UAW sets strike deadline for Monday morning

[Newbiewar]

General Motors rating unchanged by strike - S&P

NEW YORK, Sept 24 (Reuters) - Standard & Poor's on Monday said its ratings on General Motors Corp. (GM.N: Quote, Profile, Research) are unchanged after the automaker failed to reach an agreement with its main union, the United Auto Workers, and union members went on strike.

"We still expect GM and the UAW to reach an agreement in the near future that will start to address the automaker's legacy cost issues," S&P said in a statement. S&P rates GM's debt "B," five levels below investment grade, and has a negative outlook, indicating a rating cut is likely over the next two years.

[Drew Dowdell]

UAW, why don't go do something useful.... like unionize Toyota..

after all, they're American now.

[ZL-1]

stocks are up today dispiate the strike...

Check the intra-day chart again :AH-HA_wink:

EDIT: it's up a little rigth now. maybe it will move sideways until we know if this is a long-term strike or not...

Edited September 24, 2007 by ZL-1

[ellives]

It might be good for investors but a strike sends a negative message to everyone else. This will be the big story on the major networks today and most people will probably shake their heads in disbelief at the same old nonsense from Detroit.

Exactly the point. I'm tired of it myself and I actually care. A typical car buyer doesn't give a $h! if the UAW strikes. They can buy "relevant" cars they actually want anyway, so they couldn't care less.

Edited September 24, 2007 by ellives

[Newbiewar]

It's amusing that non union auto workers like Toyota's receive better pay and benefits than UAW workers? They also aren't causing more manufacturing to be taken out of the country like the UAW does.

WHAT!

well lets put this from an old article talking about toyota concerning cuts... toyota is considering cutting their assembly workers while, there is this gap...?

we must be thinking about different toyota's... cause if toyota pays better then why is there a 25$ wage different between the companies?

"General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler Group officials say that closing a roughly $25-an-hour labor cost gap between Detroit and Japanese rivals will be a key issue in talks with the United Auto Workers this summer."

and no they arent even bringing manufacturing jobs to america... Toyota in 2005 accounted for 38k workers in north america...

we are talking about over 78 thousand people on strike right now... and thats not even half of gm's workforce...

let alone workers in mexico and canada to include the areas toyota's gladly willing to group together

Check the intra-day chart again :AH-HA_wink:

just noticed they dipped below fridays close, but haha they are back up... haha!

Edited September 24, 2007 by Newbiewar

[ZL-1]

just noticed they dipped below fridays close, but haha they are back up... haha!

I stil think it's going to be moving sideways for a while

[Newbiewar]

UAW says GM stance pushed union into strike

DETROIT, Sept 24 (Reuters) - United Auto Workers President Ron Gettelfinger said on Monday the union was pushed into a strike by General Motors Corp. (GM.N: Quote, Profile, Research) after the automaker failed to meet it halfway in marathon contract talks.

"You can be pushed off a cliff and that's what happened here," Gettelfinger said, speaking to reporters at a news conference at the union's Detroit headquarters.

Gettelfinger said that union negotiators would head back to the bargaining table on Monday and remained ready to discuss one of GM's key demands of establishing a trust fund to pay for retiree health care.

He said that GM's push to establish a cost-saving voluntary employee beneficiary association, or VEBA, was not the reason the UAW had decided to set a strike deadline.

"We were pushed into a strike and that's where we're at," Gettelfinger told reporters.

Gettelfinger said that one of the union's key priorities was to protect the job security of 73,000 union-represented GM workers in negotiations.

[ellives]

UAW says GM stance pushed union into strike

DETROIT, Sept 24 (Reuters) - United Auto Workers President Ron Gettelfinger said on Monday the union was pushed into a strike by General Motors Corp. (GM.N: Quote, Profile, Research) after the automaker failed to meet it halfway in marathon contract talks.

"You can be pushed off a cliff and that's what happened here," Gettelfinger said, speaking to reporters at a news conference at the union's Detroit headquarters.

Gettelfinger said that union negotiators would head back to the bargaining table on Monday and remained ready to discuss one of GM's key demands of establishing a trust fund to pay for retiree health care.

He said that GM's push to establish a cost-saving voluntary employee beneficiary association, or VEBA, was not the reason the UAW had decided to set a strike deadline.

"We were pushed into a strike and that's where we're at," Gettelfinger told reporters.

Gettelfinger said that one of the union's key priorities was to protect the job security of 73,000 union-represented GM workers in negotiations.

Nobody cares. I think we should start calling him "Goodbye Ron."

[ZL-1]

He said that GM's push to establish a cost-saving voluntary employee beneficiary association, or VEBA, was not the reason the UAW had decided to set a strike deadline.

"We were pushed into a strike and that's where we're at," Gettelfinger told reporters.

