But, it begs the question – why?  Does he have a bike fetish and just loves to gaze over a crowded room of stolen bikes or even worse, a bike seat fetish?  It doesn’t say but maybe he just wanted to stimulate the bike industry.  Stolen bikes create a need.  A need, as a bike shop owner, he could fulfill.

Now, this of course is a total lack of ethics.  Ethics, oh yes.  Ford produced a vehicle with an improperly installed window and never notified the consumers that their electronic repair bills might be caused by this.  I mean, a leaky window allowed water infiltration, which caused the electronics to short out.  Did anyone get a notice?  Of course, by not notifying the consumer, the consumer continues to have their electronics fixed due to the leaky window, which they know nothing about.  Hmmmmmmm…. No, I am not accusing Ford or the CAW of intentionally installing a window improperly in order to create a need for repairs and thus, generate income in the repair part of the industry - an industry that is having a downturn in income.

Now, one could extrapolate this and begin to wonder.  In this recession, will the car industry, which is suffering greatly, start supporting thieves so that cars disappear and thus generates a need by the consumer, whose buying is all supported by the insurance industry?  But no, I jest.  I mean, a company that builds a truck with a faulty window, doesn’t inform the consumer and repairs the damaged electronics wouldn’t stoop that low would they?  Never!!  As I was told recently by a CAW executive – they are all hard working individuals and having known some, I agree.  But, I wonder Ford - how can you stimulate car sales to people who have been burned by your policy to not recognize that the window was put in improperly and cost us consumers our money?  Trust is something earned and once lost; it is hard to get back, especially when others continue to build trust within the consumer’s market.

And what a rift it was.

In 1984, when I came to the Party, the Kent County Dems were reeling. They had been redistricted out of State Senate seat, no local redistricting plan had been submitted in 1980, so new County Commission seats were shifted, and one commissioner, Kathy Kuhn had switched parties. (In the south end, James Vaughn had threatened to do the same.)

Two groups faced-off in the Party: the Regular Party, fueled by UAW money and members; and a network of activists, the Coalition Democrats: academics, social liberals, minorities. The two groups echoed the split 15 years earlier between Robert Kennedy and Hubert Humphrey. The Coalition were largely from the center and east side of Grand Rapids, the Regulars drew from the west side and the suburbs.

The two groups dueled over precinct delegates. Activists saw delegates as a ground force for organizing elections; Regulars saw the delegates as votes at the State Convention. Thus recruiting delegates was an activity guarded ferociously by union representatives. This was the level of distrust we had between us.

Coalition Dems had focused on local elections, and in turn built up a network of experience about campaigning. Poor Candidate recruitment galled them. The reluctance to engage in party building left many infuriated. There was more than enough bad blood, and it was often highly personalized. Some left. Some of us stayed.

But we healed. And this is a place to name names.

Kent County Dems healed, because we began to get more electoral success. By the 90s the Coalition as an organization had faded. In its place emerged Friends of Labor, a collection of non-UAW unions, guided by Bruce Harvey of the Teamsters. City Commission seats began to fall into Dem hands. Rick Tormala's ferocious 1999 victory showed how we could win in the Second Ward.

Kent County Dems also healed because of three strong women: Lupe Ramos-Montigny, originally one of the Coalition members, an MEA leader, and Party Chair 2002-2004; Sue Levy, UAW, party chair 2004 --, who in style opened the doors to all and so made us better; and Maggie Simmons, a fund-raiser and organizer for Granholm's first run for AG in 1998.

Their hard work, and the coordinated campaigns of 2002, 2004, 2006 have created a party as unified as it has been for more than a generation. We're winning elections.

And now RMGN will undo this.

The redistricting aspects of the Reform Michigan Government Now proposal will undo the work of our local party. Sadly the electoral concerns of West Michigan are sacrificed to the inside nexus of Party and union insiders. One of the main points of the battle in the 80s and 90s was to elevate electoral success as our criteria for Party success. Here, we have the unraveling of that vision. In place of transparency we are left with the clouded plans of a few.

Man, I hated the conflicts of those bad old days.

Now, I find it funny how 4 pieces of rubber outlasted my front end by over 40,000 kilometres.  I had to replace my tie rods at 100K and was just recently told by the dealer, Kennedy Ford, that my ball joints needed replacement.  Another mechanic told me no, so I am waiting for the alignment and see if they suggest the ball joints get replaced.  Almost like waiting for a baby to be born.

I was told, after I bought the truck off lease and had the front end replaced, that Ford has a problem with premature failure of the front end.  I can’t substantiate this but, interesting how local garage mechanics seem to all be saying this.  Even my neighbour remarked on the fact I had a Ford when I saw him this morning while enroute to the garage.  Wasn’t nice what he said.  Something about “Fix or Repair Daily”.

This began to make me think about planned obsolescence.  My truck was built during that period of time that Ford was closing the truck plant in Oakville.  The only good news to the CAW employees was that it was being replaced by another line – therefore jobs saved.  But what about the recent closing of the GM truck line in Oshawa.  Would you buy a truck from GM now, knowing it was being built by disgruntled CAW workers, knowing their jobs were redundant soon after the truck line closes.  What kind of atmosphere is present on that assembly line?  I mean, Ford couldn’t build my truck right and the guys had future jobs.

Planned obsolescence.  We hear about it in other industries and wonder sometimes why things fail.  Ford knows about the window problem but, have you ever seen a recall?   Have you ever received a notice that your window should be checked?

