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Apr-25-2008UAW Delays Potential Strike Against GM's Malibu Plant(topic overview)
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DETROIT — General Motors Corp. says threatened strikes by United Auto Workers locals at plants in Kansas and Michigan have been postponed. GM spokesman Dan Flores says UAW locals at an assembly plant in Kansas City and a metal stamping plant near Grand Rapids will give the company 12-hour notices if they intend to strike. Workers at both plants had threatened to walk out Friday morning in disputes over local contract issues. UAW Local 730 near Grand Rapids says on its Web site that talks on a local contract are making progress. [1] DETROIT (AP) -- United Auto Workers locals at General Motors Corp. factories in Kansas and Michigan delayed threatened walkouts on Friday and continued to negotiate with the automaker over local contract issues. Workers at the Fairfax Assembly Plant in Kansas City and a metal stamping factory in the Grand Rapids suburb of Wyoming had threatened to strike Friday morning, but both agreed to give the company 12 hours' notice if they intend to strike, GM spokesman Dan Flores said.[2]
General Motors Corp. has avoided another strike -- at least for today. The United Auto Workers has extended its strike deadlines at two factories where the union was threatening to launch walkouts this morning, including the plant that makes GM's hot-selling Chevrolet Malibu. Workers at a Grand Rapids stamping plant and a Kansas City, Kans. assembly plant where the Malibu is made were told to be prepared to walk off the job this morning.[3]
A UAW local representing workers at a GM stamping plant in Mansfield, Ohio, has given GM notice of a strike deadline next week, GM spokesman Dan Flores said on Tuesday. That notice comes just days before UAW workers at GM's Fairfax, Kansas, assembly plant could strike in a walkout that would disrupt production of the hot-selling Chevrolet Malibu, a sedan seen as crucial to the automaker's lineup.[4]
A GM spokesman says United Auto Workers locals at the Fairfax Assembly Plant in Kansas City and a metal stamping plant in Grand Rapids have issued strike notices.[5] Workers at the Fairfax Assembly Plant in Kansas City and a metal stamping factory in the Grand Rapids suburb of Wyoming had threatened to strike Friday morning, but both agreed to give the company 12 hours notice if they intend to strike, GM spokesman Dan Flores said.[6] Company spokesman Dan Flores said locals at the Fairfax Assembly Plant in Kansas City and a metal stamping facility in Grand Rapids, Michigan, have given the company notices that strikes will take place at 10 a.m. local time. Another metals plant in Mansfield, Ohio, gave notice that a strike could take place at 10 a.m. on Monday, Flores said.[7]
DETROIT (Reuters) - The United Auto Workers on Friday delayed going on strike at a General Motors Corp (GM.N: Quote, Profile, Research ) assembly plant in Fairfax, Kansas, that builds the hot-selling Malibu sedan as well as a stamping plant in Michigan.[8] DETROIT, April 24 (Reuters) - The United Auto Workers union has delayed a deadline for a strike at a General Motors Corp (GM.N: Quote, Profile, Research ) plant in Kansas that builds the hot-selling Chevrolet Malibu car.[9] General Motors Corp. faces strike deadlines Friday from United Auto Workers locals at two factories, including one in Kansas City that makes the strong-selling Chevrolet Malibu sedan.[7] DATELINE (AP) - General Motors faces strike deadlines tomorrow from United Auto Workers locals at factories in Kansas City and Grand Rapids, Michigan.[10]
ONTARIO -- United Auto Workers Local 549 has given General Motors a five-day strike notice for the Fourth Street plant. GM spokesman Dan Flores said Tuesday he didn't have all the particulars but believes the work stoppage would begin Monday if an agreement isn't reached.[11] WYOMING (NEWSCHANNEL 3) - Hundreds of auto workers in West Michigan were waiting for word on whether they would walk off the job Friday. Last September General Motors workers across the country walked off the job when their union contract expired. That strike lasted two days before GM and the UAW reached a national contract agreement.[12] Three days after union workers issued the strike notice, workers at a GM plant outside Lansing walked off the job. GM and the UAW reached a national agreement last fall, but local plants negotiate their own agreements.[13]
A local representing about 1,500 workers at GM metal stamping and powertrain operations in Parma, Ohio, near Cleveland have rejected a tentative local contract with the company. Local 1005 President Tito Boneta said Tuesday that local leaders will talk to members to find out what problems they had with the deal. He said they may call for another vote, and that a strike is unlikely. 'We're going to find out from the membership what was their issues,' Boneta said. Local plants negotiate their own operating agreements separate from the national contract, which was settled last year. The local contract deals with issues such as overtime and work rules.[14] The Kansas City plant makes GM's hottest product at the moment, the Chevrolet Malibu mid-sized sedan. Local plants negotiate their own operating agreements separate from the national contract, which was settled last year. The local contract deals with issues such as overtime and work rules.[15]
UAW locals at three other GM plants -- Warren; Mansfield, Ohio; and Kansas City, Kan. -- have threatened to strike over local contract issues.[16] The local contract talks are a separate issue from the UAW strike against American Axle that has GM listing the Ontario stamping plant as on "partial shutdown."[11] DiGiovanni said the strike at the Delta Township factory hasn't hurt GM's sales yet. "This is not something that we're treating lightly. We're concerned about it, yes, but it hasn't really affected us yet," he said. The Delta Township strike is over local contract issues, but industry analysts have speculated it's part of a UAW strategy to make GM pressure American Axle into ending its long contract dispute.[15]
