Local UAW contract negotiations aren't going well for General Motors, and today they took a turn for the worst as union members at the automaker's Fairfax assembly plant in Kansas walked off the job at 10AM EST. The bulk of GM's hot-selling Chevy Malibu are produced at the Fairfax plant, with a lesser number of the four-door sedan being built at the automaker's Orion plant in suburban Detroit. Last month GM sold 17,050 Malibus, a 39.5% increase in volume over April 2007. The local union in Fairfax had given GM a number of ultimatums, extending them since the first was established for April 22nd. We're not exactly sure what issue is at the heart of these contract negotiations, but The Detroit News reports that at least one bone of contention is the plant requesting seniority to snag transfer jobs, while the other issues remain undisclosed. General Motors has been able to weather a 10-week strike by union members against American Axle, one of its main suppliers, as only production of large trucks and SUVs have been affected. Another strike at its Lansing Delta Township plant where the large Lambda CUVs are built has also only served to reduce inventories of vehicles that are seeing a slow down in sales. While the General can withstand a reduction of inventory for vehicles that currently aren't selling as well as they were before because of high gas prices and a slump in the housing market, the Malibu is gaining popularity with consumers month over month. The Fairfax and Orion plants were already producing at capacity to keep up with demand, so today's strike will assuredly hurt the automaker where it matters most: the bottom line. We'd expect GM to act quickly to end the strike, as money is being lost by the hour while Malibus aren't being built.
[Source: The Detroit News]
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Reader Comments (Page 1 of 3)
Avinash machado @ May 5th 2008 11:31AM
All these strikes give the imports an unfair advantage.
Russell @ May 5th 2008 12:12PM
Even imports that are being assembled here in the USA don't have unions. No wonder the US Automakers are shifting their production out of this country to get rid of this cancer.
Rocketboy @ May 5th 2008 1:14PM
No, it's a fair advantage.
tekdemon @ May 5th 2008 3:43PM
This really is a pretty bad time for the unions to strike...those high gas prices finally have the Malibu selling decently, and the unions strike the Malibu plant?
GM is getting screwed here.
Grammar @ May 5th 2008 11:36AM
It is "turn for the worse" not "turn for the worst". Editors are your friends.
Matt @ May 5th 2008 11:47AM
Seriously - I'm glad at least one other person sees this stuff. Autoblog is basically a reposter of press releases; the least they can do is read what they're regurgitating before they hit the "submit post" button. Lame.
Grammar @ May 5th 2008 12:01PM
The "turn for the worst" gaff wasn't from the original article, it was all Autoblog. Can we please get an editor on staff? I'll even clink on a few ads as repayment.
Ordinary Radical @ May 5th 2008 3:27PM
I always thought it was "term for the wurst". . .
sk @ May 5th 2008 11:38AM
Its time to bring in strikebreakers!
Rocketboy @ May 5th 2008 1:15PM
Ready your onions and boring stories...
Geo @ May 5th 2008 11:38AM
Can the UAW & give the jobs to people that want to work. It's actions like this that move more & more labor overseas. Let them cry in their beer when they have no jobs PERIOD. Unions are long since past their day and are ruining this country's ability to compete. Inflated wages & benefits based on what product being in such high demand?
Seoultrain @ May 5th 2008 2:46PM
I'm sure these employees want to work. Do you think they get paid their normal wage while striking? And do you think every single employee supports every UAW decision? The UAW has grown into a monster that no one can control; not the actual united auto workers, not GM. I'm thinking there are a lot of innocent victims here. Don't give all your sympathy to GM here.
Geo @ May 5th 2008 3:27PM
seems to me if these lemmings that follow the rank and file united to say this is BS we need this work they could implode the UAW from within. Unions are corrupt by default. Why would anyone want their groups collective wages garnished to support a corporate structure that does nothing but collect their dues? GM also has the choice to send the work to Canada, Mexico, or else where. Tell these UAW strikers to go to Western & Central PA and see what that union mentality gets them. Tell me what the typical UAW worker makes per hour in comparison to others in the area the live in, especially those w/o college degrees. I'll wager it's a pretty lopsided comparison. Don't blame GM? They're writing the checks. Like BB King said "As long as paying the bills,
I'm paying the cost to be the boss "
Seoultrain @ May 5th 2008 4:06PM
The UAW has been around for over 70 years. It's pretty much the most powerful union in the country save the MLB Players Association (which is much smaller). You seem to think that standing up to such a powerful entity is as simple as getting together a couple hundred workers and filing a petition. The UAW has money and influence, and they'll splinter any uprising without any problem. In short, you'll lose that cushy automotive job and find yourself on the street. I agree with you that unions are flawed, but to go toe-to-toe with the UAW is suicide.
I never said not to blame GM. In fact, I said _not_ to give all your sympathy to GM. Of course they're at fault. They allowed the UAW to get out of control.
I was mostly stating that the UAW is a pretty separate entity from the actual workers.
Gary Blomquist @ May 5th 2008 11:38AM
I am a union member (retired), but I just don't understand the way the UAW targets their strikes.
Their "bread and butter" is the auto industry, yet they target GM's "one of few" models that's turning into a successful product, as sales show?
Sure, hitting the Malibu production will certainly get quick results, but it sure won't endear "labor" with management at all.
This, "Them versus us" approach has to be tempered.
I can only see the UAW making their importance to the industry that much less.
The result will be that more assembly plants will pop up in the non-union Southern states as Nissan/Hyundai/BMW, and other automakers investing, or it will be Mexico, and then no American labor will benefit.
compy386 @ May 5th 2008 11:48AM
+1 for you. This is the smartest comment I've read all day.
Blake @ May 5th 2008 11:59AM
And a pat on the back to you good sir.
Wildgoosechase73 @ May 5th 2008 11:45AM
The time has come for GM to build each model in two plants, one domestic, one foriegn. In the event of a strike add a shift at the foreign plant.
Seoultrain @ May 5th 2008 3:30PM
I dunno about that one. Half your labor is insanely expensive, half your vehicles are built with expensive foreign currency and need to be imported, and you need double the tooling and other startup costs. Nothing wrong with having a backup, but simplicity is key.
Mr. Oak @ May 5th 2008 11:46AM
The cost of gasoline is not the primary reason for slowing LAMBDA sales. GM, wisely or foolishly announced that the 2009 LAMBDAS will be available with the 290HP DI motor. Guess what?, I also put my Acadia acquisition plans in "park". I can wait until September.