Autoblog

New contract between Ford and UAW voted down over weekend

Noah Joseph — Mon, 02 Nov 2009 13:30:00 EST

What's good for the goose may be good for the gander, but what works for one country or automaker doesn't necessarily work for another. So while the Canadian Auto Workers union may have approved a new agreement with Ford, below the 49th parallel their compatriots apparently feel otherwise.

Up for ratification over the past week and into the weekend was a proposal that would essentially grant Ford the same measures that unionized auto workers extended to Chrysler and General Motors in the midst of their bankruptcy proceedings. The measures include limitations placed on the unionized workers' rights to strike for increased wages and benefits, as well as a reduction in paid vacation time, a broad wage freeze as well as one on cost-of-living adjustments and increased employee contributions towards insurance and pensions. The agreement would also allow the automaker more flexibility in shifting jobs around, and in exchange the workers expected more jobs to be created - or at least fewer to be lost.

Some union leaders pleaded with their constituents that ratification of the deal was essential to keeping all three of the Detroit automakers on an even keel, thereby maintaining a common ground on which to build negotiations for the future. However as voting drew to a close across the country this weekend, UAW members at three of Ford's largest U.S. plants - the Dearborn Truck Plant, Romeo Engine Plant and UAW Local 862 representing the Louisville Assembly Plant and Kentucky Truck Plant - all voted against the new contract, making its passage now virtually impossible.

[Source: The Detroit News | Image: Scott Olson/Getty]

New contract between Ford and UAW voted down over weekend originally appeared on Autoblog on Mon, 02 Nov 2009 13:30:00 EST. Please see our terms for use of feeds.

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Ford and Canadian Auto Workers reportedly reach a deal

Dan Roth — Sat, 31 Oct 2009 16:09:00 EST

Filed under: Plants/Manufacturing, Ford, UAW/Unions, Canada

Ford Motor Company and the leadership of the Canadian Auto Workers union have reached a tentative agreement after a marathon four-day wrap-up to negotiations. Union membership needs to approve the deal, which will guarantee a Great White North presence for Ford until at least 2012. Voting is underway this weekend, and if approved, the CAW will be responsible for building 10 percent of Ford's North American production, down from the current 13 percent, which the union had been trying to hold on to.

Workers did agree to time off reductions, and pledged that new employees will have to pay into their pensions. Ford's given its word that the company will build as many vehicles in Canada as it sells there, and the union deemed the pledge good enough to grant GM- and Chrysler-style concessions to Ford.

The Panther platform has been given its last rites; the St. Thomas Assembly plant is the only Ford location currently building the body-on-frame biggies, and that plant will close in September 2011. The 1,600 people in Ontario who build Town Cars and Grand Marquis are understandably unhappy about word that Ford intends to shutter the plant, but the Panther has cheated death more than once. This time, it may stick.

Better news for CAW members is that Ford's Oakville assembly complex, also in Ontario, has the go-ahead to add a third shift when needed. Ford also says it will manufacture a new vehicle at Oakville, which currently builds the Edge, Flex, MKX, and MKT crossovers, but that will likely come after the current labor agreement expires.

[Source: CBC News, Photo: Ford/CC]

Ford and Canadian Auto Workers reportedly reach a deal originally appeared on Autoblog on Sat, 31 Oct 2009 16:09:00 EST. Please see our terms for use of feeds.

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Officially Official: Fisker buys GM's Wilmington Delaware plant

Sam Abuelsamid — Tue, 27 Oct 2009 13:00:00 EST

Filed under: Hybrid, Sedan, Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, Fisker

In Wilmington, Delaware this morning, Governor Jack Markell was joined by Vice President Joe Biden and Henrik Fisker (seen at right) for the official announcement about the purchase of General Motors' closed plant there. Fisker will re-tool the plant to build a new, more affordable plug-in hybrid sedan to slot in below its more luxurious Karma. The goal is to have the model sell for under $40,000 after federal tax credits.

The current schedule is to have the car in production by the end of 2012 with volumes getting up to 75,000-100,000 units annually by 2014. Fisker has moved up its development schedule for what they are calling Project Nina thanks to the $528 million low cost loan it recently received courtesy of the Department of Energy. During the announcement, Fisker stated that he wants to export half of the production from the plant while creating 5,000 jobs in the U.S. (2,000 at the plant and 3,000 at suppliers). The local UAW president was also on hand, so it looks like the plant will remain unionized, which is very unusual for a startup auto plant.

