Wednesday, March 31, 2010

State of the Union March 31 2010

There will be 13 members recalled Monday, April 5. The new seniority date to hold the plant is 7-23-1985. More members will be recalled April 12 and 19 but the number is still to be determined.
•    As of today, 19 laid off members have accepted transfer to Ft. Wayne effective April 5. The following week, 4-12, 14 laid off members will transfer to Ft. Wayne and 2 will transfer to Fairfax. That will leave 278 members on layoff.
•    Good news from the benefits department: Optional life insurance premium payments will be suspended for May and June and optional dependant life insurance payments will be suspended from May through December.
•    Thanks to everyone who donated their time and money to provide Easter baskets to needy children. There were 75 baskets overflowing with candy and toys that are sure to brighten a child’s Easter holiday.
•    From the Detroit Free Press: For the 15 months ended Sept. 30, 2009, Americans scrapped 1.2 million more vehicles than they bought, a historical first, according to R.L. Polk & Co, which has tracked car owning patterns since 1948. More than 14.8 million cars and light trucks were crushed or recycled in that period, while consumers registered 13.6 million new vehicles. “It foreshadows what may be pent-up demand. The assumption is that those vehicles have to be replaced,” said Lonnie Miller, Polk vice president for marketing and industry analysis. The average vehicle on U.S. roads was 10.2 years old during the 15 months of Polk’s most recent analysis. That is the oldest fleet in at least 14 years.
•    From Automotive News: Two leading U.S. economists today predicted a return to more normal economic conditions by the end of 2010. As a result, they forecast U.S. light-vehicle sales will reach 14 million units in 2011 and grow to old levels of 17 million and above by middecade. However, market share among automakers will remain extremely fluid. Once the economy is rolling, by 2013 about 70 to 75 million young consumers will enter the market. In addition, while scrappage demand may not return to high percentages -- thanks to constantly improving quality lengthening the ownership cycle -- there is significant pent-up demand that will see more replacement purchases in the near term, George Magliano, IHS Global Insight director of automotive research said.

State of the Union March 30, 2010

 The Community Services committee will be putting Easter baskets together after first shift today in the cafeteria. Anyone who wants to help is welcome. Thanks to body shop for collecting $317 for baskets.
•    From the Detroit Free Press: The ranks of UAW members fell to a new post-World War II low in 2009 as the bankruptcies of General Motors and Chrysler led to thousands of manufacturing job losses. According to its annual report filed with federal overseers Monday, the UAW had 355,191 members at the end of 2009, a loss of 75,846 members, or 18%, from the 431,037 it reported at the end of 2008. The union's net assets shrank by $69 million to $1.12 billion. UAW President Ron Gettelfinger was paid $173,065 in salary and other compensation, a slight decrease from the $174,098 he received in 2008. The union's overhead costs fell slightly, as did its political lobbying, to $9.7 million from $10.6 million in 2008.
•    From the Detroit News: The U.S. Transportation Department will launch two major investigations to discover whether vehicle electronics or electromagnetic interference are to blame for unintended vehicle acceleration incidents. The investigations, one by the National Academy of Sciences and the other with the help of the NASA, will help get to the bottom of the issue, U.S. Transportation Secretary Ray LaHood said in an interview with The Detroit News Monday. "Many members of Congress think it's electronics and I heard enough of that -- not only from members but from Toyota drivers ... and so we felt we really needed to get outside experts," LaHood said. "We are tapping the best minds around."
•    The UAW plans to offer for sale all of its 362 million warrants for FordMotor Co. stock today -- a move that could generate about $1.3 billion for the union's retiree health care trust fund. The stock warrants constitute an 11 percent ownership in Ford. Ford issued the warrants to the UAW in December to help cover its obligation to the Voluntary Employees' Beneficiary Association. Ford will receive no proceeds from the transaction, nor will the UAW's gains reduce the automaker's remaining obligations, about $7 billion, to the VEBA.

Monday, March 29, 2010

State of the Union March 29, 2010

Anyone wishing to accept nomination for Vice President or delegate to the Constitutional Convention may do so at the Union Hall April 5 – 7, from 7 am through 6 pm (one hour later than posted due to extended line times) and April 8 from 7 am to 4:30 pm. Elections will be April 27 from 4:30 am to 8:30 pm.
•    In order to meet growing customer demand for Chevrolet Equinox and GMC Terrain models, GM is implementing a unique plan to add a third shift at the Oshawa Assembly Plant to support new Equinox production there. The Equinox and Terrain are currently produced at GM’s CAMI Automotive plant in Ingersoll, Ontario. Under the plan, CAMI’s Body Shop capacity will be expanded to produce extra Chevrolet Equinox units beyond the plant’s existing capacity to paint and assemble them. These Equinox body assemblies will then be shipped to the Oshawa plant (about 150 miles) for paint and final assembly alongside the current Chevrolet Impala production. “This plan for CAMI and Oshawa allows us to meet customer demand for hot products while avoiding a potential production over-capacity situation by creatively using our assets and facilities,” said Mark Reuss, president of GM North America. The third shift to support Equinox production in Oshawa will be added in October and is expected to return approximately 600 employees to the plant. At CAMI, all laid off employees will soon be recalled and the additional body shop volume is expected to result in the need for approximately 70 new jobs at CAMI by August of this year.

