Filed under: Sedans/Saloons, Plants/Manufacturing, GM, UAW/Unions
Strike at Malibu plant averted for now, Lucerne and DTS production to resume
GM is still dancing with the UAW over contract issues, now its doing it with local plants regarding items that weren't in the national agreement. However, The General has managed to wring two more days to negotiate before workers at its Fairfax assembly plant in Kansas City, KS, walk out. The 2,600 workers of UAW Local 31 churn out 3,100 Malibus every week.Local contracts -- as opposed to the national agreement -- concern work-rule, seniority and other non-economic issues. The UAW Local says that GM isn't following the blueprint of the national agreement and is pushing for too much. GM says it is negotiating in good faith.
And Fairfax isn't the only plant affected. Strikes and idling due to rejected contracts have taken place at GM plants in Parma, Ohio, Lansing, Michigan, and Detroit-Hamtramck. Those interruptions have halted production of the Buick Lucerne and Enclave, Cadillac CTS, Saturn Outlook, and GMC Acadia. The Hamtramck plant is calling workers back, which will get the Lucerne and CTS in production again, but now the Malibu is on the block. GM has a 37-day supply of the hot commodity, and it also has another plant that builds Malibus. If GM and UAW Local 31 can't come to an agreement, Malibu production at the Fairfax plant will cease tomorrow.
[Source: Automotive News - Sub. Req.]
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Reader Comments (Page 1 of 1)
Chris 7:58AM (4/24/2008)
I wouldn't buy any Malibu made at this plant for the next few months. Considering the idiocy the locals used to pull down here before GM was forced to close the plant any time they are in "negotiations" means "car quality takes a dive as the hooligans like to sabotage cars"
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Mikeeeeeeee 8:23AM (4/24/2008)
I ordered one about 2 1/2 weeks ago. Hope it makes it b4 this strike. I only have to say one thing. "The UAW is the SOUTH END of a NORTH BOUND COW". GM finally has a winner that can lift them back to profits and these AH's wand to screw things up. No wonder production is being shifted into Right to Work states and foreigh countries.
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Dude 9:06AM (4/24/2008)
Non-economic issues?
So does this mean they are striking because GM won't give them a new microwave in the breakroom?
People used to strike over workers losing fingers, now it's over their food not cooking evenly. How sad.
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epilonious 9:07AM (4/24/2008)
Dear UAW:
Please move to China/Mexico/Developing-Nation where workers ACTUALLY could use a union.
Trying to make insane healthcare plans more insane and striking at the drop of a hat here in America is just making you look redundant and greedy... furthermore you are seen as a detriment/impediment to progress for struggling American carmakers... and no-one is sympathethic when your attempt to unionize plants at other companies fall flat on their face.
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mike 9:18AM (4/24/2008)
EPILONUS...for struggling American carmakers?
OK, but they are struggling because of MANAGMENT, not unions. You have been told this before probably many many times over...Ford does not sell Focus for profit....its only point is to meet CAFE, Civic and Focus are so far apart it not even funny. Who's fault is that? MANAGMENT.
Exactly the same applies to Aveo and Cobalt, while they do sell in BIG numbers...they are not PROFITABLE. They are there to offset CAFE numbers.........Honda makes Civic to make money, Toyota makes Corolla to make money, detroit makes small cars to meet CAFE.......see something very wrong here?
Who's responsible?
Also one more question for you, gas prices went up after Sept 11, we are in 2008. How come the managment of GM still uses oil prices as an exuse, they have had 7 years to deal with this issue, 7 years and as people swich cars they will abandon Detroit cars and get great Foreighn cars........................who's fault is that?
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bakka 10:30AM (4/24/2008)
BULLSEYE!
Derek 12:05PM (4/24/2008)
You forget that for years the UAW has insisted on production guarantees from the Big Three. The result was overproduction and a glut of fleet sales to off-load the excess vehicles because it was better for the bottom line to do that than stop production.
Then there's the healthcare and wage issue that has driven up costs and likely resulted in the rampant cost-cutting so prevalant among domestic manufacturers as they try to compete with rivals who had lower labor costs. Betcha that the Cobalt and Focus would be profitable cars if the domestic makers weren't spending a premium of several thousand dollars *per car* on labor.
No, it's all managements fault... :/
Big Rocket 12:04PM (4/24/2008)
I think it is downright pathetic that every time, when a union apologist has to make excuses for the UAW, he/she almost invariably points out the transgressions of management. Of course the management has made poor decisions in the past that hurted the Big 3, and continue to hurt the Big 3. Of course the vast majority of upper management is completely overpaid. But none of this will ever excuse the UAW's own transgressions. If the UAW boys and girls can't be satisfied with building cars for about $30 an hour in wages plus another $30 an hour in benefits, there are plenty of foreign workers in Mexico, China, India, and elsewhere willing to build the same cars for much, much less. The UAW does NOT protect American jobs; it dares the management to offshore them overseas. It is not the cure, but the very disease it claims to fight.