With bargaining picking up steam, the UAW on Wednesday called off a rally slated for Friday. Before the latest bargaining session, which has been under way for a week, little progress had been made on key economic issues such as wages, benefits, buyouts and buydowns. The strike started Feb. 26, when 3,650 UAW-represented workers walked off their jobs at four operating American Axle plants in Michigan and New York. Ten GM factories are idle because of the strike, and production has been reduced at 17 of its other factories. Vince Peckins, sales manager at Demaagd GMC-Nissan in Battle Creek, Mich., said he could use a little inventory.[17] "I understand the strategy to strike a plant where it hurts," McEleney said, who is especially worried about the Malibu. "It's unfortunate, because this car can be a real key to General Motors getting back into that segment." Others share the sentiment. In a recent meeting of Chevy dealers who are part of auto retailer Group 1 Automotive, many said they were worried about losing Malibu production, said company spokesman Peter DeLongchamps. A strike at parts maker American Axle & Manufacturing Holdings Inc., now in its ninth week, has created a parts shortage that has stalled production of GM's large trucks and SUVs. That's helped dealers trim inventories of the slow-selling trucks, DeLongchamps said.[18] General Motors Corp. will resume regular production at its Hamtramck assembly plant beginning Monday, a month after the factory was idled as a result of the prolonged United Auto Workers strike at parts maker American Axle.[19] DETROIT (Reuters) - General Motors Corp (GM.N: Quote, Profile, Research ), whose production of the hot-selling Malibu sedan could be disrupted by a strike this week, now faces a possible United Auto Workers strike at an Ohio stamping plant next week.[4] DETROIT -- The United Auto Workers have delayed a potential strike against General Motors Corp.' s Chevrolet Malibu plant in Fairfax, Kan., that could have shut the assembly line down as early as 11 a.m. EDT, according to an official involved in the talks.[20] General Motors Corp. executives said sales of the redesigned Chevy Malibu sedan continue to sizzle, but wouldn't discuss the potential impact if the United Auto Workers goes on strike at one of the Malibu assembly plants.[21]
DETROIT - As a strike deadline looms at a key General Motors Corp. assembly plant today in Kansas, the president of the UAW local there said progress is slow, but the union might continue to work past today's deadline as long as talks are advancing.[22] General Motors Corp. faces strike deadlines tomorrow at a Kansas plant that builds the Chevrolet Malibu sedan and at a metal stamping facility in Michigan.[23]
WYOMING -- As the strike clock ticks toward 9 a.m. Friday, at least four major issues still confront negotiators trying to hammer out a local contract for General Motors Corp.' s 36th Street SW metal stamping plant.[16] As General Motors Corp.' s biggest customer, the impasse between the UAW and American Axle has paralyzed auto plants and other businesses, putting thousands of people out of work. "Unemployment is high, all these difficulties with foreclosures," he said. The strike has put a strain on an already weak economy, and Moreland says as long this stretches, it's bound to get worse. This week UAW negotiators rejected American Axle's latest concession contract offer, which included wage cuts and changes to benefits. Both are again expected back at the bargaining table.[24] The strike over wages and benefits by some 3,600 UAW workers at five American Axle plants which began Feb. 27 has caused parts shortages and forced the automaker to fully or partially shut down 30 plants in the United States and Canada. Earlier this month GM declined to provide the number of workers involved. According to its Web site, "Layoff numbers will vary on a day-to-day basis, as some employees will be needed at work for training, maintenance and other activities.[11] The factory, which runs on one shift, employs 1,550 hourly workers and 250 salaried employees. It's one of more than two dozen plants either idled or slowed by the strike at American Axle & Manufacturing Holdings Inc., underway since Feb. 26. Most of those factories build or provide parts for GM's slow-selling large trucks and SUVs, though GM on Monday cut one shift at the Oshawa, Ont., plant that builds its high-volume Chevrolet Impala.[19] More than 500 workers at the plant are laid off under the weight of a two-month UAW strike at supplier American Axle & Manufacturing Holdings Inc. The strike at that supplier has idled workers at nearly every GM plant.[16] GM also has idled about 30 plants due to parts shortages from a two-month UAW strike at supplier American Axle & Manufacturing Holdings Inc (AXL.N: Quote, Profile, Research ).[9] The eight-week-old UAW strike against GM supplier American Axle & Manufacturing Inc. has shut down or limited production at 30 GM factories as well as at an Indiana plant that makes the Hummer H2.[22] The possible strikes threaten to further damp production already slowed after a walkout at supplier American Axle & Manufacturing Holdings Inc. forced Detroit-based GM to close or partially idle 31 North American plants.[23]
A nearly two-month strike at parts maker American Axle and Manufacturing Holdings Inc. probably has cut into General Motors Corp.' s first-quarter fleet sales, a GM sales executive said Wednesday.[15] Despite being stuck in the middle of the UAW's seven-week strike at American Axle & Manufacturing Inc., General Motors Corp. has stayed away from the bargaining table.[17]
The UAW's Local 31, representing General Motors Corp.' s Malibu plant in Fairfax, was threatening a strike beginning later Thursday.[25] Contract talks at the General Motors Corp.' s Fairfax plant will extend past the 10 a.m. strike deadline today.[26]
KANSAS CITY, Kan. (AP) - Time's running out in talks to avert a walkout by the United Auto Workers local at General Motors' Fairfax plant in Kansas City, Kan.[27] The Kansas City plant could be hit by a strike by the end of the week. It is one of many GM facilities facing strike threats from the United Auto Workers over plant-level contract issues.[21] At issue is the local contract that deals with things specific to the Delta Township plant like workplace safety and overtime hours. While a lot of workers say they needed to take a stand against GM, almost everyone's hoping this strike ends soon as workers say they're already beginning to feel the pinch. Brad Seger, GM Worker: "It's hurting everyone, we want cars built, the men want to work, lets settle it."[28] Workers have gone on strike at a GM plant in Delta Township near Lansing, Mich., and workers at two other plants in that state are on the verge of striking over local contract issues.[22]
UAW local leaders have denied that, saying the strike notices stem from frustration over the time it has taken to settle local plant issues. Workers at GM's plant in Delta Township, Mich., went on strike last week after failing to reach a local deal with GM. That facility produces the Buick Enclave, GMC Acadia and Saturn Outlook crossover utility vehicles.[29]
