESTION: You would think, given the things going on, and the sacrifices that workers are asked to make over and over, that this would be labor's time. ... And yet it seems like maybe the opposite is true, that labor is struggling to sort of keep traction. What's your take on that?
A: Well, I think when you are 7% of the private sector, you don't have anywhere near the clout or the leverage to win workers the fairness that they deserve.
So, I think a huge responsibility of the UAW, and every union, is to have aggressive, comprehensive strategies to organize.
Q: Do you see opportunities to expand labor's footprint?
A: Definitely. ... This is a UAW that understands the importance of global competitiveness. It is a UAW that went through this horrendous period of contraction in the industry because both labor and management had it wrong. Now I think we have it right.
Q: Was it necessary to have the near-death experience for the Detroit auto industry to get to that sort of mutual agreement around these goals?
A: Well, I think people were moving there, but I think it certainly speeded it up. It's a pretty sad statement to have to lose as many members as we did and the companies had to close as many plants as they did. But ... I'm excited that we have this foundation now. We have the ability to grow market share and grow volume and put a lot of people back to work.
Q: You've said on a couple of occasions that workers who have sacrificed a lot through the collapse of the auto industry should gain as things recover. What does that mean?
A: It's gaining financially. How we do that is an open question. ... And I think there is a pretty broad understanding that we can't bargain agreements that make the companies long-term uncompetitive. We don't want to get back into the spiral that we just got out of. ...
We have to figure a path that really gives our membership ... their fair share of the upside. ... I think our members made these huge sacrifices. I want to see when the upside is shared, it is shared on some proportionate basis.
Q: Are we at the point yet where we are getting to the upside, or are there probably some more concessions that people will have to make?
A: I don't see any more concessions in this round of bargaining. My view of the world, American manufacturing talks about being globally competitive. We buy into that, and yet American CEOs are not globally competitive. They are paid outlandishly more than anybody else in the rest of the world. So that has to be addressed.

Wednesday, September 22, 2010

State of the Union September 22, 2010

Sept. 22, 2010 online at www.uawlocal2250.com


From Chairman Mike Bullock: During his visit last week, which went very well, our new Manufacturing Manager Jim Glynn made a statement that was reiterated in yesterday’s diagonal slice meeting by John Dansby: As long as GM builds a van he sees no reason for it to be built anywhere else but here.

From the Chaplaincy Committee: “See you at the Pole” will be today after first shift at the flagpoles in the front of the plant. This will be to commemorate Global Day of Student Prayer. The tour holding room doors will be open for your convenience.

The reception for our Make-A-Wish family will be tomorrow at lunch timein the tour holding room. Come up, hopefully clad in a colorful Hawaiian shirt, and help brighten their day. The plant tour will begin at 11 am and you can check out the tour route in the cafeteria.

From Automotive News: The UAW will aim to ensure that its members share in General Motors Co., Ford Motor Co. and Chrysler Group LLC profits in contract talks next year, President Bob King said on Monday. The union wants the workers to share in the turnarounds at the U.S. automakers in a way that does not put the companies "back in a cycle of uncompetitiveness" that left them struggling in recent years, King said. "There are a number of different approaches" to achieve that, including "flexible compensation, whether it is profit-sharing (or) gain-sharing," King said in an interview with Reuters. King also said the union was open to foreign investors buying into a GM IPO and expects GM and Chrysler to be able to repay U.S. taxpayer funding that supported their restructurings. "Our ultimate criteria is how do we make General Motors most successful, not where investors come from," King said.


Former Auto Task Force head Steve Rattner has published a book about his experience in dealing with the GM and Chrysler restructurings. This is from an interview with Jonathan Cohn:

JC: Let’s talk about the unions for a second. There are a lot of people who think that the unions are substantially if not primarily responsible for the problems at the Big Three. Obviously management had to be collaborating in this, but, as the argument goes, unions basically bargained for and secured packages that in today’s economy are just not competitive. And it wasn’t just the compensation, it was also the rigid work rules specifying who could do what, which made the factories really inflexible. I know you’re familiar with all of that. Talk for a second about your perception of the role the unions played in the problems the Big Three had, and then tell me a little bit about your experience dealing with them.

