Tag: Union News

By on December 5, 2019

Plenty of planks found in the quickly hammered out UAW-Ford contract can be found in the tentative deal forged between the United Auto Workers and Fiat Chrysler. Following approval from the National UAW-FCA Council, the agreement reached last weekend goes to members for final approval (or rejection) on Friday.

The two sides reached an agreement far quicker than some predicted, but the final word on the deal will come from workers.  (Read More…)

By on December 5, 2019

UAW

In a move that should surprise absolutely no one, former UAW Acting President Rory Gamble, who took over the top spot when scandal sunk former prez Gary Jones, has been appointed president of the union.

The ongoing federal corruption probe into the UAW hasn’t ended, but Jones’ presidency did after media outlets named him as one of the shadowy UAW officials mentioned in embezzlement-related court documents. First order of business for Gamble after taking over last month? Clean up the UAW’s act. (Read More…)

By on December 4, 2019

fairfax line assembly factory general motors, Image: General Motors

With environmentalism sweeping through the automotive industry of late, manufacturers are spending oodles of cash to fund the continued development of electric vehicles. Unfortunately, the are doing this during a period where the developed world’s taste for cars has already reached its zenith — or so it seems. Growth is slowing in markets across the globe and cuts have to be made somewhere if the industry players want to keep their bottom line positioned firmly in the black.

A recent report from Bloomberg, estimated that around 80,000 auto jobs will be eliminated in the coming years as a result of electrification — with the majority concentrated in the United States, Germany, and United Kingdom. Though the onslaught  of cuts will not be limited to the developed world, nor entirely the fault of EVs.  (Read More…)

By on December 4, 2019

Image: UAW

United States Attorney for the Eastern District of Michigan, Matthew Schneider, has said new details about the ever expanding UAW corruption probe have been trickling in. But he’s also criticizing the union for not providing adequate cooperation throughout the multi-year investigative process. Schneider indicated there was new evidence included additional details of malfeasance from former UAW President Gary Jones shared by the union in November. While the prosecutor did not offer details, he said it was the type of information that should have been reported to his office, not publicly.

Automotive News surmised he was likely referencing details released late last month by the union’s executive board in an effort to remove Jones and Region 5 Director Vance Pearson. That report included allegations that Jones let his daughter use a UAW-rented townhouse in Palm Springs, California. Sources familiar with the situation have confirmed that the union publicly released information against the two at roughly the same time it was handed it over to the U.S. attorney’s office.  (Read More…)

By on December 2, 2019

fca

If you’ve followed the news lately, that headline could easily include the term “scandal-plagued” twice. Fiat Chrysler, currently pursuing a merger deal with Groupe PSA while battling a racketeering lawsuit filed by General Motors, has inked a tentative four-year labor deal with the United Auto Workers — a union facing the biggest scandal in its history.

At least in this latest round of bargaining, the UAW didn’t have its former president, Gary Jones, lurking in the background under a cloud of suspicion. Jones resigned as president, and then from the union altogether, late last month after the board moved to oust him. (Read More…)

By on November 26, 2019

Like parent Volkswagen, premium auto brand Audi is embarking on an electrified journey and, like VW, it would prefer to see the route paved with profits. A difficult task, given the expense of developing such powertrains and the currently limited public demand for the vehicles they power.

Still, Audi is determined to see it through, hoping that one day, perhaps at the mid-point of the coming decade, it will be able to turn a healthy profit off of EVs in a marketplace that’s more receptive of the technology. To get to that promised land, the company will need to free up cash, and it plans to find that dough in its labor costs.

Expect cuts, the company claims. (Read More…)

By on November 25, 2019

UAW

Following the resignation of scandal-tainted UAW President Gary Jones late last week, UAW Region 5 Director Vance Pearson took the cue and followed him out the door. Pearson, charged with embezzlement and money laundering in an ongoing federal corruption probe, was, like Jones, on a paid leave of absence.

Both men headed for the exit after the UAW, newly infused with an reformist attitude, moved to oust the officials.

There was no thanking Pearson for his service. (Read More…)

By on November 21, 2019

UAW

The reforms announced by UAW Acting President Rory Gamble last week are already resulting in casualties. On Wednesday, the United Auto Workers Executive Board filed charges against President Gary Jones and Region 5 Director Vance Pearson under Article 30 of the UAW Constitution in a bid to oust them from the scandal-rocked union.

