• Aug 23rd 2007 at 9:01AM
  • 22

Vehicle sales are slow throughout the US right now, and a slumping housing market coupled with high gas prices means that trucks and SUVs are being hit extremely hard in particular. Large truck and SUV sales are down 9% through July year over year, and GM has halted overtime at six locations to help keep its large vehicle inventory under control. Workers from Flint; Oshawa, Ontario; Ft. Wayne, IN; Janesville, WI; Arlington, TX; and Silao, Mexico will need to punch out after completing eight hours work. GM wants to be sure inventories of its all-important large trucks don't get too high, which could necessitate higher incentives if available stock gets out of hand. GM looks very serious about keeping cash rebates in check, even with the possibility of a strike looming next month.

[Source: Freep]

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    • 1 Second Ago
      • 8 Years Ago
      For those who aren't familiar with the seedy underbelly of the auto industry (esp. the UAW portion), this is a huge blow to the workers.

      We all talk about how UAW workers are paid too much, and it shows in the labor costs diagrams. But most of this overpayment comes from OT. The base hourly rate of a line worker, while higher than their skill set deserves, isn't entirely unreasonable.

      The reason they make so much is the amount of overtime they get. The UAW has worked to rig the rules so that employees get a ton of overtime. They rig is so that even in weeks where the employees don't work over 40 hours, they still get overtime because they worked 10 hours in one day or something. They rig it so that if a repair needs to be made to equipment, you not only need 8 people to do the repair, but 4 levels of stewards and foremen have to be there too. Sometimes, everyone on the line gets to stay at their station while the line is stopped getting paid overtime waiting for it to restart so they can restart production!

      Paying no OT to these workers will cut their incomes in half for the time being. I hope they kept enough savings to cover their house payments.
      • 8 Years Ago
      That title is kind of misleading. I read it and thought, why are GM workers putting in OT?

      Anyways. I bet the UAW will strike about this as well, claiming they aren't getting the OT they deserve, or some other logical fallacy along those lines.
        • 8 Years Ago
        Basicaly this is another means nothing article.

        Cutting OVERTIME is hardly the end of the world. they want to manage their inventories, but hell, the nutswingers jump on them for having too many vehicles, then jump on them for cutting out costly overtime..

        You can't win... lol..
      • 8 Years Ago
      @ bear

      Lets not forget about those overly inflated pensions and health costs too.

      • 8 Years Ago
      Barney, that class action lawsuit was against toyota.

      they now have a second class action suit started against the Lexus ES350.

      either way on point, this Overtime thing is a relatively small deal.
      • 8 Years Ago
      Get rid of the overtime,and beef up the incentives,and start making those fat UAW workers do jumping jacks before each shift.
      • 8 Years Ago
      What make you non-auto workers think we'll find other work. We are lazy and overpaid. We'll all just go on public assistance and let all you non-auto workers support us. Sounds good to me.
      • 8 Years Ago
      Questionable business practices? You go thinking that.

      I REALLY REALLY REALLY hope the UAW strikes. The big 2.8842656451 will hopefully can thier asses and hire the tons or people out there who wouldn't complain about getting $12-$18 an hour, you know the amount thier skillset is REALLY worth.

      $40 dollars an hour to tighten bolts.. pfffffft.
        • 8 Years Ago
        AlexP: You're not old enough to know, but you can ask daddy. Ronald Reagan (he was a President of the United States) fired all striking air traffic controllers in the mid-eighties. So son, there is a precedent that could lead to a protracted strike like Catapillar had not so long ago.

        More GM cars will be labelled Heco en Mexico, Austrailia, Korea and Europe. Only god knows what the whacky Canadians will do. They will more than likely stage a sympathy strike. Viva Mexico.
        • 8 Years Ago
        Isn't that illegal?

      • 8 Years Ago
      It's the fuel economy.

      • 8 Years Ago
      I don't understand why they'd strike - they never have, not even during the previous though times (why is history repeating itself? lol). Worse that could be happening is a CAW strike, but Buzz Hargrove is FOS.

      Seriously, why beat your already wounded employer when your common enemy is foreign manufacturers and their questionable business practices? This, of course especially applies to Toyota.
        • 8 Years Ago
        I think this is the first time I've seen the term "questionable business practices" used to describe Toyota. What exactly is questionable? The only thing I can think of is their purchase of Fuji Heavy Industries...
      • 8 Years Ago
      SWEET! Maybe those lazy fatties at the UAW will have to pick up a shift at the quickie-mart where they belong.

        • 8 Years Ago
        It is now very clear that people who are educated in Ivey Leaque schools can show ignorance in public forums. I am not a UAW worker, but I know many of them, and they are good decent hard working people. Comments like yours just show that people can be educated beyond their intelligence.
      • 8 Years Ago
      " I'm pretty sure the US economy will be just fine if any or ALL of the big 2.8758456 went bye bye"

      Goes to show common sense is better than education.
      Ignorance is going to kill us all.
      • 8 Years Ago
      I am having more respect for GM with moves like this no OT initiative.

      I'm sure the UAW workers will cry about this but thats what they get for being so greedy and lazy. Lets also not forget how this is going to affect strippers incomes in these one-horse factory town too. =) HAHA!
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