Workers stayed on the job at a Warren transmission plant, where the UAW and GM continued to negotiate through a strike deadline last week.[3] A 9 a.m. strike deadline had been set, but UAW and GM negotiators agreed shortly before that to extend the existing contract indefinitely after negotiating all night. "Both sides want to reach a good agreement," said Barb Henderson, president of United Auto Workers Local 730.[30] GM, the No. 1 U.S. automaker, has idled about 30 plants due to parts shortages from a UAW strike at a key supplier, and UAW strikes and threats of strikes at GM plants where local agreements have yet to be completed following a master contract the union and GM negotiated last year.[4] The Mansfield plant is the fifth GM local union to threaten a walkout or go on strike over local contract issues.[31] UAW locals at four other GM plants have threatened to go on strike over similar local contract issues.[15]
The automaker may have some room to shuffle production. GM also builds the Malibu at its Orion plant alongside the Pontiac G6. That plant already has a local contract in place, so a strike is highly unlikely.[18] The early success of the Malibu should be a source of pride to all Kansans. Last week, though, the UAW began threatening to strike at the plant, where its members have been operating without a local contract.[32]
UAW Local 549, representing the Mansfield stamping plant, said workers may strike by Monday if a plant level contract isn't reached.[3] The hourly workers at the plant had originally faced an 11 a.m. EDT (1500 GMT) deadline on Friday. In Michigan, UAW Local 730 on its website on Friday posted a statement entitled "Strike Avoided" that said talks are continuing between negotiators for the union and the U.S. automaker but a settlement had not been reached. That plant's deadline had been 9 a.m. EDT (1300 GMT) on Friday.[8] "As long as talks continue and progress is made workers will continue to work and the strike will be avoided," the union local in Michigan said in the statement. A similar indefinite deadline is in place at a GM transmission plant in Michigan.[8]
Weekly talks moved to daily meetings Monday, after United Auto Workers Local 730 gave GM a five-day warning last week it could launch a strike in five business days. Although local union officers last week made it clear a strike may be called, they issued a list of problems plaguing the talks Tuesday. The issues were shared in an update with their 1,679 members posted on the local's Web site, uawlocal730.com.[16]
The latest strike warning came from a United Auto Workers local at a metal parts stamping factory in Mansfield, Ohio, that employs about 1,400 hourly workers. GM spokesman Dan Flores said Tuesday it's unclear when the five-day strike warning is effective.[31]
ZF Boge Elastmetall announced Thursday that it has accepted the offer of United Auto Workers Local 2343 to return to work. Union members voted to strike April 6 after their contract expired.[33] The United Auto Workers union has pushed back a deadline for a strike in Kansas that would cripple production of the hot-selling Chevrolet Malibu sedan.[25] General Motors Corp. dealers have waited years for the automaker to turn out the kind of must-have vehicles that draw throngs of shoppers into showrooms and sell without deep price cuts. GM delivered with the Chevrolet Malibu sedan and Buick Enclave crossover: Both models are flying out of showrooms almost as quickly as the automaker can ship them from the factory -- with minimal or no incentives. Dealers around the country are now struggling to keep the vehicles in stock as labor disputes with the United Auto Workers imperil production of both vehicles.[18] The Chevrolet Malibu has emerged as one of General Motors' star vehicles in a very tough market, and it also has helped make GM's assembly plant in Orion Township one of the bright spots in Oakland County's economy.[34]
The local union at the plant that makes the Chevrolet Malibu, one of GM's most popular vehicles, could negotiate past the strike deadline.[31] A local at a plant in Delta Township near Lansing went on strike Thursday, while locals at a Warren transmission factory, a Grand Rapids metal fabricating plant and a factory in Kansas City, Kan., that makes the strong-selling Chevrolet Malibu all have threatened walkouts.[31] The Delta Township factory near Lansing that makes the Enclave has been on strike since last week and a Kansas City, Kan., plant that makes the Malibu is threatening to walk out today. GM has about five weeks' supply of both vehicles and about eight weeks' worth of the GMC Acadia, another popular crossover made at the Delta Township plant. Even those thin cushions are deceptive, however.[18]
Industry experts say a larger strategy is likely at play as well, as the UAW grapples with unprecedented demands for wage and benefit cuts throughout the industry and the walkout at American Axle. GM has been watching the situation nervously, with its executives trying to stay out of the public fray. At a luncheon this week to roll out new versions of the 2008 Malibu to automotive media, Chevrolet General Manager Ed Peper said he wouldn't speculate on how GM would fare without the Kansas City plant.[18]
GM is also facing a deadline today at plant in Kansas City, Kan. where another UAW local also issued a five-day warning notice.[35]
The last major strike was in 1970, when workers were out for nearly two months. A Kansas City assembly plant had a mid-morning strike deadline today, and another stamping plant in Mansfield, Ohio, set Monday as its strike date.[30] KANSAS CITY, Mo. -- Wednesday may be the last day workers will show up at the Fairfax GM plant before they go on strike.[36] What's clear is that a strike at the plant would be a blow not only to GM but to the domestic auto industry. The Fairfax workers have been doing some particularly good work in recent years, and it would be unfortunate for their assembly line to be idled.[32] The five-day strike warning comes as workers at a plant making GM's hot- selling crossover utility vehicles are already on strike and as the auto maker looks to avert work stoppages at other plants.[29]
A spokesperson for GM says the plant typically produces 750 vehicles per day so over past six days workers here have been on strike that amounts to a loss of 4500 of there vehicles.[37] Workers already are on strike at a plant in Eaton County's Delta Township near Lansing, where GM makes strong-selling crossover vehicles.[5]
