Amazing Inventions: Fiat Produces Engine That Increases Ownership In Chrysler
Want to know how to get a good chunk of the Detroit 3, no money down? Easy: Today, Fiat increased its ownership of Chrysler from 20 percent to 25 percent. What did they pay for it? Niente. Fiat received the extra shares “upon the Company’s achievement of the first of three performance-related milestones,” as a Chrysler Group LLC press release proclaims. And what is that milestone? They started making an engine.
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UAW To Protest Two-Tier Wages At NAIAS

As the biggest week in the American auto industry, the annual North American International Auto Show in Detroit regularly attracts a sideshow of protesters bent on sending a message to the hordes of executives and analysts who cram Cobo Hall. In 2009, UAW members marched against the possibility that the auto bailout (then still a work-in-progress) would require union concessions. Last year, Tea Party groups rallied to protest the government’s ownership of GM and Chrysler, while UAW members counter-rallied in support of the bailout (apparently those concessions weren’t so bad). This year will be no exception to the trend, as dissident UAW members will be protesting the union’s two-tier wage system, a pre-bailout concession that has created considerable controversy of late. And they’ll be getting support (if only in word, not action) from across their friends from the North, as the Canadian Auto Worker boss has recently called for an end to the two-tier system, saying

That has to be a strategy of the UAW to gradually get out of the two-tiered system. I don’t know if it can happen overnight, but they’ve got to start sending signals to future employees that the low, tiered wages are not something that can sustain families long term

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Fiat's Italian Renaissance Draws (More) Labor Strife

With some 60k Italian jobs and a $20b investment at stake, Fiat’s “Fabbrica Italia” renovation of its home-country production plans are crucial to the integration of Fiat and Chrysler. And rather than negotiating a national labor agreement with Italy’s fractious unions, Fiat has been revamping its Italian plants on a case-by-case basis. This strategy has already backfired at the firm’s Naples-based Pomigliano plant, where the Italian metalworker’s union Fiom decried Fiat’s plans as “discriminatory.” Since then, Fiat has moved onto its Mirafiori plant in Turin, where Fiat wants to build the next-generation Compass/Patriot models for Chrysler and a derivative SUV for Alfa-Romeo on the firm’s new “Compact Wide” platform. And once again, Fiom is up to its old tricks. The WSJ reports that every other union has approved the new Mirafiori deal with Fiat, except Fiom, which has been banned from representing workers at the plant, pending a January vote by workers. However, Fiom represents some 22 percent of Mirafiori workers, and the union has announced an eight-hour strike for January 28.

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UAW Recruits Activists For Transplant Assault

As Bob King and the United Auto Workers gear up for their January organizing campaign aimed at converting transplant automakers to the union way, the UAW is picking up support from outside the automotive industry. Automotive News [sub] reports that Jesse Jackson’s Rainbow PUSH Coalition has expressed its interest in organizing the non-union auto assembly plants, and that the Detroit bureau of the NAACP has pledged assistance as well, offering to request assistance from its national leadership. Even the Ohio-based Farm Labor Organizing Committee, which organizes migrant farm workers, has said it would join the fight if King asks. And though AN’s writeup uses the imagery of conflict to describe King’s “soldiers,” King insists that its strategy is not confrontational. As far as the President of the UAW is concerned,

Transplant workers in the South will want to be part of this “winning team,” King said.

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UAW: The War On Transplants Begins In January

Ever since being hand-picked to succeed Ron Gettlefinger as President of the UAW, Bob King has made it clear that his focus would be on organizing transplant factories, the US-based assembly plants operated by foreign automakers. And why not? Having been given ownership stakes in GM and Chrysler during their bailout, the UAW can’t even protect the wages of its existing members, let alone lobby for higher wages. As a result, this year has been marked by UAW protests against Toyota (for pulling out of a joint venture that GM had already abandoned and getting caught in a media circus), and Hyundai (for getting caught up in a convoluted Korean union spat), and threats of organization campaigns against Toyota, Honda, Nissan, Hyundai, Kia and Volkswagen. Now, King tells Automotive News [sub] that it’s time for the transplants to batten down the hatches: UAW organizers are coming to town…