Why doesn't he disclose the real reason? Maybe because he's... trying to arm-wrestle GM?

I was looking at GM's Q4 2006 balance sheet. Funny how if you remove $51bn in liabilities (GM's target with the VEBA plan), GM's long-term liabilities are cut almost by half...

[Newbiewar]

Why doesn't he disclose the real reason? Maybe because he's... trying to arm-wrestle GM?

I was looking at GM's Q4 2006 balance sheet. Funny how if you remove $51bn in liabilities (GM's target with the VEBA plan), GM's long-term liabilities are cut almost by half...

2007 2006 2005

Total Assets 186,527.00 186,192.00 474,156.00

Total Liabilities 190,085.00 191,633.00 459,503.00

Total Equity -3,558.00 -5,441.00 14,653.00

removing 51 billion only puts liablitys at 140

but the original proposed 95 billion, would definatly help... GM has already backed down quite a bit... now its time to get something back from the union...

[jbartley]

with the UAW striking, do all employees have to strike? or can you stay on the job?

[Newbiewar]

Walkout may impact GM suppliers

Monday September 24, 1:06 pm ET

A lengthy strike against General Motors Corp. not only could cause layoffs at GM's Tonawanda engine plant but also lead to layoffs at the automaker's suppliers.

Included are Delphi Thermal Systems in Lockport and American Axle & Manufacturing Holdings' three operations in Buffalo, Town of Tonawanda and Cheektowaga.

"It might also hinder (Delphi Corp.'s) effort to get out of bankruptcy by the end of this year," said Patrick Heraty, Hilbert College professor of business administration and an auto industry and labor relations expert.

"It certainly creates a bit more uncertainty about their future revenue stream," he said.

UAW members hit the picket line as of 11 a.m. Monday after talks broke down between the union and carmaker.

Delphi Corp., GM's former parts business, relies on GM for a majority of its business. At the Lockport operations, it is an estimated 95 percent. American Axle, as a corporation, relies on GM for about 80 percent of its revenue.

"A long-term strike -- if it goes months -- will take a toll on the industry and on suppliers," Heraty said.

Vehicle sales at General Motors dealerships also could feel the effect.

"A short strike should not have any impact on GM's market share," Heraty said. "But as time goes on, if GM does not have inventory to meet customer demand, those wanting to buy aren't likely to wait for the strike to end. They could well go to another option, which could include foreign automakers."

Heraty said the breakdown in collective bargaining, which led to Monday's strike, appears to center on how many jobs General Motors has at its U.S. plants and how many overseas.

"Though we can only speculate, they could be far apart," he said. "It seems to have come down to the number of jobs the UAW wants in (GM's) American factories versus the number GM wants to off-shore.

"They have competing objectives," he said.

"GM is trying to come up with a cost structure that is competitive. and part of that is their labor costs. They are calculating how much of that work they want to offshore to keep costs competitive," he said.

"On the other hand, the UAW has taken quite a hit in membership over the last 30 years and doesn't want to see that downward trend continue. I think they will be pretty adamant about retaining those jobs in U.S. auto plants," Heraty said.

Only hours before the strike began, negotiations in Detroit on a new national contract seemed to be on track.

The key issue - health-care benefits for retirees - looked to have been resolved and talks were believed to have shifted to other issues.

Published September 24, 2007 by Business First of Buffalo

[Newbiewar]

with the UAW striking, do all employees have to strike? or can you stay on the job?

as with most strikes and unions i beleive u forfit your job if you dont walk off...

[Phalcon]

Gettelfinger said that one of the union's key priorities was to protect the job security of 73,000 union-represented GM workers in negotiations.

There is no such thing as job security. UAW management just can't seem to come to grips with that reality.

Morons. I'd be more than happy to support the American auto industry, but not if it means padding the paychecks of the UAW rank and file.

[Newbiewar]

The UAW need to goto china and asia... cause thats where the employees are going anyway

unionize those 100 companies starting up in china... if your concerned about american jobs... perhaps you should make it more expensive else where...

protect america by ruining everyone else.. not america

[Windy-57]

i wonder, if such media broad casting, GM this GM that, puts GM on a massive spot light as it introduces its 2 major cars (CTS, Malibu) and in a few months the G8....

could this be a smoke screen for a massive advertising campaign gm has been talking about its malibu? GM needs it name in the media... perception change requires someone to even think about a company...

While others have mentioned that investors seem to be OK with this, I don't think it will help sell cars. If anything, this seems to put a cloud over GM that distracts from their new products.

In the end, this will be very divisive. There will be some that blame GM and hate them for this, but on the other hand, there may be a lot more people who feel the same way as many people here - that the UAW is an archaic organization that is helping to kill one of America's greatest companies - and that could garner a level of sympathy.

[EMan]

as with most strikes and unions i beleive u forfit your job if you dont walk off...