GM continues to negotiate with three other plants in Michigan and Ohio. A UAW local at the GM plant near Lansing that makes popular crossover vehicles, such as the Buick Enclave, is already on strike over the lack of a local operating agreement.[35] All three union locals must give 12 hours notice before a strike can take place. GM already is dealing with a strike at its crossover assembly plant near Lansing, Michigan.[8] The Malibu is critical to GM's lineup as a rival to Toyota Motor Corp's (7203.T: Quote, Profile, Research ) Camry and Honda Motor Co Ltd's (7267.T: Quote, Profile, Research ) Accord sedans. The U.S. automaker is already dealing with a strike at its crossover assembly plant near Lansing, Michigan, and is also in talks at several other plants that have set strike deadlines.[9] The UAW local at a GM transmission plant in Warren, Mich., extended a strike deadline, citing progress in talks.[29] A GM spokesman said UAW Local 31 in Kansas has agreed to extend the strike deadline indefinitely as talks continue to negotiate a local contract.[8] UAW Local 31 President Jeff Manning said Friday that the union will extend a strike deadline indefinitely as the UAW and GM continue to negotiate a local contract.[20] UAW Local 31 President Jeff Manning said the strike deadline, originally set for 3:30 p.m. CT/4:30 p.m. ET (2030 GMT) on Thursday, had been delayed until 10 a.m. CT/11 a.m. ET (1500 GMT) on Friday. He said in a telephone interview that the talks between the local union leaders and negotiators for GM are ongoing but there has been "very little" movement.[9]
The Saturn Aura, also made in Kansas, climbed 21 per cent in the same period, according to Autodata Corp. There had been confusion between GM and the UAW over the timing of the deadline after Local 31 posted a so-called five- day notice of its intent to strike, said Manning.[23] UAW Local 31 in Kansas could strike as early as 3:30 pm CT/4:30 pm ET Thursday, President Jeff Manning said. GM and the local remain in daily negotiations, he said.[4]
GM's plant in Kansas is one of many where production is either shut down or threatened because of UAW strikes.[22] The UAW also issued a separate five-day letter authorizing a local strike at GM's transmission plant in Warren.[34] The UAW and GM signed a new labor contract last year that covered wages, benefits and investments in U.S. plants. GM still has to work out local deals on such issues as work rules and seniority at individual factories.[29] GM reached a national agreement with the UAW last year that addresses wages and benefits. The automaker must also negotiate agreements with local UAW chapters at about 77 plants, primarily covering work rules to replace those that expired in September. It has reached agreements at 10 locations. "It all has to do with seniority and job security," Manning said. "Those are the two main things."[22]
The plant also makes four and six-speed transmissions for nearly all of GM's vehicles. Each plant negotiates its own contract agreements, and Local 31 sent GM a letter of warning last week.[36] Our focus is to continue the bargaining and avoid any more walkouts," Flores said. Local plants negotiate their own operating agreements separate from the national contract, which was settled last year. The local contract deals with issues such as overtime and work rules.[2] We want to come to an agreement soon." Discussions on the local contract are continuing at the plant, he said.[11]
Union workers walked off the job last Thursday in a dispute over the plant's local contract.[37] During negotiations last fall, GM said it would schedule jobs for the stamping plants with the most favorable local contract terms, essentially pitting sister plants against each other.[30] Terms of the local contract could affect the volume of work coming to the 36th Street stamping plant.[30]
DETROIT (AP) -- Workers at five General Motors Corp. factories are either on strike or threatening a strike as disputes over local contracts continue to surface.[31] DETROIT (AP) - General Motors faces strike deadlines tomorrow at two factories, including one in Kansas City that makes the strong-selling Chevrolet Malibu sedan.[5] As with most any strike, there are bound to be opinions over which side is right and which is wrong in the looming work stoppage at General Motors' Fairfax plant in Kansas City, Kan.[32] At the Fairfax Assembly Plant in Kansas City, a five-day strike notice expires Tuesday afternoon.[31]
The Kansas City assembly plant employs about 1,900 hourly workers, according to a GM Web site.[3] The Kansas City plant and a related stamping operation employ about 1,900 hourly workers and make the hot-selling Chevrolet Malibu.[6] The extension for now averts a strike at the Fairfax plant, which has about 2,700hourly workers and builds the popular Chevrolet Malibu. Melton said plant workers have been toldto report to their shifts today as normal.[26] GM also faces a strike threat at a key plant in Fairfax, Kan., which produces the newly redesigned Chevrolet Malibu.[29]
Flores says negotiations are under way at all the plants. GM said earlier this week that the Delta Township strike has not yet hurt its sales of the Buick Enclave, Saturn Outlook or GMC Acadia crossovers, but the strike is a concern to the company.[6] Unrest over yet-unsettled local work rules pushed UAW members at GM's Delta Township assembly plant to hit the picket lines last week. That plant turns out three popular crossover vehicles: the Buick Enclave, Saturn Outlook and GMC Acadia.[16] It was one week ago that workers walked off the job at GM's Delta Township plant and there's still no local deal.[28]
Difficult issues of job classifications, returning previously out-sourced work to the plant, and grievances over sub-contracting have lingered for months since workers approved the national contract last fall.[30]
About 2,600 workers in Fairfax, Kansas, may walk out at 11 a.m. New York time Friday over local contract issues, said United Auto Workers Local 31 President Jeff Manning.[23] Whittaker declined to comment about the labor problems threatening production of the Malibu at Fairfax where the United Auto Workers has issued a five-day strike letter authorizing a local strike.[34] MID-MICHIGAN (WJRT) -- (04/23/08)--The strike between the United Auto Workers union and American Axle is approaching its third month.[24] About 3,600 UAW workers at five American Axle plants have been on strike since Feb. 26.[31] Some analysts have suggested the strike threats made to GM by the UAW are intended in part to force the auto maker to intervene in the strike at supplier American Axle & Manufacturing Holdings Inc. (AXL).[29] Industry analysts have speculated that the strike and threats are an effort by the UAW to get GM to put pressure on American Axle and Manufacturing Holdings Inc. to settle a bitter two-month strike.[6]