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Detroit Drops $305m On UAW Retiree Bonuses, Scrooges Actual Workers
It’s the most wonderful time of the year, as the Detroit automakers reach for their checkbooks and write out annual cost-of-living adjustment bonus che…
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GM: Buyouts Are Back
Automotive News reports that GM is bringing out its first round of buyouts since emerging from government-structured bankruptcy a year and a half ago. The…
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UAW Protest Targets Hyundai, Ignores Hypocrisy

Unable to provide meaningful representation to its dwindling membership, the United Auto Workers is continuing its post-bailout strategy of poking its nose into everyone else’s business with a protest planned for today at the Hyundai America Technical Center in Ann Arbor, MI. While its own workers face the aftermath of a bailout that saw tens of US plants shut down, the UAW opines on the Korean situation in a release which notes:

Frustrated by their temporary status, auto workers at a Hyundai Motor Co.mpany plant in Ulsan, South Korea, declared a strike on Nov. 15, and one desperate worker set himself on fire in protest of the company’s refusal to offer secure jobs. About 500 workers have since led an occupation of various plants in the Hyundai compound… To anyone interested in workplace fairness, the resolution of the Ulsan Hyundai workers’ strike is critical. It could either speed up progress toward ensuring global living wages, or provide a green light on the race to the bottom the auto industry began years ago – — with Toyota and Hyundai getting a head start.

One must, however, point out that the UAW has made its fair share of contributions to recent declines in auto worker wages. After all, it forced nearly half of GM’s Orion Assembly plant workforce to take a 40 percent wage cut in order to build a politically-popular fuel-efficient subcompact (the next-gen Aveo) in the US. Not only did this represent an unconscionable screwing of its own union “brothers” but it also directly hurts the Korean workers the UAW now so self-righteously defends by by stealing jobs using the very same “race to the bottom” that it decries. Besides, the labor situation in Korea is a bit more complex than the UAW’s Manichean moralizing makes it out to be…

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Flush From GM's IPO, UAW Targeting New VW Plant

GM’s stock may be hovering near its IPO price of $3/share, but the UAW doesn’t need much more growth to cash out with every penny it wanted from GM. The UAW’s VEBA account has banked $3.4b in stock sales so far, and Forbes reports

The VEBA will break even on its investment if it can sell the remaining 206 million shares at an average price of $36.96.

Taxpayers, meanwhile, need GM’s stock to top at least $52/share in order to break even on the bailout that it funded. Because it’s just not a bailout unless the least deserving benefit the most. Meanwhile, with its accounts once again flush with cash, the UAW is turning South in hopes of accomplishing what it has never accomplished before: unionizing at ransplant auto factory in a right-to-work, Southern state.

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Fiat And Chrysler Invest Big Into New Plant. In Italy

The rescue of Chrysler is making great strides. Sergio Marchionne today presented union officials an audacious plan. Powered by an investment of $1.3b, Chrysler and Fiat will build Alfa Romeos and Jeeps under one huge roof. The roof is in Mirafiori, Italy. Also known as the Fiat factory in Torino. And who will pay for all that? Fiat will pay 60 percent. Chrysler will pay 40 percent.

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UAW Boss: "People Want To Reward Our Members"

Let me say this as clear as I can, I do not think there will be any concessions in 2011. People want to reward our members and it will be a key component of the 2011 bargaining. When the industry comes back, just like we’re sharing in the downside we’re going to share in the upside. That’s a key foundation of what we’re doing in 2011.

UAW President Bob King gives his best “we will fight them on the beaches” impression, telling Reuters that his union has sacrificed enough, thanks. And though the people who want to reward UAW members are notably absent from public debate, that assertion wasn’t nearly as double-take-worthy as King’s opinion that

There’s no competitive gap between Ford, GM and Chrysler right now

Huh?

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Chrysler Workers Smoke Pot, Drink Beer At Lunch And Don't Give A Freckle About Quality

Some say, TTAC has an anti-Detroit, pro-import slant. We won’t comment on that, you mommy-fraternizing liars. All we can say is: If you harbor these notions, don’t move to Oklahoma. Oklahoma’s largest newspaper, the Oklahoman, dishes out more anti-Detroit snark in a single serving than even a Farago could have cooked-up in his TTAC lifetime. How about calling the former owners of Chrysler unqualified “idiots?” And not the former owners you think of now. Wait, there is worse.

