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PRE-CONTRACT NEGOTIATIONS: GM to look for more concessions

Wagoner praises UAW, says they need to work together

BY MICHAEL ELLIS

FREE PRESS BUSINESS WRITER

 

January 9, 2006

 

 

 

U.S. Sen. Thomas Carper, D-Del., left, shakes hands with GM Chief Executive Officer Rick Wagoner on Sunday at the auto show. (AMY LEANG/Detroit Free Press)

 

With hundreds of angry autoworkers protesting outside Cobo over industry cutbacks, General Motors Corp.'s chief made it clear Sunday he wants the UAW to accept even more cost cuts before the contract expires next year.

 

High priority on his list: the UAW jobs bank, which pays laid-off workers.

 

Asked if GM wants to eliminate the jobs bank before the contract expires in September 2007, Chief Executive Officer Rick Wagoner said, "There's a lot of issues that we need to discuss in the next contract, and a lot of improvements that we see possible in cost competitiveness even between now and the next contract. We want to work every day on it and we'll not wait until September of '07 to address some of these issues."

 

Last year, GM and the UAW agreed to landmark health care concessions. But on Wall Street, GM's cost reductions so far have received a tepid response. Experts who follow the industry said the automaker has to do much more to turn its operations around from losses in North America of almost $5 billion through the first nine months last year.

 

GM's stock price tumbled to new lows late last year, even after GM announced plans to shift more health care costs to retirees and to idle 12 North American plants and facilities and cut 30,000 hourly jobs over the next three years.

 

Wagoner said the UAW will need to confront the cost of the jobs bank, under which GM and the other Detroit automakers pay hourly autoworkers full wages and benefits even when a plant has closed or stopped production.

 

The jobs bank program was designed to provide a safety net for workers during a temporary downturn. But the costs of the program have mounted and have become a permanent burden.

 

Wagoner didn't specify how much the program costs. But a person familiar with the program told the Free Press last year that GM pays between 5,000 and 6,000 workers in the jobs bank -- the most of any company -- costing the automaker an estimated $700 million to $800 million annually.

 

GM's plans to idle more facilities over the next three years could add to those costs, unless the UAW agrees to alternatives.

 

More immediately, GM will play a major role as the UAW and Delphi try to create a new contract.

 

Wagoner praised the UAW, and said that joint action with the union is the best approach to cutting costs.

 

"Our first choice is to try to work this stuff out together, and if we can do that, it works better. Maybe it's not always possible," he said.

 

Last year, Wagoner threatened unilateral action if the UAW didn't agree to the health care cuts. But he stressed that since the jobs bank is part of the contract, the automaker can't cut it unilaterally.

 

"We need to sit down and work with the UAW on the best ways to make sure we're competitive. I think clearer than ever, it's in our interest and theirs, but we do have to do it jointly," he said.

 

Wagoner said this year could be better for the automaker, although he declined to predict when GM could return to profitability.

 

The targeted $6 billion in structural cost cuts and the new full-size SUVs going on sale soon will help, he said.

 

"We certainly are driving to have much better results in North America this year," he said.

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The UAW still receives monthly dues from GEN Bankers, I don't think they'll give that money up until next contract. I don't think there's any question that the GEN program will be gone after 2007, but I really don't think they'll touch it until then.

 

Let me play "Devils Advocate"...

 

Mgt. - MR. GETTELFINGER, IF WE PAY YOU 2 HOURS PER MONTH FOR EACH GEN BANKER WE KICK TO THE CURB, IS THAT OK WITH YOU?

 

uaw - WHERE DO WE SIGN?

 

IS THAT ENOUGH REALITY FOR U!

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Hold on to your asses everyone, we're getting it next.

 

If the international gives it to GM, they'll give it to Ford. At a minimum, I can see the cutting back GEN/GIS eligibility to folks with 20 years, and you will have to work, the company will make up any difference in your pay via GIS. What a fucking mess.

 

:angry: :angry:

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Of course, we have to vote on it. :lol:

If something like this comes up again, I might have to make a visit to each explanatory meeting and raise some hell in front of all that attend. The union should be telling us to vote no on these things!! Too many officials in bed with the company. We need to make the masses aware of it.

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just so everyone knows,,if you get rid of gen,,you lose your job no matter how much time you have,,look at it this way,if you lose gen protection that gives the company a free pass to close what ever they want when they want,oh we dont really need those vehicles made here,,send them to mexico so we dont have to pay anyone who is laid off,,uaw response,,well there will not be one because the uaw will sink if they even try to ask us to vote on that shit,,anyone who has seen thhe last vote we hand knows it was bullshit and if you think your vote means anything then your a complete idiot,,this is a remake of florida all overe again,,LOSE GEN LOSE YOUR JOB plain as that

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If GEN goes, subpay will go broke fast with those #'s laid off, then we would be down to unemployment only.

 

In the future, we should get contracts with dollars in them, only, since the rest turns to crap when needed. Obviously, the only ones we can trust with our futures are ourselves.

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What the hell, we sign a contract that includes gen so when things get tough the workers have something to fall back on. Instead of raises we got this insurance policy that the Company now says is to expensive. WTF.

 

OK, Lets give them a small % of Gen money back and they give the laid off or what ever term they use full rights to except a job anywhere in the system that opens up due to whatever reason. They get the right to refuse only once and then they are on the street. It would be by company senority for production thats it. For the trades it would be by trade then by company senority (no classifcation tricks or adding of apprentices untill all trades are working.) Yes they can be trained to do any job, that how apprentices become journeymen or women.

 

We as a company we should eliminate the slackers and the clip board jobs for x union official, friends and family. Also the International's numbers and pay should be cut to reflect all of the sacrifices that the membership are making.

 

Lastly, I Know that many positions are unfilled at this time and one of the terms of this deal is that they fill all positions that are on the books at the plants that survive.

 

Yes, its not the total answer but it would be a big start and it would give all current employees a chance of a job if one opens., and isnt that what senority is all about.

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What the hell, we sign a contract that includes gen so when things get tough the workers have something to fall back on. Instead of raises we got this insurance policy that the Company now says is to expensive. WTF.

 

OK, Lets give them a small % of Gen money back and they give the laid off or what ever term they use full rights to except a job anywhere in the system that opens up due to whatever reason. They get the right to refuse only once and then they are on the street. It would be by company senority for production thats it. For the trades it would be by trade then by company senority (no classifcation tricks or adding of apprentices untill all trades are working.) Yes they can be trained to do any job, that how apprentices become journeymen or women.

 

We as a company we should eliminate the slackers and the clip board jobs for x union official, friends and family. Also the International's numbers and pay should be cut to reflect all of the sacrifices that the membership are making.

 

Lastly, I Know that many positions are unfilled at this time and one of the terms of this deal is that they fill all positions that are on the books at the plants that survive.

 

Yes, its not the total answer but it would be a big start and it would give all current employees a chance of a job if one opens., and isnt that what senority is all about.

Good post!I agree 100%.

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Here comes the trash talk. LINK

 

Middlefinger talks a good game when the cameras are rolling, but guess who he went to bed with after the dinner? He will give up anything and everything as long as his "house" remains untouched. Given the fact that our wages are around 3% of the cost of a car, giving up our next raise is a drop in the bucket to the bottom line. Did he fight to keep it? Hell no, he told us to give it away! We have only begun to give it all away.

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