Daniel Howes: The UAW's strike against American Axle & Manufacturing Holdings Inc., to mark eight weeks and counting on Saturday, is getting uglier (and more predictable) by the day.[19]
Picketing assignments were already in place for the 1,679 hourly GM employees, although more than 500 were already laid off as a result of another strike, the two-month walkout at American Axle and Manufacturing Holdings Inc.[30]
Workers at American Axle went on strike back in February. Thousands of jobs have been lost, the economy has taken a hit, and there are fears about just how long this could go on. With both sides still failing to meet eye to eye, there's no telling how long this strike will last.[24] The strike by 3,650 UAW- represented workers at American Axle has been going on for nearly two months.[29]
There's still no sign of compromise between the UAW and auto parts supplier American Axle. "I am surprised the strike has gone on this long.[24]
Talks between GM and each of the four UAW locals continued through the weekend. Negotiators for American Axle and their UAW counterparts took a break and resumed yesterday.[22] Some have suggested that there is a connection between the UAW's moves at the GM plants and the slow-moving progress with American Axle, but Manning rejected that.[22]
The UAW will give GM 12 hours notice before calling any strike at that plant.[3] The spokesman says the UAW local at a metals plant in Mansfield, Ohio, has given strike notice for Monday.[5] A plant in Delta Township near Lansing that makes strong-selling crossover vehicles went on strike April 17, and another local at a key transmission plant in Warren is negotiating and could give a 12-hour strike notice at any time.[6]
"Things are moving along, just not greatly," company spokeswoman Renee Rogers said Wednesday. GM has labor problems of its own with a strike under way since Thursday at a plant near Lansing that makes the Buick Enclave, Saturn Outlook and GMC Acadia, three key crossover vehicles that are selling well.[15] If a strike happens, it would further squeeze GM, a company already troubled by parts shortages after an eight-week strike at parts plants.[38] Plants listed as 'partial impact' are still producing parts for GM facilities not affected by the strike." At that time, Drake said, "We are trying to react to the situation in the best way possible to represent our members."[11]
PARIS, Ill. - The 17-day strike at a Paris auto parts plant has come to an end - but with no contract resolution.[33] Auto analysts had forecast a brief strike if any was called over the local contract issues.[30]
UAW President Ron Gettelfinger told reporters in Michigan Saturday that the UAW does not want to hurt GM's sales, but that the union is amazed the local contracts have gone unresolved for so long.[11] The union and GM reached a national contract last October, but a local supplemental agreement remains unresolved over seniority rights and job security issues.[27]
GM spokesman Dan Flores said there had been some confusion on the actual strike deadline, but said the automaker wants to reach an agreement with the union quickly. "Regardless of when the five-day strike letter expires, our focus and energies have been put toward bargaining and the bargaining has continued throughout the week," he said.[9] The union has given GM strike warning letters at factories in Mansfield, Ohio; Warren; Grand Rapids; and Kansas City, Kan.[15] A message was left for the local union president in Kansas City. That factory makes the hot-selling Chevrolet Malibu.[1]
Marathon negotiations continued all week in hopes of resolving several local issues that affect 2,700 hourly workers who build the Saturn Aura and the new, popular Chevrolet Malibu.[27]
The Wyoming plant stamps metal parts and employs about 1,000 hourly workers. "Talks are continuing and progress is being made," Local 730 at the Wyoming plant said on its Web site.[6] Workers at a metal stamping plant in Mansfield, Ohio, have threatened to strike on Monday.[6] WYOMING -- The threat of a strike at General Motors Co.' s big stamping plant here eased today as both sides agreed to continue negotiating.[30] General Motors Corp. and the UAW have managed to avert a strike at a plant in Wyoming, Mich., near Grand Rapids.[35] Radamacher says talks are ongoing with General Motors, but there is no end in sight to the strike that has more than 2,000 off the job at the Delta plant.[39]
Tenneco benefited from cost cuts and demand for diesel emission-control systems in Europe, even as it struggled in North America because of lower vehicle sales and a strike that hampered production at General Motors Corp. European profit before interest and taxes increased 78%, the company said.[40] Demaagd's stock of GMC Envoys, a popular seller at the dealership, is edging down to 30 to 45 days' supply. The strike would have to last another month before it eats into Peckins' sales, illustrating GM's inventory cushion for its profitable trucks and SUVs, many of which are seeing sales declines because of rising gas prices. Lehman Brothers analyst Brian Johnson said in a note to investors this week that lost truck production during the strike, which he estimated at 87,000 during the first quarter, represents just a fraction of the decline in demand. Johnson estimates that GM will cut production of its large pickups and SUVs by 23 percent or 346,000 to 1.18 million vehicles.[17]
Production is at a halt and dealers are already running short. With so much at stake, it's a strike that some labor experts never saw coming. John Rivette, MSU Labor Relations Expert: "I'm surprised, there's such a history of a very positive labor management relationship between the UAW here in town and General Motors." Both the UAW and GM insist the strike won't sour the good will. Rivette: "Lansing has a long history of building great products for us, so we see no reason why that won't continue, and we'll work our way through this issue, just hopefully it's sooner than later."[28]
