UAW strike
Last edited by mmarshall; Oct 3, 2019 at 04:17 PM.
The company is sitting on a pile of cash: at the end of the second quarter GM had $17.5B in cash. In 2018 it made $11.8B with the existing labor cost structure of the UAW, which amounts to about $63/hr. GM wants to drive that down to $50/hr and to use the savings to fund this transition to an electric/autonomous future. $50/hr is what the non-union Japanese car companies have as their labor cost in the south.
So crying some crocodile tears for GM isn't really necessary. It can handle a gamble like this for awhile yet, but things could get uncomfortable for management once Wall Street gets antsy and starts shouting at Mary Barra and her execs.
https://eu.freep.com/story/money/car...co/3846417002/

The uaw workers still working should be thankful they have jobs.
Don't get me wrong. I like low prices myself (who doesn't)?......but, in my book, not at the expense of those who suffer in order to produce that merchandise at those rock-bottom prices. Look, for example, at some of the recent disasters that have happened at those Third-World plants, where building-collapses and flash-fires have hurt or killed hundreds, if not thousands.
........just like Asian, African, and Latin American workers in the sweat shops? Sure....they should all be grateful that companies can treat them like doormats. Let them celebrate it with a cake and a bottle of champagne.
Last edited by mmarshall; Oct 3, 2019 at 10:06 PM.
https://www.bloomberg.com/news/artic...rb-judge-rules
......And it's going to get even worse for GM very soon. Even apart from the strike, the all-new Lincoln Corsair is now starting to reach dealerships, and is going to give the smaller Cadillac and GMC crossovers some real competition.
I'm going out tomorrow, before rain moves in, to try and do at least a static-review of a Corsair, and (if the first ones coming in aren't sold out or pre-sold), a test drive.
Celebrating Lexus & Toyota from Around the Globe
I'm going out tomorrow, before rain moves in, to try and do at least a static-review of a Corsair, and (if the first ones coming in aren't sold out or pre-sold), a test drive.
Oh, I agree that the Corsair itself is not directly related to the strike (I stated that above)...but it is obviously not going to make the strike-conditions any easier for GM. Not only the UAW, but at least some of the general public is also avoiding GM products, in support of the strike (don't ask me for any hard numbers, because there aren't any estimates yet). In the next few weeks, they aren't going to be in Cadillac or GMC shops looking at the XT4/XT5 or Terrain/Acadia...they are probably going to be looking at the Corsair.
It wasn't long ago that we had glass TV's -- the ol' big boob tubes. They gave way to larger flat screen. It sure changed the market in a hurry over 10-15 years.
EV's may be only a small % now. It simplifies the cost and how it is made. Tesla certainly is the new ship in the harbor. They can get a whole new plant up and running in one year (eg china). 3-4 more years means repeating this formula several more times. How will the Big3 and UAW compete when unwilling to adapt to the changing times. The market picture can change a lot in 10-15 years. I sincerely hope they can adapt with the best talents they have for a new Big 3 future america can be proud of. The reality is we need both EV and ICE vehicles.
In an unusual move that union officials took as a positive step, Barra on Wednesday asked UAW president Gary Jones and Terry Dittes, the union’s vice president who’s leading the main talks, to come to a conference room near her office around 3:30 p.m., two people familiar with the meeting told The Post.
Soon after, Jones and Dittes were escorted by armed guards to Barra’s office in the Detroit Renaissance office complex, where GM is headquartered, for a meeting that lasted about half an hour, the source said.
As reported by The Post, GM officials on Tuesday had abruptly pulled out of a meeting for major negotiations in which officials were slated to discuss job security and bringing jobs back to the US from Mexico.
No such meeting occurred on Wednesday either, and Barra that afternoon appeared concerned that talks were off track, according to a source.
UAW officials had been angling for a direct meeting with Barra as a way to break through on negotiations, which have remained stalled for about five days.
As reported by The Post, UAW brass last week were even discussing holding a “no confidence” vote against Barra as a way to draw her into discussions. Sources said union leadership believes it was Barra who personally decided to reverse a decision to yank health care coverage for striking workers.
During Wednesday’s surprise meeting, it’s unclear whether Barra offered or demanded any concessions, or what specific issues were discussed. Nevertheless, the meeting appears to have injected new life into the negotiations, which entered their 25th day on Thursday, sources said.







They can't get past the picket lines.