Fisker is paying $18 million for the factory from Motors Liquidation which is the remainder of "Old GM" which is selling off assets from bankruptcy court. The plant most recently produced the Pontiac Solstice and Saturn Sky, both of which ended production last spring.

Gallery: Fisker Karma

[Source: Fisker Automotive | Photo by Jeff Fusco/Getty]

Continue reading Officially Official: Fisker buys GM's Wilmington Delaware plant

Officially Official: Fisker buys GM's Wilmington Delaware plant originally appeared on Autoblog on Tue, 27 Oct 2009 13:00:00 EST. Please see our terms for use of feeds.

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Shreveport, LA mayor lobbies D.C. to close the HUMMER deal, already

Jonathon Ramsey — Sat, 24 Oct 2009 14:16:00 EST

Filed under: SUV, Truck, China, Government/Legal, Plants/Manufacturing, GM, Hummer, UAW/Unions

Cedric Glover, the mayor of Shreveport, Louisiana, went to Washington, D.C. to plead his case for the sale of Hummer to Tengzhong. The only thing is, we're not sure why he went. To be more precise, we do know that he wants to protect jobs at GM's Shreveport plant that builds Hummers. The plant has about 800 workers who build some of The General's pickup trucks and Hummer models, and the loss of The Big H would undoubtedly put people out of work.

What we're not sure of is what he thinks Washington has to do with it. He did ask that a couple of D.C. muckety-mucks "consider reaching out to the Chinese government to urge immediate approval of the Hummer deal," but Washington hasn't expressed any opposition to the deal and probably couldn't get the deal concluded on the Chinese side any sooner -- never mind the fact that Hummer is the least of Washington's concerns as far as China goes.

We've been told by one source at Hummer that although nothing is final until it's signed, they feel good about the deal, and Tengzhong must have known what it was doing when it made the bid in the first place. Yet beyond all that, as it stands today the Shreveport plant has three years to live at most: the facility wasn't part of the Hummer sale, and GM said it would shutter the place by 2012 at the latest. Mayor Glover wants to save jobs in his town, which is great, but unless GM starts going gangbusters (and soon) then Glover could be playing the Deck Chair and Sinking Ship game.

[Source: HummerGuy]

Shreveport, LA mayor lobbies D.C. to close the HUMMER deal, already originally appeared on Autoblog on Sat, 24 Oct 2009 14:16:00 EST. Please see our terms for use of feeds.

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U-S-A! Ford reportedly moving production of Kuga to America

Chris Shunk — Fri, 23 Oct 2009 11:29:00 EST

Filed under: Plants/Manufacturing, Crossover, Ford, UAW/Unions

2009 Ford Kuga (Euro Spec) - Click above for high-res image gallery

The Ford Kuga is currently made in Europe and isn't available for sale here in the States, but if a report from Bloomberg is to be believed, the next Kuga could be produced in Louisville, Kentucky for sale both here and abroad. Bloomberg's sources claim that Ford plans to build as many as 80,000 Kuga crossovers here for export overseas by October 2011, which would undoubtedly make members of the United Auto Workers union very happy.

Ford is currently awaiting the ratification of a new labor deal that would put labor costs of the Dearborn, MI-based automaker on a nearly equal footing with General Motors and Chrysler. A major tenet of the negotiations is the guarantee of new product to build in U.S. assembly plants, effectively giving 41,000 blue collar Ford employees some much needed job security. A summary of the tentative agreement between the UAW and Ford reportedly states that the Louisville facility will receive a new product with "considerable export volume," so it's not a far leap to surmise that the Kuga will become Kentucky born and bred.

At this point, Ford has only announced that the Louisville plant will receive a more fuel efficient product based on Ford's global C platform. The Kuga certainly fits that bill, and building the small crossover in the good ol' US of A makes financial sense right now since the dollar is worth less than the euro or British pound, and labor costs in the U.S. could be $10 per hour cheaper than they are in Germany, for instance.

Gallery: First Drive: 2008 Ford Kuga

[Source: Bloomberg]

U-S-A! Ford reportedly moving production of Kuga to America originally appeared on Autoblog on Fri, 23 Oct 2009 11:29:00 EST. Please see our terms for use of feeds.