Strike threats loom over two other plants, and the UAW has been on strike since April 17 at a Lansing-area plant that makes GM's popular crossover SUVs.[3] Union representatives didn't immediately return calls seeking comment. The UAW members at the plant voted to strike because they said the company wants to freeze pay and charge more for medical benefits.[41] The union there could walk out Thursday afternoon, the local UAW president said. "We've been at it since June of '07 and it just didn't seem like they were very serious about getting it done," said Jeff Manning, president of UAW Local 31 at the Fairfax plant. "It's about getting an agreement to the membership."[29] Thorny issues, from plant work rules to union grievances, make local talks tough in the best of years.[18] The union's 5-day notice expires at 10 a.m. Friday, but UAW Local 31 bargaining chairman John Melton said talks could continue after the deadline if progress is being made.[27] A five-day strike notice issued by the UAW Local 730 last Friday was set to expire this morning, but has been extended, according to an update posted on the local's Web site Friday morning. 'For now the strike has been avoided even though a settlement has not been made,' the local said on its Web site. If talks break down, the local said it will give its members a 12-hour notice before initiating a strike.[35] In Grand Rapids, Mich., about 1,100 workers may strike at 9 a.m., according to a notice on UAW Local 730's website.[23] Any prolonged strike, could end up hurting the workers even more in the short term. "Those people are having a hard time keeping homes, buying gas, buying groceries, medicine. This has got to come to an end." Union leaders are now setting up individualized appointments to go over finances with their members, but if they need even more help, they can take advantage of some offers through local credit unions, to get them through the strike.[39] The union pays $200 a week in strike pay but for some workers, that's not enough to make ends meet and workers aren't the only ones taking a hit.[28]
UAW workers have it good. what about other people? Our government is taxing the hell out of us and stifling business with bureaucratic laws. Have you ever seen thier home(s) and toys? I wish I were able to have half of what they have. Or better yet, go work for McDonalds and stay there. What?? One week on strike and all of a sudden you have to tell your kids that you can no longer afford to send them to college.[42]
Americans need to wake up to the fact that unions have helped all of us, not just the union worker, and we haven't had to bother ourselves with any effort at all. Other companies watch what GM, Ford, etc can force onto their workers, and then they start the slide of benefits and wages to the bottom based on that. If the UAW gives up, it will eventually trickle down to every job (remember the trickle down theory? this is it in real life, not esoteric economic theory).[11] Then unions came into play and the quality of all Americans lives started coming up. Non-union companies had to treat their workers better because they had to compete with the better-paying companies. Ask yourself this, are you better off with a job that doesn't even cover your cost of living (and I mean basic living expenses)? These union people fight every single day to keep their jobs to where they can afford to live and to buy the very products they make.[11]
The union set a deadline of 10 a.m. Friday. They said UAW workers will walk off the job unless an agreement or deadline extension is reached.[38]
"I'm willing to get myself a McDonald's job," said Delta plant worker Sal Reale. "Anything to keep this strike going. That's what I'm willing to do."[42] The UAW also has extended strike deadlines at components plants in Michigan, but.[20]
GM's Fairfax, Kansas, plant is the primary site for production of the newly redesigned Malibu, and also builds the Saturn Aura sedan. GM also assembles the Malibu at its Orion plant in Michigan.[9] The Fairfax plant is the primary site for production of the newly redesigned Malibu that GM has targeted as a competitor to the Toyota (7203.T: Quote, Profile, Research ) Camry and Honda (7267.T: Quote, Profile, Research ) Accord sedans.[4]
The Fairfax plant manufactures the Chevy Malibu, one of GM's most popular cars.[36] A walkout in Warren could quickly close Orion. "Our hope is all that can be quickly resolved and that we can go forward," he said. Whittaker, however, also said GM has gotten excellent cooperation from the UAW at both Orion and Fairfax. Employee morale at both plants is very high, Whittaker added. "They want to win just like we do," he said. "They're just as excited about the success of the car as we are."[34]
All three issued the warnings because of local contract disputes with GM. A message was left for UAW spokesman Roger Kerson.[10] UAW President Ron Gettelfinger says the threats are about local contract issues and have nothing to do with American Axle.[31] If local contract issues aren't settled, workers could walk out on Thursday.[36]
The two locals are part of a larger labor problem that GM faces over local contracts.[6] Automotive News trade journal reported late last month that GM shifted another small parts contract, for Chevrolet Cobalt and Pontiac G6 cars, to Axle rival Dana Corp. "When it starts to get to the point where it's affecting GM's bottom line -- at some point you don't have a choice," Gillette said.[19]
The move to resource the parts could signal the start of efforts by GM to find other suppliers as American Axle and the UAW continue to haggle with no end in sight, said Jim Gillette, director of supplier analysis for CSM Worldwide in Northville.[19] Now a turning point would be unlikely until selection of GM pickups and SUVs narrows, as supplies on hand fall below 80 days, which analysts expect in mid-May. "They may eventually get forced into bailing out the workers at American Axle," said David Healy, an analyst with Burnham Securities Inc. Andersson said it's too early to tell if the automaker will step in with financial help, and whether American Axle could reduce prices for GM if the supplier can cut its labor costs.[17] American Axle makes parts mainly for GM's pickup trucks and large sport utility vehicles, which aren't selling well due to high gasoline prices.[15]
Although talks continued Wednesday, the union recently has accused American Axle of failing to bargain, while the company says the UAW has rejected competitive pay offers.[15] On April 18, the union rejected a contract offer from the company, and ZF Boge said it would begin hiring temporary replacement workers.[33] The company says the roughly 150 United Auto Workers members have agreed to work without a contract while negotiations continue.[41] John Melton, bargaining chairman of United Auto Workers Local 31, said enough progress has been made thatunion officials and plant management will continuemeeting through the weekend.[26]
Should workers strike, it could cripple the auto giant's car product as there is only a 37-day supply of Malibus.[36] Dave Whittaker, GM's vehicle line executive for mid-sized and full-sized passenger cars, said GM originally did not plan to build the Malibu at Orion, which employs about 2,800 workers.[34] GM also builds the Saturn Aura sedan at the plant. GM also produces the Malibu at its Orion assembly plant in Michigan, where it builds the Pontiac G6.[4] Initially, the plan was to build the Malibu only at the company's assembly plant in Fairfax, Kan.[34]