Funny, but Kennedy Ford keeps sending me notices that my truck is due for regular service.  Ever since the debacle of the front end and then my electronic problems caused by the improperly installed window, I have favoured a local garage for my servicing.  Kennedy Ford could send me reminders but never sent me anything to warn me that all the electronic repairs might be caused by the leaky window.  I understand Ford sent a memo to the dealers about this (can’t confirm it as Ford won’t even send me a letter confirming my complaint) but, I as a consumer was never warned that my repair expenses were being caused by an improperly installed window.  But, I guess that would mean someone at Ford had ethics, something that seems to be missing in this case.

I guess the rule of thumb for buying a vehicle is to check when it was built and what kind of relationship was occurring between the manufacturer and the CAW/UAW.   Does this have some kind of bearing on how your vehicle is built?  Well, they say, don’t buy a vehicle built on a Monday (hangovers, Monday blues) and a Friday (weekend coming up).  Don’t know how true it is but, I wouldn’t be buying a GM or Ford right now due to the cutbacks and the proven lack of concern regarding built in faults.  Toyota might not be perfect but maybe they’ve got it right.  No union and support their vehicles, even after warranty.

By the way, just got the news that my front end is alright and my ball joints don’t need to be fixed.  Wonder why Kennedy Ford told me they had to be replaced over 10k ago?  I just found out from a local garage that they’ve noticed a decline in repair business.  With the rising cost of fuel, people are maybe putting off repairs and maintenance.  At over $90/hour for labour, I can understand why.  But, if they’re not built right – like properly installed windows, it is hard to drive when the vehicle starts the road down what some might consider planned obsolescence, especially when no one warns you of the problems.  But then, who ever warns you about planned obsolescence?

A strike at a small auto-parts plant in Tennessee now threatens an important vehicle for General Motors Corp. -- the soon-to-launch Chevrolet Traverse crossover -- at a time when the struggling auto maker can least afford a costly production delay.

Workers at the Johnson Controls Inc. factory in Columbia, Tenn., walked off the job Wednesday because the company refused to recognize the union after workers voted overwhelmingly to unionize, local UAW officials said. Johnson Controls didn't return calls seeking comment.

Though the dispute over unionizing the factory, which employs 170 workers, has been going on for nearly two years, the union chose to send workers off the job just as production of the new Chevy is slated to begin.

It's a strategy the UAW employed earlier this year at another small parts operation in Lansing, Mich. -- a supplier for crossovers that at the time were in short supply. The strike forced GM to cut shifts at a nearby plant that builds the vehicles. The union eventually won representation.

One word came to mind when I heard the news from GM this week.  Unions.  You want to know what is killing the big three auto makers?  Unions.  The strangle-hold they have on U.S. auto makers is ridiculous.  I know from first hand experience. From family members to friends, the things the unions make those companies do and go through is down right criminal.  The fact that these companies have to pay employees for not working, for doing hardly anything worth the pay they get when they are working and for putting out an over priced, cheaply made product is outrageous. 

I have written about unions before here and here and then about Teachers Unions here.  Whether it's the Teachers Union or the UAW, they are all the same. 

While the Big 3 are reeling and just barley staying afloat (if even that),  foreign car makers are hiring right and left.   Hiring  Non-Union workers that is.  Toyota will go on, experts predict, in the next 10 years to be the biggest, most profitable of any auto maker.  Why is that?  Well, it’s because they don’t have to give in to the Union thugs and pay people for wages at a far higher price then they are worth.  The cost to build a car by Toyota is far less then the price to build a car by, say, GM.  Unions do not  change the productivity of workers. All they can do is stop the employer from paying less than what unions demand the employer pay.

Of course, during the next negotiation that the UAW has with Chrysler, GM or Ford, they will demand more money, even though the company, as a whole, is dying.

I'm sure Politics and Culture can chime in here, being from the Motor City and all.

Let's once again get a moratorium on Unions.

The fact that potentially thousands of Missourians are going to be losing their jobs is terrible, and I feel for every family who's life is now in chaos.  But what really bothers me is that this didn't have to happen.

For years, the auto industry has taken massive losses due to high labor costs, high taxation and regulation.  Because of previous labor agreements, the auto industry currently pays over $1 billion dollars in retirement benefits annually.  Think about that.  Every year, they have to make $1 billion dollars just to break even, and that's not counting the cost of having to run the daily operations.  No wonder they're going under.

But even though the above factors definately contributed to the problem, they certainly aren't the main cause.  I believe that the main reason the auto industry is failing is due to the unfair trade policies that have been forced upon U.S. manufactures.

Now don't get me wrong, I know that U.S. automakers welcome competition from Japanese companies and other international competitors. I believe that competition in a free and fair environment is good for consumers, good for innovation, and good for creating ever safer and more fuel-efficient cars. However, the U.S. government continues to passively accept subsidized imported vehicles from Japanese automakers who are not competing fairly because their government effectively subsidizes its auto industry through the use of an artificially low yen. This policy has led to the skyrocketing levels of auto exports to the U.S. that harm the economy and cost American jobs by giving Japanese automakers an unfair and unearned advantage over American automakers.

The artificially low yen has helped fuel our trade deficit with Japan, which hurts the U.S. economy and gives Japanese automakers an unfair advantage over American automakers. Nearly two-thirds of that deficit, or $56 billion out of a total $88 billion, is exclusively a result of Japanese auto products.

This issue is not trivial or just a technicality. The impact of an artificially low yen on the automotive sector is a major competitive factor in the whole automotive industry: The misaligned yen gives the average imported Japanese car a huge windfall cost advantage over U.S. automakers and other competitors in the market. This 'yen effect' also crosses over to Japanese vehicles made in the U.S. because of the high level of subsidized imported auto parts used in their U.S. plants.