Let me clarify: this is only if you are a member of the union; Correct?

Edited September 24, 2007 by EMan

[Newbiewar]

Let me clarify: this is only if you are a member of the union; Correct?

i beleive so...

if your management says to go outside, you go outside...

if your buddy is under different management, he goes outside, and your boss says to stay at work... its your ass if u go outside...

[Z-06]

Parasites !?! You got a lot of nerve! Who's the parasites here? It's non-uniion workers who have benefitted the most from what unions have long fought for! (40 hour work weeks, holiday pay, overtime pay, safety regulations, etc.) I bet you've never worked in a really hard job a day in your life. Try working on an assembly line, or mining coal, or working in a bucket truck on power lines. You might see why you would want to have a union watching your back for you then!

Yeah the same Unions in the coal mines which caused strikes because ONE of their leaders had to watch the football game between WVU and Marshalls.

In the modern world of technology and emergence of knowledge workers, unions are all but vanishing group of species.

I guess you guys think it's great then, that the average CEO gets compensated 400 times what the average worker gets paid. If that's what global economics is all about there we're headed backward to the Dark Ages and don't know it!

If you want to talk about who gets how much paid, why not ask those actors and sports stars who get paid a lot more for err nothing. Uneasy lies the head that wears the crown. It is harsh, but the real truth of life is, that it is not who use their brawn, but ones who use their brains get paid more.

No we would be headed for dark ages if the unions persist. The unions rared their ugly heads in the Non Profit Organization Bank created by the recent Noble Prize winner Dr. Yunus. And they were even ready to stop work for the people who were affected by floods because their leaders thought they were being paid less and wanted stock in the bank, WOW!

I hope GM doesn't cave in this time. They need to level the playing field with Toyota, let them strike all they want, they have a crazy amount of inventory anyway.

It is not written off in black and white. As much as we like to think it is easy for GM to kick unions and as much as we would like to, GM has to think about those people. Stock holders are number one priority of an organization, as they are the owners, but GM cannot dump people overnight.

Bad news for both sides but for one it's worse. The UAW has a lot to lose, both now and in the future, and by striking they will be losing the most.

Yeah for certain, UAW lost the war in long term, and with it possibility of unionizing foreign car manufacturers.

I stil think it's going to be moving sideways for a while

I think so too.

2007 2006 2005

Total Assets 186,527.00 186,192.00 474,156.00

Total Liabilities 190,085.00 191,633.00 459,503.00

Total Equity -3,558.00 -5,441.00 14,653.00

removing 51 billion only puts liablitys at 140

but the original proposed 95 billion, would definatly help... GM has already backed down quite a bit... now its time to get something back from the union...

It is not a straight math (correct me if I am wrong, ZL-1). Actually with the $51B fund, the liabilities will be lot less, as PV of the future funds is also taken into account while computing the liability, further, free cash flow and other assets like stocks and bonds GM holds of other corporations can also be used on the liabilities side of the income statement. Unless we get the proper breakdown of liabilities, it is not straight to calculate the pre and post VEBA liabilities GM will actually see.

[PurdueGuy]

The UAW need to goto china and asia... cause thats where the employees are going anyway

unionize those 100 companies starting up in china... if your concerned about american jobs... perhaps you should make it more expensive else where...

protect america by ruining everyone else.. not america

yeah... try starting a union in China. Good luck with that. I'd be curious if the person trying to start the union would just disappear one day, or if they'd make an example out of him or her. Probably the quietly disappear one, since the Olympics are coming up and China wants to look all friendly & nice for it.

[Newbiewar]

UAW members nervous but stoic over GM strike

Mon Sep 24, 2007 2:45pm EDT

By Nick Carey

DETROIT (Reuters) - Members of the United Auto Workers union at General Motors Corp reacted with a mixture of nervousness, surprise and stoicism on Monday after their union called a strike against the top U.S. automaker.

"Right now I don't feel like we need this strike," Bernie Devold, 55, said outside UAW Local 22 headquarters in Detroit. "This is going to hurt us and it's going to hurt GM."

UAW Local 22 represents more than 1,800 workers who make a Buick and a Cadillac model.

Within minutes of an 11 a.m. EDT strike deadline set by the union, cars streamed into the parking lot of the Local 22 as members came to collect their picket assignments.

The union set a deadline late Sunday night when negotiators from both sides failed to reach an agreement on a new contract that would replace a 4-year deal on wages and benefits that expired on September 14.

"I'm nervous, man," said Khader Marzouq, 53, a 33-year GM veteran. "I have three kids in college and bills to pay, but if GM is playing hard ball, I guess we have to go out."

Aleasa Petross-Smith, 56, a GM worker for 28 years said: "We have given up plenty for GM, now they can give something up for us. I'm behind the union 100 percent."

