Autoblog

UAW strikes GM Malibu plant

John Neff — Mon, 05 May 2008 11:27:00 EST

Filed under: Sedan, Plants/Manufacturing, Chevrolet, UAW/Unions

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]

UAW strikes GM Malibu plant originally appeared on Autoblog on Mon, 05 May 2008 11:27:00 EST. Please see our terms for use of feeds.

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American Axle Strike: Two GM factories up, one GM factory down

Michael Harley — Mon, 07 Apr 2008 14:41:00 EST

Filed under: Truck, Plants/Manufacturing, Chevrolet, GM, GMC, UAW/Unions

The American Axle strike, now in its second month, is causing General Motors more than a few headaches. The parts shortage caused the General to nearly cease production of its highly profitable large trucks and SUVs, and shut down production in Oshawa, Ontario and Fort Wayne, Indiana.

As of this past weekend, it appears that GM has found enough parts to re-open those two plants to start building the Chevrolet Silverado and GMC Sierra again. While that's good news for those workers, the SUV plant in Arlington, Texas, all but untouched by the strike, will now find itself shutting down. Arlington will go on a four-week layoff starting April 14.

To get the Ontario and Indiana plants up and running, GM is reportedly getting parts from an American Axle plant in Mexico (as Chrysler has been doing). Although GM won't officially specify from where the parts are coming, if they are being supplied from Mexico, as many suspect, it will offer the automaker additional leverage in its dispute against the UAW. Union officials are currently losing negotiation power as the slumping U.S. auto market has reduced the demand for vehicles with American Axle components. In a move to shift the balance of power back to its favor, the UAW has threatened additional strikes if local contracts aren't soon reached.

[Source: Detroit News]

American Axle Strike: Two GM factories up, one GM factory down originally appeared on Autoblog on Mon, 07 Apr 2008 14:41:00 EST. Please see our terms for use of feeds.

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GM finds short-term solution to American Axle strike

Chris Shunk — Tue, 01 Apr 2008 10:01:00 EST

Filed under: Sedan, Chevrolet, GM, UAW/Unions

The five week-old strike at American Axle is finally starting to wear on GM, and the General has decided to move a small but crucial parts contract over to rival supplier Dana to help get its truck plants moving again. The 30,000-unit prop shaft contract for light pickups is considered a small deal, but the fact that GM is beginning to move on shows that the strike, which began on February 26, is beginning to take its toll on the giant automaker. The move is going to anger the striking workers, but it will also likely help get American Axle management back at the bargaining table.

Recent events show that still more GM plants are being hurt by the strike, as the plant that builds the Buick Lucerne and Cadillac DTS was shut down last Friday, and Automotive News reports the Chevy Cobalt plant could idle this week. Perhaps the biggest news of all is that GM is running out of rear suspension knuckles for the hot-selling Chevy Malibu. Since the General is in the middle of a mega-million dollar ad push for the North American Car of the Year, we're guessing a work stoppage at the Orion, MI plant won't be taken lightly. This ever-lengthening strike may have started out as a non-story, but lost production on a grand scale of some of GM's most profitable products will hurt GM, American Axle, and its 3,600 workers in the long run.

[Source: Automotive News - subs. req'd]

GM finds short-term solution to American Axle strike originally appeared on Autoblog on Tue, 01 Apr 2008 10:01:00 EST. Please see our terms for use of feeds.

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UAW strikes again! Targets American Axle after talks end

Michael Harley — Tue, 26 Feb 2008 16:31:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, GM, UAW/Unions

In a move that may threaten production at General Motors, the United Auto Workers union went on strike against American Axle & Manufacturing Holdings Inc. earlier today. The UAW work stoppage, the third called by the union within the past six months, centered around wages, benefits, and concerns that the company may be moving production to Mexico.

American Axle is the sole axle supplier to GM for light trucks such as the Chevrolet Tahoe and GMC Yukon. The company supplies axles, shafts, and related components to other automakers, as well. As the four-year contract with the UAW neared the end of its term and the strike loomed, American Axle did stockpile its inventory. It is unclear, however, just how much supply is on hand. It may not need to last long, as analysts expect a negotiated settlement to end the strike within several days. This is good news for everyone, especially the workers who are walking the picket lines outside in the freezing snow.

[Source: Automotive News, subs. req'd, Photo by Bill Pugliano/Getty]

UAW strikes again! Targets American Axle after talks end originally appeared on Autoblog on Tue, 26 Feb 2008 16:31:00 EST. Please see our terms for use of feeds.

