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  • William Maley
    William Maley

    The Upcoming Fight Between General Motors and the UAW

      Removing products may have caused a Pandora's box to be unleashed before negotiations between GM and UAW begin next year

    General Motors' announcement to idle and possibly close five plants next year comes around the same time that the company begins their negotiations with the United Auto Workers (UAW). Already, the UAW has said they would go "through every legal, contractual and collective bargaining avenue open to our membership," to try and keep the plants.

    GM's rationale for the move is to improve profitability and help reduce the underutilization of its plants. As we reported last week, GM represents 1 million of the 3.2 million units of underutilized capacity in the U.S. through October.

    We should note that GM did not say they were going to close down the plants. They used the word "unallocated". We'll let The Detroit News explain why.

    Quote

    But GM was careful last week in its restructuring announcement when it addressed the affected plants, coining a new term: "unallocated."

    The reason: to avoid the words "idle" or "close," which are explicitly addressed in the 2015 agreement between GM and the UAW. The "Plant Closing and Sale Moratorium," outlined on page 356 of the agreement, states that GM will not will not close or idle "in any form, any plant, asset, or business unit of any type" outside of collective bargaining, with a caveat for extreme market conditions or an "act of God."

    1

    Emphasis mine. Under the current contract, GM cannot close or idle any plant unless it is done through the collective bargaining process. By not providing any future products, GM may have found a loophole they can use in the negotiations. But it may have opened up a Pandora's box. 

    "This was long planned through intentional strategic investment decisions and product movement over our objections. They may have kept the news about it quiet, but this was planned and had to be gradually executed long before sales numbers were known,” the UAW said in a statement to the News.

    "GM and the UAW will talk about numerous topics that affect our employees and our business during 2019 negotiations. As always, our intent is to work with the UAW constructively to address our business challenges in a way that keeps the company competitive in these changing market conditions," GM said in a statement.

    Source: The Detroit News

    Edited by William Maley



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    There are always holes and if you have no product allocated to those plants, then there is no reason to keep the going. This is not socialism, but capitalism.

    UAW needs to EMBRACE the New Era of EVs and work with GM to produce them at these unallocated plants and increase training of needed new skills for their workers.

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    1 hour ago, dfelt said:

    There are always holes and if you have no product allocated to those plants, then there is no reason to keep the going. This is not socialism, but capitalism.

    UAW needs to EMBRACE the New Era of EVs and work with GM to produce them at these unallocated plants and increase training of needed new skills for their workers.

    I don't think the problem is with UAW embracing EV's, it is the driving public.

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    46 minutes ago, A Horse With No Name said:

    I don't think the problem is with UAW embracing EV's, it is the driving public.

    Seems that GM does not think the workers have the skill set based on what they have said for working on and supporting EVs.

    Once we have options out there beyond Leaf, BOLT and Tesla, I think it will do just fine, but this also requires the workforce to retrain for the new technology.

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    1 hour ago, dfelt said:

    Seems that GM does not think the workers have the skill set based on what they have said for working on and supporting EVs.

    Once we have options out there beyond Leaf, BOLT and Tesla, I think it will do just fine, but this also requires the workforce to retrain for the new technology.

    I don't think the problem is with the line employees. That is the least of their problems. Being perceived as a legacy brand 20 years after they started building exciting product again by the motoring public is a much larger problem.

    Can you believe the C5 corvette first went on sale 22 years ago?

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    18 hours ago, dfelt said:

    There are always holes and if you have no product allocated to those plants, then there is no reason to keep the going. This is not socialism, but capitalism.

    UAW needs to EMBRACE the New Era of EVs and work with GM to produce them at these unallocated plants and increase training of needed new skills for their workers.

    D-Ham actually did pretty good with the Volt. So I doubt it is about the EVs....

    It’s simply about one thing-money. GM has had plans to more robots in the plants to build these new cars/trucks. A new Sonata   Is built with a quarter of line workers GM uses. Also with EVs, for example, less stuff is assembled as whole pieces or units are brought in from the outside. Simply based on what I have seen from the Volt- you need like half the workers...