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German Unions Want Payback

German media calls it the “second economic miracle.” The German industry is hitting on all cylinders, a lot driven by exports. Europe’s biggest economy is officially forecast to expand by 3.4 percent this year, equal to the rate of 2006 and the highest since German reunification in 1990. When the recession/credit crunch hit a couple of years ago, the mantra from management to the unions was quite clear. “We need concessions to keep the company competitive and prevent going under.” Unions gave the concessions and life went on. But now, the climate is different. Volkswagen announced massive profits and Ford are also rolling in it. Well, if things are that good… ?

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Quote Of The Day: The UAW Goes Global Edition

Even though Fiat CEO Sergio Marchionne’s disparaging comments about its over-reliance on Italian manufacturing have opened the door for more US manufacturing opportunities, United Auto Workers boss Bob King wants to make it clear that he won’t be taking advantage of Fiat’s rift with its Italian unions. Fiat tells Automotive News [sub] that failure to secure Italian union agreement with its new manufacturing plan could send increased production to Serbia, Poland and even the United States. King’s response [via Michigan Public Radio]:

They (automakers) won’t be pitting one worker in one country against another. We’re going to be part of working with our global partners in other unions and building a global middle class – and rebuild the American middle class, really.

Yes, in the brutally competitive international labor market, there is a way for everyone to win… really.

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GM To Buy Government Preferred Stock
News that the government will sell only $6b-$8b worth of its GM equity has been joined by an even more surprising GM IPO announcement: GM will buy the Treasu…
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Orion Worker Files NRLB Complaint Against UAW Over Two-Tier Wage Deal
The Freep reportsA laid-off worker at General Motor’s Orion Assembly plant has filed a complaint with the National Labor Relations Board in Detroit ag…
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Orion Workers To Picket UAW Over "Innovative" Labor Deal

I took some flack from TTAC’s Best and Brightest on Monday when I suggested that the UAW’s deal to give 40 percent of Orion Assemblys returning workers a 50 percent pay cut was “cowardly and despicable.” What I didn’t make clear enough was that I have no problem with the UAW working for a lower wage as long as the burden was spread evenly. Instead, the union has arbitrarily divided its existing workforce into the old guard “haves” and the relatively-recently-hired “have nots” as a ploy to make the union seem capable of profitably building subcompact cars in America. It’s bad enough to prop up the old guard by paying new hires less, but cramming down recalled Tier One workers is totally contrary to the very concept of a union. And I’m not the only one who finds the lack of solidarity and shared responsibility within the union troubling.

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UAW Saves Aveo Profitability By Pushing Workers Into Tier Two
Another day, another story on the ever-growing conflict between the UAW’s ownership stake in GM and responsibility to its members. Pre-bankruptcy, GM d…
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Drunk, Stoned Chrysler Assembly Workers Live Up To "Bad Old Days" Stereotypes

The things we make, according to the Jeep Grand Cherokee “Manifesto,” make us. Which apparently means that the Grand Cherokee is an on-the-job drinker. Yes, despite an ad campaign that touts craftsmanship and American manufacturing prowess (not to mention the litany of “Detroit Reborn” hype), Jeep Grand Cherokee assembly workers at the Jefferson North plant were caught drinking and doobing on their lunch break. Clearly, these gentlemen appreciate Chrysler’s new-found dedication to quality, and are eager to create value for their union and taxpayer owners. Oy vey…

UPDATE: The Detroit News reports

The lunchtime habits of a small group of workers, which included a trip to a party store and then to a public park, were captured on video by WJBK-TV (Channel 2). WJBK was tipped off by concerned workers at the plant.

Chrysler executives are now using the video to identify the workers, a number of whom have already been suspended without pay.