A few facts:

• With a yen valued at 118 to the dollar, Japanese automakers enjoy an average windfall $4,000 cost advantage per vehicle more than they would if the yen traded at its true value. The overall subsidy Japanese automakers gain for the 2.2 million vehicles they import totaled $8.8 billion in 2006.
• The total yen subsidy provided to Japanese automakers in 2006 was $13.4 billion – $8.8 billion for car & truck exports to the U.S. and $ 4.6 billion for imported parts used in American-made Japanese cars.
• More than half (52%) of all automobiles manufactured in Japan were designated for export in 2006, exceeding 50% for the first time in 19 years. In fact, even as demand within Japan for new autos is declining, Japanese companies are adding production capacity to Japan-based facilities, reactivating assembly lines, adding workers and postponing planned factory closures as they move to export ever greater numbers of vehicles.

It is time for U.S. policy to place the needs and survival of its own manufacturing sector first. To do so will require the U.S. to demand that the Japanese allow the yen to regain its undistorted value. Japan must be pressed to bring its currency into alignment and trim its excessive currency reserves.

It seems that GM has enough of the crap already, as angry CAW workers are still forming the blockade outside the Canadian Headquarters. As a result, the parent company has decided to file a court injunction demanding that the blockade must be removed.

Right now, a rally is taking place (at the time of this blog posting) outside GM's Canadian headquarters. People from far and wide - as far as Thunder Bay to the west and Cornwall to the east are joining in the fight in their last effort to save the Oshawa Truck Assembly plant from closing down.

As for the legal action, it doesn't stop the workers from fighting back. They will keep fighting for as long as this is going. Last weekend, there was a massive convoy outside the Oshawa Truck Plant. Approximately 300 workers were in the vehicles, making traffic snarled preventing deliveries going in and out.

Meanwhile, the province of Ontario is trying to work out a deal with the struggling automaker on getting a new shift. I'm not sure if the new shift will save those jobs, but it's anyone's guess.

To close off this blog posting, I'm leaving you a snippet from the song "Miracle" by Paramore (this song is very good, especially if you work for the auto industry):

"I've gone for too long living like I'm not alive
So I'm going to start over tonight
Beginning with you and I

I'm not going
Cause I've been waiting for a miracle
And I'm not leaving
I won't let you
Let you give up on a miracle
Cause it might save you"

References:

"Convoy delays production at Oshawa GM plant." CTV.ca. 7 June 2008. 12 June 2008. <http://toronto.ctv.ca/servlet/an/local/CTVNews/20080607/gm_protest_080607?hub=TorontoNewHome>

"GM workers plan massive rally to protest closure." CTV.ca. 9 June 2008. 12 June 2008. <http://toronto.ctv.ca/servlet/an/local/CTVNews/20080609/GM_protest_080609?hub=TorontoNewHome.>

"GM Heads To Court To End Plant Blockade As Province Pushes For New Shift." CityNews.ca 11 June 2008. 12 June 2008. <http://www.citynews.ca/news/news_23685.aspx>

"Police Ignoring Blockade: GM." NewsDurhamregion.com. 12 June 2008. 12 June 2008. <http://www.newsdurhamregion.com/news/featured/article/100386>

"Union expects GM injunction at auto workers blockade." NewsDurhamRegion.com. 9 June 2008. 12 June 2008. <http://www.newsdurhamregion.com/news/business/article/100199>

"Ottawa has power to save threatened GM truck plant." Toronto Star. 11 June 2008. 12 June 2008. <http://www.thestar.com/comment/article/440839>

"CAW calls 'solidarity march' in Oshawa to protest GM closing." CBC.ca. 12 June 2008. 12 June 2008. <http://www.cbc.ca/canada/story/2008/06/12/gm-rally.html>

"Province, GM in talks for third car line for Oshawa, Ont., plant: Pupatello." The Canadian Press. 11 June 2008. 12 June 2008. <http://canadianpress.google.com/article/ALeqM5gLcVX0eIvyZtPcAyzMyzKhxeO-AA>

The union has filed unfair labor practice charges after Caterpillar banned smoking in response to the Illinois ban. Since the smoking issue has been part of the union contract for 60 years, can Cat just arbitrarily change that without addressing the union? Better yet, can the state interfere with labor/industry contracts by forcing a smoking ban on workplaces that have a contractual privilege to smoke?

In short, no. No they can't.

Yet they do. This is an underreported aspect of smoking bans. The focus is always on bars and taverns, but don't workers who have secured a priviedge at the workplace come into play here? I would say so! What's the point of collective bargaining if the state can just come in and exert control anyway?

This is a very interesting development that I am working on right now. More to come as I dig into this further.

As GM workers at the Oshawa plant continue to picket outside the Canadian head offices, Buzz Hargrove the head of the Canadian Autoworkers Union has told the media in a press conference that a strike by GM won't be ruled out. He also mentions that their union will continue to fight against the closure of the Oshawa Truck Assembly plant in 2009.

According to an interview, Hargrove states: "It's an expression of the frustration and anger that people have after being told by the union just two weeks ago that their plant was going to remain open past 2011."

Many people who called Oshawa their homeland are starting to suffer the effects of the recent announcement. Even businesses are starting to suffer hard. Tomorrow, the CAW will meet with the CEO of General Motors to provide some contingency plans on avoiding the closure altogether. As this goes, the workers continue to picket outside the Oshawa head office.