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REPORT: Ford and UAW contract changes begin to leak out

Chris Shunk — Fri, 16 Oct 2009 16:58:00 EST

Filed under: Ford, UAW/Unions

Even before General Motors and Chrysler entered bankruptcy, the two automakers were wheeling and dealing with the United Auto Workers, reworking their contracts signed in 2007. Since Ford wasn't partaking in the billions of dollars handed to the other two automakers by the federal government, the Dearborn, MI-based automaker was seemingly left out in the cold. Those contract changes helped GM and Chrysler emerge as stronger companies, but Ford was left hanging.

Ford and the UAW have finally gotten together to level the all-important labor playing field, as the two agreed to a tentative contract on Monday. While the terms of the deal are always sealed until the rank and file vote on them, they are also seemingly always leaked before ratification takes place. Automotive News is reporting on several of the concessions made by both the UAW and Ford, and if the updates to the 2007 contract hold they should go a long way toward giving Ford parity with its cross-town rivals.

The UAW has reportedly agreed to freeze the wages of entry level workers making $14 per hour until the agreement ends in 2011. The UAW also lifted a cap that limits the amount of low-cost workers in the plants until 2015, when those jobs are limited to 20% of the workforce. Any workers above 20% will be given traditional union wages in order of seniority. The union will also limit the amount of jobs that are classified as a skilled trade and submit the 2007 contract to binding arbitration when the contract expires in 2011. The UAW has also reportedly agreed to not strike over wage and benefit-related issues, a big win for Ford that virtually guarantees that production stoppages won't be labor-related.

The Blue Oval also had to do some bending of its own. If its 41,000 UAW workers approve the contract changes, every worker will receive a $1,000 bonus for their troubles. Perhaps even more importantly, Ford made production guarantees of facilities in Ohio, Kansas, Michigan, Illinois and Kentucky. Ford is also reportedly guaranteeing to build hybrid batteries in its Rawsonville, MI facility, adding a new vehicle to its Michigan Assembly plant and adding a vehicle at Louisville Assembly that could be exported to other markets. Ford has also promised to build the Transit Connect in the U.S. if Ford decides to move production to North America to supplement production in Turkey. Ratification of the contract is expected later today or early next week, so we'll soon find out if these contract changes are the real deal.

[Source: Automotive News, sub. req'd | Photo by Scott Olson/Getty]

REPORT: Ford and UAW contract changes begin to leak out originally appeared on Autoblog on Fri, 16 Oct 2009 16:58:00 EST. Please see our terms for use of feeds.

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FYI: UAW releases list of 2010 cars and trucks made in union shops

Jonathon Ramsey — Thu, 24 Sep 2009 17:02:00 EST

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

There's "Buy American!" and then there's "Buy Union!" If you're among the most serious about keeping your red-white-and-blue money in the ~~U.S. of A~~ North America and organized labor is close to your ticker, then you'll want to check out this list put together by the United Auto Workers. It lists all of the vehicles made in America and Canada by union labor -- either UAW or CAW.

Naturally, it's heavy on domestic offerings, but if you're devoted to imports you can still avail yourself of a few Toyotas, Mazdas, Mitsubishis, and a VW Routan, and support "workers who enjoy the benefits and protections of a union contract." Nevertheless, knowing how some feel about unions all we ask is please stay on topic and please be kind to your virtual neighbor. Let the comments begin...

[Source: UAW]

FYI: UAW releases list of 2010 cars and trucks made in union shops originally appeared on Autoblog on Thu, 24 Sep 2009 17:02:00 EST. Please see our terms for use of feeds.

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REPORT: NUMMI workers demonstrate over plant's potential closing

Chris Shunk — Mon, 24 Aug 2009 10:31:00 EST

Filed under: GM, Toyota, UAW/Unions

Toyota has never closed a U.S. assembly plant, but the suddenly struggling Japanese automaker has said that it would shudder the NUMMI factory in California, the only auto plant in the state, by next March. The upcoming closure isn't a big surprise since General Motors was allowed to bow out of its half of the joint venture project with Toyota during bankruptcy, giving Toyota full responsibility for the California plant. And since the Pontiac Vibe is no longer being made at the facility, capacity has dropped to a reported 60%, making the facility unprofitable at a time when Toyota is losing money.

The closure of the plant means, of course, that its 5,300 employees will soon be without a job. To protest the closure of NUMMI, an estimated 1,000 workers turned out to demonstrate in front of the facility last week. The union-organized workers are in a tough position, too, since their UAW contract expired last week. The contract was indefinitely extended, but either party can cancel it with five days notice. And with unemployment at 11% in California, finding a new job will be no easy task.

