GM Workers on nation-wide strike

[Blind_Io]

http://wcbstv.com/business/finance_story_266174828.html

Auto Workers Launch National Strike Against GM

Slideshow: New York Auto Show 2007

(CBS) DETROIT The United Auto Workers has launched a national strike against General Motors Corp.., GM spokesman Dan Flores said Monday.

Thousands of United Auto Workers walked off the job at GM plants around the country Monday in the first nationwide strike during auto contract negotiations since 1976, when Ford Motor Co. plants were shut down.

UAW President Ron Gettelfinger said the union launched the strike after "one-sided negotiations" failed to reach an agreement.

"It was going to be General Motors' way at the expense of the workers," Gettelfinger said. "The company walked right up to the deadline like they really didn't care."

The UAW had extended its contract for nine days after it expired on Sept. 14, but the negotiations became bogged down Sunday, apparently over the union's quest to protect jobs by getting the company to guarantee that new vehicles would be built in U.S. factories.

It remained to be seen what effect the strike would have on the automaker and consumers. The company has sufficient stocks of just about every product to withstand a short strike, according to Tom Libby, senior director of industry analysis for J.D. Power and Associates.

Charlie Coppinger, who has worked at GM's powertrain plant in Warren for 31 years, walked the picket line along with a handful of others shortly after the deadline passed.

The 51-year-old Rochester Hills resident said he hoped a strike could be settled quickly, but that union members were on the line to back the union and its bargainers.

"We're just here to support them," said Coppinger, who said leaflets were passed out indicating that the strike was on.

Flores said the automaker is disappointed in the UAW's decision to call a national strike.

"The bargaining involves complex, difficult issues that affect the job security of our U.S. work force and the long-term viability of the company. We remain fully committed to working with the UAW to develop solutions together to address the competitive challenges facing GM," Flores said.

Included in the negotiations was a groundbreaking provision establishing a UAW-managed trust that will administer GM's retiree health care obligations. GM pushed hard for the trust - known as a Voluntary Employees Beneficiary Association, or VEBA - so it could move $51 billion in unfunded retiree health costs off its books. GM has nearly 339,000 retirees and surviving spouses.

"This strike is not about the VEBA in any way shape or form," Gettelfinger said at an afternoon news conference in Detroit.

"The No. 1 issue here is job security," Gettelfinger later said, adding that the union also was fighting to preserve workers' benefits.

Worker Anita Ahrens burst into tears as hundreds of United Auto Workers streamed out of a GM plant in Janesville, Wis.

"Oh my God, here they come," said Ahrens, 39. "This is unreal."

Ahrens has seven years at the plant, where she works nights installing speakers in sport utility vehicles. She waited outside the building Monday for her husband, Ron Ahrens, who has worked there for 21 years.

The couple has three children, including a college freshman, and Ahrens worried about how they would pay their bills.

"This is horrible, but we're die-hard union, so we have to," Ahrens said. "We got a mortgage, two car payments and tons of freaking bills."

More than a thousand UAW workers streamed out of GM's Delta Township plant near Lansing at 11 a.m. UAW members were handing out picket signs that say: "UAW On Strike."

"I don't think it's a win for either side. It's too bad it's come to this, but we have given up a lot already," said Pat Haley, 50, from Dimondale, a quality control specialist who has been with GM for 31 years.

He said he didn't have a big problem with the VEBA, but he opposes a possible $5 an hour wage cut and restrictions on vacation time.

While GM has enough cars and trucks to withstand a short strike the automaker had about a 65-day supply of cars and trucks as September began, according to Paul Taylor, chief economist for the National Automobile Dealers Association - it still would be costly for the company.

The UAW last struck GM in 1998. In that strike, workers at two GM parts plants walked out for 54 days, costing the automaker $2.2 billion. The strike, which occurred between years when national negotiations were held, was over work rules and GM's plans to eliminate jobs.

