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UAW Local: GM To Delay Production Of Revamped Midsize Sedan

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UAW Local: GM To Delay Production Of Revamped Midsize Sedan

DOW JONES NEWSWIRES

April 26, 2007 2:51 p.m.

By John D. Stoll OF DOW JONES NEWSWIRES

DETROIT (Dow Jones)--General Motors Corp. (GM) has informed the United Auto Workers union that the auto maker delayed production plans for a Chevrolet Malibu slated to be built in Fairfax, Kansas, in the near future. It is the second product program GM has told the UAW it is delaying in recent days.

In an informational flyer distributed to UAW employees in Lordstown, Ohio, union officials told workers they had been given "news from the corporation that they have suspended two new vehicle programs for North America." Local 1112 is one of two union locals representing more than 4,000 workers in Lordstown, where GM builds smaller cars, including the Chevrolet Cobalt.

On Tuesday, Dow Jones Newswires reported GM had told the UAW that it is halting development of its so-called Delta vehicle program. Lordstown builds Delta-based cars and officials there have been negotiating a new labor agreement that would allow GM to cut labor costs at the plant in return for being awarded the next round of Delta cars, slated for production in 2009.

The flyer posted on the Local 1112 site mentions the Delta program suspension, and said that GM has "also delayed the Epsilon program which was under construction at the Fairfax, Kansas, assembly plant where they currently build the Chevy Malibu."

A GM spokesman and a spokesman for the UAW couldn't immediately be reached for comment.

While the threat to delay the Delta small car is seen as potential political posturing by GM in an effort to win UAW cooperation, delaying Epsilon production plans could hurt GM in the near term, as it aims to revive its position in the U.S. market. The Malibu, which is slated to be launched as a redesigned vehicle in the near future, is aimed at better competing with Toyota Motor Corp.'s ™ Camry sedan.

Meantime, a UAW official at the Lordstown facility said talks on the agreement - dubbed a Competitive Operating Agreement - have been cut off by high-level UAW officials in Detroit. The UAW and GM had been negotiating cost cuts, such as the outsourcing of several jobs, up until Wednesday, this official said.

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YUP. ALL IT IS.

BUST THE UNION NOW, I SAY.

Ditto - those days are over.... LONG over. Let 'em focus on ToyMotor for a while and let them experience the joy.

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Ever been out of Michigan and seen the real world? Believe what you want, but the UAW themselves are forcing jobs to leave Michigan. Care to list off how many of those countries you listed where the unions get paid pensions from the employer? Oh that's right, none of them do.

This was a reply to the post above mine, which mysteriously disappeared.

Edited by CaddyXLR-V
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Ever been out of Michigan and seen the real world? Believe what you want, but the UAW themselves are forcing jobs to leave Michigan. Care to list off how many of those countries you listed where the unions get paid pensions from the employer? Oh that's right, none of them do.

This was a reply to the post above mine, which mysteriously disappeared.

I've indeed seen "the real world" where everyone has an office job and a 401k, but you do realize that ALL Big Three factories in America and Canada are unionized, right? Not just the ones in Michigan? And as far as the pensions go...why the hell shouldn't skilled labor (milwrights, tinsmiths and the like) NOT get them? Are blue-collar workers somehow inferior to GM's severely bloated management?

And talk about how the UAW is sucking so much money out of GM all you like...how much do you think GM's top executives made last year? Oh sure, Wagoner graciously cut his own salary to $1.1 million dollars...but everyone forgets to take into account all the fabulous stock options and bonuses he and ALL OTHER top corporate automotive executives get. Hell, Ford gave Alan Mullaly nearly $40 million dollars in 2006..for about 4 months of work, and then has the absolute gall to tell the world that the unions are killing them.

Now I'm not saying that the unions shouldn't ever take concessions, but be reasonable. Why should they feel they have to if management won't? Why should they they take all the punches while the executives are picking the marrow out of the company's bones (Delphi, anyone?) Collective bargaining is a two-way street. That's what people fail to understand.

Of course, before you all start accusing me of ignoring the facts, yeah...the UAW is a beurocracy almost as corrupt as those in the Big Three. Has it helped eliminate Michigan auto jobs? Hell yes it has. You damn well better believe I'm just as pissed at the UAW as I am at GM for what happened and is continuing to happen in Flint. There could've been talks and agreements...even (gasp!) a good old fashioned strike to help save factories and jobs...but there weren't. There were strikes for other reasons...but not for the sake of jobs.

