As negotiations between the Big Three and the CAW continue to grind away, Sergio Marchionne had more strong language for the union.
With the CAW’s strike deadline just four days away, the union has apparently tabled a proposal to reduce wages for new hires, a move that would stop short of a true two-tier wage system, but meet a major demand of the Big Three auto makers.
With the CAW’s strike deadline looming, Chrysler CEO Sergio Marchionne is taking a harder line in the media, pushing his vision of a profit-sharing agreement between Chrysler and the CAW, while boldly stating what everyone knows, but is afraid to say; auto makers have “other options” when it comes to building cars.
A report by Reuters suggests that the Canadian Auto Worker’s union may take the unprecedented step of striking at the plants of all three domestic automakers.
The CAW may abandon their tactic of using negotiations with one automaker as a precedent for other negotiations, and conduct simultaneous talks with Ford, Chrysler and General Motors.
Two times, the UAW tried to unionize the Nissan plant in Smyrna, Tennessee. Twice, the Union received a black eye. The UAW is trying a third time, this time counting on the fact that “an estimated 70 percent of the workforce is black,” says Reuters in a feature story on the UAW’s last ditch effort to gain relevance in the South.
Says Reuters: (Read More…)
More than 70 percent of Hyundai’s 45,000 strong worker’s guild voted in favor of job actions, including a walkout planned for Friday. The guild is building up towards Hyundai’s first labor strike since 2008, as they seek better wages and reduced hours.
If you believe Ken Lewenza, president of the Canadian Auto Workers union, the CAW is well on its way to organizing Honda’s Alliston, Ontario assembly plant. Lewenza told Ward’s Auto that “We’re getting some enthusiastic and strong support, but we’re not there yet.” The biggest problem for Lewenza is that the CAW has been in that position for almost two decades with respect to Alliston and hasn’t made any progress.
Contract negotiations are looming for the Canadian Auto Workers, but that hasn’t stopped some union members of a Chrysler plant in Windsor, Ontario from wading into the abortion debate, something settled long ago and unlikely to ever be re-opened in Canada.
Tennessee is so 2011 for the UAW. The hot new locale for foreign plant organizing campaigns is Mississippi, where the UAW is trying to organize workers at a Nissan truck plant.
Looking for a way to stop the chronic bleeding of money at it notoriously loss-making Opel division, GM has been crunching numbers to see what it would cost to close one of its European plants. Bad news for GM stockholders: Relief won’t come cheap, and it won’t come soon. (Read More…)
The UAW today released its complete “Principles For Fair Union Elections” [full PDF here], the document that it wants every transplant auto manufacturer in America to sign ahead of its organizing campaign which kicks off later this month. With so-called “card check” legislation dead in congress, the UAW hopes to shame foreign automakers who manufacture vehicles in America to guarantee certain concessions to the union that, having helped kill off its Detroit “partners,” now owns large stakes in the bailed-out successors to GM and Chrysler.
In the past the UAW has failed to organize a number of transplant factories, including Nissan’s Tennessee plants and Toyota’s Kentucky factory, and the introduction of these principles ahead of the next organization attempt signal’s the UAW’s perspective that “manipulation” by management prevented UAW organization in transplant factories. If bosses from Nissan, Toyota, Subaru, Honda, Volkswagen, BMW and Mercedes don’t sign onto these principles, they will be on the menu for the UAW’s new campaign… but are the principles worth agreeing to? Let’s take a look…
The House Oversight Committee has obtained a 2006 memo from the “All Toyota Labor Union” (ATU) which alleges quality declines due to “a fall in the number of experienced staff in favor of contract workers, longer working hours and an aggressive pursuit of cost cuts” according to Automotive News [sub]. The letter was originally addressed to then-Toyota President Katsuaki Watanabe, and was written during a Japanese criminal investigation of Toyota, in which the automaker was eventually cleared of all charges. In the letter, the 20-member ATU (curiously, only two members of the union work for Toyota Motor Company proper) demanded
a seven-point action plan from management including an explanation of the criminal probe, a review of the length of vehicle development period and a review of cost reduction methodologies
Thanks to the unionization of the US auto industry, its politics (and accordingly, those of the state of Michigan) tend to be of the center-left persuasion. This tendency was doubtless aggravated over the last year, as a congressional bailout of the industry was denied by southern Republican senators. But even in Michigan, the union-industry alliance isn’t strong enough to counter the trend towards ever more divisive politics, as two recent stories show some of the ideological cracks forming in this now highly politicized industry. First,according to the Freep, the National Tax Day Tea Party will re-open last year’s political wounds by staging a rally outside the RenCen during the Detroit Auto Show this year. The idea behind the rally is to “make a peaceful yet clear statement against government takeover of America,” specifically the government ownership of General Motors. Though it’s clearly an empty gesture intended to rally political support more than change anything, it will be a jarring contrast to the usual convivial mood at the NAIAS. And it’s just one of several ways in which the politicization of the industry is becoming steadily less containable.
Ford has wrapped up some much-needed financial wrangling today, as it struggles with with its monstrous pile of debt. According to Automotive News [sub], Ford transferred $13.2b in debt and about $4b in cash to the UAW-run health care trust fund, completing a long-awaited liability consolidation. $1.4b of the transfer was a scheduled payment on a $6.7b note, while $500m more was a prepayment on that note. Ford paid $610m (cash) on another $6.5 billion note, transferred $620m from a temporary account and $3.5b from an internal VEBA fund and handed over warrants to purchase 362 million shares of Ford common stock at $9.20 per share. All together, the move reportedly adds $7b in debt to Ford’s balance sheet.