Jones, who took a leave of absence earlier this month amid growing suspicion of criminality, resigned almost immediately. Pearson, charged with embezzlement of union funds and money laundering, remains on his own leave of absence — one that’s likely to become permanent. (Read More…)

By on November 20, 2019

General Motors Renaissance Center

As members of the media swarm over new vehicles in Los Angeles, a legal drama is playing out in Detroit. General Motors has filed a federal racketeering lawsuit against cross-town rival Fiat Chrysler, alleging FCA conspired to undermine the collective bargaining process and create unfair advantages by bribing UAW officials.

This cost GM lots of money, the automaker claims, and now it wants to collect.

“This lawsuit is intended to hold FCA accountable for the harm its actions have caused our company and to ensure a level playing field going forward,” said Craig Glidden, GM Executive Vice President and General Counsel, in a statement. (Read More…)

By on November 19, 2019

Peugeot 208, Image: PSA Group

There’s a ways to go before Fiat Chrysler and France’s Groupe PSA officially slip the ring onto the other’s finger, but the engagement seems strong. Stronger, in fact, now that a majority of labor unions representing PSA workers have voiced approval for the proposed merger.

As the wedding day approaches, European labor bosses promise to dig through any and all agreements, searching for any clause or decision that might hurt their members. (Read More…)

By on November 18, 2019

After UAW-affiliated Ford workers ratified a collective agreement Friday, Fiat Chrysler is next — and last — in line to hammer out a deal with the union. Ford has an easy go of it, requiring just five days of bargaining before reaching a tentative deal; earlier, General Motors suffered financial hardship after its U.S. workforce walked off the job for 40 days.

Being first at the table, GM’s bargaining is seen as the heaviest lifting of the Detroit Three. Its deal serves as a model for others to follow, and you can be sure the wage increases, pathways to full-time employment, and status-quo healthcare benefits contained within will be held up by UAW bargaining team members when they face the FCA team.

However, for FCA, the nature of the automaker’s workforce could make reaching a deal a rocky journey. (Read More…)

By on November 16, 2019

2018 Ford F150 assembly line -Image: Ford

Avoiding the six-week strike that marked the end of contract negotiations between the UAW and General Motors, unionized workers at Ford ratified a four-year labor deal on Friday by a fairly narrow margin.

Roughly 55,000 UAW-affiliated Ford workers voted 56.3 percent in favor of the new deal, which carries many of the benefits secured through the earlier GM contract. It’s on to Fiat Chrysler after this. (Read More…)

By on November 14, 2019

UAW

They’re not calling it that, but we are. The United Auto Workers, rocked by scandal and indictments stemming from an ongoing federal corruption probe, is embarking on a serious clean-up operation in a bid to maintain its autonomy.

Under the direction of Acting President Rory Gamble, the union has outlined a series of reforms intended to keep the federal government from stepping in and grabbing the tiller. (Read More…)

By on November 11, 2019

Reports have come in from Germany that Mercedes-Benz has decided to reduce its management staff by around 10 percent globally. On Friday, German newspaper Suddeutsche Zeitung wrote that Daimler CEO Ola Källenius wishes to delete around 1,100 management posts while freezing wages for all 300,000 German employees — citing internal documents from the automaker’s works council.

Handelsblatt also said it intercepted a copy of the letter, with both outlets claiming Daimler would elaborate further on the plan this Thursday. While Mercedes said it couldn’t comment on the matter, its restructuring push was no secret, even before Källenius took over as chairman in May.  (Read More…)

By on November 6, 2019

At this point, ensuring basic adherence to the law among his executives would suffice. Acting UAW President Rory Gamble, who took on the role after President Gary Jones stepped aside on Saturday amid mounting scrutiny over potential illegality, claims he’s sure there are no bad apples among the union’s executive board.

That said, he plans to root out any form of the illegal behaviour that, so far, has seen 13 UAW or automaker officials charged with fraud, embezzlement, and conspiracy in an ongoing federal probe. In the wake of charges laid against former UAW Vice President Joe Ashton this morning, Gamble is donning the title of Mr. Clean. (Read More…)

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