UAW contract negotions have been reduced to just talks of concessions and no talks of improvement from EITHER side and are basically pointless by now.

The anti-union stance so many people on this website have are a product of their undying idolizing of General Motors. Oh, lord god no...the MANAGEMENT can't be at fault for anything...it must be the unions. It really is sad that people are so quick to shun blue-collar workers in this day and age.

Edited by AxelTheRed
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The flyer posted on the Local 1112 site mentions the Delta program suspension, and said that GM has "also delayed the Epsilon program which was under construction at the Fairfax, Kansas, assembly plant where they currently build the Chevy Malibu."

A GM spokesman and a spokesman for the UAW couldn't immediately be reached for comment.

I didn't see anywhere in that article where it said 2008 Malibu. I believe it's Epsilon II.

There yah go.

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This article is BS. It fails to even make sense:

GM has "also delayed the Epsilon program which was under construction at the Fairfax, Kansas, assembly plant where they currently build the Chevy Malibu."

The Epsilon program is under construction? WTF does that mean?

I also find it extremely hard to believe that GM is delaying their next-gen small cars when gas prices are rising and their supposedly delaying their next-gen full-sizers because of the same reason. Something doesn't add up there.

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I've indeed seen "the real world" where everyone has an office job and a 401k, but you do realize that ALL Big Three factories in America and Canada are unionized, right? Not just the ones in Michigan? And as far as the pensions go...why the hell shouldn't skilled labor (milwrights, tinsmiths and the like) NOT get them? Are blue-collar workers somehow inferior to GM's severely bloated management?

And talk about how the UAW is sucking so much money out of GM all you like...how much do you think GM's top executives made last year? Oh sure, Wagoner graciously cut his own salary to $1.1 million dollars...but everyone forgets to take into account all the fabulous stock options and bonuses he and ALL OTHER top corporate automotive executives get. Hell, Ford gave Alan Mullaly nearly $40 million dollars in 2006..for about 4 months of work, and then has the absolute gall to tell the world that the unions are killing them.

Now I'm not saying that the unions shouldn't ever take concessions, but be reasonable. Why should they feel they have to if management won't? Why should they they take all the punches while the executives are picking the marrow out of the company's bones (Delphi, anyone?) Collective bargaining is a two-way street. That's what people fail to understand.

Of course, before you all start accusing me of ignoring the facts, yeah...the UAW is a beurocracy almost as corrupt as those in the Big Three. Has it helped eliminate Michigan auto jobs? Hell yes it has. You damn well better believe I'm just as pissed at the UAW as I am at GM for what happened and is continuing to happen in Flint. There could've been talks and agreements...even (gasp!) a good old fashioned strike to help save factories and jobs...but there weren't. There were strikes for other reasons...but not for the sake of jobs.

UAW contract negotions have been reduced to just talks of concessions and no talks of improvement from EITHER side and are basically pointless by now.

The anti-union stance so many people on this website have are a product of their undying idolizing of General Motors. Oh, lord god no...the MANAGEMENT can't be at fault for anything...it must be the unions. It really is sad that people are so quick to shun blue-collar workers in this day and age.

Sorry but you need to visit a clue store and get one.

Talk about the "executives" is a non-starter here. Executives of every company make lots of money. The stock holders can and should complain if they want to. As an employee you can just shut the hell up. They are compensated on a supply and demand basis like every other employee. You're free to find another job too. Not sure if your statement about Mullaly was ignorance or spin but his pay package from Ford was primarily compensation in lieu of Boeing stock options he was owed and gave up when he took the Ford job. No one is going to leave that much cash on the table so Ford paid it - they need him more than they need the money.

Give up the management whining. It's not helping your cause. Let's agree the days of pensions are over everywhere and the big 3 will need to kill theirs too. The only place they'll survive for a while is the municipalities, like cities and towns where the taxpayers have unlimited funds available to pay for the (yes I'm being sarcastic) but even these I suspect will end eventually and be replaced by 401K's. Personally I wish some of these cities and towns would grow a few pairs and dump their unions AND their members out in the street. We can all send our kids to private schools.