    Father time has finally caught up with the assemby process-even the CHinese can build stuff with way less people.....

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    1 hour ago, daves87rs said:

    D-Ham actually did pretty good with the Volt. So I doubt it is about the EVs....

    It’s simply about one thing-money. GM has had plans to more robots in the plants to build these new cars/trucks. A new Sonata   Is built with a quarter of line workers GM uses. Also with EVs, for example, less stuff is assembled as whole pieces or units are brought in from the outside. Simply based on what I have seen from the Volt- you need like half the workers...

    Father time has finally caught up with the assemby process-even the CHinese can build stuff with way less people.....

    Very true, the skateboard concept never took off in the 90's when it was all the rage at GM as it would reduce to 25% the number of folks needed to create an auto and the UAW is all about keeping idiot jobs to keep their leadership in power. We are so way past that. The new jobs will be in maintaining the robots that build stuff. Welcome to the 21st century until the 22nd century when robots repair robots and humans are useless as robots will create all due to AI. :P 

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    2 hours ago, daves87rs said:

    D-Ham actually did pretty good with the Volt. So I doubt it is about the EVs....

    It’s simply about one thing-money. GM has had plans to more robots in the plants to build these new cars/trucks. A new Sonata   Is built with a quarter of line workers GM uses. Also with EVs, for example, less stuff is assembled as whole pieces or units are brought in from the outside. Simply based on what I have seen from the Volt- you need like half the workers...

    Father time has finally caught up with the assembly process-even the Chinese can build stuff with way less people.....

    China is actually getting much better in some ways with innovation than we are, which is rather frightening. 

    I don't think Sherrod Borwn, D-Ohio Senate, and Rob Portman, R-Ohio Senate, will save Lordstown with there meeting with Ms Barra.

    To me, public perception of GM still lags the quality of product, which is going to e the over riding Meta issue here.

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    • Well, the stock Pirelli P-Zero Neros are finally gone.  I kept the two good ones so I can hopefully sell them to some poor sucker(s) that needs them for a lease return.  I was able to get a set of four tires installed with warranty for less than it would have cost me to replace the two Pirelli's with sidewall bubbles, one of which was bad and the other of which was very bad. I always said I would not buy Chinese tires but I did it anyway.  My only excuse = Lease.  I will say even though they were very cheap, they had surprisingly good reviews.  They are Nankang NS-25's.  My impression after two days with them:  much quieter than the 24k mile Pirelli's that had started to get quite loud before 15K miles, seem to handle at least as well on dry pavement and due to the softer sidewalls of a non-run flat they also seem to take the bumps much better.  Only downside so far seems to be that they tramline much more.  First drive on the grooved cement interstate had the car squirming around following the grooves.  Not severe or concerning but definitely noticeable.  It will be interesting to see how they do in rain and snow.
    • The old L03 305 is now out.  Threw a cam and springs in the LS1 and it is now ready to go in.  My torque converter finally arrived a couple of days ago after a 6 week wait.  It will be interesting to see how long the trans and/or rear end last.  My budget is already blown so no money for upgrades this year unless I can find a used 28 spline 3.42 rear out of a 1990-92 F-body.
    • The van is in good shape now.  The replacement radio still hasn't come in due to the COVID shutdowns putting them behind but the only thing that doesn't work is the nav and since it has Android Auto, we just use that when necessary. Only possible after effect of the crash is it seems to make a lot of tire noise now.  It had the winter tires on it when it was hit and they replaced both driver side as well as the passenger front since the van was pushed up a curb when hit.  The factory tires are the ones that are loud and I don't recall them being loud when we removed them in the fall.  Either there is a bad wheel bearing or two or the noisy tires were on the rear of the car and not as noticeable until I rotate them to the front.  Too much tread left to replace them, though.  I'll have the dealership check the wheel bearings whenever I get to take it back in for the Radio swap. After several COVID induced reschedules, the court case is finally being heard next week via teleconference.
    • According to the '77 brochure, the Phoenix had the 231 V6 standard, and the Iron Duke 151, the 305 V8 and 350 V8 as options. Also standard was a 3-spd manual on the column, with a 3 on the floor and a THM optional.
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