GM, UAW in dispute over imports

[CHIMO]

Source: The Associated Press

DETROIT — Critical concession talks between General Motors Corp. and the United Auto Workers are being overshadowed by a public spat about the auto maker's plans to import vehicles from other countries while it closes 16 U.S. factories.

The fight, which began last week, continues with less than two weeks left before a June 1 deadline for GM and the union to reach a deal on concessions that are a critical part of the auto maker's government-ordered restructuring.

It said GM wants to nearly double the number of imports from those countries, costing 21,000 UAW jobs in the U.S.

GM acknowledged in documents submitted to Congress that it plans to start importing small cars from China starting in 2011, with the number rising to more than 51,000 by 2014. But the company says the percentage of cars made and sold in the U.S. will remain stable, with fewer imports likely from Canada.


Read more: http://www.theglobeandmail.com/servlet/story/RTGAM.20090518.wgmuaw0518/BNStory/Business

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‘Tiny steps of progress' in GM, CAW talks

TORONTO — Labour concession talks between General Motors of Canada and the Canadian Auto Workers intensified Monday, several days past a government-imposed deadline, as the union president said demands were getting out of hand.

“We believe we've already made the sacrifices necessary, we believe we're close to our limit,” CAW president Ken Lewenza said in an interview.

“At the end of the day, sooner or later, we're not going to be able to go any further and we're close to that.”

http://business.theglobeandmail.com/servlet/story/RTGAM.20090518.wcaw0518/BNStory/Business/home

It's the golden rule.
http://www.thestar.com/article/635681

[endless october]

1. goodbye, middle class. we hardly knew ye.

[Octafish]

6. What a surprise.

Guess who's uncle was longtime head of the U.S. China Chamber of Commerce? A hint...

Know your BFEE: The China-Bush Axis

Of course, it gets worse. Unfortunately.

[customerserviceguy]

2. This is NOT what we had the government throw billions of dollars at GM for

This is not a transition plan for GM executives. How can you talk about wanting taxpayer money out of one side of your mouth, while sending jobs overseas out of the other side of your mouth?

If this is the best GM can do, then it's time to pull the plug now. We'll still have Ford, and if we can show what happens to those who outsource manufacturing jobs, maybe they'll get the picture as well.

[skoalyman]

3. that sucking sound is turning into a super massive black hole

[Octafish]

5. AIG has received almost $180 Billion.

That's more than 10 times more than the $16 billion GM has gotten. And AIG doesn't do a damn thing to make America a better place with high-paying jobs and the rest that the manufacturing secotr has done. Good jobs for lots of people.

What's more, the big bonus turds in the "financial sector" are the ones who wrecked the economy betting their companies' assets on derivatives, hedge funds and disaster capitalism. Great people.

[blue_onyx]

4. Actually, this is exactly what the gov. wanted

Everyone, including Obama, knew what becoming competitive with the foreign company meant (cutting union wages/benefits and moving production out of USA). We need to change our trade policies to give GM the incentive to build all vehicles here.

[Psephos]

7. Umm, just a thought, but the UAW and Uncle Sam are the GM executives now

All that remains left to do is the ceremony.

You don't seem to understand that GM isn't sending small-car jobs overseas. GM doesn't build econoboxes domestically. It can't, without losing money. In fact, GM has not made any net profit in North American car operations for many years. Its overseas businesses subsidize North America.

Meanwhile, unless the UAW agrees to some radical cost reductions (by bargaining with itself? lol), GM has two choices regarding economy cars. Import them from its overseas operations, or not sell them. Competitive small cars cannot be manufactured at a break-even under GM's current cost structure in North America. Most of the problem is not the wage paid, but the groaning benefits load (especially the one million+ people drawing gold-plated legacy bennies), and the work rules. Yes, it would help if the autoworker hourly wage regressed a bit toward the US manufacturing mean, too.

This isn't just my opinion. This is now the official Government Motors finding.

[AndyTiedye]

8. Universal Health Care Would Make GM's Bottom Line a Lot Better, Yes?

A lot of those expenses you are going on about are health care for workers and retirees.

[Psephos]

9. It sure wouldn't hurt. ;) eom