[Source: The Detroit Bureau | Image: Justin Sullivan/Getty]

REPORT: NUMMI workers demonstrate over plant's potential closing originally appeared on Autoblog on Mon, 24 Aug 2009 10:31:00 EST. Please see our terms for use of feeds.

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Korean police to storm Ssangyong factory occupied by fired workers?

Jonathon Ramsey — Mon, 20 Jul 2009 10:29:00 EST

Filed under: Government/Legal, Plants/Manufacturing, UAW/Unions

Earlier this year, when Ssangyong was allowed to continue as a going concern, the company had to let go of around 900 workers. Those workers (above) then effectively said "all your factory are belong to us," and staged a sit-in at the South Korean production facility that subsequently turned violent. Ssangyong hired its own security to try and clear the plant, but that didn't work. Now, months later, the South Korean police are reportedly set to move in.

Ssangyong production ceased entirely when the factory occupation began two months ago, and the company has no way of getting itself out of dire straits when it can't make any products and engage in commerce. The workers want to negotiate with the government, but the government hasn't announced any intention to do so. It's up to the police now, who said "We'll advance our force into the factory to assist the court's order."

The workers inside the factory appear totally committed to not giving up. Other former workers outside the factory have taken to staging rallies to support those inside, holding aloft banners that read "Layoffs are tantamount to murder." Something will need to give, but before it does, it sounds like more violence is on the way.

[Source: Bloomberg | Image: Jung Yeon-Je/AFP/Getty]

Korean police to storm Ssangyong factory occupied by fired workers? originally appeared on Autoblog on Mon, 20 Jul 2009 10:29:00 EST. Please see our terms for use of feeds.

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REPORT: Workers with union desk jobs being sent back to factory floor

Michael Harley — Sat, 18 Jul 2009 09:07:00 EST

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

In an action that is symbolic of the changes America's auto industry is undergoing, the cushy "union desk job" is reportedly about to disappear for many. According to The Detroit Free Press, UAW bosses at post-bankrupt Chrysler and General Motors plants are informing hundreds of elected and appointed colleagues that their desk jobs are being sent back to the factory floor.

The Detroit 3 have always paid for union workers at each plant to support labor-management initiatives, conduct union elections, and handle grievances. Most of these "desk jobs" were not at the plant, and they were reportedly enved by those required to do labor-intensive work in the factories. As such, the news is welcomed by those on the assembly line. "These people had cushy jobs," said Zeigler Johnson, a worker at Chrysler's Warren Truck plant. "Some of them could use a taste of life on the floor to remind them we still make trucks around here."

All told, the UAW is eliminating about 300 positions at Chrysler, while GM expects the change to impact less than 500 workers. The new positions are expected to take effect within the next 60 days.

[Source: The Detroit Free Press | Image: Bill Pugliano/Getty]

REPORT: Workers with union desk jobs being sent back to factory floor originally appeared on Autoblog on Sat, 18 Jul 2009 09:07:00 EST. Please see our terms for use of feeds.

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REPORT: Pipe and firebomb-wielding strikers injure 70 at Ssangyong plant; 4,000 flee

Michael Harley — Tue, 30 Jun 2009 08:00:00 EST

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

After slipping into receivership this past January, Ssangyong Motor Company's problems have only escalated. A court-ordered restructuring of the Korean automaker earlier this year left 976 employees without work. The displaced workers organized an armed sit-in on the Korean automaker on May 21 that has now turned violent.

According to Ward's Auto, Roughly 4,000 non-union workers and management had been back in the company's Pyongtaek, South Korea, SUV plant attempting to get the assembly line back into operation. After less than 36 hours in the facility, more than 900 pipe and firebomb-wielding strikers surrounded the area and demanded they vacate under increasing threats. As the workers left, they were attacked by striking union workers poised outside (many noted that the national police service had withdrawn their riot squad on Saturday night leaving the 4,000 employees unprotected). All told, more than 70 non-union workers were badly hurt and many of those were hospitalized.

Although the company has offered jobs with affiliated companies, or promised future work to dismissed employees, the union immediately rejected the offer and has demanded to negotiate directly with the Korean government. The future doesn't look good. With no plans for the non-union employees to return and a viable restructuring plan unlikely, the Korean courts are scheduled to make a ruling by Sept. 15 whether to allow Ssangyong Motor Co. to keep operating or to liquidate its assets.