In Lansing, Michigan, about two dozen workers picketed at a gate of GM's Lansing Grand River plant where three Cadillac models are made. Shop committeeman Mike Green said all gates on public property were covered by pickets.

"We are here to support the international union and whatever they need," he said.

The workers carried plain placards that read "UAW on strike." As in Detroit, they said they were hopeful the strike would be over soon.

"I don't think we will be out too long, but you never know," said Benjamin Fomby, 54. He said he would like to work at least until the age of 55.

Keith Jackson, a veteran of three strikes after 34 years with GM, said "the stakes are high for both sides.

"This is the last thing anyone out here wanted to do."

The GM strike was the latest blow for an embattled U.S. industry that has seen Detroit-based automakers -- General Motors, Ford Motor Co and Chrysler LLC -- cut more than 80,000 union jobs after losing a combined $15 billion in 2006.

In Michigan, GM's blue-collar home state, unemployment is 7.2 percent, the highest in the nation. Home foreclosures in Detroit, where GM has its headquarters, are running at five times the national average.

GUNG-HO PENSIONERS

If current workers appeared lacking in enthusiasm for a strike, GM retirees welcomed the news of a walk-out.

The last UAW strike against GM was in 1998. That walk-out at two GM parts plants in Flint, Michigan, shut down GM production and caused sales to plummet.

One of the key points up for discussion between the UAW and GM is how to fund the health-care costs of 540,000 retired workers and their spouses -- who outnumber GM's active work force of 73,000 more than seven to one.

At Local 22, retired worker Vince Badia, 75, punched the air with joy when benefits representative "Huck" Atterberry delivered news of the strike with a shrug of his shoulders.

North of Detroit in Bay City, Michigan, at GM's Powertrain engine and component plant, retirees were among two dozen picketers outside the factory gate.

These included Bonnie Lauria, 66, who retired five years ago and was using a walker while picketing. She was wearing a button that said "Hands off my pension."

Cletus van Snepson, another retiree at the gate, said "a lot of people never thought it (strike) would happen, but they have to do it."

A number of current UAW workers, however, said they were worried that a strike would cost them their jobs, especially as a deal with GM looked so close over the weekend.

"I feel like I just got laid off," said one silver-haired worker at UAW Local 22 in Detroit, who declined to give his name as he climbed into his car and sped off.

(Additional reporting by David Bailey in Lansing and Dave Rogers in Bay City)

[Newbiewar]

GM strike costing 760 vehicles per hour-analyst

Mon Sep 24, 2007 2:51pm EDT

DETROIT, Sept 24 (Reuters) - The strike at General Motors Corp. (GM.N: Quote, Profile, Research) will cause U.S. production losses of 760 vehicles per hour and could shut the automaker's facilities in Canada and Mexico within three days, a leading industry analyst said on Monday.

Michael Robinet, an auto industry analyst with CSM Worldwide, said the United Auto Workers strike called Monday could have a cascading effect on GM production elsewhere.

Initially, the shutdown of GM's U.S. plants will cost the automaker production of 12,200 vehicles per day, he said.

If the strike continues for more than 36 hours, that would hurt GM production in Canada and cut production of another 4,000 more vehicles per day, he said.

If the strike were to last more than 72 hours, it would begin to disrupt GM's supply chain and affect the automaker's production in Mexico, Robinet said. That would mean a total production loss of about 18,100 vehicles per day.

"It is our view that this walkout will not be protracted -- past more than one week," Robinet said.

As GM's inventory currently totals more than 80 days of sales for key vehicles such as its full-size pickup trucks and sport-utility vehicles, the strike will not have much immediate impact on sales, Robinet said.

"It's not as though people are standing on their driveways waiting for these vehicles, but if it goes longer that could start to have an effect," he said.

Robinet said GM would feel any pinch from the strike first on new "crossover" vehicles such as its Buick Enclave and small cars such as the Chevrolet Cobalt and HHR where it has comparatively lower inventory.

[ZL-1]

2007 2006 2005

Total Assets 186,527.00 186,192.00 474,156.00

Total Liabilities 190,085.00 191,633.00 459,503.00

Total Equity -3,558.00 -5,441.00 14,653.00

removing 51 billion only puts liablitys at 140

but the original proposed 95 billion, would definatly help... GM has already backed down quite a bit... now its time to get something back from the union...

I was talking about long-term liabilities, which were USD111bn at the end of 2006, with USD62bn being Postretirement Benefits and Pension entries, and that's where immediate impact would be if the VEBA deal goes ahead. Current liabilities are small in comparison, and roughly 30% of those are trade payables. Here's the link to GM Q4 2006 consolidated financial statements (page 3 - Balance Sheet).

A couple of interesting issues with this VEBA thing is how much cash GM is willing/able to inject in there, and where that money will come from.