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Tough Times For Tier Two
In 2007, the United Auto Workers came to a defining decision: rather than sharing sacrifice equally in the spirit of solidarity, the union divided its member…
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The UAW Comes Knocking In Italy
UAW boss Bob King is taking the fight abroad, visiting Fiat’s Italian plants in order to take a look at the World Class Manufacturing system that appar…
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The Spring Hill Saga: Put A Corker In It

USA Today reports that Tennessee’s 2 Republican Senators, Bob Corker and Lamar Alexander and GOP congresswoman Marsha Blackburn received a rather frosty reception when they went to Spring Hill on Friday to toast GM bringing jobs back to the Ex-Saturn plant. They got booed and heckled. Why the frosty reception? Well, if you remember, Lamar Alexander and Bob Corker (along with the unnamed Congresswoman) were very vocal opponents against the bailout of GM and Chrysler. So, for 3 politicians to come back to their state and welcome back the very jobs which they would have been quite happy to see lost in the name of free market economics, probably stuck in the craw of the electorate. Namely, the UAW.

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Currency, UAW Doom US Production Of Ford's Kuga

Bloomberg reports that Ford will not build its Kuga compact crossover at its Louisville, KY plant due to the falling Euro and UAW recalcitrance. According to the report

The promise of Kuga production in Louisville began to fall apart in November when UAW members rejected Ford’s request to match givebacks it gave General Motors Co. and Chrysler Group LLC. Ford’s U.S. rivals, which each reorganized in bankruptcy last year, were granted a six-year freeze on wages for new hires and a ban on some strikes until 2015… The euro has fallen 14 percent against the dollar since Ford reached a tentative deal with the UAW in October to build the Kuga in Louisville alongside its mechanical twin, the Escape. At the time, the dollar had declined against the euro, lowering the cost of U.S.-made goods. Since then, the euro has dropped amid concerns Europe’s debt crisis may trigger another recession.

Barclays analyst Brian Johnson explains

This is a reminder to the UAW that Ford’s U.S. cars don’t have to be produced in the U.S. Ford’s global architecture allows them to build anywhere. That’s good news if the U.S. has competitive labor costs. It’s bad news if they don’t

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Happy Labor Day, From GM CEO Dan Akerson

Editor’s note: GM CEO Dan Akerson sent the following email to GM’s employees, his first such communication as GM’s CEO, in recognition of Labor Day Weekend Eve.

GM Employees,

As Labor Day approaches in the U.S. and Canada, I would like to wish everyone at General Motors a safe, happy holiday weekend. I also ask that we pause for moment to reflect on what this day means as we celebrate labor’s many contributions here and around the world.

Of course, labor’s role in building up this nation and others is well recognized and rightly so. And, coming from a union family, I know on a very personal level the good things that unions can do.

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With Nothing New To Build, The UAW Charges Mitsubishi More

Automotive News [sub] reports that Mitsubishi will have to give UAW workers at its Normal, Ill plant a $1.60/hr raise because it doesn’t yet know what vehicle or platform it plans to build there in the future. Mitsubishi’s 2008 contract with the UAW required the disclosure, but the Japanese automaker requested an extension which the union membership proceeded to vote down. Because the extension failed, Mitsubishi is required by the terms of its contract to raise hourly pay to $25.60/hr. The plant in question currently builds Mitsubishi Eclipse, Endeavor and Galant models, which have collectively sold 11,215 units through August of this year. And thanks to the combination of low demand for Normal-built products, and the union’s failure to extend the decision period, it seems as though Mitsubishi may just walk away from the plant.

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Bonus Gallery: "No Foreign Car Parking" Signs

The core hypocrisy of the UAW is that it claims to work on behalf of workers everywhere, while actually serving only the interests of its most senior members. And the cognitive dissonance produced by this grotesque contradiction can lead to some interesting challenges in the day-to-day life of the union, particularly in the design of parking lot signs designed to keep the competition out. The sign shown above and the sign shown in the post preceding this one show the UAW at its most honest: if it’s built by one of the Detroit Three, it’s OK. If it’s got a “foreign nameplate” it’s not. But this honesty also betrays the fact that the UAW simply wants everyone to support it’s employers, rather than lead a nationalistic or class-based crusade.

At most locals the signs are more simple and ideal-oriented, but they’re also completely misleading. For example, a Japanese-built Camry or Korean-built Elantra should be OK in a lot with a “Union Made Vehicle Parking Only” sign, and an American-built Camry or Sonata should be fine in a lot with a “No Foreign Cars Allowed” sign… but of course, neither scenario would be tolerated. While you’re pondering the deeply cynical self-delusion at play here, enjoy this hastily-assembled gallery of union parking lot signs.

