CAW President Buzz Hargrove has been in a feisty mood lately. After telling all of Detroit where it can stick two-tier wages, Hargrove got personal with Cerberus Capital Management, owners of Chrysler LLC. Bloomberg reports that Hargrove is irate at the three-headed hedge fund over promises its president made while seeking support for its purchase of Chrysler. Cerberus President Steve Feinberg had "promised that they weren't going to slice and dice and sell,'' Hargrove said in an interview. But with Chrysler cutting tens of thousands of jobs and slashing its model line, the CAW leader smells betrayal. "We were misled," says Hargrove, "(Feinberg's) trying to cut his way to profitability, as opposed to grow(ing) the business… (he) has never met with us since then to explain the shift in thinking." Of course, most people don't expect private equity groups like Cerberus to operate accountably, and strip-and-flip rumors have been plentiful since the Cerberus takeover. So what finally made Hargrove think that Cerberus wouldn't make good on its promises? The axing of Chryslers Pacifica CUV. Thats right, Hargrove calls the cancellation is "very concerning" because the crossover segment is hot at the moment and "they discontinued it without having a replacement." Anyone think Buzz ever looks at the sales numbers?

Stop me when this sounds familiar. Canadian Auto Workers (CAW) boss Buzz Hargrove says his brotherhood is "committed to get at the costs" that Canada one of the the world's most expensive places to build cars. Yes, well weakening Canada's currency is quite an ambitious undertaking. And "getting at" costs is one thing; reducing them another. The Globe and Mail reaffirms that Hargrove's legendary intransigence tough stance continues. Buzz' boyz won't agree to the North American template, that sees significant wage and benefits reductions for car assembling newbies. Buzz figures "It's my last set of negotiations and my legacy is not going to be that the sons and daughters of current workers that were hired over 20 years ago are going to come in at the same rate in 2008 as their parents did in '86 or '87." To that end AOL Money Canada reports Buzz' boyz are strike-ready if the two-tiered wage thang becomes a sticking point. Did I say "if?"

It's been almost a month since the United Auto Workers (UAW) went on strike against American Axle (AA).  The news that American Axle CEO Dick Dauch's pay package totaled over $7 million last year (not including estimated value of stock option grants or projected pension values) won't help management's negotiating position one whit. The Detroit Free Press reports that Dauch's '07 compensation included $5.6m in stock awards (more than double what he received in 2006) plus a $1.47m base salary, up 9.6 percent from 2006. "How can you expect us to keep giving when they just keep getting more?" UAW member Harry Jemkort asked. "It's just throwing another log on the fire for us to say we'll stay out here, we're going to fight." Yes, well, keep in mind that Dauch's $7m package represents a 9.2 percent cut from his '06 compensation (which included a $3.9m cash bonus). Unless you figure in what he might get from stock options, assuming the UAW workers settle or AA goes south of the border. 

"Call it a strike, a shutdown or just flat-ass going broke.” That's how independent trucker/cattle hauler Dan Little describes his intention to pull over on April first. The Quad City Times reports that "what started as a small, online grassroots effort now appears to have the potential for something bigger." Little's website– uscattlehaulers.com— is the locus for the one-day action. He's calling for a suspension of all federal and state fuel taxes, insurance changes and countrywide uniformity in safety regs. Little says he has two thousand truckers pledging their participation. Little does not have the support of either the all-important Teamsters Union (800k+ truckers) or the Owner-Operator Independent Drivers Association (160k+ small trucking companies and drivers). But the Industrial Workers of the World (16k members) told TTAC they're putting the idea to a vote on Wednesday at 6pm. Meanwhile, in an interview [podcast below], Little says Hillary Clinton's office called twice "for background." Developing…

As talks between American Axle and the UAW continue, AA has moved some of the production for GM's large SUV axles to Mexico. They've also moved axle production for Chrysler's pickups and SUVs South of the Border, allowing Chrysler to continue turning out Dakotas and Durangos nobody wants without interruption. The Detroit Free Press cites industry experts who predict that by the end of the month, the auto industry will have lost over 100k units in productivity which they'll never recover due to soft SUV and pickup sales. Whether the Mexican move is permanent or just a warning shot across the UAW's bow remains to be seen. But the AA workers who are now living on $200/week strike pay better hope the union bends a little, and soon. Otherwise they could be on the unemployment line instead of the picket line.