@ Smallchevy: you might want to check with someone who works in insurance. Actuary stuff (not sure if that's the expression in English) is not one of my strengths. But I think the liabilities are PV of future cash ouflows (makes financial sense), assuming factors such as life expectancy: IIRC GM has lowered what it records as pension/healthcare liabilities before by changing the discount rate. But assuming USD51bn are wisely invested today, then they should offset more than USD51bn in liabilities.

I tried giving too many serious replies in one go. I think I should go and watch Conan O'Brien now

Edited October 17, 2007 by ZL-1

[Newbiewar]

Democratic presidential candidate Obama backs UAW strikers

By William L. Watts

Last Update: 2:50 PM ET Sep 24, 2007Print Subscribe to RSS Disable Live Quotes

WASHINGTON (MarketWatch) -- Democratic presidential contender Barack Obama on Monday issued a statement supporting striking United Auto Workers union members and urged General Motors Corp. to return to the bargaining table. "The demands the union is fighting for -- job security, the health benefits they were promised -- are things that all workers should expect and that UAW members deserve," the Illinois senator said. UAW members walked off the job at GM factories Monday morning after talks failed to produce a contract agreement by an 11 a.m. deadline.

[Newbiewar]

Teamsters honor UAW strike, will not haul GM cars

Mon Sep 24, 2007 3:01pm EDT

WASHINGTON, Sept 24 (Reuters) - The Teamsters union said on Monday it will honor the United Auto Workers strike against General Motors Corp (GM.N: Quote, Profile, Research), saying it would not haul vehicles made by the automaker.

"Workers should not solely bear the brunt of decades of bad business decisions by GM management," Teamsters President James Hoffa said in a statement.

[Newbiewar]

Teamsters honor UAW strike, will not haul GM cars

Mon Sep 24, 2007 3:01pm EDT

WASHINGTON, Sept 24 (Reuters) - The Teamsters union said on Monday it will honor the United Auto Workers strike against General Motors Corp (GM.N: Quote, Profile, Research), saying it would not haul vehicles made by the automaker.

"Workers should not solely bear the brunt of decades of bad business decisions by GM management," Teamsters President James Hoffa said in a statement.

this $h! just keeps getting worse doesnt it...?

the bad business decissions were made when all the workers werent working...

now we are just trying to rectify the situation... and yet again the workers arent working...

[Clownzilla]

Democratic presidential candidate Obama backs UAW strikers

By William L. Watts

Last Update: 2:50 PM ET Sep 24, 2007Print Subscribe to RSS Disable Live Quotes

WASHINGTON (MarketWatch) -- Democratic presidential contender Barack Obama on Monday issued a statement supporting striking United Auto Workers union members and urged General Motors Corp. to return to the bargaining table. "The demands the union is fighting for -- job security, the health benefits they were promised -- are things that all workers should expect and that UAW members deserve," the Illinois senator said. UAW members walked off the job at GM factories Monday morning after talks failed to produce a contract agreement by an 11 a.m. deadline.

Yeah, I read a few weeks ago an interview with him (CNNcom, Newsweek, Time....I can't remember). He stated that if he were president, he would consider walking the line with striking workers. I actually was kind of mesmerized by this guy...........until he said that.

[Newbiewar]

Yeah, I read a few weeks ago an interview with him (CNNcom, Newsweek, Time....I can't remember). He stated that if he were president, he would consider walking the line with striking workers. I actually was kind of mesmerized by this guy...........until he said that.

yea, strikes are the epitome of american arrogance...

really there isnt anything more for these people... GM has nothing to give

These included Bonnie Lauria, 66, who retired five years ago and was using a walker while picketing. She was wearing a button that said "Hands off my pension."

If the union doesnt budge, your pension is history... perhaps you should reconsider your button ma'am

[FUTURE_OF_GM]

I have to agree to these points...and in the 'Global Economy' we are in, you cannot pay a guy $50-70 an hour to screw lug nuts on a car and be competitive in the market. It is just not feasable any longer. When you are building cars alongside Toyota, who is not under union constraints - something has to give. Of course, when Hillary and Obama give us all free healthcare, won't all of this Union posturing be for not anyway? After all, the Government will be taking care of us for the rest of our lives! :AH-HA_wink:

Hillary and Obama!?!?!

If they see office, Detroit won't be around long enough for free healthcare to matter in the first place.

Democratic presidential candidate Obama backs UAW strikers

By William L. Watts

Last Update: 2:50 PM ET Sep 24, 2007Print Subscribe to RSS Disable Live Quotes

WASHINGTON (MarketWatch) -- Democratic presidential contender Barack Obama on Monday issued a statement supporting striking United Auto Workers union members and urged General Motors Corp. to return to the bargaining table. "The demands the union is fighting for -- job security, the health benefits they were promised -- are things that all workers should expect and that UAW members deserve," the Illinois senator said. UAW members walked off the job at GM factories Monday morning after talks failed to produce a contract agreement by an 11 a.m. deadline.

