Back from South Carolina
"Shrinkage" is the Word of the Day
This past weekend was the annual meeting for representatives of AFSCME 3357. I did not take detailed notes of the meeting, and I don't have time now to get into it in depth, suffice it to say that in the past few years, the Plan and local 3357 membership has seen so much shrinkage that it makes George Costanza look like Mr. Ed. The shrinkage in the unionized U.S. auto industry has resulted in a corresponding decrease in the number of UAW Legal Services attorneys.
We're down to 104 attorneys in our local, about half of our peak. There are lots of offices that serve only retirees. Some offices are down to one or 1/2 a staff attorney. Like never before our members need to be jacks of all trades. Soon it may be the norm rather than the exception that each attorney needs to be able to handle every problem code.
While some things that were discussed can't be disclosed as a matter of competitive intelligence, all of the issues that are hot button in my office were raised and discussed. Quite a few attorneys with high seniority are now commuting long distances thanks to being laid off and bumping into new offices. It is becoming apparent (if it wasn't already) that "bumping" is no substitute for severance pay or buyout packages.
I also want to point out that almost all of the area reps at our meeting were high seniority folks. Low seniority attorneys need to get more active in the union for their own self-interest. Under the last contract, we received only a minor raise due to a new retiree healthcare plan. Given that you have to have 15 years seniority and an attained age of 61 or 62 to qualify, it is unlikely that the majority of our members will ever benefit from the retiree healthcare. You will be getting a questionnaire in the mail early next year asking you what issues you think are important going into the negotiations for next year's contract. You should take this questionnaire seriously. Take time and fill it out.
Monday, October 22, 2007
Wednesday, October 17, 2007
Renting a Car?
Where's the Gas Cap?
Autoblog has a discussion on how to tell where the gas cap is on an unfamiliar car. Here are some tips. First, look for an arrow next to the gas pump icon under the car's fuel gauge. If there isn't one, look at the direction the gas pump nozzle is pointing on the gas pump icon. If you follow these two rules you'll be right 90% of the time.
Where's the Gas Cap?
Autoblog has a discussion on how to tell where the gas cap is on an unfamiliar car. Here are some tips. First, look for an arrow next to the gas pump icon under the car's fuel gauge. If there isn't one, look at the direction the gas pump nozzle is pointing on the gas pump icon. If you follow these two rules you'll be right 90% of the time.
Consumer Reports Drops Camry from "Recommended" List
Ford's Quality improvement is "real and sustained"
Detnews.com (check out the snazzy new graphics) has posted a story stating that Consumer Reports magazine is dropping the V-6 version of the Toyota Camry from its "Recommended" list after owner reports suggested below average reliability for its redesigned 2007 model. Transmission problems were to blame for the Camry's fall. The 4wd version of the Tundra pick-up and AWD Lexus GS sedan also skidded to below-average. More critically to Toyota, at this point Consumer Reports will not give redesigned Toyota's a recommended rating based upon a presumption of reliability, a presumption that has long been touted as unfair by critics.
Whereas Toyota fell in Consumer Reports' rankings, Ford came out smelling like a rose. Ford's reliability ratings went up to a level where it is actually more competetive with Toyota and Honda than with GM and Chrysler. The Ford Fusion and Mercury Milan were touted by CR "most reliable" from their inception. The latest report confirms that this was no fluke, these models continue to be very reliable, and Fords as a group are doing well.
Ford's Quality improvement is "real and sustained"
Detnews.com (check out the snazzy new graphics) has posted a story stating that Consumer Reports magazine is dropping the V-6 version of the Toyota Camry from its "Recommended" list after owner reports suggested below average reliability for its redesigned 2007 model. Transmission problems were to blame for the Camry's fall. The 4wd version of the Tundra pick-up and AWD Lexus GS sedan also skidded to below-average. More critically to Toyota, at this point Consumer Reports will not give redesigned Toyota's a recommended rating based upon a presumption of reliability, a presumption that has long been touted as unfair by critics.