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DARN! Forbes was right, UAW strike against Chrysler is over

John Neff — Wed, 10 Oct 2007 17:49:00 EST

Filed under: Chrysler, UAW/Unions

UPDATE: Statement from Chrysler Vice Chairman and President Tom LaSorda added after jump. One detail LaSorda mentioned was that Chrysler would be establishing an "independent retiree health care trust" like the GM is pumping billions into. The amount Chrysler will contribute is still unknown.

Photo by Bill Pugliano/Getty

Whaddya know? Apparently Forbes knew something everyone else didn't, as the UAW has just released a statement saying that it has reached a tentative agreement with Chrysler LLC on a new four-year contract. All of the 49,000 some UAW workers who walked off the line will return to building cars at their next available shift. No details of the arrangement have been released yet, but speculation as to what it entails has probably already started. We'll see if the UAW finds its new Chrysler contract a harder sell to the rank and file than the GM contract that was just officially ratified today.

[Source: Automotive News, sub. req'd]

Gallery: Images from UAW strike against Chrysler

Continue reading DARN! Forbes was right, UAW strike against Chrysler is over

DARN! Forbes was right, UAW strike against Chrysler is over originally appeared on Autoblog on Wed, 10 Oct 2007 17:49:00 EST. Please see our terms for use of feeds.

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Forbes reports UAW/Chrysler strike is over, but it's not

John Neff — Wed, 10 Oct 2007 16:35:00 EST

Filed under: Chevrolet, UAW/Unions

UPDATE: A more fleshed out report from Forbes was published at 4:25 PM EST that still maintains the strike is over. The new report claims a tentative agreement was in UAW president Ron Gettelfinger's hands an hour after the strike started. This report has not been confirmed by other sources.

click above pic for more images from the UAW's strike against Chrysler

We're not sure how a mistake like this happens. Forbes published a report online at 1:45 PM EST claiming that "Chrysler and the United Auto Workers union have reached a tentative agreement on a new labor deal," even going so far as to state that the strike ending had been confirmed by both the company and union officials. Of course, Forbes was unable to provide any details as to what the agreement contained, most likely because such an agreement doesn't exist.

Neither Automotive News, The Detroit News nor the Detroit Free Press have reported that the strike has ended. Automotive News, in fact, reported at 3:42 PM EST that negotiators have left the table for the day and not even scheduled another sit down. The Detroit Free Press, meanwhile, has already published a counter-story denying Forbes' claim that the strike is over.

We're entirely puzzled as to where this bogus Forbes report came from. Our honest guess is that it was written in case the strike actually did end quickly today and was published on Forbes' servers where it was then found by an intrepid member of the GM Inside News forums. We'll never know for sure, though.

[Source: Forbes via GM Inside News]

Gallery: Images from UAW strike against Chrysler

Forbes reports UAW/Chrysler strike is over, but it's not originally appeared on Autoblog on Wed, 10 Oct 2007 16:35:00 EST. Please see our terms for use of feeds.

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UAW strike against Chrysler begins

John Neff — Wed, 10 Oct 2007 11:11:00 EST

Filed under: Chrysler, UAW/Unions

Here we go again. CNN is showing live video of UAW workers walking off the job at Chrysler various plants across the country. Both the Detroit Free Press and The Detroit News are also confirming that an agreement has not been reached and the strike has begun. We'll bring you more updates throughout the day as they happen.

The UAW strike against Chrysler involves around 49,000 people, compared to the some 73,000 union workers involved in the strike against General Motors last month.

Twenty-four Chrysler plants across the nation are involved in the strike, though according to the Detroit Free Press, one plant in Toledo is not covered by the national agreement and it's not known if those workers will join the strike.

Chrysler's famously large inventory of vehicles could finally work in its favor during the strike. Though around 3,000 cars per day will go unbuilt at first, the automaker should be able to meet demand for its cars in the near future. Hot-selling cars like the Jeep Wrangler, however, could be affected first. Analysts are also concerned how the strike will affect the launch of the Dodge Grand Caravan and Chrysler Town & Country minivans, two very important vehicles to Chrysler's bottom line.

UPDATE 5: Well that was quick, it's over already.

UPDATE 4: Images of the strike from Getty photographer Scott Olson have been published in a gallery.

UPDATE 3: 9,000 Canadian auto workers will be affected by the strike within less than 24 hours.

UPDATE 2: Five Chrysler plants were not involved because they happen to be idled right now.

UPDATE: Automotive News reports that 31 plants and technical centers are involved in the strike, while the work stoppage will eventually shut down Canadian facilities within the first day.

