Category Archives: labor issues

U.S. July Jobs Numbers are Dreadful

Even though the latest economic data show that the contraction during the Great Recession was slightly less severe than previously reported, it remains the largest decline since quarterly data became available in 1947. Cumulatively, real GDP fell by 4.3% during the recession. Moreover, the jobs lost then have never been recovered. Continue reading

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Opel Union Members in Germany Vote Down Labor Deal

Today, IG Metall union member employees of Adam Opel AG in Bochum voted against a revised labor agreement that would have offered their location some long-term jobs while cutting others. Since Opel management at the loss making GM subsidiary previously said that no further negotiations on the proposed labor agreement will take place, the production of the Zafira Tourer and the exclusion of compulsory separations will run out by the end of 2014. Continue reading

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GM Cuts Powertrain Locations in Efficiency Move

General Motors will close three leased facilities in Wixom, Michigan; Castleton, Indiana, and Torrance, California and consolidate their powertrain engineering activities into a Global Powertrain Engineering center in Pontiac, Michigan. GM R&D’s Propulsion Systems Research lab in Warren, Michigan will also relocate to the Pontiac campus, including its electric motor engineering . Continue reading

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Mississippi Leaders blast Nissan for Its Anti-Union Efforts

On the opening morning of the press previews at the North American International Auto Show, a pressure group called the Mississippi Alliance for Fairness at Nissan – MAFFAN – spoke out in Detroit against what it says is unfair labor practices at Nissan’s non-unionized plant in Canton. Continue reading

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Presidential Run Gets Uglier – Labor Ads “Romney a Traitor”

The United Auto Workers Union among other labor groups is applauding and promoting new advertisements that call presidential candidate Mitt Romney an economic traitor who desecrated teh American flag. The ads – both television and online were unveiled today by a front group called Workers’ Voice and Patriot Majority Continue reading

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Ford to Shut Genk as part of latest European Turnaround Plan

Ford Motor Company today announced it will close the Genk industrial complex as part of a trimming of its Europe manufacturing facilities under its latest European turnaround plan to return the cash hemorrhaging subsidiary to profitability. Continue reading

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French Government Backs €7B in PSA Peugeot Citroën Debt

The French State will provide up to €7 billion in refinancing guarantees for new bond issues during the 2013-2015 period. It is the latest example of a taxpayer bailout of an ailing auto company facing increasingly limited credit options in the private capital markets, if they now exist at all. The subsidy is subject to EU approval by the Competition Commission in Brussels, and is vehemently opposed by the German state of Lower Saxony, the second largest owner of VW, the largest automaker in Europe by far. Continue reading

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Firing of BMW Salesperson for Facebook Photos Upheld

The National Labor Relations Board has found that the firing of a BMW salesperson for photos and comments posted to his Facebook page did not violate federal labor law, because the activity was not protected. Continue reading

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CAW Members Approve New Chrysler Two-Tier Labor Contract

CAW members at Chrysler have approved a new collective bargaining agreement, voting 90% for ratification, the Canadian union announced late yesterday. The number of Chrysler members actually casting ballots was not disclosed after ratification meetings held over the weekend in Windsor, Brampton and Etobicoke, Ontario.

It was the end of a difficult series of negotiations for the weakened union, as the three multinational automakers – Chrysler, Ford and GM – presented a united front and asked for the end of all defined benefit pensions, cuts in current wages, which ranged from C$34-$41, dropping the “30 years and out” retirement provision, and elimination of most work rules. The Detroit Three argued that an overvalued Canadian dollar, unhealthy financial markets, and increasing imports from Asia and Europe, required the drastic givebacks. When the deal was finally done, a partial victory emerged for both sides, and it was arguably the best the union could do against job-exporting automakers without bringing the factories tumbling down on its own union members. Continue reading

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GM CAW Members Overwhelmingly Approve New Contract

CAW members at General Motors have approved a new collective agreement by 73% after voting took place at a series of ratification meetings Wednesday and Thursday in Oshawa, St. Catharines and Woodstock, Ontario. The union did not release the actual number of members who voted but said that 72% of production workers approved the deal, with skilled trades members 79% in favor. The CAW represents 21,000 workers at the Detroit Three auto companies, including more than 8,000 GM workers including 2,500 at CAMI in Ingersoll, Ontario. Continue reading

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Ford CAW Approves First Four-Year Two-Tier Wage Contract

Now for the first time at Ford Canada under a “New Hire Grow-In program” fledgling union workers start at C$20.40, equal to 60% of the current highest member $34 base rate, and only get full compensation after ten years. The Obama Administration broke the power of the UAW in the U.S. as required terms for financing bankruptcy reorganizations at Chrysler and General Motors. As a result, unionized costs in the U.S. are now lower than in Canada and at some Japanese North American plants. Continue reading

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Canadian Auto Workers Have Tentative Deal at GM. Fiat Holds Out

Chrysler negotiators might be holding out to see if the CAW can get the controversial contracts ratified. A step in that direction occurred today as CAW in-plant leadership at Ford unanimously endorsed the new, four-year collective bargaining deal that extends U.S. style two tier wages. The union will be holding a series of ratification meetings over the weekend, where members at Ford will vote on the tentative deal. Continue reading

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CAW Working as 24-hour Contract Talks Shift to Chrysler, GM

Thus far, what is known of the Ford contract represents mixed results for the union, which was fighting a defensive action since talks opened in August. In spite of a push to reduce wage costs by all the automakers, the union retained its base pay and got cost of living bonuses. However, the controversial two-tier wage system that union members decry as divisive remains in place for ten years. Sharply lower wages for new hires at 60% of full pay would only allow them to reach parity after they are on the job for ten years. This could pose ratification problems. A similar deal remains controversial at the UAW in the U.S. among its members, which was successful last year in getting a two-tier contract renewed in spite of member opposition. Continue reading

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Ford Canada and CAW Reach Tentative Contract Agreement

Ford Motor Company and the Canadian Auto Workers union (CAW) have reached a tentative agreement on a four-year national labor contract covering approximately 4,500 Ford unionized employees in Canada. The agreement came just hours before a strike deadline. General Motors and Chrysler currently face potential walkouts at midnight. Continue reading

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Republican NLRB Member Terence Flynn Resigns Over Ethical Violations. Romney Adviser under Criticism for Links

Flynn’s resignation as a temporary Board member is effective 24 July 2012, a laughably long time given the seriousness of the findings by the Inspector General of many instances of misconduct. In the view of many critics, Flynn should resign immediately and the Department of Justice should pursue criminal charges. For the moment, Flynn has recused himself from all agency business and has asked that the President withdraw his pending permanent nomination for Board Member of the NLRB. Continue reading

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