"At Best, a New Deal With the UAW Might Save GM North America a Billion Dollars"
That’s TTAC Ken Elias earlier today in Bailout Watch 394. And lo, it did come to pass. Just hours later, Automotive News reported: “General Motors is expected to identify more than $1 billion in savings from additional plant closings and factory work-rule changes when it files a viability plan with the US Treasury on Tuesday, said a source familiar with ongoing stakeholder negotiations.” And no, it wasn’t Ken. Of course, Elias goes on to say big whoop. “[It’s] not enough to right a ship that’s losing $2B+ a month in cash flow.” Somehow that perspective didn’t make it into the AN piece. Still, the article’s well worth a read—if only for a laugh. Ladies and gentlemen, we have a new (yet old) straw man to set alight: True North.
Without requiring additional wage cuts, the UAW could help save GM more than $1 billion annually through factory rule changes, the source said.
For example, the UAW could agree to reduced skilled trades job classifications from as many as 15 in some plants to just two: electrical and mechanical.
Worker break times could be reduced. A provision called “full utilization” could be eliminated, the source said. That rule requires UAW skilled trades members to be present in equal numbers to outside contractors making repairs or doing construction in a plant, the source said.
Other cost savings are available. The UAW could agree to reduce “absenteeism pools” of workers, who are hired to fill in for employees who don’t show up for work.
“These things can take a lot of costs out without ever hitting worker wages,” the source said.
I’m sure our readers on the front lines will have something to say about True North. Meanwhile, as Ken said: Chairs. Deck. Titanic. Shuffle.
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@Pete Moran.Yes, for every outside guy on a job one of our own must be in the plant.The language was introduced to prevent the company laying off people,and at the same time hiring outside folks. Its called "job protection" thats the unions mandate.
What worker pools to cover absenteeism?True North might want to do a little research.Non contractual absenteeism ceased being a problem about 8yrs ogo.Hey anybody that would like a mechanic,or an electrician to work on a high preasure steam line feel free to work beside that line all day.Myself I'll go with a Steam Fitter. Better yet we will get a mechanic to try his welding skills on the stop blocks and safety chains that prevent a 700 lb spot welder from crashing to the floor.Raise your hand if your comfortable standing on said floor. Let talk cars now,Mr Farago suppose one was to bring his Boxter into the dealer for say,a "little perfomance tune up" The service manager says"Look sir ah.. times are tough we had to combine a few trades we dumped the tune up dude".The manager goes on to say "we got this fell'a that does body work and stuff,things are a bit slow today,you don't mind if he practices tune ups on YOUR car,do you sir"? Its easy for one to look from the outside and make sugestions.Its a whole different story to go inside and implement them.