Update: Picture 417 has been removed at the request of the photographer. The original photo can be viewed here: http://www.flickr.com/photos/mlavander/4034221120/#/

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Quote Of The Day: Press Relations, UAW Style Edition
We are sorry you were inconvenienced and had to worry about where your car was parked while you covered the signing. The UAW member you encountered in the UA…
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UAW Sells Out Members, Holds On To Black Lake Resort

Since taking office in June, UAW President Bob King has ramped up the rhetoric level at Solidarity Hall considerably, as he seeks to portray the union as a defender of the American middle class. But, as the old adage goes, actions speak louder than words… and King’s actions this week couldn’t paint a clearer picture of the UAW’s priorities.

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French Workers Protest "Chevy-fication" Of Renault

Autocar reports that Renault workers in France are jumping on a bus and heading to the Paris Motor Show. Are the doing it because they fancy a day out? Maybe they want to see all the nice cars on display? Nope, they’re going there to protest. OK, so who do you think they are going to protest? Hyundai? Toyota? Ford? Nope. They’re protesting against Renault. So, a bunch of French Renault workers are going to the Paris Motor Show to protest against their own company? Why?

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And The Union Makes Us Strong: UAW Demands Lower Wages

So there’s this huge metal stamping plant in Indianapolis. The current owner wants the workers to accept huge pay cuts so that the plant can be sold off to another buyer. The plant is a UAW shop. What does the UAW do? Paint picket signs? Threaten strike? Chant “solidarity forever?” Threaten to bust the rotten deal if the working stiff has to pay for it? Not this time. The plant in question is a GM plant. Through their union’s health fund, the UAW owns a good chunk of GM, and every owner of GM wants that stamping plant deal to close ASAP. There is an IPO in the works.

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Saturn Factory Coming Back In Orbit?

When GM went into bankruptcy, people had their money on Saturn going to die. The odds changed a bit when Roger Penske was in talks to buy Saturn. But, in a cruel twist of fate, Saturn was condemned to death by a bunch of executives in France. They vetoed Carlos Ghosn’s idea of supplying Penske with Renault cars for the Saturn brand. The death of Saturn meant that its manufacturing plant in Spring Hill, Tennessee, would join Saturn in the grave. And so it did, along with 800 people who lost their jobs. Suddenly, there is the proverbial glimmer of hope for those 800 workers and the economy of Spring Hill.

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Korean Auto Industry Shooting For Strike-Free Year

There’s a constant temptation for commentators on the American auto industry to idealize labor relations outside of the reach of the United Auto Workers. But, as the JoongAn Daily reports, even resurgent automaking nations like Korea still face a number of challenges from unruly workers. Hyundai, Ssangyong and GM-Daewoo have already closed deals with their unions guaranteeing a strike-free 2010, but Kia is still locked in negotiations over

several issues, including wages and role of full-time union representatives. The management wants to enforce restrictions on the number and work practices on union representatives before discussing the wage issue. The union wants to negotiate the two issues at the same time.

If Kia reaches a deal with its union, it will make 2010 the first year in the last 24 without a strike by Korean autoworkers.

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UAW: Sign Here, Or We'll Expose You In Any And Every Way

When Bob King was elected UAW president in June, he did something that was once seen as highly un-American: He swore to give his full attention to the Japanese. At closer look, he just followed the trend: American carmakers had lost more than half of the market to foreign name plates. And the UAW, with a membership of just 350,000 is only a shadow if its former 1.4 million member glory. King wants to get new members where Americans get new cars: from Japanese and other foreign automakers’ plants in the U.S. How does he want to go about it? With good old UAW arm twisting.

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Quote Of The Day: Organize This Edition
I still don’t understand why they are picketing our dealerships when the dealerships have nothing to do with the workers. Our workers make the ultimate…
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Hyundai CEO: I'm No Joker. I'm No Smoker. I'm No Mid-Night Toker

The Korea Times reports that the Seoul Central District court has ordered the union of a subcontractor of Hyundai-Kia to remove a picture from the walls of the union headquarters. A court order? To take down a picture? Why?