Whereas Toyota fell in Consumer Reports' rankings, Ford came out smelling like a rose. Ford's reliability ratings went up to a level where it is actually more competetive with Toyota and Honda than with GM and Chrysler. The Ford Fusion and Mercury Milan were touted by CR "most reliable" from their inception. The latest report confirms that this was no fluke, these models continue to be very reliable, and Fords as a group are doing well.
Monday, October 15, 2007
Breaking News
Chrysler Union Leaders Approve Contract
15 minutes ago, as I write this, just at the tail end of my lunch break, Chysler UAW leaders approved the tentative contract by a voice vote over the objections of a few dissenters. Most of the union reps did not see the contract until this morning. It is likely that few had the opportunity to read the whole thing. The contract must still be voted upon by the rank and file union members.
Chrysler Union Leaders Approve Contract
15 minutes ago, as I write this, just at the tail end of my lunch break, Chysler UAW leaders approved the tentative contract by a voice vote over the objections of a few dissenters. Most of the union reps did not see the contract until this morning. It is likely that few had the opportunity to read the whole thing. The contract must still be voted upon by the rank and file union members.
Weather in Myrtle Beach
The weather in Myrtle Beach, South Carolina is expected to be in the low 80's through this weekend. Have no fear non-attendees, your union representatives will be toiling in a windowless conference room for your benefit.
The weather in Myrtle Beach, South Carolina is expected to be in the low 80's through this weekend. Have no fear non-attendees, your union representatives will be toiling in a windowless conference room for your benefit.
Ford Contract Proposal:
More Buyouts - Less VEBA
According to the Detroit News, the ongoing Ford-UAW contract will likely depart markedly from the "pattern" set by the GM deal. GM's VEBA doesn't kick in for two years. Ford doesn't have that kind of time, so Ford is expected to offer less and demand a faster phase-in for the VEBA. In exchange, Ford has put on the table a bonus structure that rewards union members for future performance in a manner that more closely mimics the incentives for management. Another round of buyouts is expected to allow the company to integrate 7,500 ex-Vistion employees.
More Buyouts - Less VEBA
According to the Detroit News, the ongoing Ford-UAW contract will likely depart markedly from the "pattern" set by the GM deal. GM's VEBA doesn't kick in for two years. Ford doesn't have that kind of time, so Ford is expected to offer less and demand a faster phase-in for the VEBA. In exchange, Ford has put on the table a bonus structure that rewards union members for future performance in a manner that more closely mimics the incentives for management. Another round of buyouts is expected to allow the company to integrate 7,500 ex-Vistion employees.
GM Gets Praise for New Products, Especially Hybrids
Hybrid SUVs and Flex platform are Big Deals
Time magazine this week joined a chorus of praise for GM's recent and upcoming new products. Later this year, General Motors is expected to introduce a "two-mode" hybrid version of the GMC Yukon full-size SUV. The all-new hybrid system is reported to deliver (2008 scale) EPA ratings of 20 city and 22 highway, about a 40% increase in fuel economy. At the same time, the truck still has V-8 performance and can tow 6,000 lbs. The new Yukon comes hot on the heels of a redesigned Cadillac CTS that has received rave reviews and last year's hits, the Enclave/Outlook/Acadia 3-row crossover SUVs. Next on deck is a redesigned Chevrolet Malibu (and a freshened Pontiac G6) and a redesigned Pontiac Vibe.
The big hype will come in 2009 when the Chevrolet Volt is scheduled to appear. The Volt is a plug-in hybrid that uses lithium batteries. Even more radical is that the Volt will be the first car built on a new architecture, the Flex or E-Flex platform that can accommodate almost any power source, from batteries, to hybrid, to hydrogen fuel cell. Opel, GM's European division, even came up with a concept car called the Flextreme that craps Segways.
Judging from future product plans, GM is taking a "it ain't over till the fat lady sings" approach. Chrysler and Ford seem to be auditioning big women wearing viking helmets.
Hybrid SUVs and Flex platform are Big Deals
Time magazine this week joined a chorus of praise for GM's recent and upcoming new products. Later this year, General Motors is expected to introduce a "two-mode" hybrid version of the GMC Yukon full-size SUV. The all-new hybrid system is reported to deliver (2008 scale) EPA ratings of 20 city and 22 highway, about a 40% increase in fuel economy. At the same time, the truck still has V-8 performance and can tow 6,000 lbs. The new Yukon comes hot on the heels of a redesigned Cadillac CTS that has received rave reviews and last year's hits, the Enclave/Outlook/Acadia 3-row crossover SUVs. Next on deck is a redesigned Chevrolet Malibu (and a freshened Pontiac G6) and a redesigned Pontiac Vibe.
