Autoblog

General Motors has been dealing with a lot of strikes lately. The United Auto Worker union's strike against one of its main suppliers, American Axle, has been reducing the General's inventory of trucks and SUVs for about a month now, and also threatened production of the Chevy Malibu before the automaker found more parts to keep production going. Just yesterday the UAW walked out of GM's Lansing Delta Township plant where the Buick Enclave, GMC Acadia and Saturn are built. The latter strike is over what the UAW has only referred to as "local contract issues". Whatever those are, they are important enough to come back today and threaten GM with a walk out at its Fairfax plant, one of the two facilities that builds the hot-selling Chevy Malibu. The union has set a five-day ultimatum, and says it will walk out on Malibu production next Tuesday, April 22 if an agreement isn't reached. The other plant building Malibus is in the Detroit suburb of Orion, but it only builds 2,100 Malibus per week compared to the 3,100 units per week built at the Fairfax plant. Clearly the UAW knows exactly where GM is most vulnerable, and its aiming a strike right at it.


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

This morning, UAW workers at General Motor's Lansing Delta Township plant in Michigan have began a work stoppage, halting production of the Saturn Outlook, Buick Enclave and GMC Acadia. Both GM and the UAW are remaining mum on why the strike began, but it's likely due to an unsigned contract that covers work rules. However, according to the Lansing State Journal, 2,300 workers are employed at the plant, and while hourly workers are walking the picket line, salaried employees reported for duty.

[Source: Autoweek]

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]

Just hours after threatening to strike at one or more GM plants, the UAW and the General have agreed on two-tier wages for certain job types. The move to clarify which jobs were "non-core" at the national level came as local UAWs were threatening to strike because they felt GM was asking for too many lower-paid positions at their plants. The more regimented deal identifies 16,000 positions that will soon be paid $14 per hour, which will save GM up to a half-billion dollars per year. It will take years to fill all of those positions because GM has to entice existing workers to retire before they can be replaced.

[Source: Detroit News]

The United Auto Workers (UAW) are gearing up to strike against General Motors if progress isn't made on local negotiations affecting three factories in the U.S. The workers at the Arlington, Texas; Parma, Ohio; and Delta Township, Michigan plants are required to give the General a five day notice before the stoppage occurs, and they've told GM's negotiators that if progress isn't made in five days on the local contracts, they'll be laying down their tools. The dispute is primarily over which factory workers will be forced into a lower wage rate. If the work stoppage occurs, it will further compound issues GM is already facing with the American Axle strike, which has forced the automaker to slow or stop production at 30 factories across the U.S and Canada.

[Source: Detroit News]

When the American Axle strike began, GM had a 106-day supply of pickup trucks on dealer lots, and even a month-long strike likely wouldn't have hurt the Detroit automaker. It has now been more than a month, the strike isn't any closer to ending, and now GM's car plants are joining its truck plants in the unemployment line. Friday marked the last shift at the General's Hamtramck, MI plant, which builds the Buick Lucerne and Cadillac DTS, due to a lack of parts coming from American Axle. According to Automotive News the pain may not stop there, either, as the Lordstown, Ohio plant may have to shut down production of the Chevy Cobalt and Pontiac G5 due to a lack of brake components. GM may not have been all that concerned about the American Axle strike when it began in February, but now after a month with barely any talks and a quickly growing list of shuttered plants, we're guessing things are getting a bit tight over at the Ren Cen.

[Source: Auto News (subs. req'd)]

A key part of the labor contract signed between GM and the UAW last year was a second tier of wages for non-crucial, i.e. not involved with building a car, job roles. As higher-paid workers take buyouts and retirement packages over the next few months, the General is allowed replace up to 16,000 roles with lower wages that are half what current workers make at around $14he contract stipulates the total number of second tier jobs, but some union officials say GM has raised the per-plant number at all locations.

While some locals feel they have been fairly represented, at least three feel that GM is trying to allocate too much of their labor as "non-core." The Orion, Michigan plant that produces the Malibu and G6, for example, is being tasked with 580 tier two jobs, while union locals feel the number is actually closer to 300. Union leaders say the solution will need to come from additional bargaining, as if we aren't still burned out on union talk as it is. The good news is that any problems the two sides may have will likely be solved by the end of summer, as July 1 is when buyouts start to take effect and GM will have to start hiring new workers to replace them.

[Source: Detroit News]

A key part of Chrysler LLC's agreement last year with the UAW gave the automaker the ability to hire new employees at a fraction of wages and health care of current workers. Since the deal was signed, Chrysler has been trying to show high-cost workers the door. The privately-owned automaker had a goal of 10,000 overall buyouts to cut labor costs, but it doesn't look like the Pentastar is going to get its wish. UAW Vice President General Holiefield told the Detroit Free Press that he didn't think Chrysler would hit its goal.

Holiefield cited a shaky economy as the main reason workers haven't been pulling the trigger on deals that can range from $70,000 to $100,000 just for not working. The issue is once workers leave, there are few jobs available to provide new income. Although the deadline has passed for workers to accept packages, Chrysler isn't divulging the number of workers who have grabbed the deal. Chrysler is working with the UAW to offer more buyouts in the near future.

[Source: Detroit Free Press]

The 10-day strike between American Axle & Manufacturing Holdings Inc. and the United Auto Workers union is now threatening to idle or partially shut down 13 more GM plants as early as Monday. Although talks are underway again, even a resolution over the weekend may mean closures as it takes time to deliver inventory and ramp up production. As of now, seven assembly plants at GM have already been idled after the AA workers walked off their jobs on February 26th.

American Axle supplies components to many different automakers, meaning the strike is being felt industry-wide. The strike is hitting GM particularly hard, however, as it does represent some 80% of the supplier's business. GM idled four truck plants within days. By yesterday, five GM plants, and seven suppliers were down. Chrysler may also have to idle plants in Delaware and Mexico by mid-next week if both sides don't come to an agreement.

There is light at the end of the tunnel. Reportedly, both sides already agree on the principles of a concession, leaving just the issue of hourly wages on the table. And, as most negotiation experts point out, money differences are often the easiest to solve.

[Source: Detroit News, Photo by Bill Pugliano/Getty]

The nine-day-old UAW strike on American Axle has already halted production at five GM plants and seven suppliers, and the two sides have yet to hit the bargaining table. That will change today, as both sides at least agree that they should be trying to reach an accord. The two sides are still far from agreeing on anything else, however, as American Axle wants to cut wage and benefit costs in half, even though the parts supplier is currently profitable.

Following the pattern of wage cuts at other suppliers, American Axle is prepared to offer buyout packages of $80,000 to $110,000. American Axle may also offer buy-down deals that will give workers a bonus for a number of years to cushion the blow of wage cuts. So far the strike has done little to hurt GM, as the automaker has been able to pare-down SUV and truck inventories while its plants are idled, but it's only a matter of time until the best available vehicles are gone. The 20,000 workers at GM and several suppliers that aren't working because of the strike are likely a bit more worried, but at least the two sides are talking.

[Source: Detroit News]