Peper wouldn't discuss GM's ability to meet Malibu demand without the Kansas City plant. "I'd like to see (negotiations) settled soon," he said. [21] GM's plant near Lansing that makes the popular crossover vehicles went on strike April 17.[30] One GM plant is on strike and at least seven more could take strike action'during the next few days.[43]
GM says it produces about 750 crossovers a day at the Delta plant, so the company has lost about 4,500 units of production in the six days the plant has been shut down.[18]
GM sent another signal Tuesday night that it aims to stay on the sidelines as long as possible by indicating that Malibu production could continue indefinitely. GM wants to stay out of negotiations, analysts say, because it has its own financial problems and stands to gain from lower costs at its supplier. As dealers draw down on their supplies of trucks, analysts say GM could be forced into negotiations. "At some point in time, if it's not settled and General Motors is going to get hurt they're going to have to enter the room and they may have to enter the room with their checkbook," said restructuring expert Van Conway of Birmingham, Mich., consulting firm Conway, Mackenzie & Dunleavy.[17] Help from GM could be in the form of more flexible pricing or cash contributions toward attrition packages, said Erich Merkle, vice president of forecasting at Grand Rapids, Mich. -based consulting firm IRN Inc. Morgan Stanley auto analyst Jonathan Steinmetz wrote in a note to investors this month that there could be a combination of a financial contribution from GM, business guarantees and price cuts. It would be better for GM to gain cost savings without having to make a financial contribution, and General Motors has its own financial troubles.[17]
WYOMING- UAW members at the General Motors plant in Wyoming have until Friday morning to reach a new labor deal or they're walking out.[13] Coskata plant to be in Pa. Coskata Inc., the ethanol firm that General Motors Corp. has invested in, said Friday it will build its pilot plant at a site in Pennsylvania.[40]
Day six and still no end to the strike at General Motors Delta Township facility.[37] General Motors is facing several threats of strike action during the next few day.[43]
The UAW and General Motors are continuing to negotiate various contract terms at.[25] The UAW says wrangling over plant-level labor contracts is behind all the strikes and strike threats.[18] Workers walked out for fewer than 48 hours in the push for a national contract in September. For most employees, it was the first strike of their career.[30] Analysts say GM the workers and the whole region's reputation in the industry will pay the price. Six news also spoke with an economist who says in his opinion both sides bring equal weight to the bargaining table because the longer this strike goes on the more everyone involves will suffer.[37] Mike DiGiovanni, GM's executive director of global markets and industry analysis, said the strike may have cost the automaker sales of 7,000 to 10,000 vehicles to fleet buyers. He said GM hopes to make up the sales once the 58-day strike is resolved.[15]
Sales of the Malibu skyrocketed 31 percent through the first quarter of the year, a sign GM did something right. Here's another sign, courtesy of a reviewer from Road & Track magazine: "Fresh new styling, high quality materials and a silky smooth drivetrain give this family car the feel of an entry level luxury car."[32] Much of that growth is due to retail sales, which increased 110 percent during the first three months of the year." Peper said sales of the 2008 model, when compared with GM's previous version of the Malibu, have increased dramatically in key markets such as New York, Florida and California. Malibu sales are up 91 percent in Florida, 135 percent in New York and 186 percent in California, he said.[34]
GM may lose inventory of its Malibu, which posted a 31 per cent sales gain through March 31, bucking the automaker's 11 per cent decline.[23]
The question of Malibu production appears to be resolved. Bo Andersson, GM's group vice president for global purchasing and supply chain, said this week that the automaker won't run out of parts for the popular Malibu - avoiding what analysts viewed as a trigger for GM to dive into these negotiations.[17]
Negotiations remain underway and the union agreed to give GM at least 12 hour notice before sending workers to the picket line, GM spokesman Dan Flores said.[3] GM spokesman Dan Flores said negotiations continue at all the locations as the auto maker seeks to reach agreements as soon as possible.[29]
On April 14th, the local union gave GM a 10 day warning to come up with an agreement.[13] On April 14th the union gave GM a 10 day notice, warning the auto-maker to reach an agreement. That letter was followed with a five day warning.[12]
Two key GM factories are among the half-dozen plants ensnared in labor disputes between the union and automaker. [18]
The plant's products include the Chevrolet Malibu, which beat out 14 other cars -- including the Honda Accord -- in being named the 2008 North American Car of the Year by a group of 45 automotive journalists. Granted, there have been times when being named North American Car of the Year was something of a dubious honor, but not this year.[32] "The new Malibu is the car Americans have wanted from Chevrolet," said Ed Peper, Chevrolet general manager. "Its combination of amenities and value are at the core of Chevrolet's philosophy, but the Malibu brings them together in a drop-dead gorgeous design that makes it a must-have car. "More importantly, the new Malibu is resonating with customers," he added.[34]
The sales figures and reviews speak to the quality and craftsmanship of the Fairfax work force, which also produced the 2007 North American Car of the Year -- the Saturn Aura. [32]
"The bargaining will continue at Fairfax and Grand Rapids toward reaching new local contracts.[6] Local 31 officials have been negotiating to reach a local contract that supplements the national agreement reached last October.[26]
The UAW has already reached a local agreement with GM at the Orion facility.[4]
Officials have set a new deadline for Friday morning, according to a notice Jeff Manning, the president of UAW Local 31, sent to employees Thursday.[25] The union said local issues concerning seniority and job security have been obstacles in obtaining a new pact.[26] Patrick Anderson, Anderson Economic Group: "There's no union contract, there's no supplier contract, there's no contract out there that guarantees a job past a few years, only high quality vehicles that customers buy guarantee that."[37]