Case in point....

Obama hates Detroit and one of his first acts in office will be to euthanize it as fast as possible (albeit not blatantly)

Edited September 24, 2007 by FUTURE_OF_GM

[Z-06]

Democratic presidential candidate Obama backs UAW strikers

By William L. Watts

Last Update: 2:50 PM ET Sep 24, 2007Print Subscribe to RSS Disable Live Quotes

WASHINGTON (MarketWatch) -- Democratic presidential contender Barack Obama on Monday issued a statement supporting striking United Auto Workers union members and urged General Motors Corp. to return to the bargaining table. "The demands the union is fighting for -- job security, the health benefits they were promised -- are things that all workers should expect and that UAW members deserve," the Illinois senator said. UAW members walked off the job at GM factories Monday morning after talks failed to produce a contract agreement by an 11 a.m. deadline.

That is the most ridiculous vote fetching statement ever heard from this incompetent candidate. No offense, but he has no sense of how the economy works.

[CARBIZ]

Democratic presidential candidate Obama backs UAW strikers

By William L. Watts

Last Update: 2:50 PM ET Sep 24, 2007Print Subscribe to RSS Disable Live Quotes

WASHINGTON (MarketWatch) -- Democratic presidential contender Barack Obama on Monday issued a statement supporting striking United Auto Workers union members and urged General Motors Corp. to return to the bargaining table. "The demands the union is fighting for -- job security, the health benefits they were promised -- are things that all workers should expect and that UAW members deserve," the Illinois senator said. UAW members walked off the job at GM factories Monday morning after talks failed to produce a contract agreement by an 11 a.m. deadline.

I wonder what kind of car Obama drives.

[Z-06]

I wonder what kind of car Obama drives.

Chrysler 300.

[FUTURE_OF_GM]

This is a very tough situation...

If I were at the helm of GM, it would be an easy decision to make though... IF the UAW would not meet the targeted cuts to make the business relevant in the future, then the company is a failed entity anyway. SO, to borrow a Lamb of God lyric: "FULL THROTTLE, DETERMINED TO FAIL. PEDAL TO THE METAL, ASLEEP AT THE WHEEL."

Which means, if the UAW is going to run the company into the ground anyway, then I'd go ahead and push it full speed ahead into the nosedive. We'll run this $h! face first into the concrete, because what's the point anyway? The faster GM re-emerges from bankruptcy, the faster this PARASITE dies.

Edited September 24, 2007 by FUTURE_OF_GM

[ZL-1]

I think Obama is trying to show he stands beside American workers, but he may have shot himself in the foot.

[Z-06]

Even the Dealers backing GM

Linkity

Dealer: Time to Get Costs in Line

Posted by Tim Hanrahan John Stoll reports.

A strike of limited duration would help trim bloated inventories at the largest U.S. auto

maker, but a lengthy work stoppage could crimp supply of key vehicles and would

take a financial toll on GM.

John Bergstrom, a Wisconsin dealer with 15 GM stores, said in an interview: "We have a good inventory of cars and trucks and, whether we did or not, we would feel very strongly about it being time we got our costs in line with our Asian competitors."

Bergstrom, a GM dealer for 30 years, said that "the UAW team has to understand

all of us are in this together, it's not just them." He said the dealer body has had "a series of meetings over the last year" and the dealers are in support of "GM doing what it has to do to get this worked out."

Permalink | Trackback URL: http://blogs.wsj.com/strikenotebook/2007/0...line/trackback/

[mustang84]

Democratic presidential candidate Obama backs UAW strikers

By William L. Watts

Last Update: 2:50 PM ET Sep 24, 2007Print Subscribe to RSS Disable Live Quotes

WASHINGTON (MarketWatch) -- Democratic presidential contender Barack Obama on Monday issued a statement supporting striking United Auto Workers union members and urged General Motors Corp. to return to the bargaining table. "The demands the union is fighting for -- job security, the health benefits they were promised -- are things that all workers should expect and that UAW members deserve," the Illinois senator said. UAW members walked off the job at GM factories Monday morning after talks failed to produce a contract agreement by an 11 a.m. deadline.

I saw Obama speak at ISU on Friday, and if elected I have a gut feeling he'll accomplish little as president. His speech was slick and well-worded, but once it came time to answer questions from students he stumbled around and didn't provide any real substantial answers on how he would solve problems such as the economy and Iraq. This guy doesn't have a clue how the auto industry works, and with him now siding with the UAW, he's lost my vote.

[ellives]

UAW members nervous but stoic over GM strike

Mon Sep 24, 2007 2:45pm EDT

By Nick Carey

DETROIT (Reuters) - Members of the United Auto Workers union at General Motors Corp reacted with a mixture of nervousness, surprise and stoicism on Monday after their union called a strike against the top U.S. automaker.