[Source: Ward's Auto]

REPORT: Pipe and firebomb-wielding strikers injure 70 at Ssangyong plant; 4,000 flee originally appeared on Autoblog on Tue, 30 Jun 2009 08:00:00 EST. Please see our terms for use of feeds.

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REPORT: Two plants saved from closing under new GM/UAW agreement

Jonathon Ramsey — Sat, 30 May 2009 14:05:00 EST

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

According to the Detroit Free Press, the 14 plants that General Motors is expected to announce for closure on Monday was going to be 16 plants until the UAW got its way on Capitol Hill. The union charged GM with closing factories, but instead of a commensurate reduction in production, GM was moving some of the manufacturing elsewhere, specifically China and Mexico.

GM said it will produce 1.83 million cars in the U.S. 2014 as opposed to 2 million today, and it would get one-third of its production that year from overseas. That one-third would notably be small cars, so much in play lately for every reason. The UAW suggested it would be amenable to "innovative labor agreement provisions" in order to make small car production work for GM domestically.

In that case it isn't Mexico or China that will suffer, but Canada. Our northern neighbor is expected to lose 23% of its GM export production (has anyone told CAW head Ken Lewenza yet?) while Asian importation climbs 98%.

For now, an assembly plant and a stamping plant have been spared from the initial list of U.S. closures. Another four plants have been designated "stand-by locations" that will come on line in case of a steep rebound in auto sales.

[Source: Detroit Free Press]

REPORT: Two plants saved from closing under new GM/UAW agreement originally appeared on Autoblog on Sat, 30 May 2009 14:05:00 EST. Please see our terms for use of feeds.

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AP says General Motors to announce 14 plant closures on Monday

Chris Paukert — Thu, 28 May 2009 10:55:00 EST

Filed under: Trends, Plants/Manufacturing, GM, Earnings/Financials

According to a source at The Associated Press, General Motors will announce the closure of 14 factories on Monday morning. The shutterings will reportedly occur by the end of 2010, and are being viewed as part of GM's widely anticipated plans to file for Chapter 11 bankruptcy.

The move would not be completely unexpected, as GM had previously announced that it expects to have to close 16 plans by the end of next year, resulting in some 21,000 pink slipped workers. As GM has already announced that an engine plant in Massena, New York and a stamping plant in the Grand Rapids, Michigan area will be shutting down, this would bring the full tally to 16.

According to the AP report, factory-level union leaders are unaware of which plants will be axed, but the plan is said to include four assembly facilities, along with stamping, engine, and transmission operations.

[Source: Associated Press (via Chron) | Image: Dan Kitwood/Getty]

AP says General Motors to announce 14 plant closures on Monday originally appeared on Autoblog on Thu, 28 May 2009 10:55:00 EST. Please see our terms for use of feeds.

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UAW reportedly agrees to 17.5% stake in GM

Michael Harley — Wed, 27 May 2009 09:30:00 EST

Filed under: Government/Legal, GM, UAW/Unions

Facing a looming June 1 deadline to reach agreements with the bondholders and union, General Motors may have failed to come to terms with the former, but it has reportedly arrived at a tentative concessions agreement with latter. The deal puts the United Auto Workers' trust fund in charge of future health care costs in exchange for a 17.5% stake in the reorganized General Motors. The U.S. Treasury is still expected to take the controlling stake in the reorganized company.

In addition, the agreement calls for GM to put $10 billion in assets in the UAW's Voluntary Employee Beneficiary Association (VEBA) and to issue the union a $2.5 billion note to be payed in three installations in 2013, 2015, and 2017. With less than one week to go before a likely Chapter 11 bankruptcy, GM remains in survival mode.

[Source: Automotive News - Sub. Req.]

UAW reportedly agrees to 17.5% stake in GM originally appeared on Autoblog on Wed, 27 May 2009 09:30:00 EST. Please see our terms for use of feeds.

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Honda UK workers vote in favor of 3% pay cut to save jobs

Jonathon Ramsey — Sat, 23 May 2009 10:35:00 EST

Filed under: Plants/Manufacturing, Honda, UAW/Unions, UK

The numbers for the UK car industry in April point to a 50% drop in production, and factories that aren't shut down completely are being run at glacial paces. After closing its Swindon, England plant for four months, the choice Honda gave workers there fit the template of the times: take a pay cut or else 490 of you will be let go. The workers voted for the 3% drop in wages, while management gets a 5% reduction.