SR: The unions were not the major reason why GM and Chrysler got into the position they got into. There are certainly issues around the labor situation, which I’ll discuss in a second, but to lay this all at the feet of the UAW, which I know some management teams have tried to do, is simply not fair. I’ll give you two data points. First, labor only accounts for only about 7 percent of the cost of a car. So, if you cut that to 6 percent, you’re going to make a bit more money, but this is not the biggest expense that an automaker has.

The second thing I would point out to you is that Ford was playing with exactly the same deck of cards. They had effectively the same UAW contract. They had effectively the same manufacturing footprint, up in the upper Midwest area. They had the same kind of dealer network issues that GM and Chrysler had. And yet while Ford certainly struggled for a while, they got through this and have been making good money for some time now.

So, what’s the difference between Ford and GM? I would argue the difference between Ford and GM is management. I don’t know what else to attribute it to. It’s one of the few cases where you actually have two examples that you can put side-by-side and it would be a very valid comparison.

Having said that, there’s no question that the UAW contract contained excesses that probably never made good sense for almost anybody but certainly didn’t make sense in the current environment. I mean, I am a strong believer in unions and in the role of unions in making sure that workers get their fair share of the pie. But what I don’t believe in are unions, union contracts, and union efforts to create inefficient work practices and feather-bedding. So the fact that at GM they had something like 300 job classifications for UAW workers, and nobody in one job classification could be asked to do even the most menial task of someone in another, is just inefficiency—and wasteful.

The fact that GM and Chrysler UAW workers got a whole series of holidays that the rest of us don’t get—for example, at GM, the entire Fourth of July week—is an example of inefficiency that I don’t think you can defend. The jobs bank, I don’t think you could defend.

So we did push hard on many of those things. And, as you suggested, my view was that the UAW and Ron Gettelfinger, in particular, were very professional people to deal with. They fought hard for their interests, they were not shy about their points of view, but they were straight shooters, it was professional, and they were good partners in a difficult bargain.

Tuesday, September 21, 2010

State of the Union September 21, 2010

Sept. 21, 2010 oline at www.uawlocal2250.com

The 2010-2011 Leadership Institute for local union members have been scheduled at the UAW Walter and May Reuther Family Education Center in Black Lake, Michigan. The three (3) week-long programs that will be held along with dates and application deadlines:
Program Session Date Application Deadline
Standing Committee November 7 – 12, 2010 Thursday, October 7, 2010
Grievance Handling February 20 -25, 2011 Thursday, January 20, 2011
Union Involvement /Worker To Worker
(available in Spanish) February 27 – March 4, 2011 Thursday, January 27, 2011


A $75.00 per person registration fee MUST BE SUBMITTED WITH EACH REGISTRATION FORM. Go to www.uawlocal2250.com for more details and an application form.

From the Detroit Free Press: Ford confirmed Monday that it will not sell the next generation of the compact Ford Rangerpickup truck in North America after 2011. However, a larger version of the Ranger that will be sold in all markets outside North America will be unveiled Oct. 15 at an autoshow in Sydney, Australia. Rangers became available in the U.S. in 1982, and sales here peaked in 1999, at slightly more than 348,000, according to Ward's AutoInfoBank. But only 55,600 sold last year. So far this year, 35,029 have sold. (GM has sold 20,576 Colorado/Canyon pickups so far this year)

Information about Thursday’s Make-A-Wish:


Wentzville Assembly will be hosting a Make-A-Wish event on Thursday, September 23. Employees are encouraged to decorate specific work areas in the theme of “Hawaiian Shirt / Pool Party.

One note, a specific Tour Route will be planned – this tour route can be seen on a display in the Main Cafeteria on Monday, September 20. If you are decorating your area, PLEASE keep in mind, for your decorations to be seen it must be on the specific tour route.
In addition, departments are encouraged to do fundraising or displays at the specific locations that are PLANNED STOPS on the tour. The specific PLANNED STOPS will be at:


Stamping @ X-8
Body Shop @ T-25
Paint @ CC-40
Work Center @ P-40
Material/Trim @ P-31
Trim @ E-36
Chassis @ B-50


Wish Family Information:
Parents: Kristina & Daniel
Children: All Boys; Payton, Caden & Zechariah
Payton, 8; likes Bionicles, wears size 7
Caden, 6; wears size 6, likes Marvel Super Hero’s, Incredible Hulk
Zechariah, 4 Wish Child, wears size 4, like John Deer Tractors, cars & trucks…anything with wheels