"Right now I don't feel like we need this strike," Bernie Devold, 55, said outside UAW Local 22 headquarters in Detroit. "This is going to hurt us and it's going to hurt GM."

UAW Local 22 represents more than 1,800 workers who make a Buick and a Cadillac model.

Within minutes of an 11 a.m. EDT strike deadline set by the union, cars streamed into the parking lot of the Local 22 as members came to collect their picket assignments.

The union set a deadline late Sunday night when negotiators from both sides failed to reach an agreement on a new contract that would replace a 4-year deal on wages and benefits that expired on September 14.

"I'm nervous, man," said Khader Marzouq, 53, a 33-year GM veteran. "I have three kids in college and bills to pay, but if GM is playing hard ball, I guess we have to go out."

Aleasa Petross-Smith, 56, a GM worker for 28 years said: "We have given up plenty for GM, now they can give something up for us. I'm behind the union 100 percent."

In Lansing, Michigan, about two dozen workers picketed at a gate of GM's Lansing Grand River plant where three Cadillac models are made. Shop committeeman Mike Green said all gates on public property were covered by pickets.

"We are here to support the international union and whatever they need," he said.

The workers carried plain placards that read "UAW on strike." As in Detroit, they said they were hopeful the strike would be over soon.

"I don't think we will be out too long, but you never know," said Benjamin Fomby, 54. He said he would like to work at least until the age of 55.

Keith Jackson, a veteran of three strikes after 34 years with GM, said "the stakes are high for both sides.

"This is the last thing anyone out here wanted to do."

The GM strike was the latest blow for an embattled U.S. industry that has seen Detroit-based automakers -- General Motors, Ford Motor Co and Chrysler LLC -- cut more than 80,000 union jobs after losing a combined $15 billion in 2006.

In Michigan, GM's blue-collar home state, unemployment is 7.2 percent, the highest in the nation. Home foreclosures in Detroit, where GM has its headquarters, are running at five times the national average.

GUNG-HO PENSIONERS

If current workers appeared lacking in enthusiasm for a strike, GM retirees welcomed the news of a walk-out.

The last UAW strike against GM was in 1998. That walk-out at two GM parts plants in Flint, Michigan, shut down GM production and caused sales to plummet.

One of the key points up for discussion between the UAW and GM is how to fund the health-care costs of 540,000 retired workers and their spouses -- who outnumber GM's active work force of 73,000 more than seven to one.

At Local 22, retired worker Vince Badia, 75, punched the air with joy when benefits representative "Huck" Atterberry delivered news of the strike with a shrug of his shoulders.

North of Detroit in Bay City, Michigan, at GM's Powertrain engine and component plant, retirees were among two dozen picketers outside the factory gate.

These included Bonnie Lauria, 66, who retired five years ago and was using a walker while picketing. She was wearing a button that said "Hands off my pension."

Cletus van Snepson, another retiree at the gate, said "a lot of people never thought it (strike) would happen, but they have to do it."

A number of current UAW workers, however, said they were worried that a strike would cost them their jobs, especially as a deal with GM looked so close over the weekend.

"I feel like I just got laid off," said one silver-haired worker at UAW Local 22 in Detroit, who declined to give his name as he climbed into his car and sped off.

(Additional reporting by David Bailey in Lansing and Dave Rogers in Bay City)

These comments by current and former employees are incredible. The sense of entitlement that eminates from statements like this "We have given up plenty for GM, now they can give something up for us. I'm behind the union 100 percent." have me in total amazement. I'm expecting they'll both go down in flames.

I'll watch from the sidelines from now on. I won't buy another GM product until the UAW is dead or they've unionized Toyota and Honda. Simple choices for simple minds.

[ellives]

I think Obama is trying to show he stands beside American workers, but he may have shot himself in the foot.

He lost *my* vote with that comment.

[Z-06]

These comments by current and former employees are incredible. The sense of entitlement that eminates from statements like this "We have given up plenty for GM, now they can give something up for us. I'm behind the union 100 percent." have me in total amazement. I'm expecting they'll both go down in flames.

I'll watch from the sidelines from now on. I won't buy another GM product until the UAW is dead or they've unionized Toyota and Honda. Simple choices for simple minds.

Why just Toy or Horndawg. Make every Automaker unionized. Including the Koreans.

[Newbiewar]

Why just Toy or Horndawg. Make every Automaker unionized. Including the Koreans.

america could ratify something along those lines to help the community and encourage all vehicles sold in america be produced with the same benifits...

[ellives]

america could ratify something along those lines to help the community and encourage all vehicles sold in america be produced with the same benifits...

