UAW strikes GM

[Mr.IncrediblyBored]

http://www.freep.com/apps/pbcs...&theme=AUTOTALKS072007

UAW STRIKES GM: Pickets go up
September 24, 2007

BY TIM HIGGINS
FREE PRESS BUSINESS WRITER

UAW members started picketing at Hamtramck, Lansing and Orion and other locations when the union?s 11 a.m. deadline for a new labor agreement with General Motors Corp. passed.

A news conference is planned at 12:15 p.m. at the UAW's Solidarity House in downtown Detroit.

Carole Garcia, driving out of the Hamtramck plant with a picket sign sticking out of her sunroof, said she supports Ron Gettelfinger and believes executives are overpaid while workers are being asked to make sacrifices.

"You gotta do what you gotta do," she said.

While strikers and sympathizers honked horns, workers streamed out of the plant at their regularly scheduled lunch hour. They hustled to pick up signs and head to their posts at three gates to the plant, which usually makes Buicks and Cadillac DTS sedans.

Greg Kelly, a union members with 29 years at GM, said he doesn?t think either side could with stand more than a two-week shutdown, but he is "proud" of his union.
"I think it?s what we need to be doing," he said.

At 1:40 a.m. this morning, the UAW officially announced that it had set an 11 a.m. strike deadline, which coincides with scheduled lunch breaks at some plants. The two sides continued to negotiate this morning.

Tosa was first walkout at GM since 1998. The 1999 and 2003 national UAW negotiations concluded without a work stoppage at any of the three Detroit automakers.

In 1998, GM vehicle output was shut down nationwide by local strikes at the Flint Metal Center and a Delphi parts plant in Flint. The shut down stopped GM?s North American production for 53 days and cost the company $2 billion. ...<snip>

 

[Toastedlightly]

Can they just say.. fuck the union?

 

[JulesMaximus]

Carole Garcia, driving out of the Hamtramck plant with a picket sign sticking out of her sunroof, said she supports Ron Gettelfinger and believes executives are overpaid while workers are being asked to make sacrifices.

So, they're picketing to get lower salaries for the executives? Good luck with that...

 

[GoatMonkey]

GM can't afford any strikes. It's like these people haven't noticed the competition and the sorry state of GM.

Maybe they're too stupid to realize it yet, but they're just screwing themselves. Of course GM execs should take lower salaries out of the goodness in their hearts just to help save the company. However, if you're going to get any decent execs you have to pay them. The execs can move to a different company much easier than a guy on an assembly line.

 

[nakedfrog]

Originally posted by: JulesMaximus

Carole Garcia, driving out of the Hamtramck plant with a picket sign sticking out of her sunroof, said she supports Ron Gettelfinger and believes executives are overpaid while workers are being asked to make sacrifices.

So, they're picketing to get lower salaries for the executives? Good luck with that...

It's hard to argue with the sentiment, though.

 

[JulesMaximus]

Originally posted by: nakedfrog

Originally posted by: JulesMaximus

Carole Garcia, driving out of the Hamtramck plant with a picket sign sticking out of her sunroof, said she supports Ron Gettelfinger and believes executives are overpaid while workers are being asked to make sacrifices.

So, they're picketing to get lower salaries for the executives? Good luck with that...

It's hard to argue with the sentiment, though.

Agreed.

 

[Zenmervolt]

There's an interesting economic argument for why executives are paid far more than they're worth. The theory goes that by grossly over-paying executive-level employees, you motivate the workforce to aspire to those same positions and thereby get more work and loyalty from them.

The idea is that the average work is going to grumble about it a little, but ultimately be more enticed by the prospect of eventually becoming over-paid himself (or herself) and out of a desire to reach the same level of over-payment will work harder.

I don't know what I think of that idea, but it has some surface appeal.

ZV

 

[jagec]

Ironically enough, some people credit the lower pay of the Japanese execs as contributing to the success of those companies..obviously not the only factor, of course. Right now they pay their top 26 execs a COMBINED $8.27 million, whereas the president of GM is getting about 5.5 by himself.

 

[iamwiz82]

Originally posted by: jagec
Ironically enough, some people credit the lower pay of the Japanese execs as contributing to the success of those companies..obviously not the only factor, of course. Right now they pay their top 26 execs a COMBINED $8.27 million, whereas the president of GM is getting about 5.5 by himself.

It probably has nothing to do with this:

At the core of the talks was GM's proposal to unload $50 billion in retiree obligation through a company-funded, union-run trust fund.

 

[JulesMaximus]

Originally posted by: iamwiz82

Originally posted by: jagec
Ironically enough, some people credit the lower pay of the Japanese execs as contributing to the success of those companies..obviously not the only factor, of course. Right now they pay their top 26 execs a COMBINED $8.27 million, whereas the president of GM is getting about 5.5 by himself.

It probably has nothing to do with this:

At the core of the talks was GM's proposal to unload $50 billion in retiree obligation through a company-funded, union-run trust fund.

Of course that isn't mention in the quote in the OP's post... :roll:

 

[nakedfrog]

Originally posted by: Zenmervolt
There's an interesting economic argument for why executives are paid far more than they're worth. The theory goes that by grossly over-paying executive-level employees, you motivate the workforce to aspire to those same positions and thereby get more work and loyalty from them.

The idea is that the average work is going to grumble about it a little, but ultimately be more enticed by the prospect of eventually becoming over-paid himself (or herself) and out of a desire to reach the same level of over-payment will work harder.

