Category Archives: labor issues

Opel Woes Continue as EU Auto Sales Decline In April. Latest Turnaround Plan Faces Fierce Union Fight over Plant Closings

Posted on 15 May 2012 by Ken Zino

Worrisome for GM shareholders, including the U.S. taxpayers who still own 32% of the world’s largest, but only marginally profitable, automaker after a $50 billion bailout, Stracke told employees that Opel will stay with existing labor agreements through 2014. With the European auto market headed for its fifth straight year of sales declines and with no upturn predicted for years, it’s impossible to see how Opel will cease being a drag on GM earnings. Continue reading →

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Bankrupt Hawker Beechcraft Pensions Only 56% Funded

Posted on 8 May 2012 by Ken Zino

Collectively, Hawker Beechcraft’s three pension plans are only 56% funded, with $769 million in assets to cover $1.4 billion in benefits. If Hawker Beechcraft ended the plans under the bankruptcy, the Pension Benefit Guaranty Corporation of the U.S. Federal government would pay $533 million of the $611 million shortfall. PBGC is the company’s largest creditor. Continue reading →

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PBGC, Bendix Reach Settlement, End Litigation over Pensions

Posted on 2 May 2012 by Ken Zino

Critics of the federal agency say it has been lax and ineffective in protecting pensions. Under today’s settlement, PBGC won’t require Bendix to put up collateral for the remaining $8.4 million in pension liability, provided the company remains financially strong until the end of the year. Continue reading →

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EU Automakers Protest Globalization as Trade Policy

Posted on 20 March 2012 by Ken Zino

Call it pragmatism or pure hypocrisy, but the Association of European Automakers – ACEA – is protesting trade negotiations to open markets. This is the so-called globalization that many – if not all- of its parent automaker companies previously used to break or weaken unions as they moved jobs away from their older, established manufacturing sites. Now, the effect of globalization is coming home to an impoverished European roost as the EU opens up formerly protected markets to developing countries, some of which produce automobiles. Management and remaining workers are in danger of losing their jobs this time. Continue reading →

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BLS Says U.S. Unionization Rates Unchanged in 2011

Posted on 1 February 2012 by Ken Zino

The data also show that among full-time wage and salary workers, the median weekly earnings of union members were $938, compared to $729 for nonunion workers. Continue reading →

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PBGC Says American Airlines Workers Should Worry About Pensions and Medical Care – So Should Taxpayers

Posted on 30 January 2012 by Ken Zino

The Pension Benefit Guaranty Corporation has called out what it says is misleading statements to American Airlines employees by its management about their pension plans under a bankruptcy reorganization. “American Airlines is telling their workers and retirees not to worry, … Continue reading →

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December U.S. Unemployment at 8.5% Remains at Crisis Levels

Posted on 6 January 2012 by Ken Zino

The 200,000 employment increase is roughly half of what is needed each month to return the almost 20 million under-employed and unemployed back to full-time work as taxpayers in the still ailing U.S. economy. At this rate it will take a decade or more to return to pre-Great Recession levels. Since 80% of workers in the U.S. commute to work in a vehicle, the unemployment crisis hurts the auto industry’s prospects and its own fragile, mostly jobless, recovery that is underway. Continue reading →

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GM China Advanced Technical Center Nears Completion

Posted on 19 December 2011 by Ken Zino

GM intends to use Chinese battery suppliers in future electric vehicles – the latest setback for beleaguered U.S. workers who are facing grim employment prospects in the moribund U.S. economy. This is no longer a blue-collar or solely a UAW problem. College level white collar engineering jobs are at stake in advanced technologies touted by politicians as the key to returning the U.S. to global competitiveness. Continue reading →

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GM Moves Canadian Healthcare off Balance Sheet to Trust

Posted on 8 November 2011 by Ken Zino

This means that GM Canada is free from any obligations associated with the cost of providing retiree healthcare benefits for eligible CAW represented retirees, surviving spouses and dependents. In exchange, GM Canada will transfer C$0.8 billion in cash and issue C$1.1 billion of notes to the HCT.

In its Q2 earnings GM had obligations of $4.7 billion in debt, $5.5 billion in preferred stock (U.S. government owns 26.5% of GM), $10.8 billion in unfunded pensions, and $10 billion in other post-retirement employee benefits. It’s not clear how GM is going to fund these. It looks like issuing more common stock is not feasible given current share price of ~$24, far below the IPO price of $33 and its high of $39.48. GM will report Q3 earnings tomorrow. Continue reading →

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Toyota to Export U.S.-Built Sienna to South Korea. FTA that UAW Supported, Also Helps Non-Union Plant Exports

Posted on 2 November 2011 by Ken Zino

The Korea FTA is opposed by all organized labor groups, except the United Auto Workers Union, which in the view of critics sold out organized labor for the promise that 75,000 UAW-built vehicles would be exported to Korea. Thus far Ford and General Motors, all with new four-year UAW contracts, have not announced plans to export to Korea. Continue reading →

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PBGC Sues Bendix for Pension Debt from Plant Closing

Posted on 28 October 2011 by Ken Zino

The action against German-owned Bendix is the first time PBGC has had to go to court to compel a company to cover pension obligations from a plant closing. Continue reading →

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Chrysler UAW Contract Ratified by Rank and File

Posted on 26 October 2011 by Ken Zino

As was the case with newly ratified UAW contracts at GM and Ford, a large part of the Chrysler UAW deal – in this case, $3.4 billion of claimed new investment of $4.5 billion – was part of previously announced business plans after Chrysler emerged from a controversial taxpayer-supported bankruptcy and reorganization in 2009. Continue reading →

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President Obama and South Korean President Lee Defend Korean FTA at a Michigan General Motors Small Car Plant

Posted on 14 October 2011 by Ken Zino

President Barack Obama and South Korean President Lee Myung-bak toured the General Motors Orion Assembly Plant on Friday and spoke to several hundred workers and guests in support of the pending U.S-South Korean Free Trade Agreement. The rally came as U.S. long term unemployment remain at record post Great Depression levels. Korea is the fifth largest producer and fourth largest exporter of motor vehicles in the world, and – up to now – its car market has been closed. Continue reading →

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More Jobs to China as GM Will Develop a New Global Engine Family with SAIC and Pan Asian Technical Center

Posted on 12 October 2011 by Ken Zino

General Motors will develop an all-new global family of small-displacement “Ecotec” gasoline engines over the next several years in China in conjunction with the Shanghai Automotive Industry Corp. (SAIC), Shanghai General Motors (SGM) and the Pan Asia Technical Automotive Center (PATAC). Continue reading →

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Chrysler UAW Reach Tentative Deal

Posted on 12 October 2011 by Ken Zino

Chrysler the smallest of the Detroit Three has agreed to a Chrysler UAW contract it was announced this morning. The UAW Chrysler proposed agreement includes $4.5 billion of investment to produce new models and upgraded vehicles and components by 2015, all of which will be invested directly into retooling and upgrading plants. At first look it appears to be a major victory for Sergio Marchionne, CEO of the Italian-controlled company, who was determined to hold the line on costs, which because of the U.S. government forced bankruptcy in 2009 are at $49 an hour – competitive with non-union auto plants. Continue reading →

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