#Unions

Titan is the one with the money and the talent to produce tires. What does the crazy union have? It has the French government.

Okay, that’s direct, but it’s not the most direct thing Maurice Taylor said regarding the possibility of investing in a France-based tire manufacturer.

Uh-oh: The price of doing car business in Germany is heading up, increasing pressure especially on Opel. “Germany’s IG Metall union may push a pay claim between 5 and 6.5 percent for about 100,000 workers at VW’s six western German factories” Bernd Osterloh, head of VW’s works council told Reuters today. What does this have to do with Opel, you say?

Germany’s metal worker union IG Metall proposed a new plan yesterday to solve the overcapacity at Opel without undue grief on its members: The union will agree to the closure of Opel’s Bochum plant, if Opel guarantees that no hobs will be lost until 2018. Reuters takes that as a tacit warming up to the inevitable, while demanding the seemingly impossible.

Go get them, tiger!

So far, Steve Girsky, dispatched on a mission impossible to Deutschland to clean up Opel, has been dancing like a butterfly, no stinging involved. Apart from targeted leaks, and an announcement to stop making cars in Opel’s Bochum plant after 2016, which really did not surprise anyone, there were no big dispatches about the heroics of Steve the hatchet man, who was sent to the Old Country to stick it to the socialist metalworker Nazis. Today, and most likely after increasingly impatient prodding from Detroit, Steve took his gloves off, and a swing at some 20,000 unionized workers in Germany.

Articles about right-to-work spawn a lively discussion at TTAC, sometimes with more than 200 comments, interspersed by appeals for selective self censorship. The topic won’t go away. Neither at TTAC, nor in the nation. “Laws that weaken the power of organized labor could spread to more U.S. states in 2013 after supporters of the measures scored a major victory over unions in Michigan this week, and earlier in the year in Indiana,” says a report by Reuters.

President Obama joined the debate about Michigan’s “right-to-work” law. “What they’re really talking about is giving you the right to work for less money,” Obama told workers during a visit to the Daimler Detroit Diesel plant in Redford, Michigan. He forgot to mention three important items.

Labor leaders in South Korea are scrambling to convince GM to retain production of the Chevrolet Cruze in South Korea, though GM says that the move to 5 global facilities is a done deal.

Opel’s German unions want a deal with management before Christmas, Opel works council Chairman Wolfgang Schaefer-Klug told Reuters in an interview. Here the cliff notes:

Renault opened negotiations on a new labor deal for France with a big squeeze, Reuters reports. Renault wants pay and working time concessions from its French workers. If Renault doesn’t get a good deal, jobs could go elsewhere.

Unions reached a last minute deal with Opel: Plant closures and layoffs are off the table through 2016. This according to information given by works council chief Walter Einenkel to the usually reliable Westdeutsche Allgemeine Zeitung.

Down to the wire, and nothing: German unions had set Opel a deadline until today to come to an agreement about the future of Opel. The unions had offered to forgo a 4.3 percent pay hike and waive future pay raises if Opel extends a moratorium on plant closures through 2016. Today’s deadline passed without an agreement, Reuters says.

German unions know that “end of October” means more for GM than October 31. German unions now demand a final deal with Opel by October 26. If there is no deal, it will cost Opel: Opel can defer paying a 4.3 percent industry-wide wage rise until October 31, if there is no deal, Opel has to pay. Also on October 31, GM will publish its third-quarter earnings.

With their Washington overlords breathing down their necks, GM executives are pushing Opel for a definitive agreement to close Opel’s Bochum plant. According to the Wall Street Journal, GM “would like to be able to announce the plan before or along with its third-quarter earnings, which are expected to be disclosed Oct. 31.”

Keep smoking.

For all the rhetoric being passed back and forth between the OEMs and the CAW in this round of contract negotiations, the overwhelming feeling from our commenters is that there will be no strike, compromise will be had, and somehow, both sides will play it off as a victory. The latest bulletin from the CAW seems to support that notion.

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.