"I don't think it's a win for either side. It's too bad it's come to this, but we have given up a lot already," said Pat Haley, 50, from Dimondale, a quality control specialist who has been with GM for 31 years.

He said he did not have a big problem with the VEBA, but he opposes a possible $5 an hour wage cut and restrictions on vacation time.

While GM has enough cars and trucks to withstand a short strike the automaker had about a 65-day supply of cars and trucks as September began, according to Paul Taylor, chief economist for the National Automobile Dealers Association - it still would be costly for the company.

This walkout could damage the image of the UAW, said David Cole, chairman of the Center for Automotive Research in Ann Arbor.

"What it says is the union is the same old militant organization," Cole said before the walkout. "What is a real concern is buyers that punish a union by not buying the products they build. That's a real concern."

At the same time, Cole said the UAW leadership needs a strike to show the membership that it did all it could to get the best deal out of the company.

"They're in a bit of a box, in that they need some drama to get an affirmative vote on this," he said. "It's a tricky deal."

The strike likely is a sign that GM is sticking to its stance that it needs to close what the auto companies say is about a $25 per hour labor cost gap with their Japanese competitors, Cole said. GM likely has threatened to pull investments out of the U.S. if the union does not agree to its terms, he said.

"This is the first time I've seen that the company has really had an option. This is really a nuclear option, and that is disinvestment," Cole said.

[THGL]

I think the UAW will destroy the US auto makers long before the oil runs out.

If the union paid its member's bills during the strike I would probably think differently about them. But as far as I'm concerned, the union "bosses" are a bunch of greedy f*ckers if you ask me.

[No Boss]

Oh dear.

[Mopar Man]

That is really, really bad...

[IVIaster]

Go socialism

[Spectre]

Originally Posted by THGL

I think the UAW will destroy the US auto makers long before the oil runs out.

If the union paid its member's bills during the strike I would probably think differently about them. But as far as I'm concerned, the union "bosses" are a bunch of greedy f*ckers if you ask me.

Oh, they have a nearly $1 billion strike pay reserve. They're going to pay all their members $200/wk for as long as the strike lasts - they have enough to do it for two years.

My bet is that GM will end up firing all of them. GM's been sitting on a lot of inventory of late.

Originally Posted by Mopar Man

That is really, really bad...

No, this is really good. It will hopefully be the end of the UAW, and it will let GM sell down their inventory. You do realize that GM has THREE MONTHS' worth of cars and trucks just sitting on storage lots, right?

[Cobol74]

This will end well. ...

[Speedtouch]

Hopefully this'll stop them making crap cars...

[GraemeH]

Why does "the Rover debacle" come to mind?

Fuck unions. We needed unions during the industrial revolution. These days? There's so many damn laws and how you can and can't treat your employees unions only exist to exact short term self-aggrandization whilst simultaneously destroying from the inside out the very thing they claim to hold dear, their companies and their jobs. I've never known a union to be anything other than short-sighted and under the illusion that they're self-serving, but really what use is it if you end up with no job to go back to?

Would it be legal for GM to cut them loose and move production elsewhere? It'd be a massive undertaking and risk, but it could be all the catalyst that's needed for GM to cut loose its dead weight and become a viable business again.

[Spectre]

It should be mentioned that in a country of 300 million people, the UAW no longer controls an enormous amount of influence. All the GM UAW workers walked out - and there were only 73,000 of them left.

Mostly the UAW could possibly anticipate a bailout of GM if they went on strike in the past, but they just don't have a significant portion of the US workforce for anyone to care.

As for moving production elsewhere - GM and others have already done so (to Mexico, for example), and other makers are opening up plants in the union-hating South. The problem with GM shutting down the plants in union-infested states and moving elsewhere is the master agreement they signed with the UAW that says that any new plants in the US or Canada are automatically UAW plants.