References:

"Hargrove won't rule out GM strike." Toronto Star. 5 June 2008. 5 June 2008. <http://www.thestar.com/Business/article/437616>

"Canadian Auto Workers union to meet with GM CEO Wagoner on Friday." Forbes.com. 5 June 2008. 5 June 2008. <http://www.forbes.com/afxnewslimited/feeds/afx/2008/06/05/afx5085782.html>

"Hargrove won't rule out a strike by GM workers." CTV.ca. 5 June 2008. 5 June 2008. <http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080604/GM_strike_080605/20080605?hub=CanadaAM>

"Hargrove optimistic GM will reverse closure in meeting; workers not so sure." The Canadian Press. 5 June 2008. 5 June 2008. <http://canadianpress.google.com/article/ALeqM5juBTqqU73TlfCL1n2cvnTHzLj4GQ>

"Ottawa wants to help GM build new car in Oshawa." National Post. 5 June 2008. 5 June 2008. <http://www.nationalpost.com/most_popular/story.html?id=563796>

"GM blockade stays: CAW." Toronto Star. 5 June 2008. 5 June 2008. <http://www.thestar.com/Business/article/437267>

"‘Buzz blew it’ says analyst." NewsDurhamRegion.com. 5 June 2008. 5 June 2008. <http://www.newsdurhamregion.com/news/business/article/100074>

"NDP leader lends support to protesting union members." NewsDurhamRegion.com. 5 June 2008. 5 June 2008. <http://www.newsdurhamregion.com/news/durham/article/99970>

"GM head office blockade continues." NewsDurhamRegion.com. 5 June 2008. 5 June 2008. <http://www.newsdurhamregion.com/news/breaking_news/article/100011>

Axle workers are the latest victims of this fascist attack. The Axle bosses say the new contract “addresses market reality.” (NY Times, 5/29/08, and all following quotes) After their 87-day strike, this is how that “reality” hits the workers:

• Within a year, 2,000 of 3,650 union jobs will be eliminated.
• “Wages and benefits would be cut at least in half.”
• “Most new work will be going outside the United States.”
And this is how “reality” meets the company’s bottom line:
• “It expected to save about $300 million a year under its new contract.”
• “American Axle…lined up $1.4 billion in new…business for the next five years and…85 percent of it would be sourced abroad.” (“Operations in Mexico and overseas helped the company earn $37 million in 2007.”)
• Wages in Axle’s new plant in Guanajato, Mexico will be barely $1.50 AN HOUR.

What about the union? The bosses say the UAW “jointly addressed” this market reality “in this new set of agreements.” Yes, it “addressed” more than half the workers onto the street and cut the wages and benefits of the remainder more than half. To say the company has the union leadership in its hip pocket is putting it mildly.

This swindle follows the pattern set by the Big Three automakers and the union. GM just announced that one-fourth of its workers, 19,000 (adding to the 34,410 who left in 2006), are taking the company-offered buyout. Of these 19,000, JPMorgan auto analyst Himanushu Patel “predicted GM won’t replace 15,000…and will hire 4,000 [at half the pay] for total annual savings of $2.1 billion.” (Associated Press, 5/31)
Forty years ago, UAW President Walter Reuther was acclaimed for signing a contract with a “guaranteed annual wage.” Hundreds of thousands of laid-off U.S. autoworkers can now testify that the only “guarantee” under capitalism is job- and wage-cuts for workers and maximum profits for the bosses. And the racism of the bosses and UAW hacks has hit black autoworkers even harder, devastating cities like Detroit and Flint.

Since 1999, Michigan has lost 143,000 auto jobs — 45 percent of the total lost nationwide.

No matter what gains  workers make through bitter struggle, when capitalism’s market asserts itself — through global competition, the drive for maximum profits, economic crisis and the needs of imperialist wars — the workers wind up at the bottom of the heap. After all, the bosses control the government and this state power is used to enforce the laws of the capitalist market. That’s why PLP says this system can’t be reformed. “Market reality” won’t permit it.

The only lasting victory that can be won from the Axle workers’ three-month battle is for the workers who bought and read CHALLENGE and came to PLP’s May Day events to join the Party in building a movement that aims to eliminate this system and its profit-driven markets so workers can hold state power and use it on behalf of the working class. Our goal is to establish a communist society in which workers come first and there is no “second” — profits, bosses and their labor lieutenants will be buried six feet under.

It all came to a shock by many people in the auto industry and including some in our own backyard who helped us motivate the entire country. General Motors recently announced that it will lay off as many as 1,000+ jobs or so. The majority of those jobs lie at GM's Truck Assembly plant in Oshawa, Ontario, Canada. That truck plant is slated to close next year in 2009. Many people were shocked by the announcement, even the mayor was not impressed by GM's decision. As I walked across the streets of the 'Shwa (that's the nickname for Oshawa), I can see many shops and places all closed, boarded up and displayed some "For Sale" or "For Lease" signs. Many people in this city are starting to suffer these effects. It's not only Oshawa that is suffering this loss. Plants in Ohio, Wisconsin and a plant in Mexico are all slated to close too.

Buzz Hargrove, the guy who represents the Canadian Auto Workers union Local 222 has this to say in a statement at a press conference, "I want to say clearly I can, we are not going to allow this to happen...It's an American company, all controlled by Americans, run by those Americans and making decisions in tough times and to protect American jobs and to reduce costs, they are moving some of that production into Mexico."

This announcement occurred in less than two weeks after the CAW union reached an agreement with the company to postpone 900 or so layoffs until September of 2009. The CAW local 222 president has told their union members to "stay calm and have faith in your local leadership and have the full support of your local union and national union an your brother Buzz Hargrove. GM has lied to the union, their employees and misled the whole community."