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GM Shocks And Awes France! Workers Surrender!

Yes, there were abortive attempts to rename French Fries to Freedom Fries (you want ketchup with your freedom?) There were calls for a boycott of all things French, including French mustard, excluding French’s Mustard (and maybe the Statue of Liberty.) Nevertheless, I think deep down the Americans secretly admire the French. With their lavish welfare system, generous benefits and their willingness to strike if someone so much as asks them to work an hour outside of their contract, who wouldn’t want to be French?

Hell, in the UK we wish we could be like them. If we were we might still have some global companies in our ownership, instead of selling out to the first bidder. But as Peter Schiff ( who I’ve mentioned before) said, the party is over, we have to stop paying ourselves these lavish benefits, allow the free market to function and stop being lazy. In the UK, the government is going on a massive austerity program in order to balance the books, Italy pushed through a huge €24b cost cutting plan and even Spain just managed to push through a €15b budget reduction plan by a majority of just one vote. France hasn’t made a cost cutting plan of their own. It’s almost as if the current economic turmoil doesn’t apply to them. French benefits have survived recessions before and they’ll survive this one, right? Well, don’t be so sure. It seems that the French may be coming around to the rest of the world’s thinking, and the message to change their ways is coming from an unlikely source. General Motors.

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Fiat Vs Unions. Round 3

A few weeks ago, I wrote about how Sergio Marchionne was successful in getting the majority of the unions at his Naples plant to sign a new work agreement. This was supposed to herald in a new era in Italian work practices and pacem in terris. Well, it seems that Fiat wants to press the issue home to the unions. Reuters reports that Fiat is so determined to teach Italian unions at their Pomigliano plant that their working practices are not sustainable, that they are now going to some extreme lengths. Fiat is now going to set up a new company to manage the plant near Naples. Doesn’t sound extreme, right? Well, there’s more.

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Marchionne Starts Anti-Slacker Crusade

Fiat is determined to drag their Italian operations into the 21st century, says The New York Times. Lacksadaisical attitudes produced some novel ways of shirking work. Some examples include calling sick at Fiat (remember, you get paid in full even if you call sick) and using that time to work another job or faking a doctor’s note. The latter is particularly used when a local football team is playing. Well, no more, according to Marchionne. He wants to impose foreign style work standards to encourage more pride in Italian workers’ jobs and improve the competitiveness of Italian factories. Some have an opposite view.

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Chinese Strikes: Honda Gets No Respect

Honda is the Chinese version of Rodney Dangerfield. No respect. After a series of strikes, first at Honda’s parts suppliers, then at Honda itself, things looked liked they are calming down. Until yesterday.

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Quote Of The Day: Jobs, Justice And Peace Edition

We have made a decision at the UAW that to do the best job taking care of our membership we’ve got to be out there in the streets fighting for social and economic justice

Newly-minted UAW President Bob King kicks off a “Jobs, Justice and Peace” campaign with Jesse Jackson’s Rainbow Coalition, by feeding the Freep some seriously idealistic rhetoric at a news conference announcing a march commemorating Martin Luther King’s Freedom Walk. But, as King confirms to Automotive News [sub], the best way to live up to these high-minded ideals is to demonize Toyota.

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The Poker Game In Naples Is Over

Many of you don’t know this, but during my days at university, I supplemented my meager grant money (in the days when European governments gave grant money to students) by gambling said grant. The extra money came in useful for text books, science equipment, drinking lager till my head span, etc. The fruit machines and betting on horses was fun enough, but where I really excelled was poker. Texas Hold ’em, to be more accurate. I learnt many of life’s lessons that way, but the one which stuck in my mind the most was this little nugget: “When you play a bluff, be prepared to have that bluff called.” Words which certain Italian unions should have heeded.

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Chinese Strikes: Honda Hit Directly. Bots To The Front

So far, the strikes in China were just small – but effective – sideshows. Strike at a small, but strategically important supplier, and whole car factories shut down. That, however, only led to wage increases at the small, but strategically important supplier. Until last Wednesday.

