UAW Strikes! Axle Issues Idle GM Plants

[YSSMAN]

The odd thing is that American Axle used to be owned by GM, so I occasionally wonder how hard it would be for them to re-absorb them and hire all new non-union workers. But, cash is already short, so who knows...

...Then again, how big of an effect is this going to have overall? My guess is that as long as GM's better-selling vehicles aren't effected too much, it won't be a HUGE deal, but it will certainly hurt. I'm pretty sure I noted somewhere that GM's sitting on a four month supply of pickups and SUVs, so this isn't a big deal there. I'd start worrying when Epsilon and W-Body parts become scarce, as they are the meat/potatoes vehicles thats holding the company together...

 

[Philly]

This probably is a good opportunity to trim down that 4 month supply of trucks that probably isn't doing much more than costing money. Large inventories aren't the most cost-effective route.

Stalling the Delta plant might take a bit of a toll on them. Those cars, while not the core of GM sales, do seem to be important products. I find it interesting that this plant is closed though because Wiki says AA&M mostly just supplies SUV and truck parts.

 

[Joey D]

Slightly more fail on the horizon:

UAW threatening GM strike over unresolved issues
The United Auto Workers (UAW) are gearing up to strike against General Motors if progress isn't made on local negotiations affecting three factories in the U.S. The workers at the Arlington, Texas; Parma, Ohio; and Delta Township, Michigan plants are required to give the General a five day notice before the stoppage occurs, and they've told GM's negotiators that if progress isn't made in five days on the local contracts, they'll be laying down their tools. The dispute is primarily over which factory workers will be forced into a lower wage rate. If the work stoppage occurs, it will further compound issues GM is already facing with the American Axle strike, which has forced the automaker to slow or stop production at 30 factories across the U.S and Canada.

Why does GM, or any of the automakers for that reason, put up with this? There are thousands of people without a job right now right here in Michigan, they will work for half of what some of these UAW guys make. Hell give me $10 an hour and basic health insurance and I'll screw cars together. I can fund my own retirement for the time being.

 

[Joey D]

This is not good, especially since the Malibu seems to actually be selling for GM.

UAW threatens to walk out on Chevy Malibu production
General Motors has been dealing with a lot of strikes lately. The United Auto Worker union's strike against one of its main suppliers, American Axle, has been reducing the General's inventory of trucks and SUVs for about a month now, and also threatened production of the Chevy Malibu before the automaker found more parts to keep production going. Just yesterday the UAW walked out of GM's Lansing Delta Township plant where the Buick Enclave, GMC Acadia and Saturn are built. The latter strike is over what the UAW has only referred to as "local contract issues". Whatever those are, they are important enough to come back today and threaten GM with a walk out at its Fairfax plant, one of the two facilities that builds the hot-selling Chevy Malibu. The union has set a five-day ultimatum, and says it will walk out on Malibu production next Tuesday, April 22 if an agreement isn't reached. The other plant building Malibus is in the Detroit suburb of Orion, but it only builds 2,100 Malibus per week compared to the 3,100 units per week built at the Fairfax plant. Clearly the UAW knows exactly where GM is most vulnerable, and its aiming a strike right at it.

Since I live in Orion and I can pretty much see the plant from my house I will be sure to post an update if they do start picketing.

 

[Joey D]

GM is attempting to quell this now.

GM offers up to $200 million to end American Axle strike
General Motors has been hit so hard by the ongoing American Axle strikes that it's stopped production of the GMC Yukon, Denali, Sierra heavy-duty regular and extended cab, its commercial-duty pickup and variants of Chevrolet trucks and Tahoes. All the while, the General is still negotiating with the UAW over local contracts at some of its most important plants. To ease some of its supply problems, General Motors has reportedly offered as much as $200 million to American Axle for the funding of employee buyouts, early retirements and for the support of wage buy downs. The offer, however, is conditional on a quick resolution between American Axle and the UAW.

Spokesman Dan Flores says that GM hopes "the offer will help bridge the gap between American Axle and the UAW and that they will be able to reach a mutually satisfactory agreement in the near future." Both the UAW and American Axle sound supportive of the investment; Bill Alford Jr., vice president and incoming president at UAW Local 235 says, "We're happy that General Motors is finally coming to the table and realizing that they have a stake in American Axle's future." For GM's sake and that of the striking workers, we hope the feuding companies find an amicable solution soon, though it seems unfortunate that GM, which is not exactly posting record profits itself, should need to cough up funding to make it happen.

 

[Tornado]

I still think it would be great if the UAW would wake up and understand that, while their concerns are valid, this isn't the best time to be voicing them.

 

[Joey D]

Still what gets me is why they think they need more money, some get paid more than the engineers who design the parts they put together. Also it really boggles the mind that by striking they are only hurting themselves, I'm really surprised GM hasn't gone to another axle supplier yet.

 

[Tornado]

I'm surprised GM hasn't outsourced all of Michigan to Mexico or Canada by this point, to be honest.

 

[Joey D]

I'm surprised GM hasn't outsourced all of Michigan to Mexico or Canada by this point, to be honest.

Me to, and frankly if and when they do it will destroy the state already more so then it is now. I have never seen so many people out of work and most of them are UAW employees. They still get x% of their pay, which seems quite nice considering they can just lay around the house all day and just get a check.