You're talking about tariffs. Good luck with that one. The fault lies with the UAW - not the US government.

[Newbiewar]

Playing With Fire

Joann Muller, 09.24.07, 3:30 PM ET

Detroit - The United Auto Workers’ decision to authorize a nationwide strike against General Motors--the first in 37 years--looks like a bargaining ploy to force the automaker to cough up job guarantees and other measures that would offset historic changes in the way retiree health care is funded.

But the work stoppage, which began Monday morning after marathon negotiations broke down, is fraught with risks for both sides. A strike at two GM (nyse: GM - news - people ) parts plants in 1998 shut down the entire company for 50 days, costing GM $2.5 billion and two points of market share it never recovered.

GM can afford to play hardball for a while. Analysts say the company has $32.8 billion in cash, and plenty of inventory on dealer lots, so it can weather a strike for several weeks without too much pain. It had 950,000 cars and trucks in inventory, or about 65 days’ supply.

But the UAW can hold out much longer if it has to. Though smaller and weaker than it used to be, the union still has close to $1 billion in its strike fund--a hoard that could last up to a year, analysts say.

Neither side wants the work stoppage to go on indefinitely. “Nobody wins in a strike,” UAW President Ronald Gettelfinger said after 73,000 UAW members walked off the job at GM plants nationwide late Monday morning. GM said in a statement, “The bargaining involves complex, difficult issues that affect the job security of our U.S. work force and the long-term viability of the company. We are fully committed to working with the UAW to develop solutions together to address the competitive challenges facing General Motors.”

Morgan Stanley analyst Jonathan Steinmetz said a strike that lasts a few days or weeks would not endanger GM’s liquidity or competitiveness. “We would only start seriously worrying about liquidity if the strike dragged on for more than a month and GM’s payables start to drain cash,” he wrote in a research report.

Steinmetz estimated that GM would burn $4 billion in the first month of a strike, and $14 billion in the first three months.

As of July, GM had $27.2 billion in cash. Since then, the company sold its Allison Transmission unit for $5.6 billion to further pad its balance sheet. It also has about $8 billion in credit facilities from which it could borrow. GM could make up most of the cash burned during a strike after there is a settlement, Steinmetz said.

The UAW had $914 million in its strike fund as of December 2005. It has yet to publish an updated figure, but the fund has been growing 4% to 5% a year, suggesting there’s at least $950 million in the fund today.

"Neither side is likely to be strong-armed into a fast solution," says Steinmetz.

The two sides said they plan to resume bargaining today.

If there's any bright side to be had, Ford Motor (nyse: F - news - people ) and Chrysler are the ones having it. Not only is GM doing the heavy lifting at the table with the UAW, which may benefit them in the long run, but it's also distracting GM away from the most crucial job it has: making better cars and selling them.

[Newbiewar]

You're talking about tariffs. Good luck with that one. The fault lies with the UAW - not the US government.

your right... but it is possible... if anyone gave a damn about detroit...

also if the UAW went hard after toyota, or Hyundai... they could see considerable growth in membership due to many members probably used to be with the big 3

[Drew Dowdell]

sacrificing the #1 sales volume slot to cripple the UAW this year might just be worth it for next year.

[Z-06]

You're talking about tariffs. Good luck with that one. The fault lies with the UAW - not the US government.

True fault does lie on the Unions. Unions were created in early 20th century, when democracy was still incomplete. With more educated people not in US but the entire world compared to that of 20th century, it is like a bad cyst on the balls of corporations making not only the corporations, but the country incompetent.

If GM, Ford and Chry sign for bankruptcy just like the airline industry, these UAW members should even forget about what the three are trying to give.

On one term I do agree with UAW, is that the managers should not get fat pays when the company is struggling, however so should the union leaders.

[ellives]

sacrificing the #1 sales volume slot to cripple the UAW this year might just be worth it for next year.

Read the post 2 prior to yours.... when this last happened in '98, they last 2 points of market share they never recovered. The same will happen this time. The market doesn't stop because GM isn't building cars. A strike for GM in the current market is a death spiral.

To quote George W.: "Bring them on"

[Drew Dowdell]

Read the post 2 prior to yours.... when this last happened in '98, they last 2 points of market share they never recovered. The same will happen this time. The market doesn't stop because GM isn't building cars. A strike for GM in the current market is a death spiral.

To quote George W.: "Bring them on"

but the UAW continued to live and suck the life out of GM..... I'm suggesting the UAW cease to exist.

[Drew Dowdell]

What really burns me is that at any plant that isn't already producing at capacity, the workers will get overtime during the catchup.

[Newbiewar]

What really burns me is that at any plant that isn't already producing at capacity, the workers will get overtime during the catchup.

lambda and cts plants already working at maximum production?

[bowtie_dude]

Throw'em all out on their ears. To hell with the whole lemming-minded lot.