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Dear
readers, I know how important the contribution of unions was at the
beginning of the Industrial era to prevent abuse on the workers. Today
though, my perception is that their mindset should switch to keeping our
lapidated economy afloat. Job Security should be the main objective of the
organized labor leaders. When you read the following notes from the SME
daily briefing you will probably understand my great concern about what is
today their behavior.
"American
Axle strike expected to close GM plants.
In
continuing coverage from a previous briefing, USA Today (3/28, 3B, Carty)
reports that auto supplier American Axle & Manufacturing (AAM) is
entering "its second month with much of its union-represented workforce
on strike," and the impact is now affecting General Motors' (GM) car
production.
"GM confirmed Thursday that the strike will force it to idle the
Detroit-Hamtramck assembly plant after Friday's lone shift, and a local
union president in Lordstown, Ohio, said Thursday that his complex will be
shut down on April 4," the AP (3/28, Krisher) adds. "Closing the
Lordstown complex, which makes the Chevrolet Cobalt and Pontiac G5 small
cars, could hurt GM the most since the cars are selling well due to high
gasoline prices."
Bloomberg (3/28, Ortolani, Green) points out that the "strike at
American Axle, GM's largest source of axles, forced the automaker to stop or
slow production at 29 plants that build pickup trucks, sport-utility
vehicles, vans, engines and vehicle parts. About 3,650 UAW members at
Detroit-based American Axle struck on Feb. 26 over pay and benefits."
"American Axle has said wages and benefits run more than $70 per hour,
about three times higher than at its competitors, and it will have to close
plants unless it gets wage cuts to as low as $14 per hour," according
to Reuters (3/27, Krolicki).
American Axle CEO says outsourcing a possibility. The Detroit Free
Press (3/27, Walsh) reported that, in response to the UAW strike, Dick Dauch,
chairman and chief executive officer of American Axle & Manufacturing,
on Wednesday said AAM has "the flexibility" and "the
right" to outsource all of its business "to other locations around
the world." Dauch added, "We will not be forced into bankruptcy in
order to reach a market-competitive cost structure in the United States. If
we cannot compete for new contracts in the U.S., there will be no work in
the original plants," which are located in Detroit, Pittsburgh, and two
New York towns. However, "Dauch insisted he has no intention of turning
American Axle...into an offshore company."
AT NO COST TO YOU! |
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This page last updated on 08/09/08 23:20 |
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