I don't know what I think of that idea, but it has some surface appeal.

ZV

I can't really see how much water that argument holds in a work environment that has pretty much done away with the concept of loyalty (or at least as it used to exist)

 

[exdeath]

Originally posted by: Zenmervolt
There's an interesting economic argument for why executives are paid far more than they're worth. The theory goes that by grossly over-paying executive-level employees, you motivate the workforce to aspire to those same positions and thereby get more work and loyalty from them.

The idea is that the average work is going to grumble about it a little, but ultimately be more enticed by the prospect of eventually becoming over-paid himself (or herself) and out of a desire to reach the same level of over-payment will work harder.

I don't know what I think of that idea, but it has some surface appeal.

ZV

The people working their way up usually have their sights on the guy next to them that is making $1 more than them, not the one making $50 million more that they've never seen before.

 

[Mr.IncrediblyBored]

Originally posted by: JulesMaximus

Originally posted by: iamwiz82

Originally posted by: jagec
Ironically enough, some people credit the lower pay of the Japanese execs as contributing to the success of those companies..obviously not the only factor, of course. Right now they pay their top 26 execs a COMBINED $8.27 million, whereas the president of GM is getting about 5.5 by himself.

It probably has nothing to do with this:

At the core of the talks was GM's proposal to unload $50 billion in retiree obligation through a company-funded, union-run trust fund.

Of course that isn't mention in the quote in the OP's post... :roll:

I just quoted the first third of the article - nothing more, nothing less.

 

[iamwiz82]

Originally posted by: KnightBreed

Originally posted by: JulesMaximus

Originally posted by: iamwiz82

Originally posted by: jagec
Ironically enough, some people credit the lower pay of the Japanese execs as contributing to the success of those companies..obviously not the only factor, of course. Right now they pay their top 26 execs a COMBINED $8.27 million, whereas the president of GM is getting about 5.5 by himself.

It probably has nothing to do with this:

At the core of the talks was GM's proposal to unload $50 billion in retiree obligation through a company-funded, union-run trust fund.

Of course that isn't mention in the quote in the OP's post... :roll:

I just quoted the first third of the article - nothing more, nothing less.

I dont believe that the Free Press article even mentioned it. The health benefits are the stumbling block right now. From what I have heard through the UAW grape vine, GM may offer $10,000 to each member who votes yes on the GM contract.

 

[Mr.IncrediblyBored]

Originally posted by: iamwiz82
I dont believe that the Free Press article even mentioned it. The health benefits are the stumbling block right now. From what I have heard through the UAW grape vine, GM may offer $10,000 to each member who votes yes on the GM contract.

Seems like a great strategy. GM will have spent billions by the time this is said and done. I wonder how much this will save them long term.

 

[ponyo]

This is sad. Both sides will come out losers. Even when this is settled, who wants to buy a car or part made by potential angry disgruntled workers? I would avoid GM products all together for least 6 months to a year.

 

[MrPickins]

Unions served their purpose once, but now they just tend to get in the way, IMHO.

 

[woodie1]

Originally posted by: MrPickins
Unions served their purpose once, but now they just tend to get in the way, IMHO.

Those on the union payroll have to earn their keep.

 

[PricklyPete]

Originally posted by: Naustica
This is sad. Both sides will come out losers. Even when this is settled, who wants to buy a car or part made by potential angry disgruntled workers? I would avoid GM products all together for least 6 months to a year.

The workers are not disgruntled. They want the strike to be over just as much as anyone else...they just have to strike because they are part of the union (they make that agreement when they join).

GM can weather a short strike.

 

[iamwiz82]

Originally posted by: PricklyPete

Originally posted by: Naustica
This is sad. Both sides will come out losers. Even when this is settled, who wants to buy a car or part made by potential angry disgruntled workers? I would avoid GM products all together for least 6 months to a year.

The workers are not disgruntled. They want the strike to be over just as much as anyone else...they just have to strike because they are part of the union (they make that agreement when they join).

GM can weather a short strike.

From what I have heard, GM can survive a fairly drawn out one. It will help lower than inventories while not having to pay 70,000 people.

 

[PricklyPete]

Originally posted by: iamwiz82

From what I have heard, GM can survive a fairly drawn out one. It will help lower than inventories while not having to pay 70,000 people.

That is what I heard as well. There is an initial positive cash flow in any strike as shipped cars continue to provide revenue while plants are shut down and workers are not being paid. Of course there is an eventual whiplash when inventories dry up (at least desired inventories) and cash flow is needed.

Still, GM still has some pretty deep pockets...so I don't see this being a huge issue if they can resolve in the next couple of weeks. I'd say this is much more of a problem for the UAW workers and their towns than GM at this point.

 

[AdamK47]

That poor poor Michigan economy just keeps on taking the hits.

 

[BUTCH1]

Way back when, GM forgave pay increases by offering union members full healthcare
benny's even after thet retire. Seemed like a good idea at the time but now health care
costs have spiraled out of control and it's biting GM in the a$$ now. I read somewhere
GM spends like $1,800 in health care benefits for every car/truck it makes...ouch..

 

[cardiac]

Looks like they settled it already: GM Strike.

Bob

 

[nakedfrog]

The automaker is expected to offer a targeted special attrition program to move workers in those non-core jobs off the active worker members rolls. Second-tier workers wages and benefits will average $27 per hour, compared with the average $73 per hour of current workers.

Am I reading this wrong? Average of $73 per hour?