If GM is smart, what they'll do is take this opportunity to declare Chapter 11 Bankruptcy. (In the US, bankruptcy comes in three basic forms, Chapter 7, Chapter 11, and Chapter 13, named after the sections of the law that reference them. Chapter 13 is for individual bankruptcy and does not apply here. Chapter 7 is the traditional bankruptcy - company or person ceases operations and all of its assets are sold to pay creditors. Chapter 11 allows the business to continue to operate while reorganizing under the supervision of a court - this includes contractual and debt obligations. A number of currently successful American businesses have had to resort to Chapter 11 at least once in their history. Chapter 11 often leads to Chapter 7 when the company can't reorganize and fails, but not always.) Under Chapter 11, GM can continue operations, toss out ALL the UAW contracts, and renege on the master agreement with the UAW. They can also dump the silly "jobs bank" concept and force the union to eat their retirees' healthcare and pension (which the UAW *should* be forced to do, IMHO). They can then open up new, union-free plants in Right-To-Work states, and then might actually begin to have decent quality control.

This is the only chance GM is going to have to do this.

[Vette Boss]

GM is turning into BL more each day.. and we all know what happened to them.

[RUU-CHAMA]

Originally Posted by Spectre

It should be mentioned that in a country of 300 million people, the UAW no longer controls an enormous amount of influence. All the GM UAW workers walked out - and there were only 73,000 of them left.

Mostly the UAW could possibly anticipate a bailout of GM if they went on strike in the past, but they just don't have a significant portion of the US workforce for anyone to care.

As for moving production elsewhere - GM and others have already done so (to Mexico, for example), and other makers are opening up plants in the union-hating South. The problem with GM shutting down the plants in union-infested states and moving elsewhere is the master agreement they signed with the UAW that says that any new plants in the US or Canada are automatically UAW plants.

If GM is smart, what they'll do is take this opportunity to declare Chapter 11 Bankruptcy. (In the US, bankruptcy comes in three basic forms, Chapter 7, Chapter 11, and Chapter 13, named after the sections of the law that reference them. Chapter 13 is for individual bankruptcy and does not apply here. Chapter 7 is the traditional bankruptcy - company or person ceases operations and all of its assets are sold to pay creditors. Chapter 11 allows the business to continue to operate while reorganizing under the supervision of a court - this includes contractual and debt obligations. A number of currently successful American businesses have had to resort to Chapter 11 at least once in their history. Chapter 11 often leads to Chapter 7 when the company can't reorganize and fails, but not always.) Under Chapter 11, GM can continue operations, toss out ALL the UAW contracts, and renege on the master agreement with the UAW. They can also dump the silly "jobs bank" concept and force the union to eat their retirees' healthcare and pension (which the UAW *should* be forced to do, IMHO). They can then open up new, union-free plants in Right-To-Work states, and then might actually begin to have decent quality control.

This is the only chance GM is going to have to do this.

I agree. It's just that they might be worried about what is left of their stocks being worth less than dirt or the U.S. currency . On a side note, I wonder if Cerberus is looking to buy any other U.S. manufacturers and straighten them out or if GM will steal someone from Honda to help out.

[nist7]

Back in the day unions were actually useful/beneficial for the workers that were being treated like crap. Today, it seems like, the union is nothing but a black hole for money.

Seriously, how much per hour do those assembly line guys get paid? Something like $25/hour?

[Spectre]

The guy putting on the lugnuts at the GM plant in Arlington, using a machine, makes $45-55/hour plus a boatload of benefits, plus pension, plus cradle to grave healthcare for him and his entire family at no cost..

A janitor at the same facility with two years of service makes $35/hour plus the above additional compensation. And he's not actually emptying trash cans or the like. He's walking around making notes of which ones his crew is to empty.

[nist7]

Originally Posted by Spectre

The guy putting on the lugnuts at the GM plant in Arlington, using a machine, makes $45-55/hour plus a boatload of benefits, plus pension, plus cradle to grave healthcare for him and his entire family at no cost..