The big hype will come in 2009 when the Chevrolet Volt is scheduled to appear. The Volt is a plug-in hybrid that uses lithium batteries. Even more radical is that the Volt will be the first car built on a new architecture, the Flex or E-Flex platform that can accommodate almost any power source, from batteries, to hybrid, to hydrogen fuel cell. Opel, GM's European division, even came up with a concept car called the Flextreme that craps Segways.
Judging from future product plans, GM is taking a "it ain't over till the fat lady sings" approach. Chrysler and Ford seem to be auditioning big women wearing viking helmets.
Union Politics may KO Chrysler Contract
The Chief of the UAW bargaining committee that negotiated the tentative contract with Chrysler, LLC. that was announced last week now says the contract isn't good enough, and he's lobbying union leaders to vote against it.
According to Bloomberg.com, the union official Bill Parker, from Sterling Heights, Michigan is in somewhat of a power struggle with union head Ron Gettelfinger, and he's urging union leaders to vote against the deal in a vote scheduled for today. His chief objection is that the contract does not have any of the future work guarantees that the GM contract includes. Also, there's no guarantee that temporary workers will be offered permanent status.
If I were a UAW member, both of these items would be a big deal to me. While I don't expect that Chrysler will cave on guaranteeing future cars for any given plant, it seems to me that they should give in on the point about the temporary workers.
As an outsider looking in, it seems to me that the UAW-GM negotiating team did an excellent job at not only striking the best deal available, but also working through the political problems to sell the contract to the rank and file. (Although I didn't post on the subject, the GM deal was approved last week by a comfortable margin, though locals at a few component plants (without future work guarantees) rejected the deal.) In comparison, the Chrysler deal seemed rushed. The five hour "strike" was a joke. Whereas strategic leaks prepared the way for a positive spin campaign for ratification, there was no such preparation in the Chrysler deal. Even now, I haven't seen a copy of the proposed "white paper" contract posted on the web, and if I were a Chrysler UAW member, I'd be suspicious that somebody is trying to put one over on me.
Tune in for more information.
The Chief of the UAW bargaining committee that negotiated the tentative contract with Chrysler, LLC. that was announced last week now says the contract isn't good enough, and he's lobbying union leaders to vote against it.
According to Bloomberg.com, the union official Bill Parker, from Sterling Heights, Michigan is in somewhat of a power struggle with union head Ron Gettelfinger, and he's urging union leaders to vote against the deal in a vote scheduled for today. His chief objection is that the contract does not have any of the future work guarantees that the GM contract includes. Also, there's no guarantee that temporary workers will be offered permanent status.
If I were a UAW member, both of these items would be a big deal to me. While I don't expect that Chrysler will cave on guaranteeing future cars for any given plant, it seems to me that they should give in on the point about the temporary workers.
As an outsider looking in, it seems to me that the UAW-GM negotiating team did an excellent job at not only striking the best deal available, but also working through the political problems to sell the contract to the rank and file. (Although I didn't post on the subject, the GM deal was approved last week by a comfortable margin, though locals at a few component plants (without future work guarantees) rejected the deal.) In comparison, the Chrysler deal seemed rushed. The five hour "strike" was a joke. Whereas strategic leaks prepared the way for a positive spin campaign for ratification, there was no such preparation in the Chrysler deal. Even now, I haven't seen a copy of the proposed "white paper" contract posted on the web, and if I were a Chrysler UAW member, I'd be suspicious that somebody is trying to put one over on me.
Tune in for more information.