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As Gas Prices Go Up, India Goes On General Strike

Know what to do next time you see a higher price at the pump? Don’t buy gas on May 15? How lame. Learn from the folks in India. According to the BBC, India’s opposition parties have called a general strike against fuel price rises, and “normal life has been disrupted in many parts of India.”

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Export Boom In Germany Raises Red Flags

Every day, German auto managers go on their knees and pray that the financial troubles in Greece, Spain and elsewhere continue. Why? The troubles keep the Euro low, and a low Euro is high octane fuel for German car exports. In May, German car exports rose 46 percent. For the first five months, German car exports are up 50 percent. Despite a lackluster home market, the German car industry is hitting on all cylinders: For the first five months, German production is up 26 percent to 2.3m units, driven mostly be strong demand from China and the U.S. However, red flags are going up. Literally.

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Chinese Strikes: It Ain't Over Until It's Over – Toyota And Honda Down Again

You thought the strikes that affected Honda and Toyota in China are over, and both are happily churning out cars again? That makes two of us. But we are mistaken.

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Chinese Strikes: Toyota Back To Work On Monday

Toyota was (after Honda) the second Japanese car company that came down with the current Chinese strike bug. Toyota is gladly taking a back seat on this. They solved their problems much quicker than Honda. Toyota said today that their largest plant in China will definitely be open for business on Monday.

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Chinese Strikes: Toyota Shuts Down Largest Plant In China – Will Reopen Monday

A strike at two Toyota-affiliated parts makers brought Toyota’s largest assembly plant in China to a halt. No parts, no cars. Toyota’s factory in the port city of Tianjin near Beijing stopped production on Friday. A day later, it is unclear if production would resume on Monday, Reuters says.

The strike at a small plastic maker stops production at Toyota’s most important plant in China.

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Chinese Strikes: It's Toyota's Turn

The Honda strikes have been settled – more or less. Now it’s Toyota’s turn. Workers at an auto parts factory in Tianjin, China, run by a Chinese subsidiary of Toyoda Gosei, 42 percent owned by Toyota, went on strike Thursday and had not returned to their jobs today, a Toyoda Gosei spokesman confirmed to the New York Times. The factory makes plastic parts for a FAW-Toyota joint venture assembly plant in Tianjin. It’s not the only strike that affects Toyota.

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UAW: It's Good To Be The King - Maybe Not For Toyota

Ron Gettelfinger retired and Bob King took his place as President of the UAW. Mr King has some pretty big shoes to fill, but the name is a good start. After all, Mr Gettelfinger helped persuade President Obama to bail our GM and Chrysler (can’t say I blame him, quid pro quo, and all that). So what can Mr King do to really show the rank and file that he means business? Better working conditions? Input into designing cars? More job security? Nope. His next step is to make sure that Detroit and the transplants are evenly matched, so to speak.

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Quote Of The Day: The View From The Bunker Edition

Most employers have vigorously opposed unions with every means at their disposal. These pro-employer, anti-union forces continually attack unions and workers that want to form a union…

…Let’s be clear, the contempt for the UAW was so deep that some of them were willing to let the industry collapse in the hopes that they could destroy us. Even the former president recognized the insanity of what they were willing to do.

Ron Gettelfinger fires up the troops in his final address as UAW President, as quoted in the Detroit Free Press. It might have been a moment for reflection and self-examination, but Gettelfinger served up some old-school, union-hall fire-and-brimstone instead. Only Ron didn’t look in the mirror before giving out his enemies’ description. Gettelfinger’s paranoid take on the auto bailout is actually eerily similar to that of the far right wing, in that they both place the UAW at the center of the bailout.

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General Motors, At The Dawn Of The UAW
With UAW members and leadership meeting to debate the union’s future, it’s the perfect time to look back at the conditions from which the UAW eme…
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What's Wrong With This Picture: UAW On Strike Edition
UAW members picketed the UAW’s 35th annual convention, in Detroit. The union is highlighting the theme of unity, as dissatisfaction with concessions ma…
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Quote Of The Day: Bye-Bye Miss American Pie Edition

I understand the economic argument for the off-shoring of production, but I think the practice is reprehensible. U.S. automakers have benefitted greatly from federal largesse and should feel morally compelled to retain and create as many domestic jobs as possible.