The main reason of these layoffs is that many people are starting to stop selling SUVs and Trucks because they consume too much fuel and the fact that we already experience some high gas prices in our world today. Many people are scrambling to find alternative, fuel-efficient vehicles at a fraction of those SUVs. We are not sure about how the layoffs will affect the fate of next generation Chevrolet Camero slated to be built next year. I'm not sure how Ontario Premier Dalton McGuinty will do something about our struggling auto industry. It's anyone's guess.

If you work for GM and happened to read my blog as of now, thank you. Please reflect on the times you had did with not just your family, but the entire economy that keeps things moving at a steady pace. That's a very big price to pay, my friend. You have to be more supportive. To finish off this blog, I'm leaving you a music video by Simple Plan, called "Crazy". The good thing is that this song mentions about SUVs! If you don't believe in me, read this lyric below and then watch the music video.

"Tell me what's wrong with society
When everywhere I look I see
Rich guys driving big SUVs
While kids are starving in the streets
No one cares
No one likes to share
I guess life's unfair...."

Simple Plan - "Crazy":

References:

"GM Oshawa closing a 'betrayal'." The Windsor Star. 03 June 2008. 03 June 2008. <http://www.canada.com/windsorstar/news/story.html?id=b850ba78-ee76-4c47-a12c-2af7ecbebd4c>

"CAW rally draws thousands to Memorial Park." NewsDurhamRegion.com 03 June 2008. 03 June 2008. <http://www.newsdurhamregion.com/news/business/article/99825>

"CAW slams 'illegal' GM move to scrap 4 pickup and SUV plants, including Oshawa." The Canadian Press. 03 June 2008. 03 June 2008. <http://canadianpress.google.com/article/ALeqM5j_BXnvt_wgJzK2glFMuA_Uj8_fKw>

"Workers at GM in Oshawa, Ont., surprised and angry over job cuts." The Canadian Press. 03 June 2008. 03 June 2008. <http://canadianpress.google.com/article/ALeqM5jD89S22mHh-0ZgtmldrpzAutBmPg>

"GM plant towns struggle with losses." The Associated Press. 03 June 2008. 03 June 2008. <http://ap.google.com/article/ALeqM5gwQbT9_30_DgSkfV62PEMkTJCmUAD912REK82>

"CAW Hints At Job Action To Stop GM Layoffs." CityNews.ca. 03 June 2008. 03 June 2008. <http://www.citynews.ca/news/news_23409.aspx>

"GM to halt production at Oshawa truck plant" CBC.ca. 03 June 2008. 03 June 2008. <http://www.cbc.ca/canada/story/2008/06/03/gm-cuts.html>

"GM's Oshawa blow could hurt Niagara workers." Niagara Falls Review. 03 June 2008. 03 June 2008. <http://www.niagarafallsreview.ca/ArticleDisplay.aspx?e=1056398>

"GM plan to close Oshawa plant based on U.S. trend." Reuters. 03 June 2008. 03 June 2008. <http://www.reuters.com/article/marketsNews/idUSN0335650820080603>

"GM to close Oshawa plant." National Post. 03 June 2008. 03 June 2008. <http://www.financialpost.com/most_popular/story.html?id=560596>

"CAW to fight Oshawa closing." Wheels.ca. 03 June 2008. 03 June 2008. <http://wheels.ca/reviews/article/252660>

Let's hope that Jennifer Granholm and the state Dems can tax us out of this.

If only there was a solution for both of these problems.....

For workers at GM's truck plants, that has meant wondering whether there would still be jobs to report to following the next round of change.

In its announcement today, the automaker is expected to give those plans more clarity by announcing plans to increase the production of small and midsize cars at its assembly plants in Orion Township and Lordstown, Ohio, even as it takes steps to further reduce production at some GM truck plants.

Workers at Orion Township and Lordstown are hoping for increased car production, added shifts and the promise of new models.

Analysts and economists have said they wouldn't be surprised to see cuts at a Michigan plant -- in Flint or Pontiac -- or those in Janesville, Wis., or Moraine, Ohio.

GM is not commenting on the planned announcements, though spokesman Tom Wilkinson has said that the company has no big salaried layoffs in the works.

More than half of the returning 3,650 workers, including 1,100 in Detroit, will lose their jobs. The remaining will see their wages cut from $28 an hour to $18.50 and in some locations as low as $10.

In a conference call to Wall Street investors Wednesday corporate CEO Richard Dauch said the new deal would reduce all-in labor costs by 50 percent—saving the company $300 million. “I am pleased to report,” he boasted, “we have achieved all of these goals.”

That the hated contract was ratified by a 78 percent margin was testimony to the lack of confidence in the United Auto Workers union to obtain anything better if workers remained on strike. Even before the walkout began, the UAW signaled its willingness to impose substantial wage cuts. Then the union left workers isolated on the picket lines for 87 days and paid meager strike benefits of $200 a week. In the end, the UAW brought back the concessions agreement and told workers, “Take it or leave it.”

Acting on the belief that there was no alternative, workers voted for the deal with most opting to take the buyout now or in the near future. Many, no doubt, will join the migration of ex-auto workers out of Michigan, where 143,000 auto jobs—or 45 percent of the total—have been wiped out since 1999.

The UAW betrayal at American Axle—like at Delphi and the Big Three concessions before it—will be used to set a new benchmark for the permanent lowering of wages. Hit by high gas prices, the credit crunch and slumping sales, General Motors and Ford have already announced sharp reductions in the production of light trucks and SUVs.

This is only a prelude to a new round of mass layoffs, bankruptcies and concession demands in the auto industry, the airlines and the rest of the US economy. The corporate executives and investors will not be satisfied until the auto industry is a low-wage sector in which workers have no benefits or job security.