Friday, October 12, 2007
UAW/Chrysler Have a Deal - A Secret One
If you blinked you missed the strike, which lasted all of about 5 hours on Wednesday. Now there's a tentative deal, but two days later, there's not much info available on what the deal includes. Here's a link to what the Detroit News has published, but don't feel like you have to click on it, because it doesn't say much. Yeah, there's a VEBA, but at 55-60% funding as opposed to the GM deal which funds at 70% if everything goes right. Yeah, there's a two-tier wage scale, but nobody is saying what those wages are. Yeah there are job guarantees, but not for any particular plant. For my UAW-LSP readers - what about legal services? No information.
I'm guessing the UAW has put a clamp on disclosure of the terms while they spin up the hype machine in anticipation of a ratification fight. There's no question the union had to give up substantial ground, and they were working from a weak bargaining position. The rank and file is not likely to be pleased. It looks to me though, that this fight may have been lost when Chrysler was spun off from Daimler Chrysler. The resulting entity was undercapitalized, with an aging product line and very few replacements in the product pipeline. Chryslerberus was not in a position to guarantee replacements for given plants when the replacements have not been designed or projected.
The Chrysler of 2007 looks a lot like the American Motors of the late 1970s. AMC was reduced to rebadging the Gremlin as the "Spirit" and putting 4WD on the Hornet and calling it the "Concord". In the end, they weren't fooling anybody. In 1979 AMC was purchased by Renault, which saw value in Jeep and wanted to enter the American market. Things didn't work out, and in 1987, Renault's interest in AMC was bought out by a resurgent Chrysler. Renault has been doing well in Europe in recent years and is looking to re-enter the U.S. market. It would be ironic if Cerebus sells Chrysler to Renault.
If you blinked you missed the strike, which lasted all of about 5 hours on Wednesday. Now there's a tentative deal, but two days later, there's not much info available on what the deal includes. Here's a link to what the Detroit News has published, but don't feel like you have to click on it, because it doesn't say much. Yeah, there's a VEBA, but at 55-60% funding as opposed to the GM deal which funds at 70% if everything goes right. Yeah, there's a two-tier wage scale, but nobody is saying what those wages are. Yeah there are job guarantees, but not for any particular plant. For my UAW-LSP readers - what about legal services? No information.
I'm guessing the UAW has put a clamp on disclosure of the terms while they spin up the hype machine in anticipation of a ratification fight. There's no question the union had to give up substantial ground, and they were working from a weak bargaining position. The rank and file is not likely to be pleased. It looks to me though, that this fight may have been lost when Chrysler was spun off from Daimler Chrysler. The resulting entity was undercapitalized, with an aging product line and very few replacements in the product pipeline. Chryslerberus was not in a position to guarantee replacements for given plants when the replacements have not been designed or projected.
The Chrysler of 2007 looks a lot like the American Motors of the late 1970s. AMC was reduced to rebadging the Gremlin as the "Spirit" and putting 4WD on the Hornet and calling it the "Concord". In the end, they weren't fooling anybody. In 1979 AMC was purchased by Renault, which saw value in Jeep and wanted to enter the American market. Things didn't work out, and in 1987, Renault's interest in AMC was bought out by a resurgent Chrysler. Renault has been doing well in Europe in recent years and is looking to re-enter the U.S. market. It would be ironic if Cerebus sells Chrysler to Renault.
Wednesday, October 10, 2007
Could GM's VEBA be DOA?
Objections at the SEC to $4.4 Billion IOU
Workers and a retiree have filed objections at the Securities and Exchange Commission to the issuance of a $4.4 Billion "convertible note" that is a core part of the Voluntary Employees Benefit Agreement or VEBA that was negotiated with the UAW as a means to fund retiree health care. The objections cite failure to disclose the risks inherent in GM's financial condition, and the risk the note would be wortheless if GM files bankruptcy. According to the Detroit News, despite the objection the VEBA is likely to be approved by the US District Court in Detroit.
Objections at the SEC to $4.4 Billion IOU
Workers and a retiree have filed objections at the Securities and Exchange Commission to the issuance of a $4.4 Billion "convertible note" that is a core part of the Voluntary Employees Benefit Agreement or VEBA that was negotiated with the UAW as a means to fund retiree health care. The objections cite failure to disclose the risks inherent in GM's financial condition, and the risk the note would be wortheless if GM files bankruptcy. According to the Detroit News, despite the objection the VEBA is likely to be approved by the US District Court in Detroit.
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