On Tuesday, the New York Times published a look at the ongoing feud between pro- and anti-union forces at Volkswagen’s plant in Chattanooga, Tennessee. It paints a picture of a political battle fought mainly by outside forces, utilizing the deep pockets of some of the nation’s most powerful lobbying groups.
The head of Volkswagen’s Works Council may soon be paying a visit to workers at Chattanooga to discuss the prospect of a works council. Reuters reports that Bernd Osterloh will be headed down south for a “dialogue” about representation. The UAW will not be present at the talks, but representatives of both VW and IG Metall, Germany’s largest labor union, will be in attendance.
Despite the UAW’s absence, the union and IG Metall have their respective ties, with UAW head Bob King acting as IG Metall’s labor representative on Opel’s supervisory board. The meeting is also occurring as the anti-union camp digs in its heels with a campaign aimed at thwarting the UAW’s organization drive.
This weekend was the end-of-summer graduation at Auburn, and like all such events, it brought an avalanche of rental cars to our Loveliest Village on the Plains™. Amidst the ubiquitous Chryslerbishis and engineering-excellence-cum-fleet-staple Camrys, I spotted a couple of newish Jettas and Passats wandering about town, crooked rental bar stickers applied with obvious indifference. I saw one particular rental Jetta sitting in the parking lot not far from the bookstore when I went to pick up some cut-price tomes. Coated in dust and wearing those ugly DUI-style New York plates, it was a forlorn sight. I couldn’t help but think of it as a reminder that the road to hell can be paved with tax breaks as often as it’s paved with good intentions; at least that’s the case if you happen to be governor of Tennessee.
GM has rocky relations with its Korean unions, and the relations will get a lot rockier if what Germany’s Handelsblatt says is true. According to the report, GM is seriously looking into moving most of the production of the Opel Mokka to Europe.
Currently, the hot selling SUVlet is made in South Korea only. Says Reuters: (Read More…)
When there was labor unrest in South Africa, the UAW was quick to spend union dues for a long trip to the scenic South African locale, ostensibly to show their solidarity with South African union brothers who, coincidentally, fought against Mercedes and Volkswagen. Back home, the UAW pulled a whole packet of race cards. It headlines, a bit strenuously: “South Africans have more rights than workers in Mississippi.”
It would have been more a propos if the UAW would have flown to South Korea to show solidarity with workers who are about to go on strike against GM, the company, ooops, that is partially owned by the UAW. (Read More…)
According to media reports, Volkswagen workers received a hefty, inflation-busting pay rise today, giving the impression that VW workers are being especially coddled. Not true. Metal workers in all of Germany received a 5.6 percent raise in May (3.4 percent more from July on, followed by 2.2 percent starting in May 2014, to be exact.) Volkswagen workers received more or less the same. (Read More…)
Now that Opel workers in Bochum refused a plan to keep the factory open, now that an intervention by UAW’s Bob King went exactly nowhere, the question is where to move production of the Opel Zafira when Bochum closes its doors by end of 2014.
In the running: Rüsselsheim, Germany, and Ellesmere Port, UK. (Read More…)
Last month, GM CEO Dan Akerson said that GM might move production away from South Korea if tensions with North Korea escalate. Korea labor unions were not amused, saying that Akerson was using the crisis as a pretext to gain the upper hand in upcoming labor talks.
Last week in Detroit, Akerson told GM’s South Korean union leader that he won’t pull GM out of South Korea. He also said he is unhappy with the Korean union, and that he will bring up the matter this week with South Korea’s President Park Geun-hye, when the “Iron Lady” will visit the U.S. this week.
Now, the union is fuming. (Read More…)
German autoworkers want their share of the record profits announced by German carmakers last year. IG Metall labor union demanded 5.5 percent. Employers countered with 2.3 percent. Today, workers went on strike. (Read More…)
Bob King’s attempts to ingratiate himself with German unions, and to make Opel’s Bochum workers reconsider their decision to turn down Opel’s restructuring plan, are being ignored. Actually, it appears as if they had the opposite effect. Days after King’s comment, Bochum plant manager Manfred Gellrich rejected new discussions, saying Opel does not want to “waste precious time,” Reuters says. Over the weekend, Opel dropped another bomb: Bochum will be closed completely. A parts depot that was supposed to stay open, will also close its doors. (Read More…)
UAW boss Bob King told Opel’s Bochum workers to vote again, and to this time accept a deal that had been worked out between the German metal worker union IG Metall and GM. (Read More…)
Opel’s Supervisory Board, with half of its members delegates of the labor union, decided today the first closure of a German car factory in decades. According to Reuters, “Opel will end producing Zafira MPVs at its 50-year old Bochum plant by the end of next year, a move that has triggered a rare and public split within union ranks following months of tough negotiations.”
The closure will lead to the loss of 3,000 jobs in Bochum, as part of Opel’s attempt to put an end to 15 straight years of losses in Europe. It will be a while. (Read More…)
In what Renault CEO Carlos Ghosn described as a “historic” event, the automaker has come to an agreement with the three unions representing its French workers that will keep five Renault factories in France running until at least 2016 while using attrition and retirements to reduce their workforce by 7,500 employees.
I have been trying to make heads or tails out of yesterday’s contradicting news about the big deal between Opel and the unions, and so does German media. So much is clear: The truth and GM’s press release about a “successful conclusion” of the negotiations with the Opel works council are miles apart. There is no deal. Unions and Management are still in negotiations, the negotiations will continue this coming week. Then, the workers have to vote. It does not look good: Bochum’s works council is dead set against the deal. It gets worse. (Read More…)