Reuters is reporting from “a source with direct knowledge of the matter” that General Motors plans to reduce shifts at its South Korean factories by half as it aligns its global manufacturing. The move could eliminate 1,100 jobs. GM had announced last month that it was discontinuing the Chevrolet brand in Europe by the end of next year and GM Korea produces many of the Chevy branded cars sold on the continent.

According to the report, GM Korea has already approached the union representing its production workers about reducing the current two shifts at the Gunsan factory to a single shift. That plant employs 2,200 manufacturing employees. It’s not clear if the surplus employees will be laid off, offered voluntary retirement or relocated to other facilities. Read More >

Reuters is reporting that the office of the General Counsel for the National Labor Relations Board has recommended that allegations brought by employees at Volkswagen’s Chattanooga plant be dismissed.

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Outgoing United Auto Workers president Bob King admitted that his timetable for a swift unionization of one of the auto plants in the Southeastern United States was overly optimistic.

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The United Auto Workers will, for the first time since 1967, ask their membership to pay a 25 percent increase in dues to the union in order to shore up their strike fund and fight for better contracts, a move outgoing UAW president Bob King believes the membership will overwhelmingly support.

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Last month Hyundai agreed to a union demand to end night shifts in the company’s Korean factories but it added graveyard shifts to their American plants. In Europe and North America third shifts are returning as companies try to wring out the maximum number of vehicles from their existing capacity. In August, Jaguar Land Rover added a third shift at its Liverpool plant to keep up with demand for the Evoque. In North America, the big American car companies shed lots of excess plants as they went through their financial crisis and to keep up with the rebound in sales as the economy starts to grow they have added night shifts to many of their assembly operations. Read More >

Workers at Tesla’s Fremont plant celebrate the 1,000th Model S body built, 2012.

United Auto Workers president Bob King has said that the labor union is interested in organizing Tesla’s assembly plant in Fremont, California and that a group of workers at the site have set up an organizing committee for the UAW. That factory is where Tesla assembles the battery powered Model S. Tesla has prided itself in being different from Detroit and its headquarters’ location, the Silicon Valley, is not exactly a labor hotbed.
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Fords are loaded for export at the Port of Baltimore. Photo: Bill McAllen / Port of Baltimore

When most people think about countries that export cars one name that’s usually not on their list is the United States, but the U.S. is exporting more cars than ever. According to the Detroit News, the record total this year is likely to reach 2 million units and perhaps even more surprising than that number if the fact that half of the exports are cars made by GM, Ford and Chrysler. The remainder come from assembly plants located in the U.S. owned by German, Japanese and Korean automakers. Cars are the most valuable manufacturing export from the U.S., followed by aerospace. Spurring the growth in exports is the fact that the United States is currently one of the less expensive places to build a car, due to favorable currency exchange rates and reduced labor costs. Read More >

Bloomberg is reporting that Fiat CEO Sergio Marchionne has resumed talks with the UAW’s retiree health care trust (aka VEBA) to buy the 41.5% of Chrysler that the Italian automaker doesn’t yet own. Fiat executives met last week with the trust’s representatives. The proposed initial public offering of Chrysler stock has been delayed for tax reasons until next year, creating a window of opportunity for a deal. Differing valuations on the stock prompted VEBA’s demand for the IPO, which would establish a market price for the stock, most likely more than Marchionne and the Agnelli family that controls Fiat want to pay. Read More >

Norwood Jewell, a nominee to become a UAW vice-president, said that the autoworkers want to eliminate the two-tier wage system that pays new hires at a lower rate than higher seniority workers. The wage system was agreed to by the union to help the domestic automakers as they went through financial troubles when the economy turned down in 2007. New workers are paid slightly more than half of what veteran autoworkers earn.

“The international executive board hates two-tiers,” Jewell told Automotive News at a General Motors Co plant in Flint, Mich.  as the automaker was announcing $1.3 billion in investments in some of its plants in the U.S. midwest, mostly in Michigan. Jewell is currently director of UAW’s Flint region. “We didn’t do two tiers because it’s a wonderful thing,” he said, explaining that the financial circumstances six years ago more or less forced the two tier wages on the union. “We hate them. We intend to eliminate them over time.” Read More >

You’ve probably seen the video that Volvo produced with actor and martial artist Jean Claude Van Damme performing one of his famous splits, while perched on the side mirrors of two Volvo semi trucks demonstrating Volvo Trucks’ “Dynamic Steering”. The video quickly went viral in the automotive and general worlds, with millions of people seeing it in the first few days after release. Now some Swedes are wondering if the timing of the video’s release was calculated to deflect attention from layoffs at the truck maker. Right around the same time that the video was going viral, it was announced that 380 temporary workers will be laid off from Volvo’s plant in Umeå, while another 100 jobs will be lost at Volvo Powertrain in Skövde . Read More >

The UAW’s troubles with organizing Volkswagen’s Chattanooga plants are well known throughout the auto world, but Unifor, the Canada union that was once known as the Canadian Auto Workers union, now claims that it has enough union cards to hold a vote on representation.

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Though Chrysler-Fiat CEO Sergio Marchionne had previously said that an initial public offering of Chrysler stock could take place by the end of 2013, the Italian automaker announced that stock sale will not take place before the new year. “The Board of Directors of Chrysler Group … has determined that it will not be practicable for Chrysler Group to launch and complete an initial public offering prior to the end of 2013,” Fiat said in a statement.

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With United Auto Workers president Bob King restricted by union bylaws from being reelected, the union is preparing to select his replacement. Industry watchers expect UAW secretary-treasurer Dennis Williams to be selected next month at a meeting of the UAW’s administrative caucus. Since all but one UAW presidents have been selected by the administrative caucus, the move will likely pave the way for Williams to succeed King, whose term ends in nine months. Before taking the national secretary-treasurer position Williams was the union’s Chicago area regional director.

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The UAW has enlisted the help of the German IG Metall labor union in its effort to organize Volkswagen’s U.S. operations. Now Fiat has apparently gotten the union that represents its Italian workers, Fim Cisl, to reach out to UAW officials in an effort to resolve the issue of just how much Fiat is going to pay the UAW’s retiree health benefits trust for the 41.5% of Chrysler the VEBA owns. Fiat and Chrysler CEO Sergio Marchionne wants to merge the two companies and that can’t be done without buying that stock. Fiat and the VEBA sides are more than a billion dollars apart. Read More >

More drama in the ongoing Volkswagen unionization fight in Chattanooga: Volkswagen USA is not keen on the union, while Volkswagen’s management board is divided on the matter. One thing that seems certain is the prospect of a secret ballot vote on the union, according to Reuters.

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