Drake 12:13PM (4/24/2008)
@Mike
If we assume your logic is correct, then things are about to change. NHTSA's new CAFE regulation will regulate fuel economy based on the vehicle's footprint (track x wheelbase) starting with the 2011MY. This means that the incentive to sell small cars to account for large cars poor fuel economy goes away. OEMs will need to meet the fuel economy target specified for the size of vehicle. So, if management sells the small cars at a loss to sell large cars, then this will no longer be the case. If GM, or any other UAW supported OEM can't sell a small car for a profit, then there is very little business case to make one.
I believe 2011MY starts in 2010, so this is within the time period of the labor contracts being discussed. Mgmt is trying to ensure that starting with the 2011MY, small cars can be made profitable in the U.S., otherwise, there will be no small car to make. With no car to make, there will be no job for the UAW member to do. Like it or not, the new contract has to support a profitable small car, or the jobs will go somewhere else.
Tim 9:19AM (4/24/2008)
The Lucerne and DTS, which share a platform, are built at Hamtramck.
The CTS and SRX, which share a platform, are built at Lansing Grand River.
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Jim 9:38AM (4/24/2008)
I think the UAW is in a death struggle. Keep in mind, union dues are based on the individuals hourly wage rate, therefore lower wages equal lower money to headquarters. DUH!
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Edsel 9:51AM (4/24/2008)
The light at the end of General Motor's tunnel is that of the Asian Express. The UAW's future is history bound.
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Tad 10:01AM (4/24/2008)
@ Mike, please emphasize that is just your opinion and not actual fact. EVERY car manufacturer sells cars to make money, and even if CAFE standards did not exist, I'm sure people would want small efficient cars because of high fuel prices. Honda and Toyota have been making money off these types of cars for years so GM and Ford saw an oppurtunity (better late then never) and started making small efficient cars to compete.
And yes a lot of Domestic auto manufacturers are in the red because of management AND UNIONNS. The unions are drastically cutting into profits with their unreasonable health care request, as well as striking at the slightest hint of not getting their way.
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J M C 3 10:17AM (4/24/2008)
Vote republican.The fatcat union powerbrokers have the democrats in their back pockets.
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RobAFromNC 10:17AM (4/24/2008)
Union tactics like these will lead to further job losses for Americans. Can you blame the auto makers? Union labor is unreliable and unions are the enemy of the companies they work for. Who are the unions serving? Is it the workers or the bosses? How can you blame auto makers for moving production to right to work states and overseas?
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Niels 10:57AM (4/24/2008)
The UAW [and the UFCW] are the ones responsible for my anti-union viewpoints. They're just a bunch of whiny babies who cry when they don't get bottle-fed. Of all the jobs I've had, the non-union companies were by far the best to work for. I got ALL the benefits that unions only try to get for their people. I'm diabetic and because my current employer and the union didn't agree on a resolution for health benefits, I now have to wait twice as long as I would have had a union not been involved. I will never have any respect for unions whatsoever.
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J M C 3 11:56AM (4/24/2008)
You can't blame US manufacturing for moving production to lower cost countries.
In thier quest to broaden their power base and undermine traditional social/moral values, union officials are also behind this current social regression (not progressive) such as domestic partnerships which further adds to the cost of production.
Greedy democrats see this as an opportunity to grab votes which the union officials promise from their members.
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MajorGeek 12:18PM (4/24/2008)
Well, the union debate has been talked over plenty here, not much left to say except not one union member, or a rep would be hilarious, comes in and can make a case for themselves. As a Teamster (local 317) for 12+ years I would debate any of them because they don't have a leg to stand on. Of course, there are not a lot of those dinosaurs left so that might be why.
Heres my problem regarding all the "management sucks" debate. Theres no doubt management has its issues but GM is a great example to use. All this press GM has been getting about the Camaro, G8, Malibu, Cobalt, H3T, Volt and many others are immediately forgotten by press about union threats and strikes. It puts a dark spot on a company that is really coming around. So, to point fingers at one aspect while doing damage to the companys image and finances is just a blatant case of hypocrisy. Since the end result with these union threats is often to get more for themselves they are not in a position to point their fingers.
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mroverlord 7:09PM (4/25/2008)
You would THINK the unions would hold their tongue and wait until the companies start posting comfotable profits, THEN start stirring the pot.
Reminds me of the dumbass unions where I work..They marched in at a meet-and-confer meeting and demanded xx% in raises over a 4 year term. The company said OK, because THEY were going to give MORE money..but instead they gave the union exactly what they asked for.
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