Tense negotiations are under way over plant-level labor contracts at GM locals around the country.[3]
Hey Stama You might want to consult a calendar before you post. It has been 7 days. That is a whole week. As for GM workers having toys and great big houses I want to know what area they work in.[42] "As long as the talks continue and progress is made workers will continue to work and the strike will be avoided."[6] Ok, lets see there is a party tent and people soaking up the sun while on strike. I seriously think the UAW needs to get to work before they ALL have no jobs!!! That is why China is winning. People there don't complain about money let alone stop working because their breaks may be cut or someone else got treated better than they did.[42] Flores says negotiations are under way at all the plants to resolve the issues without further strikes.[40] The Mansfield, Ohio, plant gave notice that a strike could take place at 10 a.m. Monday.[10]
The strike at Delta Township and the threat at Fairfax take aim at key products for GM that are selling well in a depressed U.S. market.[29] GM spokesman Dan Flores it is unclear when the five-day strike warning is effective.[44]
With a strike paycheck of just $200 striking UAW employees are already feeling the heat. That's forcing some to look for side jobs in order to make ends meet for the duration of the strike.[42] "A lot of our members are really stressed," Henderson said. "But at the same time, they realize if it's our turn to walk out, it's our turn." She was referring to the UAW International leadership which has the final word on launching a strike.[30]
According to our news partners at the Detroit Free Press, the strike deadline is 9 a.m. Friday.[13]
The Grand Rapids factory employs about 1,400 hourly workers and does stamping for several GM vehicles. [3] The plant in Madison, about 30 miles southeast of Pittsburgh, eventually will produce 40,000 gallons of ethanol annually from sources other than corn. The plant will be built around a plasma furnace already in use that takes raw materials and converts them to a mix of carbon dioxide and hydrogen. Coskata's process converts those gases into liquid ethanol. Fuel from the Coskata test plant will be used by GM in its vehicles at the Milford proving ground.[40]
The stamping plant at 300 36th St. SW creates roofs, hoods, doors, fenders and other metal parts for 30 models.[16] Workers at the metal fabricating plant in Wyoming were planning to walk out Friday morning at 9:00 a.m.[12]
The Orion plant is now operating at or very near full capacity, Whittaker said. "We are building a lot of Pontiacs, too," he said. "We've also raised the line rate," at both Orion and Fairfax to keep up with the growing demand, added Whittaker, who noted the Malibu is still in short supply.[34]
According to CNNMoney.com, the UAW president in Kansas City said union members could walk out today. [32] A surge of orders from Chevrolet dealers in late summer and early fall, along with lobbying from the marketing staff, persuaded GM's top management to add the production at Orion, which also builds the Pontiac G6, Whittaker said.[34] The production disruptions mainly had affected GM's production of large sport-utility vehicles and pickup trucks that have been selling slowly because of the U.S. economic downturn and high fuel prices.[4]
SOURCES
1. The Canadian Press: GM avoids strikes in Kansas and Michigan
2. WOODTV.com & WOOD TV8: Grand Rapids news, weather, sports and video | GM, local UAW negotiate past strike deadline
3. UAW won't strike today at GM's Kansas and Grand Rapids plants
4. UAW threatens GM strike at Ohio stamping plant | Markets | Markets News | Reuters
5. WLNS TV 6 Lansing Jackson Michigan News and Weather - WLNS.COM | GM faces strike deadlines Friday at two plants
6. Strikes at General Motors plants in Kansas and Michigan are postponed - International Herald Tribune
7. General Motors faces strike deadlines Friday at 2 plants
8. Strike deadline at two GM plants extended | Reuters
9. UAW delays strike deadline at GM plant in Kansas | Markets | Bonds News | Reuters
10. WTOL.com, Toledo's News Leader, News 11 | General Motors faces strike deadlines tomorrow at two plants
11. Telegraph Forum - www.bucyrustelegraphforum.com - Bucyrus, OH
12. Local News: Auto workers wait for word of walk-off | word, auto, workers - wwmt.com
13. WZZM13 - General Motors faces strike deadline at Wyoming stamping plant
14. GM faces strike or threats at 5 factories, including those with hot-selling products
15. GM says American Axle strike probably has cut fleet sales
16. Deadline nears for GM plant, local UAW on strike -
17. San Luis Obispo County's website | 04/23/2008 | GM tries to stay out of talks in Axle strike
18. Unrest hurts GM hot-sellers
19. Production to resume at GM's Hamtramck factory
20. Free Preview - WSJ.com
21. GM hopes to avoid strike at Malibu plant
22. GM's Kansas City plant threatens to strike
23. GM faces strike deadlines at two U.S. plants
24. abc12.com: American Axle strike causing long-term damage 4/24/08
25. Free Preview - WSJ.com
26. www.kansascity.com | 04/25/2008 | Fairfax UAW, GM extend talks through weekend
27. NTV - KHGI/KWNB/WSWS-CA - Where your news comes first. - Grand Island, Kearney, Hastings, Lincoln | Talks at GM plant in KCK near Friday deadline
28. WLNS TV 6 Lansing Jackson Michigan News and Weather - WLNS.COM | GM Workers Feeling the Pinch
29. UPDATE: GM Faces Another Strike Warning; Talks Continue
30. Union, GM agree to extend strike deadline at Wyoming plant -
31. GM faces strike or threats at 5 factories -
32. CJOnline / The Topeka Capital-Journal - GM Fairfax Plant -- Quality work
33. The News-Gazette.com: Strike over at Paris plant
34. The Oakland Press: Business
35. GM averts UAW strike in Western Michigan | Freep.com | Detroit Free Press
36. MyFox Kansas City | Local GM Workers Could Walk Out Friday
37. WLNS TV 6 Lansing Jackson Michigan News and Weather - WLNS.COM | Update: GM and UAW Strike
38. Auto Workers Threaten Strike - News Story - KCTV Kansas City
39. UAW, Credit Unions Offering Financial Help
40. GM faces strike deadlines | Freep.com | Detroit Free Press
41. Terre Haute, Indiana Weather, News, Sports and Entertainment WTHI.com, News 10, Leading the Way! | Auto plant workers end strike, continue negotiations
42. Some Workers Consider 2nd Jobs
43. Automotive World - US: GM faces barrage of UAW strike threats
44. GM: Local Union In Ohio Gives Strike Warning
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