Ford wants its workers to connect with their future. And now GM is encouraging their employees to "build your future and live your dream." According to The Detroit News, specialists will show up at GM's factories across the nation to hold "opportunity expos" to beg show workers "the ways in which they can benefit" by giving up their well-paying jobs with great benefits for a few thousand dollars and the opportunity to take their chances on the job market. To try to entice people to show up, they're also entering anyone who comes to the seminar into a drawing for a $15k voucher towards a new GM vehicle. Meanwhile, Chrysler is reopening their buyout programs and offering employees who've already said "no" the chance to say "HELL NO." Some employees are confused as to why they're doing it. Comments posted on the Detroit Free Press' site show that not everyone who put in for Chrysler's buyout is given the buyout. One commenter stated "…there were just under 300 people at the Belvidere Assembly Plant who put in for the buy-out. Only approximately 200 of us were given the buy-out." Another commenter asks when they'd see a corresponding reduction in management, adding "most of the work done by management was once done by UNION clerical personel, and for a damned sight less money." It looks like The Big 2.8 still have a lot of work to do if they're counting on dumping old employees and hiring cheaper replacements to balance the books.

The IAM has backed down, at least for now. Reuters reports that the International Association of Machinists and Aerospace Workers withdrew its bid to organize Toyota's Cambridge, Ontario plant after they found out they didn't have enough signatures to force a vote. When the IAM filed for the vote, they said they had "well over" the threshold of 40 percent of the total work force required by Canadian law to hold a vote. But then Toyota filed a modified list of employees showing they have 4,025 workers instead of the 3,100 the union claimed they had. Global Insight analyst Aaron Bragman warned "it would not be in Toyota's interests for the plant to unionize" because it could affect future Canadian investments by Toyota and the other Asian automakers. Regardless, the IAM said they'd continue their efforts to unionize the plant.

Ford CEO Alan Mulally told Bloomberg that the Blue Oval is prepared to cut more jobs if their employee buyout package fails to meet its goals. Coming the day after the close of the buyout package, Mulally's comments indicate that the effort was not a stunning success. "We don't have all the data yet," Mulally said of the buyouts. "This is just one step in the process. We have a lot of different mechanisms to right-size the place.'" Mullaly declined to provide further details, preferring that industry watchers simply savor the delicious irony of that classic euphemism "right-sizing." If the buyout package has indeed failed to reach its 8,500 minimum-taker mark, it wasn't for lack of Ford's efforts to convince its employees to run while they can. "The old ways of doing business are gone," wrote manufacturing chief Joe Hinrichs and VP for labor affairs Marty Mulloy in a cheerful op-ed which was distributed to newspapers in Ford factory towns. "We must continue to downsize and simply will not have enough jobs for all of our current hourly workers."

As the American Axle strike stretches into its fourth week, GM still maintains it's not affecting them. Not that they'll admit, anyway. With truck sales (real trucks, not them sissified half-breed crossover things) down 20 percent last month, they've weathered the storm pretty well with what they had on hand when the strike started. As the strike progresses and the inventory starts getting picked over, they're going to start feeling some pain as buyers look elsewhere for their $50k crew-cab, long-wheelbase, four-wheel-drive, six liter commuter vehicles. Since The General counts a "sale" when they ship a vehicle to a dealer, this quarter's sales will look really bad (but they'll have the strike to blame it on). Once production resumes and they start stuffing the supply channels again, you can bet GM'll be bragging about their best truck sales in years. But now CNNMoney reports Standard & Poors placed GM's ratings (as well as those of American Axle, Lear and Tenneco) on "creditwatch with negative implications" because they "believe the strike has gone on long enough to possibly begin to affect the financial resources of GM and those suppliers most exposed to the automaker." I wonder how Rick Wagoner will spin that one!

According to The Financial Post, The International Association of Machinists and Aerospace Workers (IAM) is accusing Toyota of "unduly influencing employees to vote against a union in a certification vote." In a complaint filed Monday with the Ontario Labour Relations Board, the union says Toyota Canada is distributing anti-union documents to employees and putting "vote no" signs inside the plant where they build the Corolla, Matrix and Lexus RX350. The move is largely seen as saber-rattling ahead of this Thursday's unionization vote. The stakes couldn't be higher. If the IAM gets its foot in the proverbial door, Cambridge will be ToMoCo's first wholly-owned unionized North American plant. Thin end of the wedge? An excuse to slowly shift production out of Canada? Or yet another thwarted attempt to infiltrate the world's largest automaker's NA ops? We should know by week's end. Meanwhile, Automotive News [sub] reports that workers at two Johnson Controls factories (Alabama and Mississippi) rejected the United Auto Workers' [UAW] efforts to unionize the workforce. It's a major defeat for the UAW; Johnson is the fourth largest U.S.-based automotive parts supplier.  

