UAW boss Bob King is taking the fight abroad, visiting Fiat’s Italian plants in order to take a look at the World Class Manufacturing system that apparently has not yet sufficiently taken hold at Chrysler’s plants to be viewed there. But the visit isn’t purely social. King tells Reuters that
We’re going to be pitching to suppliers that they should come and locate here in Michigan.
Because clearly everybody wants to do business with the UAW. Heck, American supplier firms are falling over themselves to move production to Michigan, but King just thought it would be nice to give the Italians a first crack. On the other hand, Italy hasn’t exactly been free of auto-sector laborstrife itself. At least King can pitch Italian suppliers by explaining that, as majority stakeholder in Chrysler, the UAW makes Fiat-Chrysler’s US labor environment a lot less complex: all you have to do is keep the union happy. So much for Marchionne’s “culture of poverty.”
Bloomberg reports that Ford will not build its Kuga compact crossover at its Louisville, KY plant due to the falling Euro and UAW recalcitrance. According to the report
The promise of Kuga production in Louisville began to fall apart in November when UAW members rejected Ford’s request to match givebacks it gave General Motors Co. and Chrysler Group LLC. Ford’s U.S. rivals, which each reorganized in bankruptcy last year, were granted a six-year freeze on wages for new hires and a ban on some strikes until 2015… The euro has fallen 14 percent against the dollar since Ford reached a tentative deal with the UAW in October to build the Kuga in Louisville alongside its mechanical twin, the Escape. At the time, the dollar had declined against the euro, lowering the cost of U.S.-made goods. Since then, the euro has dropped amid concerns Europe’s debt crisis may trigger another recession.
Barclays analyst Brian Johnson explains
This is a reminder to the UAW that Ford’s U.S. cars don’t have to be produced in the U.S. Ford’s global architecture allows them to build anywhere. That’s good news if the U.S. has competitive labor costs. It’s bad news if they don’t
Editor’s note: GM CEO Dan Akerson sent the following email to GM’s employees, his first such communication as GM’s CEO, in recognition of Labor Day Weekend Eve.
GM Employees,
As Labor Day approaches in the U.S. and Canada, I would like to wish everyone at General Motors a safe, happy holiday weekend. I also ask that we pause for moment to reflect on what this day means as we celebrate labor’s many contributions here and around the world.
Of course, labor’s role in building up this nation and others is well recognized and rightly so. And, coming from a union family, I know on a very personal level the good things that unions can do.
Automotive News [sub] reports that Mitsubishi will have to give UAW workers at its Normal, Ill plant a $1.60/hr raise because it doesn’t yet know what vehicle or platform it plans to build there in the future. Mitsubishi’s 2008 contract with the UAW required the disclosure, but the Japanese automaker requested an extension which the union membership proceeded to vote down. Because the extension failed, Mitsubishi is required by the terms of its contract to raise hourly pay to $25.60/hr. The plant in question currently builds Mitsubishi Eclipse, Endeavor and Galant models, which have collectively sold 11,215 units through August of this year. And thanks to the combination of low demand for Normal-built products, and the union’s failure to extend the decision period, it seems as though Mitsubishi may just walk away from the plant. (Read More…)
The core hypocrisy of the UAW is that it claims to work on behalf of workers everywhere, while actually serving only the interests of its most senior members. And the cognitive dissonance produced by this grotesque contradiction can lead to some interesting challenges in the day-to-day life of the union, particularly in the design of parking lot signs designed to keep the competition out. The sign shown above and the sign shown in the post preceding this one show the UAW at its most honest: if it’s built by one of the Detroit Three, it’s OK. If it’s got a “foreign nameplate” it’s not. But this honesty also betrays the fact that the UAW simply wants everyone to support it’s employers, rather than lead a nationalistic or class-based crusade.
At most locals the signs are more simple and ideal-oriented, but they’re also completely misleading. For example, a Japanese-built Camry or Korean-built Elantra should be OK in a lot with a “Union Made Vehicle Parking Only” sign, and an American-built Camry or Sonata should be fine in a lot with a “No Foreign Cars Allowed” sign… but of course, neither scenario would be tolerated. While you’re pondering the deeply cynical self-delusion at play here, enjoy this hastily-assembled gallery of union parking lot signs.
Update: Picture 417 has been removed at the request of the photographer. The original photo can be viewed here: http://www.flickr.com/photos/mlavander/4034221120/#/
We are sorry you were inconvenienced and had to worry about where your car was parked while you covered the signing. The UAW member you encountered in the UAW Local 249 parking lot meant no personal disrespect to you. Accomodating [sic] vehicles not made by UAW brothers and sisters is a passionate subject for our members.
He and UAW members across the country know that foreign automakers that allow workers to freely join unions in their home countries while denying that same right to U.S. workers are denying the First Amendment right of American workers to freely organize. Yet foreign automakers accept U.S. taxpayers’ dollars in incentives to build assembly plants, jeopardizing the future of middle-class workers in the domestic auto industry.
UAW Boss Bob King half-apologizes to Kansas City Business Journal reporter James Dornbrook, who was forced to remove his American-built Toyota Camry from the parking lot of UAW Local 249 in Kansas City while reporting a story there. The DetNews notes that King’s predecessor Ron Gettelfinger had loosened the UAW’s long-standing ban on non-UAW-made cars in its parking lots five years ago, when he allowed Marine Corps reservists who report to a nearby office park at UAW headquarters. But King is on a mission to reconnect the UAW with its old-time religion, and his letter proceeds to lecture Dornbrook on the standard talking points concerning the anti-middle-class evils of non-union transplant factories, and the general sanctity of all things UAW-approved.