State of the Union September 20, 2010

Sept. 20, 2010 online at www.uawlocal2250.com

From Chairman Mike Bullock: We were informed by management this morning that there was a need to make up the 86 units of lost production for the month. Their first option was to reschedule this Friday. The Union vehemently opposed that. Under the Memorandum of Understanding on Overtime, article 10, section A of the National Agreement (page 242), model change extends for three weeks, which means that we can be asked to work beyond our scheduled overtime. Since our model change was Wednesday, Sept. 1, that means that exemption runs through Wednesday of this week. Therefore, we will be working 11.5 off of the K-line through Sept. 22, which should be more than sufficient to make up the lost production. I understand the hardship this will be for our members.

As expected, GM announced last Friday that they would invest $483 million in Spring Hill for 4-cylinder production. This was done with trumpets blaring and cymbals clashing, along with the usual political suspects. Once again proving that some legislators have no shame (and poor memories), three Republicans from Tennessee – all who had opposed the bridge loans to GM – were there to participate. They were Congresswoman Marsha Blackburn, and Senators Lamar Alexander and Bob Corker.

For their part, UAW members booed Corker when he took to the microphone to spout this delusional statement: "At the end of the day we all have to feel good about what we did…..I contributed to strengthening the auto industry in this country." To refresh your memories, this is what Corker had to say (among many other things) in March of last year: "The administration is pursuing much of what we pushed for in December, but the delay of several months has increased the severity and sent billions of taxpayer dollars down the drain. Now any investment is likely unrecoverable……”

Friday, September 17, 2010

State of the Union September 17, 2010

Sept. 17, 2010 online at www.uawlocal2250.com


Some dumbbells have been removed from the fitness center. We ask that they be returned, no questions asked. Many people use the center and all of the equipment there, so please be considerate of your fellow workers. Thank you.

There is a new movement to organize unemployed workers that’s being called “UCubed”. You can go to www.unionofunemployed.com to learn more about this new organization.

Toyota is seeking to have a United States judge to throw out the majority of the 300+ lawsuits that have been filed against them on grounds that the cases are based on anecdotal and circumstantial information, according to Bloomberg. Among the litigated issues are the company's claims of quality, safety and reliability. Toyota’s spin meisters/lawyers responded by saying that claims to the quality and safety of its vehicles were opinions and the company can’t be held liable for misrepresentation.(Best headline of article covering this story: “Toyota Asks For Sudden Deceleration of Lawsuits” from thetruthaboutcars.com.

GM CEO Dan Akerson gave a wide ranging interview to the media earlier this week. Here is what he had to say about UAW President Bob King’s demand that worker concessions made during bankruptcy be restored, according to Forbes: “Everyone in the company had to give a bit…What’s past is past. I’m looking out the front windshield. We’re going to work with the UAW to be competitive. We are not going to preclude anything.”

From Forbes:

On how his management style will differ from Whitacre’s: “Ed did a great job righting the ship. I have to get the ship under way now, which is a longer term task.”

On why he accepted the job as GM’s fourth CEO in 18 months: “There’s a sense of service to the nation; the manufacturing base of this country’s at stake. Also, I can’t imagine a more interesting job.”

On future management changes: “I like the team that’s on the field.”

On saving Opel, GM’s European unit: “Opel is an important element of the mosaic we call GM. It’s still losing money, but Europe is a very important region of the world. We are willing to invest and be patient.”

On repaying $50 billion in taxpayer bailout money: “It’s not realistic to think that will happen in one fell swoop. At the same time, I don’t think any investment group has infinite patience.”

On his involvement in future product designs: “I’m like everybody. I have an opinion, but (design vice president) Ed Welburn is a pro. I will yield to Ed Welburn’s creativity. The cars I’ve seen coming out in 2012, 2013 and 2014 are really great.”

On his own GM vehicle breaking down 20-plus years ago: “It was a tense situation.”

On his view of GM vehicles today: “I think the Cadillac SRX is one of the finest cars on the road today, and the CTS is the best sedan I have ever driven.”

On GM’s market position: “We’re strong in North America, Europe and the BRIC countries. Our position ought to be the envy of the global auto industry…. The U.S. population is going to go from 300 million to 400 million. That’s good for General Motors.”

On overhauling Onstar: “It used to be the automotive version of ‘I’ve fallen and I can’t get up.’ I don’t want that.”