Idolizing GM? Please. I just want the company to survive. They can't do it with the cost disadvantage they have vs. ToyMotor.

Why is it you're so quick to criticize management and everything else you raise in your post but no mention of the UAW's complete and utter failure to unionize ToyMotor? Could it be the concept of a union is a relic of no value in current business climate? Nah - couldn't be.

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Just some good old fashioned hardball on GM's part. Plus we are also dealing with next generation product here too, not just the GMX386 Malibu. Sorry UAW, GM has more options than you this time around. :AH-HA_wink:

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Talk about the "executives" is a non-starter here. Executives of every company make lots of money. The stock holders can and should complain if they want to. As an employee you can just shut the hell up. They are compensated on a supply and demand basis like every other employee. You're free to find another job too. Not sure if your statement about Mullaly was ignorance or spin but his pay package from Ford was primarily compensation in lieu of Boeing stock options he was owed and gave up when he took the Ford job. No one is going to leave that much cash on the table so Ford paid it - they need him more than they need the money.

http://www.examiner.com/a-658385~Ford_Pays...M_for_2006.html

Oh, but don't worry, I'm sure Ford could really afford to pay that kind of money for Mulally because, from what I've seen, he sure is top notch talent in the automotive business.

Give up the management whining. It's not helping your cause. Let's agree the days of pensions are over everywhere and the big 3 will need to kill theirs too. The only place they'll survive for a while is the municipalities, like cities and towns where the taxpayers have unlimited funds available to pay for the (yes I'm being sarcastic) but even these I suspect will end eventually and be replaced by 401K's. Personally I wish some of these cities and towns would grow a few pairs and dump their unions AND their members out in the street. We can all send our kids to private schools.

I'll give up my management whining when you give up your union whining. Besides, I'm not wrong in saying that GM's corporate structure is out of date, corrupt and bloated am I? So is the UAW's, but unlike you, I can actually point out faults in BOTH parties instead of having a steadfast commitment to defending the management.

Idolizing GM? Please. I just want the company to survive. They can't do it with the cost disadvantage they have vs. ToyMotor.

Did I say "Ellives idolizes GM"? Let me check...nope, no, I don't see that anywhere. Sorry. Plus, the cost disadvantage argument is tired. Cost disadvantages wouldn't matter if GM built cars that got the kind of mileage Toyota's do.

Why is it you're so quick to criticize management and everything else you raise in your post but no mention of the UAW's complete and utter failure to unionize ToyMotor? Could it be the concept of a union is a relic of no value in current business climate? Nah - couldn't be.

Really? Because it seems to me like I criticized the hell out of the UAW there too. Yes, the UAW has failed the unionize Toyota...but they also apparently treat their workers much better, possibly causing this. And please explain to me how unions are of "no value" anymore. Saying GM workers don't need the UAW is pretty clear evidence that you've never EVER known an auto worker...or at least, when talking to them, disregarded absolutely everything they had to say...much like you do here whenever we argue over unions. I defend the UAW just like I defend General Motors whenever someone accuses them of building $h!ty vehicles...but it doesn't always mean I have to agree with what both parties always do, they have their good and bad sides...personally, I'd love to see management and union workers get along and actually BE productive instead of having this constant on going war with each other.

Unionization in and of itself needs to be reinvented to stay relevant...but not thrown out the door. The world is changing, but that doesn't necessarily mean that unions are no longer of any use to anyone. Collective bargaining, regardless of what you think, is still relatively important.

By the way...have you ever seen the movie Metropolis?

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Just some good old fashioned hardball on GM's part. Plus we are also dealing with next generation product here too, not just the GMX386 Malibu. Sorry UAW, GM has more options than you this time around. :AH-HA_wink:

Smart on GM's part, the UAW has little to no options other than negotiate with them. While I agree with some of you about the UAW leading to the demise of the Big 3 if something isn't changed, it could be different. The point of a union is to provide superior quality to non-unionized workers, the UAW obviously lost sight of this a long time ago as if they were still following this principle GM would have some of the best constructed cars in the world.

It comes down to this the UAW needs to either accept lower pay or earn its pay.

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if GM could still build their cars here in the US with unions, but not have to pay excessive benefits they would, I think. The legacy costs are killing them also.