The needs of the working class—for decent paying jobs, health care, education, housing and a world free from war—must take precedence over the selfish and destruction drive for individual profit. The guiding principle must be the fight for social equality, the elimination of poverty, and the raising of the living standards of the world’s people through the conscious and rational use of mankind’s productive resources.

The existing Unions are impotent!  They do not serve the workers as they were suppose to.  I say it is time for a change.  The workers need strong representation and leadership.  Not only do they need it, but they must step up and demand it!

The fact of the matter, they were not economical.  They can say all they want, “we earn this company millions of dollars and there is no reason we need to take a cut and the executive officers get raises.”  I don’t agree with the huge separation of the pay, but that is the fallout of a capitalist economy that doesn’t put a corporation in check early enough.  No one has to work there if they think the company is immoral.  The stockholder’s will not respond until it starts hurting their pocketbook.

I work in an office where people make less than $10/hr without medical, 14 days vacation, pension, buyouts, buy downs, COLA supplements, etc. They realize that they will have to work to change their standing, but I’m sure, many of them would still be willing to take a line job at AAM. 

The auto industry is unique because of the divisive nature of the union.  At my company, you stay because you are valuable; you grow within the company because you are invaluable.  A lot of auto workers are invisible, because the work is monotonous and requires little skill in many areas.  It is difficult to separate yourself and stand out.  The union recognizes the combined worth of the workforce and has raised the individual rewards, apparently too high. 

The way capitalism works, if you can find equally skilled labor at a lower rate, you pursue it.  I haven’t heard many AAM workers argue that this couldn’t be done, that is why they are so threatened by scabs.  The only argument they make is that it simply isn’t fair.

Isn’t fair?  You are on a 4-year contract. That means nothing is certain when that contract ends.  My father worked under contract.  They could no longer quantify his value and offered him a significantly lower wage at renewal time.  He understood the circumstances and understood that it came with the territory as a contractor.  He moved on and looked for something better.  I think the main difference here, is that he had tangible skills that could translate into value at many other companies.  Now, he makes more and works less.  Auto workers can’t do this, so they freak out when they see their cash oasis dissipating into the air, leaving them high and dry in the dessert. 

I like to see all succeed, but you can’t live in a dream world.  Furthermore, this contract is not bad.  They have so many options. 

Here is the deal: http://www.clickondetroit.com/download/2008/0519/16323701.pdf 

Buyouts:           Less than 10 years = $85,000     More than 10 years = $140,000 (I make that in about 4 years)

Buy Downs:      Using the buy down, workers are really losing no wages over the next four years of this contract.  AAM is calculating the lost wage, times a multiplier to beef it up, times the average hours worked in a year, times four years; and dividing it into 3 lump-sum payments.  Workers are not losing any wages under this contract, but they are being prepared for the next contract, where there will be no buy downs. 

Poor guys now only get 14 paid holidays.  Cry me a greasy river; I get the fourth, Thanksgiving, Memorial Day, and Labor Day.  The biggest thing that will hurt the long-term workers is the frozen pension, but how many companies do you know that still offer a pension?  They don’t want these perks because it is fair.  Look at the rest of us; we don’t get it.  They want it because their greedy and don’t understand the laws of supply and demand. 

I understand that with the advent of the auto industry and the huge profits it once reaped, the unions provided a buffer against greedy corporate rulers and owners.  I love the idea of a union; it is what keeps things in check.  But, once you create that caste system, you will be at odds, rather than on the same team.  Co-dependency is not the same thing.  It is rather disgusting at AAM.  Their CEO made over $10 million in 2007, according to Executive Paywatch, an online watchdog for executive pay at public companies.  The company netted $37 million in 2007.  They could have boosted their profit over 20 percent if their CEO only made one million. 

I feel bad for families that are familiar with a certain lifestyle and have to watch it go, but they have to realize, this is just the market correcting itself.  I feel bad for kids that will have to stop shopping at Somerset and now shop at Salvation Army.  Actually, no I don’t, people brought up by parents with good character and without lots of material possession normally end up being the people I like. 

AAM offers skilled trade and education reimbursement programs.  I recommend you workers utilize that so that in 4-years you are prepared when the money stops growing on trees.  In the meantime, maybe you can use your tears to save on industrial lubricant costs for the machinery, while you waste time making axles for trucks that are going to continue to have a plummeting market share.  I hope, for the sake of AAM workers, they broaden their product line. 

The real story is the UAW and how they manipulated this situation.  This is the offer they were going to get all along.  AAM was just waiting for GM to kick in some support, and the UAW was trying to starve the workers to the point of acceptance.  They should be happy, though.  Most people don't get 4 more years for reality to sink in.   

Shopfloor Newsletter Condemns Axle Settlement “Lowlights”

Shifting Gears, an American Axle rank-and-file newsletter, pointed out the following “contract lowlights” in a special leaflet urging strikers to reject the proposed contract:

• different wage scale within Detroit Axle, with production workers ranging from $14.35 to $18.50 per hour
• different wage scales among Detroit Axle ($14.35-$18.50), Cheektowaga ($14.35-$16.50) and Three Rivers ($10-$18) production workers, so that for future work the plants can be pitted against each other
• no increase in wages over the life of the contract
• instead of 5 percent premium, second shift would get 55 cents per hour; instead of 10 percent premium, third shift would get 80 cents per hour
• pensions frozen as of January 2009; receive 3 percent of wage in a 401(k) plus matching additional contribution (But who will have extra money to put anything into it?)
• combining skilled trades into only four classifications and reducing their hourly wage to $25-$26 (This is a proposed cut near and dear to CEO Dick Dauch, who would be the first executive to reduce skilled trades wages—the Big Three didn’t, and neither did Delphi.)
• added health care costs: weekly “contributions” will start at $10 (individual)-$25 (family) and increase 3 percent per year, cost of living adjustment (COLA) sees 12 cents diversion each quarter for health care as well as higher up-front deductibles
• overtime only kicks in after a 40-hour week, not after an 8-hour day
• The unemployment support SUB fund of $18 million (donated by GM) is limited and underfunded
• new hires would start at $11.50 per hour with no provision for COLA or even 5 percent in a 401(k); only to get dental after three years. Most other benefits would not match current workers: less shift premium, higher co-pays, etc.
• increasing the number of workers each committeeperson represents
• eliminating the right to strike during the term of the contract for issues such as health and safety, speed-up, sub-contracting, and bargaining in bad faith
• decreasing the time frame the union has to counter the company’s plan to outsource from 150 days to 30 days
• nickel and dimes a whole range of benefits including co-pays for generic drugs, capping health care for future retirees, tuition assistance
• closing down Detroit Forge and Tonawanda Forge (while opening up a $10 an hour non-union plant in Oxford, Michigan)
• removing Three Rivers from the no-plant-closing provision
• shoving us out of the GM Umpire System, to be replaced by an inferior system of arbitration
• eliminating some holiday and vacation time
• taking some of our products out from under the protection of the successor clause (which ensure that the contract's negotiated terms continue in the event of a sale)
• cutting relief time from 23 minutes to 15 minutes

The above article describes Ford's plans to cut production and lay off more workers in response to recent further declines in sales driven by high gas prices.  In the past, such shifts in the market, away from one product line (SUVs and trucks) toward another product line (smaller cars) wouldn't have been such a big deal.  Just throttle back on one factory and add shifts at the other.  But it doesn't work any more.  Why?  Because high gas prices aren't the problem.  The problem is that the U.S. market for small cars is glutted with suppliers from Japan and Korea who offer no comparable market in return for access to ours.  The result is predictable - a slow death for U.S. car-makers who are being steadily eaten away by parasitic trade "partners" who come to the trade table with nothing but an appetite. 

Last month I posted the following about an article that touted Ford's "turn-around" plan, and re-characterized it as a death spiral at the same time that industry analysts incorrectly hailed it as Ford's redemption:

http://petemurphy.wordpress.com/wp-admin/post.php?action=edit&post=12

It's not my intention to pick on Ford here.  Their situation is merely a proxy for what's happening to U.S. car-makers in general.  My point is that the government has little time left to act if it wants to save the last vestige of American manufacturing by abandoning its experiment with "free" trade and returning to the sensible trade policies that once built this nation into the world's preeminent industrial power.  And the UAW needs to recognize that it has been reduced to a stooge of the free trade cheerleaders by its "if you can't beat 'em, join 'em" approach of advocating for workers' rights in trade deals. 

The landmark deal for American Axle drops the company’s labor costs to become more competitive and marks a painful turning point for workers who face adjustment to steeply lower wages.

The vote in favor of the contract at UAW Local 235 in Hamtramck — representing 2,000 workers — ensured that the deal would be ratified nationwide.

The UAW said 78% of workers nationwide approved the contract. In Hamtramck, 71% of workers voted for the contract — 1,172 in favor to 479 opposed, said Erik Webb, cochairman of the local’s election committee.

On Monday, union locals in Three Rivers near Kalamazoo and near Buffalo, N.Y., representing about 1,650 workers in all, ratified the deal.

The deal ends a strike that forced General Motors Corp. to shut or cut output at more thaAs workers voted n 30 plants, forcing the automaker — and as a result, several suppliers — to lay off thousands of workers. The lost production further weakened the nation’s economy, and the layoffs ensured Michigan would continue to have one of the nation’s highest unemployment rates.

I have seen several things blamed for the end of the strike.  One was the cost of gas and the demand for SUVs decline. The union lost its leverage, in part, because of the shift in U.S. vehicle sales toward small cars. The strike, took place just as production for American Axle’s bread-and-butter products — SUV and pickup axles — is declining. Automakers are cutting production of those vehicles as consumers turn to more fuel-efficient cars.

The strike is over and the workers have been screwed!  AGAIN!

American Axle is well on its way to ratifying it's agreement. I have mixed feelings about that, but I trust their membership did what was best for them. I just hate to see any concessions, cutbacks or plant closures when there is no external economic relief to compensate. Gas prices keep going up. Housing industry is plummeting while home forclosures escalate.

The American Axle workers deserve a standing ovation for their commitment to their ideals and support for their union and Bargaining Committee.

Meanwhile, back at LDT ... management seems to think our strike was in support of the strike at American Axle. Where that one came from is anybody's guesstimate. Our plant does not buy any parts from American Axle that I know of. Our production was in no way restricted or threatened by their strike.

Besides, secondary boycotts/strikes are illegal, and I'm pretty sure GM would have filed charges with the National Labor Relations Board (NLRB) if had that been the case.

Ditto the strike at Alliance Interiors. Yes, they supply LDT with carpets and other parts, but LDT had alternate suppliers lined up, so that strike would have had limited-if any-impact on LDT production.

If anything, the strike at LDT could have seriously hampered the strike effort at Alliance/Local 724 by reducing the demand for their products. Thank God they were able to wring a decent agreement out of Alliance management.

Most of the strike-related info on Local 602's website will come down this weekend. Our 602 photographer, Brian Masengale, suggested putting his hundreds of photos on DVD to sell to our members as a fund raiser for our (way-down-the-road-in-time) new union hall.