Friday, March 26, 2010

State of the Union March 25, 2010

 From the UAW website: American Axle and Manufacturing Inc. violated the job security clause in its agreement with the UAW and must make whole the workers affected by its 2009 decision to outsource work to Mexico, an arbitrator has ruled. The decision, issued Wednesday by umpire Paul E. Glendon, found that the company violated the terms of its 2008 National Agreement with the union when it moved its 8.25 axle production to its facility in Guanajuato, Mexico. "This is a major victory for these workers, and we're very gratified that the umpire upheld our strong outsourcing language reached in the 2008 agreements," said UAW President Ron Gettelfinger. "Our American Axle members went on strike for three months in part to win this measure of job security." Glendon ordered the parties to determine the exact number of workers affected by the outsourcing, how many were laid off because of the improper outsourcing, and how much those workers are due in wages and benefits. American Axle had claimed it retained broad discretion about what products to make and where and when to produce them. The company also claimed the contract language merely required it to keep its tooling and equipment on hand in Detroit to produce the 8.25 line if it decides to do so. This argument, Glendon wrote, "constitutes mere grasping, ingeniously but unconvincingly, at semantic straws. It clearly and categorically committed to produce the specified 'Product Programs' at the designated plants, not merely to keep tools and equipment that might be used for that purpose."
•    From the Detroit Free Press: GM plans to make another round of $1.19-billion loan payments to the U.S. and Canadian governments next Wednesday, the company said yesterday. GM is expected to release its fourth quarter financial results from last year soon. Thursday, industry analyst Eric Selle of J.P. Morgan Chase estimated in a note to investors that GM could post $2 billion in earnings before interest, taxes, depreciation and amortization for the fourth quarter. He also said GM’s enterprise value in 2011 could be $67 billion.

Wednesday, March 24, 2010

State of the Union March 24, 2010

From the International Union UAW: The corrections bill (a budget reconciliation measure that makes changes to the health care bill previously passed by the Senate) that was passed yesterday, will now go to the Senate, which must consider it under the budget reconciliation procedures that require an up or down vote after 20 hours of debate. This bill cannot be filibustered. The Senate is expected to begin debate on the corrections bill today. The 20 hours of debate will expire late Wednesday or early Thursday. At that point, the Senate will begin a so-called "vote-a-rama" -- that is, non-stop voting on amendments offered by Republicans. This could go on for several days. Thus, the vote on final passage of the corrections bill is expected to take place on Friday or Saturday. UAW activists should contact their senators right away to urge them to vote to pass the corrections bill using the following toll-free number: (866) 960-0611.
There is a Solidarity Committee meeting today after first shift in the cafeteria. Everyone is invited to attend.
The Community Services Committee will be accepting donations for the annual Easter Basket Collection until March 29. They are in need of Easter candy, games toys, baskets or any kind of Easter basket items. Donations can be dropped off at the Union Hall, Bob Wheeler’s office, the Benefits office or any Community Services committee member.
From the Detroit News: Toyota's incentives have nearly doubled since the beginning of the year, while the industry average has increased by just 3 percent, according to proprietary data from J.D. Power and Associates obtained by The Detroit News. Toyota was offering an average of $1,542 in rebates and other incentives on each vehicle it sold in January, compared to $2,651 for all automakers in the United States. But by the end of the first week of March, Toyota's average had soared to $2,722, while the industry average had inched up to $2,730.
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State of the Union: March 23, 2010

The Women’s Committee is hosting a Women’s History Day celebration in the cafeteria today. Take the quiz about women past and present for a chance to win a gift basket. Popcorn and other information about women’s history will be available in the cafeteria. Please return the quizzes to the cafeteria or a member of the Women’s Committee by the end of the shift to be graded. Prizes will be awarded after the shift ends today.
•    With the passage of the health care bill, many questions are being raised. One item of particular interest is the excise tax on high-cost insurance. Here’s what we know: the tax doesn’t begin until 2018 and applies to policies that exceed $10,200 for singles and $27,500 for families. The tax would be 40% on the excess premium. We believe that our insurance premiums are in the $15,000 range for families and this tax would likely not apply to our health care plans. When we acquire an accurate number as to the cost of our health insurance for both single and families, we will pass it on.

Monday, March 22, 2010

State of the Union: March 22, 2010

March 22, 2010

•    Thanks to everyone who called their representatives urging them to pass health care legislation. President Obama will now sign a bill that will extend coverage to another 32 million Americans and cut $118 billion from the deficit the next ten years.
•    The members of UAW Local 2244 ratified the closing agreement with NUMMI with 90% approval. "We are grateful to the members for the solidarity they've shown throughout this process," said UAW Region 5 Director Jim Wells. "We also want to thank our brothers and sisters in the labor movement, community leaders and consumers across the country for the support they've given the NUMMI workers."
•    In case you weren’t aware, we have three Fridays scheduled for April, the 9th, 16th and 30th, as well as10.8 off the K-line every day.
•    The Arlington SUV plant, with two shifts, is working max overtime plus. In addition to working 5-10 hour days every week through April, they will also work two 10-hour Saturdays in March and April. Enrique "J.R." Flores, president of United Auto Workers Local 276, said “We have been told we can expect overtime for the foreseeable future. Since mid-September, when we went on the four-day workweek, we have only worked a four-day week once."
•    Speaking of overtime, the Fairfax plant (Malibu, LaCrosse) has 24 Saturdays scheduled between now and the end of the year.
•    Toyota shareholders are lining up to sue the automaker, in this case over the lost value of their shares due to the sudden acceleration recalls. This seems pretty frivolous, but there is precedent – Enron and Worldcom had to cough up $7 billion and $6 billion respectively to shareholders after it was determined they had committed corporate fraud in misleading investors.