As one of the strongest proponents of the Detroit Bailout, Rep John Dingell (D-MI) carries some weight when he makes statements like this. But how can Detroit rise again by ignoring the undeniably strong “economic argument” for outsourcing? In a Bloomberg BusinessWeek feature, Thomas Black shows why production numbers are on the rise in Mexico, and makes the case that the Detroit automakers will only increase their reliance on Mexican production when they are free from government ownership.

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Ford Workers Annoyed With Toyota

I’ve declared many times on TTAC that I’m a bit of what you folks across the pond would call a liberal. I believe people should have a baseline in terms of living standards, but people should still work for the better things in life. The state should be there to help people, not sustain them. My point is that when an entity gets too much power (or THINKS it has) then the balance of power is shifted and seldom ever for the better. Everything is good is moderation. I feel the same way about Unions. Contrary to popular belief, I’m not anti-union. Unions have done a lot of good for the common working person. They fought for better working environments, better pay, better job security, etc. It is impossible to deny the good they’ve done. But like Harvey Dent said in “The Dark Knight”, “You can either die a hero or live long enough to become a villain”. And unfortunately, this article doesn’t exactly show unions in a good light.

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Chinese Strikes: Uh-oh, Not Again! Honda Hit By Muffler Strike

Did we say that the strike at a crucial Chinese parts plant is being closely watched? Last week, a 20 percent pay rise was given at a Honda-owned transmission plant, and slowly, everything went back to normal. Until today. Honda is in trouble again.

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Chinese Strikes: Honda Production Partially Resumes After 20% Raise

Production at the Honda parts factory in Foshan, China, partially resumed this Chinese afternoon after Honda offered to increase the wages of striking workers by 366 yuan ($54) a month, company officials told The Nikkei [sub]. This reflects a pay hike of 20 percent.

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Chinese Strikes: Honda Enters The Kiddie Phase

The strike at Honda’s transmission factory in China that has led to the closure of all Honda sites in China shows no sign of resolution. Actually, there is a new twist: Management is leaning on school interns not to strike, Hong Kong’s South China Morning Post reports. Why the sudden focus on interns?

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Striking Workers Shut Down Chinese Honda Factories: Where Is Slave Labor When We Need It?

From Reuters to The Nikkei [sub], the world is abuzz with the shocking news that Honda had to shut down assembly lines at all of their four Chinese auto assembly plants after workers at a Honda transmission factory in Foshan in southern China walked off the job. While the job action barely registers in the Chinese press, my phone in Beijing rings off the hook. Common question from abroad: “Are they allowed to do that?” There goes another myth.

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Rural Electrification 2.0: Homecoming Party At Ford

Ford is in-sourcing important parts of their hybrid-electric vehicles, and they are putting $135m behind the effort to bring the parts home and in-house. Currently, core parts are made abroad. Moving the making home to Michigan will create a whopping 170 jobs in Rawsonville and Van Dyke. But it’s a start. “I am proud of the tremendous success of the UAW and Ford in working together to keep good manufacturing jobs in the U.S.,” said Bob King, UAW vice president, National Ford Department.

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UAW Wants Their Piece Of Tesla

No, the UAW doesn’t want to invest into Tesla like Daimler, or, a few days ago, Toyota did. The UAW wants Tesla to go union, says Reuters. “Our union’s hope is that this venture will give first hiring preference to former NUMMI employees who are already trained and highly skilled,” UAW boss Gettelfinger said. Well, one can always hope.

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  • Analoggrotto It's bad enough we have to read your endless Hyundai Kia Genesis shilling, we don't want to hear actually it too. We spend good money on speakers, headphones and amplifiers!
  • Redapple2 Worthy of a book
  • Pig_Iron This message is for Matthew Guy. I just want to say thank you for the photo article titled Tailgate Party: Ford Talks Truck Innovations. It was really interesting. I did not see on the home page and almost would have missed it. I think it should be posted like Corey's Cadillac series. 🙂
  • Analoggrotto Hyundai GDI engines do not require such pathetic bandaids.
  • Slavuta They rounded the back, which I don't like. And inside I don't like oval shapes