[Photos: Scott Olson/Getty]

Gallery: Images from UAW strike against Chrysler

UAW strike against Chrysler begins originally appeared on Autoblog on Wed, 10 Oct 2007 11:11:00 EST. Please see our terms for use of feeds.

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More job cuts for Chrysler, white collars beware

John Neff — Tue, 09 Oct 2007 15:05:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler, UAW/Unions

Chrysler's deadline to hammer out a new contract with the UAW expires tomorrow. If common ground cannot be found by tomorrow morning at 11AM EST, the UAW could strike again. As if that weren't heavy enough news for the newly rebranded Chrysler LLC, it's being reported today that more job cuts are on the way for some 1,600 non-union workers. Though Chrysler's turnaround plan called for shedding 13,000 jobs by 2009, of which 2,000 were non-union, salaried white collar positions, the automaker is reportedly planning to lose an additional 500 salaried positions and 1,100 contracted jobs.

Though Chrysler did not comment to The Detroit News about the job cuts, one has to wonder whether or not these new non-union job cuts are being used as a bargaining tool to show the UAW that it's not just union members who are being asked to sacrifice for the greater good.

Sources from inside those contract negotiations are signaling that a strike may be likely as Chrysler is not in a position to offer the UAW an agreement similar to its tentative one with GM. For one, Chrysler's new owner, Cerberus Capital Management, is reportedly unwilling to offer the same level of job security by promising future products to U.S. plants like GM did. Chrysler also wants health care concessions it wasn't offered back in 2005 when similar concessions were given to both GM and Ford.

[Source: The Detroit News]

More job cuts for Chrysler, white collars beware originally appeared on Autoblog on Tue, 09 Oct 2007 15:05:00 EST. Please see our terms for use of feeds.

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UAW gives Chrysler Wednesday deadline, strike possible

John Neff — Mon, 08 Oct 2007 09:55:00 EST

Filed under: Chrysler, UAW/Unions

As we reported earlier, the UAW is continuing its negotiation talks with Chrysler LLC for a new contract, having chosen the Auburn Hills-based automaker as its next dance partner after reaching a tentative agreement with General Motors on September 26th. The UAW's contract with Chrysler LLC expired on September 14th, but the union extended the deadline for Chrysler (and Ford) while it was focusing on negotiations with General Motors. As we all know, the UAW chose to strike against GM, and it may do the same to Chrysler if a tentative agreement isn't reached by ~~tomorrow~~ Wednesday. Sometime yesterday the union gave Chrysler a required 72-hour notice that the extension would end. While Bloomberg didn't mention at what time Wednesday the extension would expire, we're guessing 11AM EST, which is the same time of day the UAW chose to begin its strike against General Motors on Sept. 24th.

Though the UAW hopes to use its agreement with GM as a template for one with Chrysler, there are additional factors to consider. First and foremost is the fact that Chrysler was not given concessions on retiree health care back in 2005 that were given to both GM and Ford. Even if a VEBA account like the one in the UAW-GM contract is agreed upon, chances are retirees will be forced to accept concessions in their level of coverage to make up for the slight two years ago.

Of course, everyone is curious how well Chrysler's new owner, Cerberus Capital Management, is working with the UAW during these negotiations. Current Co-Vice Chairman of Chrysler, Tom LaSorda, who has seen his title dwindle down from CEO since the purchase, has an opportunity to shine in this talks. Handling negotiations with the UAW is part of his new job description, and considering Chrysler's stumble in the marketplace under his stewardship, now would be a good time for him to prove his worth to Cerberus.

[Source: Bloomberg, The Detroit News]

UAW gives Chrysler Wednesday deadline, strike possible originally appeared on Autoblog on Mon, 08 Oct 2007 09:55:00 EST. Please see our terms for use of feeds.

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UAW-GM contract details revealed, local leaders vote unanimously to approve

John Neff — Fri, 28 Sep 2007 15:29:00 EST

Filed under: GM, UAW/Unions

UPDATE: According to Automotive News, the deal also stipulates GM agrees to new-vehicle programs at 16 U.S. plants.

This morning local UAW leaders that represent plants from around the country unanimously voted to approve the contract offered by General Motors that came at the end of a 40-hour strike by union workers this week. Official details of the contract have been revealed, and we now know that GM's contribution to the Voluntary Employee Beneficiary Association (VEBA) will be $29.9 billion, plus another $5.4 billion in what The Detroit News calls "pre-VEBA costs". That's significantly less than the upwards of $50 billion we heard was being offered, but UAW president Ron Gettelfinger insists it should last the union some 80 years.