The possibility of a quick resolution to the United Auto Workers (UAW) strike against American Axle (AA) is fading fast. It's been a week since the full bargaining teams met; labor specialist Gary Chaison describes the non-meetings as "an awful sign." The AP [via Forbes ] reports the UAW sent an email to members of other organized companies stating "we expect this to be long and drawn-out strike," asking them to join AA workers on the picket line. So far GM has had to close all or part of 28 plants. Thousands of workers have been laid off at other suppliers. The UAW strike is also beginning to affect the Canadian Auto Workers (CAW). Several GM plants in Canada have cut back production, creating what CAW president Buzz Hargrove terms "a tough situation." So far, the strike hasn't seemed to affect GM's sales. The General started March with a 129-day supply of Silverados, a 123-day supply of Tahoes and a 141-day supply of Sierras. These models aren't exactly setting any sales records right now. You can bet that once The General starts feeling the pressure on the bottom line they'll be forced to dip into their pocket and bankroll a union buyout deal similar to their own. But what if AA balks or the suppliers can't make it 'til then? Dangerous times. 

GM's "ground breaking" deal with the United Auto Workers (UAW) was a national negotiation; implementation occurs on a plant-by-plant basis. The main issue facing local leaders: determining which jobs are "core" to auto assembly and must be paid the old $28/hr rate, and which are "second tier" and can be filled with cheaper labor. According to The Detroit News, at least three local UAW leaders have accused GM of trying to bring in hundreds more "second tier" workers than the agreement allows. Well they would, wouldn't they? The wage reductions constitute the contract's main financial benefit to GM (for which the automaker agreed to establish a $32b health care superfund). And the clock is ticking. "The lack of agreement on wages likely wouldn't cause major problems until later this summer, when GM will need to bring in new employees to fill spots vacated by workers who took retirement incentives or buyout offers."

Bloomberg reports that workers at Toyota's Cambridge assembly plant (Corolla, Matrix) will vote on whether or not to join The International Association of Machinists and Aerospace Workers (IAM). Organizer Ian Morland says the union filed the necessary paperwork with Ontario's Ministry of Labor to mandate a vote by 3100 of the plant's 5,059 employees next Thursday. Morland says 40 percent of the required survey cards favored union representation. "The support we're seeing is overwhelming." IAM Canadian General Vice President Dave Ritchie's statement on the union's official website must send chills down ToMoCo suits' spines: "We welcome the opportunity to act as the representatives for the Toyota Canada assembly plant workers, in order to ensure that fairness and equity will always be a part of their daily lives in the work place." Saying that, members of Toyota's workforce at their Freemont, California NUMMI (New United Motor Manufacturing Inc) are UAW members.

American Axle (AA) and the United Auto Workers (UAW) are still talking– but only over the phone. Formal (as in FTF) negotiations ended on Monday. According to American Axle, that's when "the UAW sent its negotiators home." The UAW said they left the table because discussions were "still pretty much a one-way street [and] the company really hadn't changed their position at all." Talks are supposed to resume today, but a resolution is not expected. The Indianapolis Business Journal quotes labor law professor David Gregory, who reckons both the UAW and AA are in it for the long haul. "This has got the makings of a protracted strike. It's already a serious strike, but this could go into April." If that happens, GM will be in a world of hurt, as will a lot more of their other suppliers. It seems The General is using the strike to reduce bloated truck inventories, but the plan could backfire if either the UAW or AA refuse an eventual GM bailout. Watch this space.

If you were laboring under the impression that GM's European division was in the pink– after racking-up $4b in losses between 2000 to 2006– forgeddaboutit. [NB: freshly-minted GM COO Fritz Henderson was Chairman of GM Europe from 2004 to 2006.] Reuters reports that the Euro-turnaround has stalled– with an entirely predictable response. General Motors Europe is cutting 5k manufacturing jobs– about a tenth of its European workforce– as "the top U.S. car maker aims to stem steep losses in declining main auto markets." And if you think the United Auto Workers are tough (i.e. expensive to bribe), check out the European works council's response. "We want guarantees that there will be no plant closures in west Europe until at least 2020," Jean-Marc Ruhland demanded. And if that sounds familiar, so should the excuses. GM's Euro Prez Carl-Peter Forster said his employer's low profitability was "not confined to Opel but was an industry-wide problem among volume carmakers in Europe due to price pressure as Asian manufacturers exported cheap cars to the continent." America's tanking, Europe's struggling. Can the rest of the world buoy the corporate mothership? If so, for how long?