A janitor at the same facility with two years of service makes $35/hour plus the above additional compensation. And he's not actually emptying trash cans or the like. He's walking around making notes of which ones his crew is to empty.

Wow. Just.........wow.

You know what's funny is that the UAW guys scream "support our economy" when they themselves, through their blatant greed, are forcing GM to outsource and close down plants.

Maybe their definition of "our economy" means their own checkbooks instead of America at large. If they are so greedy then they almost deserve to lose their job to a mexican.

[thedguy]

Originally Posted by spectre

As for moving production elsewhere - GM and others have already done so (to Mexico, for example), and other makers are opening up plants in the union-hating South. The problem with GM shutting down the plants in union-infested states and moving elsewhere is the master agreement they signed with the UAW that says that any new plants in the US or Canada are automatically UAW plants.

I thought all UAW agreements just ran out, or was that only labor contracts.

With the way the UAW is I see GM saying "here's the deal, you either have a job on our terms, or we go to mexico..." while chanting "thank you NAFTA!"

I read a number the other day, in 1969, UAW had 1.5million paying dues, along with the ear of just about anyone important in DC. Now it was less than 200k people and no one gives a damn about them.

BTW, speaking of Janitors. You know an LA county teacher makes slightly above HALF what an LA county garbage man does?

Originally Posted by nist7

Maybe their definition of "our economy" means their own checkbook.

Considering they don't like the "imports" even though many of them are built here in the US, I'd say it's "support union or don't support America!" I've heard the UAW sends their people a lot of stupid propaganda, and most of 'em eat it up.

Unions had their place years ago, but the car factories are safe, the jobs pay way more than the work is worth, and the benefits are excellent, what the hell is there to complain about?

[Spectre]

That was just the labor contracts that ran out. The earlier Master Agreement is still in force.

[Paul_The_Aussie]

Originally Posted by Spectre

My bet is that GM will end up firing all of them. GM's been sitting on a lot of inventory of late.

I honestly think that would be the best option. Start all over again.
It is very similar here in Australia, Unions strike at every opportunity.
Here the manufacturing industry is pricing itself out of work, many companies are closing the doors cause they just can't afford to keep it running. Unions aren't helping at all.

[nist7]

Originally Posted by thedguy

Considering they don't like the "imports" even though many of them are built here in the US, I'd say it's "support union or don't support America!" I've heard the UAW sends their people a lot of stupid propaganda, and most of 'em eat it up.

Unions had their place years ago, but the car factories are safe, the jobs pay way more than the work is worth, and the benefits are excellent, what the hell is there to complain about?

Exactly.

Where else can you turn screws for $25+ per hour with full benefits? Those UAW workers don't know how good they have it.

GM should just say F U to the union guys. Let the contract expire and start a massive hiring campaign for the freshly de-unionized openings.

edit: fawk the "Master Agreement." The river card has been dealt and it's about time GM calls out UAW's bluff and take them all in.

The UAW desperately needs a massive re-organization and re-thinking of their operating philosophy.

[thedguy]

Pat Haley, 50, from Dimondale, a quality control specialist who has been with GM for 31 years.

One of the first people I'd fire, considering GMs' quality over the past 30 years she hasn't been doing her job.

"What it says is the union is the same old militant organization," Cole said before the walkout. "What is a real concern is buyers that punish a union by not buying the products they build. That's a real concern."

UAW leaders really need to listen to him. Few people really care about them, they are over paid for what they do.

I recall when all the grocery store employee's went on strike. No one gave 2 shits about them (they verbally supported them, but didn't stop shopping). They were making $17-$20/hour when a good job paid $12/hour. Their health care was FULLY paid for, they were on strike because they had to shell out $5 for each medication and doctor visit. And to make things worse, by the 3rd week, most of the picketers didn't give a shit but had to do it because of the union, their own leaders weren't listening to them.

[quote] GM likely has threatened to pull investments out of the U.S. if the union does not agree to its terms, he said.[/quote]

Good!