While everyone waits -- and prays -- for the scrappage scheme to show some results, the move keeps hundreds of people on the job. The workers will also get six extra days of leave, which could be a mixed blessing, but it's better than being out of work, which isn't.

[Source: BBC]

Honda UK workers vote in favor of 3% pay cut to save jobs originally appeared on Autoblog on Sat, 23 May 2009 10:35:00 EST. Please see our terms for use of feeds.

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FOLLOWUP: Alec Baldwin clarifies his auto industry ramblings... sort of

Chris Shunk — Fri, 22 May 2009 15:27:00 EST

Filed under: Government/Legal, Chrysler, Ford, GM, Earnings/Financials, UAW/Unions, Celebrities

To pull the plug means to stop, give up, lay off, discontinue, cease. It's clear, concise language that leaves little room for misinterpretation. That is, apparently, unless you're Alec Baldwin. In a recent blog entry on Huffington Post, the actor had harsh words regarding the Detroit auto industry, blaming Motown for everything from global warming to wars over oil. He ended his diatribe with a simple message: pull the plug.

After a wave of controversy and, we can only assume, plenty of hate mail, Mr. Baldwin has issued a clarification of sorts. The 30 Rock star now says that he never said that he wants union workers to lose their jobs. You're probably wondering what a couple hundred thousand blue collar workers will do if they're not producing cars and trucks, right? Well, it turns out Alec doesn't want D3 automakers to go quietly into the night, either. Baldwin writes:

"I state, by using the phrase "pull the plug," that taxpayer funds should no longer be made available to bail out U.S. automotive corporations. They should file for bankruptcy, reorganize and emerge as wholly reconfigured entities, perhaps with labor owning significant positions in those companies."

In his first op-ed, Baldwin stated "I'd like to buy an American car, but I'd feel like a fool doing that now." He then went on to say that he was likely going to purchase a Japanese hybrid built in the American South. Just what the United Auto Workers union wants to hear.

Click through to the jump for more of Baldwin's best.

[Source: Huffington Post]

Continue reading FOLLOWUP: Alec Baldwin clarifies his auto industry ramblings... sort of

FOLLOWUP: Alec Baldwin clarifies his auto industry ramblings... sort of originally appeared on Autoblog on Fri, 22 May 2009 15:27:00 EST. Please see our terms for use of feeds.

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Are GM, UAW close to concessions agreement... or are they at odds over China?

Chris Paukert — Mon, 18 May 2009 11:00:00 EST

Filed under: China, Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, GM, Earnings/Financials, UAW/Unions

Depending on who you choose to listen to, General Motors and the United Auto Workers are either close to forging an important concessions deal, or they're still squabbling over GM's plans to sell imported vehicles to U.S. consumers.

GM and the UAW are in talks trying to slash $1 billion in annual labor costs, with reports stating that the plan would give the union a 39% stake in GM to help fund the Voluntary Employees Beneficiary Association (VEBA) health care trust. GM already has around $15 billion invested in the VEBA, but it is still on the hook for some $20 billion. If reached, the new deal would reportedly cut that figure in half.

The agreement, which the Wall Street Journal says could be reached as soon as this week, will still need to be voted on by the UAW's 60,000 GM employees, who themselves also face upwards of 20,000 more job layoffs as well as more wage and benefit cuts.

Conversely, the Associated Press is reporting that the issue remains very much in doubt, with GM and UAW negotiators battling over GM's plans to sell vehicles built overseas - namely those from China - in the U.S. While GM officials reportedly say that the balance of vehicles it makes and sells in the U.S. will not change, UAW officials are rankled that its members face 16 more plant closures and a slate of givebacks. In fact, according to the AP, the UAW is so upset that it has sent an email to its members asking them to voice their displeasure by contacting President Obama.

[Sources: The Wall Street Journal; The Associated Press | Image: Spencer Platt/Getty]

Are GM, UAW close to concessions agreement... or are they at odds over China? originally appeared on Autoblog on Mon, 18 May 2009 11:00:00 EST. Please see our terms for use of feeds.