While the contract was unanimously approved this morning by UAW local leaders, it's the 73,000 union rank and file that still need to vote on the contract. That vote is expected to come by October 10th, and despite a $3,000 signing bonus for those who vote to approve the contract, there are some union members who argue that their leadership has betrayed them. A small but vocal group specifically disagrees with the VEBA and the fact that GM is now off the hook for health care costs. There are many who also dislike the new two-tier wage system that starts off thousands of new hires at a much lower $18/hour rate of between $14 and $16.23/hour. Despite protestations, however, we expect the majority of the UAW's GM workers to fall in line and vote this thing through.

Check out official details of the UAW-GM contract after the jump.

[Source: The Detroit News, Automotive News - sub. req'd]

Continue reading UAW-GM contract details revealed, local leaders vote unanimously to approve

UAW-GM contract details revealed, local leaders vote unanimously to approve originally appeared on Autoblog on Fri, 28 Sep 2007 15:29:00 EST. Please see our terms for use of feeds.

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Teamsters won't cross UAW picket line to deliver parts and cars

John Neff — Mon, 24 Sep 2007 16:58:00 EST

Filed under: GM, UAW/Unions

click above pic to view more images from the UAW strike

Despite reports that the UAW and General Motors are back at the bargaining table this afternoon, and will be indefinitely, the union appears to be preparing for what could be a lengthy strike. It's now being reported that their brothers and sisters from the International Brotherhood of Teamsters will be standing by them, though not joining the UAW strike themselves. The International Brotherhood of Teamsters represents hourly employees in the transportation and freight-related industries, meaning they're the ones who transport component parts and cars from plant to plant and wherever else they need to go. They have decided to align themselves with the UAW and announced they will honor the picket lines that have popped up at nearly every one of GM's 59 plants. This means that as long as the strike is ongoing, Teamsters don't have to cross UAW picket to deliver their cargo. Their contracts with GM include what's called "sympathy language" that prevents them from being fired for crossing the picket line of another striking union, according to The Detroit News.

It's becoming more and more clear that the UAW is digging in for the long haul on this one, and with little to no response from General Motors in terms of how long it intends to stand firm, the most significant staring contest in the history of the automotive industry has just begun.

[Source: The Detroit News]

Teamsters won't cross UAW picket line to deliver parts and cars originally appeared on Autoblog on Mon, 24 Sep 2007 16:58:00 EST. Please see our terms for use of feeds.

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GM signs $800mil deal to send U.S.-built Buick Enclave to China

John Neff — Mon, 24 Sep 2007 16:02:00 EST

Filed under: China, Crossover, Buick, GM, UAW/Unions

click above image to view high-res gallery of the Buick Enclave

Amidst all the fury surrounding the UAW strike today, General Motors released a statement announcing an $800 million deal with its Chinese joint-venture company to supply the Chinese market with U.S.-built vehicles and components. It's the second such agreement GM has signed, the first being an agreement worth $700 million to supply Cadillacs and components to China signed back in May. The new agreement focuses mainly on the Buick Enclave CUV, which is built at GM's Lansing Delta Township assembly plant. One can't help but question the timing of this announcement as GM and UAW negotiators are back at the table this afternoon to discuss job security for the union's 73,000 members. There's little doubt now that UAW employees at the Lansing plant will be busy in the months ahead not only trying to meet demand for the Enclave in the U.S., but also producing the vehicle for export to China. We'll see as the day goes on if this agreement has any effect on negotiations, but there are a total of 59 plants operated by GM that use UAW workers. Securing work for just one of them probably isn't going to be enough.

[Source: GM]

Gallery: 2008 Buick Enclave

Continue reading GM signs $800mil deal to send U.S.-built Buick Enclave to China

GM signs $800mil deal to send U.S.-built Buick Enclave to China originally appeared on Autoblog on Mon, 24 Sep 2007 16:02:00 EST. Please see our terms for use of feeds.