It's fair to say union folks have bent a bit on some healthcare stuff, but the perception is that the UAW health package is still way better and beyond than the average American. So you get no sympathy from your countrymen. The UAW gets no sympathy and certainly GM etc. gets no love from America either. The laws we operate on in this country and the realtionships and agreements with others all favor the outsider. The outsiders use every tactic in the book to exploit our social structure and laws and use them against us to perfection. And we're all too dumb and self-loving to think it matters.

Face it, at this point, the only way GM will survive is to have all their stuff built in India and China and sent back over here. Let's just all accept that and move on. I'm coming around to thinking this may be the best thing for them to do. Because neither the union or GM is doing anything about it and everyone else's actions seem to support giving the business away to Japan Inc. The guy you pass on the road tomorrow morning driving his 3 series or G35 doesn't think his car purchase matters. He's wrong, but nonetheless is entitled to buy whatever he wants.

America (the buyers) have 'checked out' on our auto industry. The workers have, for awhile now. The companies are about ready to throw in the towel and just let the 3rd worlders do it all. Probably wouldn't be a bad idea to get into the shipping industry because there will be lots of money made by shipping cars over from thousands of miles away in the next 50 years.

Edited by regfootball
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if GM could still build their cars here in the US with unions, but not have to pay excessive benefits they would, I think. The legacy costs are killing them also.

It's fair to say union folks have bent a bit on some healthcare stuff, but the perception is that the UAW health package is still way better and beyond than the average American. So you get no sympathy from your countrymen. The UAW gets no sympathy and certainly GM etc. gets no love from America either. The laws we operate on in this country and the realtionships and agreements with others all favor the outsider.

Face it, at this point, the only way GM will survive is to have all their stuff built in India and China and sent back over here. Let's just all accept that and move on. Because neither the union or GM is doing anything about it and everyone else's actions seem to support giving the business away to Japan Inc. The guy you pass on the road tomorrow morning driving his 3 series or G35 doesn't think his car purchase matters. He's wrong, but nonetheless is entitled to buy whatever he wants.

America (the buyers) has 'checked out' on our auto industry. The workers have, for awhile now. The companies are about ready to throw in the towel and just let the 3rd worlders do it all. Probably wouldn't be a bad idea to get into the shipping industry because there will be lots of money made by shipping cars over from thousands of miles away in the next 50 years.

I love how the people driving Japanese and German cars have the American flag on their back window or bumper! Do they not realize that they are sending their money to those countries. I will buy a BMW in the future becuse of two reasons.

1. I was born and lived in Germany until I was 10 and I wanted a new BMW since that time.

2. I have dual citizenship, American & German, I have purchased 15 brand new GM vehicles in my life so far, so buying one German one is not so bad, at least to me.

I won't be putting the American flag on it either when I do get my 5 Series.

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I am 50% German heritage so I have no bones about a German car myself. At least Germany Inc is interested in coexisting with the USA in the world economy.

I am not opposed to buying starch if it truly offers something unique that I can't do without.

Why do I have a Philips TV? Not wanting to give my $$$$ to the likes of Sony and Sharp, for one.

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ya, the article is crap. shoddy reporting like this is terrible. get it right, or don't print it.

i'm 99% sure, like the rest of you, that it's supposed to be refering to NG delta and epsilon production.

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There is nothing wrong with unionization. There is something very wrong however with forced unionization, wages & benefits which do not reflect market demand or sustainability, and labor bureaucracies trying to have a hand in running a business. Closed shop rackets where Unions can force representation and dues on individual workers who do not want it. Collective extortion and non-market labor price fixation. And perhaps more importantly, Unions trying to tell an employer who to hire, who to fire, who to promote, what to build and where -- NONE of which is based on the business case or efficiency or profitability.

When there are people lining up to apply for the jobs the unionists are doing for less than they are paid or with much less benefits than they get, this is a sign that they are fighting market forces which they cannot win against. The only possible out come for UAW style unionization. The manufacturer either takes the production overseas, or simply makes an overpriced and uncompetitive product and go out of business. I am sorry if the Union workers don't want to hear this, but their labor is only worth what the market says its worth. There is NOTHING to stop GM from gradually shifting ALL manufacturing overseas or doing what Toyota does and work ONLY in right to work states.

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