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Leaked GM document shows automaker plans to sell China-built cars to U.S. consumers

Chris Shunk — Tue, 12 May 2009 11:30:00 EST

Filed under: GM, UAW/Unions

2009 Buick Regal (Chinese-spec) - Click above for high-res image gallery

A planning document given to lawmakers by General Motors reportedly shows that the Detroit-based automaker plans to ship 17,335 autos from China for sale in the U.S. in 2011. If GM succeeds in importing vehicles to the U.S. from China, it could be the first automaker to do so.

The document doesn't show which vehicle would be brought over from the land of the Great Wall (we'd take the Buick Regal, above), but it does provide GM's volume plans through 2014. By that time, GM plans to triple its China to U.S. exports to 51,546 units. While 51,546 sounds like a lot of cars, it only represents 1.6% of the planned 3.1 million (perhaps optimistic) sales the General is expecting five years from now.

Regardless of the quantity of vehicles coming in from China, union leaders are none too pleased with the development, says Automotive News. The 12-page document also showed increased production in Mexico, with annual units rising from 317,763 in 2010 to 501,316 in 2014. South Korea, which will likely make new vehicles like the Chevrolet Spark, will increase production from 36,967 in 2010 to 157,126 in 2014. In an open letter, UAW legislative director Alan Reuther has gone on record saying that GM "should not be taking taxpayers' money simply to finance the outsourcing of jobs to other countries."

While many would expect the U.S. to be the big loser here, virtually all of the related production loss occurs in Canada. According to the 12-page document, U.S. production would continue to represent two thirds of the overall sales volume for the next five years, while Canada is slated to lose 101,000 units.

Gallery: 2009 Chinese-spec Buick Regal

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

Leaked GM document shows automaker plans to sell China-built cars to U.S. consumers originally appeared on Autoblog on Tue, 12 May 2009 11:30:00 EST. Please see our terms for use of feeds.

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REPORT: UAW agrees to ban strikes?(!)

Chris Paukert — Wed, 29 Apr 2009 14:00:00 EST

Filed under: Government/Legal, Chrysler, UAW/Unions

According to a post on The Detroit Bureau, a key stipulation in the tentative contract reached between the United Auto Workers and Chrysler is that the union's right to strike will be all but eliminated for at least the next few years.

As quoted in the story, Harley Shaiken, a labor relations specialist at UC-Berkeley, notes that the so-called "no strike" portion of the agreement was arrived at "in the context that it will take anywhere from three to five years for this company to recover." According to TDB, the provisos of the bridge loan means that a strike would be viewed as a default on the agreement, including any local strikes.

The same contract apparently calls for binding arbitration (instead of strikes) on financial issues for any contract arrived at in 2011, and the same arrangement will be in effect in 2015 if Chrysler still owes money to the Treasury Department.

The contract goes in front of the UAW's 28,000+ members for a vote today. Click on the link below for more details.

[Source: The Detroit Bureau | Source Image: Bill Pugliano/Getty]

REPORT: UAW agrees to ban strikes?(!) originally appeared on Autoblog on Wed, 29 Apr 2009 14:00:00 EST. Please see our terms for use of feeds.

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CAW President Lewenza issues address responding to Nardelli/Lasorda letter

Jonathon Ramsey — Mon, 20 Apr 2009 16:58:00 EST

Filed under: Plants/Manufacturing, Chrysler, UAW/Unions, Canada

The top dogs at Chrysler sent a letter to the Canadian Auto Workers union that essentially said that the automaker needed wage concessions of $19 per hour, or else it was Game Over. As a further way to apply pressure, Chrysler's letter frequently referenced the U.S. and Canadian governments as heavies, all of them now waiting for the CAW to provide the necessary "support."

In response, CAW members burned the letter, but not before making notes so it could pen a response of its own. In an official response, CAW President Ken Lewenza calls Chrysler's missive "the most offensive attempt yet" to undermine the CAW, then decries statements made by the Canadian government about the situation. He follows that with a point-by-point defense of the CAW's cost and efficiency, and accuses Chrysler of not only playing with the numbers, but of changing the rules every time a game is agreed upon.

He finishes by stating that instead of looking at the CAW, Chrysler should be speaking to its bondholders who, so far, appear to have been left out of game of sacrifice. You can read those and the rest of his thoughts in the full letter after the jump. Hat tip to Bob!

[Source: CAW]

Continue reading CAW President Lewenza issues address responding to Nardelli/Lasorda letter

CAW President Lewenza issues address responding to Nardelli/Lasorda letter originally appeared on Autoblog on Mon, 20 Apr 2009 16:58:00 EST. Please see our terms for use of feeds.

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