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Canadian Auto Workers president Buzz Hargrove responds to strike

John Neff — Mon, 24 Sep 2007 15:33:00 EST

Filed under: GM, UAW/Unions

At 1:30PM today, Canadian Auto Workers (the Canadian counterpart to the UAW) president Buzz Hargrove gave a press conference responding to the UAW strike today against General Motors. In Hargrove's mind, a worst case scenario could see anywhere between 80,000 and 100,000 Canadian workers unemployed as a result of the strike. Hargrove seemed to blame General Motors for shifting the hardships caused by what he called "unfair imports" onto its workers, and he surmised the automaker will use the same strategy when it begins talks with the CAW to renegotiate its contracts next year.
As for the near term effect of the strike, Hargrove said the impact on Canadian plants will be immediate. GM Canada's No. 1 plant in Oshawa will stop making the Chevy Impala at 3AM EST Tuesday. The No. 2 Oshawa plant will stop making the Pontiac Grand Prix and Buick Allure (LaCrosse) at the end of the business day on Tuesday. Meanwhile, the highly profitable Oshawa truck plant that makes the Chevy Silverado and GMC Sierra has enough inventory to last about three days. Unfortunately, the GM Transmission plant in Windsor has already shut down, and another powertrain component plant in St. Catherine's, Ontario will stop altogether shortly, as well.

As for whether or not the strike is a "token strike" or will have the legs to last a significant amount of time, Hargrove said, "I think this thing's going to drag on for a while."

[Source: Canadian Press]

Canadian Auto Workers president Buzz Hargrove responds to strike originally appeared on Autoblog on Mon, 24 Sep 2007 15:33:00 EST. Please see our terms for use of feeds.

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Talks with GM broken off, UAW officially on strike

John Neff — Mon, 24 Sep 2007 11:24:00 EST

Filed under: GM, UAW/Unions

We had the TV on at 11:00AM EST expecting to see CNN, MSNBC and Fox News providing up to the minute coverage of the UAW's potential strike in the wake of failed contract negotiations with General Motors. Only CNN is covering the strike at this point, and it's 11:15 now. CNN, however, has been confused as to whether a strike is actually happening. They've been running live footage of vehicles streaming out of GM's Warren plant while passing picketers waving signs that read "UAW on Strike". Looks like a strike to us. The Detroit News, however, is not so confused, and is reporting that 73,000 workers at 59 plants were told yesterday that if they didn't hear otherwise by 11AM EST, they were to walk off the job. Word never came that an agreement had been reached, so GM's entire UAW workforce is walking off the job right now. The question remaining now is clear: how long can GM last?

We'll bring you more updates throughout the day as these historical events that could radically alter the automotive industry unfold.

UPDATE 8: The International Brotherhood of Teamsters announced it will honor the UAW's picket lines and not cross them to deliver parts and cars to various plants.

UPDATE 7: Is it a token strike? Some analysts surmise that the UAW is holding a token strike to (ironically) obtain job security from GM, which the automaker, of course, can't guarantee anyway until this contract is finalized. That's a nasty Catch 22.

UPDATE 6: Canadian Auto Workers president Buzz Hargrove will respond to news of the strike at 1:30PM EST. We'll let you know what he says. Read about his pessimistic response here.

UPDATE 5: GM has released an official statement (read in entirety after jump) in which it says "We are disappointed in the UAW's decision to call a national strike." Understatement of the Year nominee, right there, folks.

UPDATE 4: Kickingtires.net reports that GM has 67 days of inventory left at its current rate of sales. Popular vehicles like the Buick Enclave, however, have only a 26-day supply left.

UPDATE 3: Today would be a good day to have forums, but since we don't have them (yet), check out the forums at the Detroit Free Press where six pages of heated discussion are already underway.

UPDATE 2: Watch GM's stock price throughout the day over at BloggingStocks (GM). As of 11:21AM EST, it is up 1.01 (+2.89%) to 35.95.

UPDATE: Automotive News has its report up now, reiterating that UAW president Ron Gettelfinger said he was "shocked and disappointed" by GM's hard line stance during negotiations.

Gallery: United Auto Workers strike GM

Continue reading Talks with GM broken off, UAW officially on strike

Talks with GM broken off, UAW officially on strike originally appeared on Autoblog on Mon, 24 Sep 2007 11:24:00 EST. Please see our terms for use of feeds.

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UAW to strike at 11 AM today

Damon Lavrinc — Mon, 24 Sep 2007 03:02:00 EST

Filed under: Plants/Manufacturing, GM, UAW/Unions

Nine days after the contract between GM and the UAW ended, the two have yet to come to an agreement on employee concessions, including a two-tier wage structure and a move that would entrust the UAW to be responsible for retiree health care costs. According to a union source, if nothing is accomplished, the UAW has set a strike deadline for 11 AM this morning.

More to follow as it develops, so watch this space.

[Source: Detroit News]

UAW to strike at 11 AM today originally appeared on Autoblog on Mon, 24 Sep 2007 03:02:00 EST. Please see our terms for use of feeds.

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