GM Exec Troy Clarke's niece is at LDT as an intern, will be teaching some training classes.

 Solid!

dona jean

Last weekend, UAW officials announced they had signed a tentative agreement with American Axle and Manufacturing, seeking to put an end to the 12-week strike that has crippled the spin-off and its parent, General Motors. As expected, the new "contract" is an abomination:

• average wages cut by one-third
• holidays and benefits slashed
• Cost Of Living Adjustments eliminated
• the eight-hour day eliminated
• the right to strike over health and safety issues eliminated
• the grievance procedure rewritten in favor of management
• the Detroit and Tonawanda, N.Y., forges shut down
• a non-union plant in Oxford Twp., Mich., opened

In exchange, AAM management will bribe the current workforce with "buyouts" and "buydowns" -- the blood money provided by GM -- to get them the accept the deal. In addition, the UAW officials get a pass at "organizing" some previously non-union elements through a "neutrality" agreement.UAW members in New York and at the Three Rivers, Mich., facility were presented with the "contract" on Monday ... and pushed to vote on it at the same time. In other words, the officials pushed the workers to accept the deal through haranguing and intimidation, and would not allow our brothers and sisters to take some time to study the deal, think about it and make an informed decision.This should come as no surprise. The more someone studies this deal, the more they realize it stinks! Luckily, the workers at the main Detroit facility had the foresight to require a period of study and discussion before taking a ratification vote. That vote is today (Thursday, May 22).If this deal goes through, it will be a textbook case of snatching defeat from the jaws of victory. The 12-week strike had put not only American Axle in a troubling situation, but also General Motors. The length of the strike had forced GM and its dealers to strip and cannibalize other cars to fulfill repair demands. Nearly one-third of GM plants were idled or forced to cut back production because of the strike.At the same time, the actions of the UAW officials -- especially that of UAW President Ronald "McDonald" Gettelfinger -- have created a movement of no confidence in the "union" and its ability to wage a strike. This is why many workers have voted in favor of the "contract" so far: they want the buyout and early retirement; they don't see Gettelfinger & Co. as willing or even able to represent and defend their interests.Gettelfinger and his officials whined that AAM management was seeking to "crush" the union. As if this is something new ... in the industry and in the history of the American labor movement! The difference is that, when this has happened in the past (OK, waaay in the past), the union officials have found a little bit of spine to stiffen and actually fought back -- albeit often half-heartedly or in a generally half-assed manner. But when Gettelfinger and his "UAW, Inc." felt a little bit of heat from AAM, they groveled and begged for the bosses' forgiveness in the media.The UAW officials call this "the best we could do". Oh, really?! Well, if this is the best you could do, then you have no business being in charge of a push broom, much less a supposed labor union. This is why we have called for workers' control of the strike from the beginning. We knew these officials would knife our brothers and sisters for their own gain, and said so from the get go.We urge our fellow workers voting today in Detroit to send a strong message and vote NO on the contract. You might not be able to stop Gettelfinger from throwing you to the jackals, but you can make it clear that this fight is not over and will continue.The League will have more on this historic defeat for working people in the U.S. in the June issue of Working People's Advocate

Assuming the contact is ratified, workers would see a short-term boost.

When they return to work, they'll be paid at their old wage levels from before the strike -- but only for up to 90 days.

American Axle aims to cut its UAW workforce covered by the tentative contract by 2,000 by the end of the year through attrition programs and even layoffs, said people who were briefed on the talks. Workers were told that 900 of those would come from the remaining Detroit plant.

Additional concessions that go beyond wages and benefits would give workers five fewer holidays over the course of the 4-year contract, a smaller holiday bonus, shorter breaks and smaller shift premiums.

Is it just me or is that messed up? What part of this sounds beneficial to the workers? In these days with the US recession, the workers are over a barrel, to keep a lower paying job or starve. Some choice!

During a campaign speech in suburban Detroit Wednesday, Barack Obama, the leading Democratic candidate for the US presidential nomination, made several comments about the strike by 3,650 workers at American Axle & Manufacturing.

“Not too far from here, at American Axle, UAW members have gone on strike to fight for good wages and good benefits, and a decent standard of living,” he told the audience at a town hall meeting at Macomb County Community College. “These are things that all hardworking families should expect and that UAW members deserve, and we stand in solidarity with the folks on the picket lines, and the families impacted by this strike.”

He continued by saying that the strike at AAM was part of a broader struggle “to ensure that we have good manufacturing jobs so American workers can raise a family, have health care when they need it, put their children through college, and retire with dignity and security.”

These were the first public remarks by Obama about the strike, although workers have been walking the picket lines for nearly three months. The American Axle strike is one of the longest strikes in the auto industry in decades.

Obama did not propose any assistance to the strikers—many of whom are losing their homes and being forced to live on hand-outs from soup kitchens with nothing but $200 a week in strike benefits.

Nor did he condemn or propose anything to stop CEO Richard Dauch, who has threatened to close the plants and shift production to Mexico if strikers do not accept a 50 percent wage cut.

American Axle workers should take Obama’s pronouncement of support for what it is: a phony and insincere effort to fool them and maintain the illusion that the Democratic Party speaks for working people. Presuming he is the Democratic Party nominee, Obama will continue to posture as a candidate for working people, even as he defends the basic interests of the corporations and Wall Street.

Obama did not come to Michigan to support the struggles of American Axle workers and other auto workers. Rather his purpose was to strengthen his ties to the auto executives and the United Auto Workers bureaucracy in order to further his campaign for the Democratic nomination.

I suggest that the workers keep this in mind and use the information at general election time.  There will be a candidate out there that has their best interests at heart; find them and vote for them.