On repairing GM’s reputation with consumers: “You have to win it back on the road every day.”

On the debate over tax cuts and economic policy: “What’s good for America is good for General Motors. I’ve got other things to worry about.”

On GM’s marketing and advertising: “I’d like to see more humor in our ads. We can’t take ourselves too seriously.”

On promoting the GM badge: “I’m not embarrassed by the name General Motors. But GM is not a brand. The brands (Chevrolet, Cadillac, Buick and GMC) are the heritage, legacy and future of the company.”

Thursday, September 16, 2010

State of the Union September 16, 2010

Sept. 16, 2010 online at www.uawlocal2250.com

From Chairman Mike Bullock and President Dan Howell: We would like to thank everyone for their huge support of strike assistance raffle for members of UAW Local 1887. A total of $2614 was raised and a check for that amount will be sent out today. The winners are: 1st place – Doug Dunahee; 2nd place – Brent Robinson; 3rd place – Ron Utlaut. This was a great show of solidarity and generosity!

From the Nashville Tennesseean: General Motors will spend up to $500 million to build a new assembly line for its next-generation Ecotec four-cylinder engine at its Spring Hill, Tenn., manufacturing complex, and recall about 400 laid-off workers to make the engines, a source with knowledge of the plan said Tuesday. A news conference has been scheduled for 9 a.m. Friday at the plant for GM to announce the plans, the source said. GM officials declined to confirm the information, but spokeswoman Kim Carpenter said a media advisory about a coming event would go out on Wednesday. GM furloughed about 2,000 workers at the plant late last year when assembly of the Chevrolet Traverse crossover utility vehicle was moved to Lansing, Mich. But 1,045 workers remain employed there, including 899 hourly and 146 salaried, building engines and operating a metal-stamping facility that makes body panels for the Traverse. About 400 of those workers assemble the current Ecotec engines on two separate lines, but that number would double when the third line opens, the source said.

From the LA Times: Toyota Motor Corp. has acknowledged that a software bug in the device used to read its black boxes produced faulty data, only months after the automaker touted information from the recorders to suggest that human error caused sudden acceleration. The automaker said it spotted and fixed the problem — which could give incorrect information on speed — in June and that it did not affect readings for pedal and brake application, crucial keys to determining potential causes of sudden acceleration. (of course)
"You can't rely on event data recorders to determine whether there has been a sudden acceleration event," said Clarence Ditlow, executive director of the Center for Auto Safety. "We can't take Toyota at face value that the EDR is accurate enough to clear them of responsibility for sudden unintended acceleration." In early April, Toyota downloaded data from an EDR in a crashed 2007 Tundra (whose driver lost his life) using the uncorrected software, resulting in what the company now says was erroneous data. Specifically, the readout indicated that the pickup slowed by 177 mph upon impact, a speed Toyota now admits is impossible. It wasn't until June that a software upgrade was provided to NHTSA, Toyota's Michels said. He said the company had reread the data from the Tundra and that it now showed a change of velocity of 1.4 mph.(Sorry, but if a Tundra can’t protect you from fatal injuries with what amounts to a slight brake application, they have much more serious issues)

From the International Union UAW: After nearly a month of imprisonment, Ms. Kalpona Akter, director of the Bangladesh Center for Worker Solidarity, Mr. Babul Akhter, director of the Bangladesh Garment and Industrial Workers Federation, and Mr. Aminul Islam organizer for BCWS’s district office in Savar have been granted bail and will be released from prison. They still face charges, but they have tremendous international solidarity and an excellent team of attorneys. Fearing that Bangladesh’s 3.5 million mostly young women workers would continue their struggle for a 35-cent-an-hour minimum wage, the powerful Bangladesh Garment and Manufacturers and Exporters Association (BGMEA) filed trumped up charges against the union leaders for supposedly fomenting worker violence--including “use of explosives” to damage garment factories. But another very important and progressive trade union leader, Mr. Montu Ghosh, legal advisor to the Garment Sramik Trade Union Kendra, remains imprisoned. We need to redouble our efforts to free Mr. Ghosh. It was a major international effort which led to the release of Kalpona, Babul and Aminul. Labor played a huge role. You can write the Bangledesh Embassy by going to www.nlcnet.organd clicking on the “Free Imprisoned Trade Union Leader” link on the right.