King’s letter is a tedious read, but it’s proof that self-righteousness trumps self-preservation at the UAW, even when it comes to something as (relatively) easy to control as press relations. Reporters may not be quite as popular as Marines, but they have immense influence over public perception of the UAW (which, incidentally, is not in great shape just now). Kicking one off UAW property because he drives a non-union, American-built car and then lecturing him with UAW dogma is just plain stupid.
Since taking office in June, UAW President Bob King has ramped up the rhetoric level at Solidarity Hall considerably, as he seeks to portray the union as a defender of the American middle class. But, as the old adage goes, actions speak louder than words… and King’s actions this week couldn’t paint a clearer picture of the UAW’s priorities. (Read More…)
Autocar reports that Renault workers in France are jumping on a bus and heading to the Paris Motor Show. Are the doing it because they fancy a day out? Maybe they want to see all the nice cars on display? Nope, they’re going there to protest. OK, so who do you think they are going to protest? Hyundai? Toyota? Ford? Nope. They’re protesting against Renault. So, a bunch of French Renault workers are going to the Paris Motor Show to protest against their own company? Why?
There’s a constant temptation for commentators on the American auto industry to idealize labor relations outside of the reach of the United Auto Workers. But, as the JoongAn Daily reports, even resurgent automaking nations like Korea still face a number of challenges from unruly workers. Hyundai, Ssangyong and GM-Daewoo have already closed deals with their unions guaranteeing a strike-free 2010, but Kia is still locked in negotiations over
several issues, including wages and role of full-time union representatives. The management wants to enforce restrictions on the number and work practices on union representatives before discussing the wage issue. The union wants to negotiate the two issues at the same time.
If Kia reaches a deal with its union, it will make 2010 the first year in the last 24 without a strike by Korean autoworkers.
I still don’t understand why they are picketing our dealerships when the dealerships have nothing to do with the workers. Our workers make the ultimate decision if they want to unionize or not and for the past 25 years they have said no… Our team members want to make cars for people to buy. They don’t like it when people try to stop you from buying.
Toyota North America’s Steve St. Angelo struggles to understand how the UAW’s tactic of picketing California Toyota dealerships will make Toyota workers anxious to join the union [via WSJ [sub]]. When asked if Toyota would allow the UAW into its US plants, St. Angelo replied in the negative, saying Toyota’s factories have a no-solicitation policy. But, as the photo above proves, this is the UAW we’re talking about, not the Mormons. With the future of the union effectively hanging on the UAW’s ability to make headway organizing the transplant factories, you’d better believe a fight is brewing.
We have made a decision at the UAW that to do the best job taking care of our membership we’ve got to be out there in the streets fighting for social and economic justice
Newly-minted UAW President Bob King kicks off a “Jobs, Justice and Peace” campaign with Jesse Jackson’s Rainbow Coalition, by feeding the Freep some seriously idealistic rhetoric at a news conference announcing a march commemorating Martin Luther King’s Freedom Walk. But, as King confirms to Automotive News [sub], the best way to live up to these high-minded ideals is to demonize Toyota. (Read More…)
With UAW members and leadership meeting to debate the union’s future, it’s the perfect time to look back at the conditions from which the UAW emerged. Here is 1936 film titled “Master Hands” which portrays the men and machines that built Chevrolets on the eve of the UAW’s recognition. According to the excellent Youtube channel USAutoindustry, “Master Hands” was
filmed in Flint, Michigan, just months before the United Auto Workers won union recognition with their famous sitdown strikes.
Clearly a lot has changed since then. But has the UAW?
UAW members picketed the UAW’s 35th annual convention, in Detroit. The union is highlighting the theme of unity, as dissatisfaction with concessions made over the last several years threatens to tear the union apart. Two-tier wages are the underlying threat to unity, but the union’s ownership of stakes in GM and Chrysler have many wondering whether the UAW can even represent its constituents properly. One longtime UAW activist, Gary Walkowicz of Local 600, is even challenging the UAW’s “prohibitive favorite” Bob King for the union’s presidency having successfully defeated recent Ford concessions at his local. Another activist was briefly detained yesterday for distributing fliers outside of Cobo hall. Detroit’s government-funded comeback was only possible because of UAW concessions, and now the fiestier locals want to roll those concessions back and bring back the “fighting union.” That won’t happen as long as the UAW’s VEBA fund owns such large holdings in GM and Chrysler, but once the IPOs are over and the union has dumped its stock, look for these activists to gain more power within the union.
When the music finally stopped at Old GM, the UAW’s VEBA fund was left holding a lot of IOUs. On those merits, the union’s benefit trust was given about 17.5 percent of the equity in the bailed-out and re-organized New GM. UAW leadership has always maintained that having its membership’s benefits staked on the company’s financial performance would not change its mission, and that VEBA’s representative on GM’s board, Steve Girsky, would operate free from union influence. And one hopes he would, considering he’s being paid well to advise CEO Ed Whitacre. But the tension between GM’s IPO sprint and the UAW’s non-VEBA interests never goes away, and the Wall Street Journal [sub] is reporting that the latest spat is over the old hobbyhorse of buyouts.
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