UAW Can Be Made to Listen

[mgescuro]

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UAW Workers Accept CNH Global Offer

SAN FRANCISCO (Reuters) - Union workers who have been
locked out of CNH Global NV (CNH.N) facilities for almost four
months approved a new contract on Saturday with the farm
equipment maker and will return to work next week, the company
said.

CNH said the workers, who unanimously rejected the
company's previous offer in May, were expected back on Monday
morning and no later than the end of Tuesday.

"We are pleased that our UAW-represented employees ratified
the contract and are returning to work," Tom Graham, CNH lead
negotiator, said in a statement. "The agreement is good for the
company, our employees, our dealers and the communities in
which we do business."

The company, majority-owned by Italian carmaker Fiat SpA
(FIA.MI), did not provide details of the contract deal.

The United Auto Workers represents about 650 workers at
four locations. Most work in Racine, Wisconsin, and Burlington,
Iowa, making farm tractors and backhoe loaders, respectively. A
further 33 workers are at a parts distribution center in St.
Paul, Minnesota, and 11 technicians work at an engineering
center in Burr Ridge, Illinois.

The workers have been without a contract since May 2, when
the previous six-year contract expired and UAW members rejected
what the company then called its final offer.

The UAW went on strike in early November. Although the
strike was called off 19 days later, CNH declared an impasse in
contract talks and locked out workers. The company resumed
production using salaried and replacement workers.

CNH, based in Lake Forest, Illinois, has 10,000 employees in North
America and 26,800 worldwide.

[MTRANS]

The way things are going at GM I hope to see more of those pickets signs. Its time the UAW plays fair and takes a pay cut. The UAW is killing the american auto makers!

[The Oatman]

Having studied and worked in labor relations, I'm always amazed and how GM has allowed itself to be beat up by the Union constantly.

They agreed to ridiculous demands because they thought their coffers were bottomless, now they are paying for it.

In modern times a strike is not THAT big of a deal. Once the Union goes on strike (and this is really the only weapon they have) there are businesses out there dedicated to supplying temporary workers and security forces so that the company can continue to operate during the strike. Once they strike, the company is also free to permanently replace them.

[FusionSVT]

I know why Wagoner and other CEOs have been hesitant to go against the UAW/CAW in the past and future. The beauty of the UAW/CAW is that they work together and control run almost every Big 3 North American plant (aside from the mexican plants) so if they dont get what they want they can shut down the companies factories, suppliers, and competition. Wagoner needs to realize that his business will continue to post losses even if he does sell assets and that unless he addresses the core issue of fixed costs and either files for chapter 11 or lets the unions strike it out then he will continue to lose market share in the long term.

Im not normally a short term thinker, but in this case a short term solution of allowing the unions to strike it out will have far greater long term effects. By going on strike the workers are forfeiting their pay so GM will not have to pay the 95% salary rule.

The question that Wagoner should seriously be considering is how long the average worker will go on strike for? If a worker is without work for 3 months, 5 months, or 8 months will he go back to work? Is the short term loss outweighing the long term gain? How long will it take to hire replacement workers on a lower pay scale? During the strike can we close plants?

GM has one resource that will aid them greatly if a long strike is to occur and that is its large inventory of unsold vehicles. GM currently has a 101 day supply of unsold vehicles, more then enough to last for multiple months. GM also has the incentives which can aid them in controlling selling rates. If the strike lasts longer then 2 months they can begin to roll back the incentives effectively extending the day supply and increasing profit per vehicle sold.

As mentioned earlier there are companies dedicated to replacing workers on strike. If the UAW/CAW was to go on strike it would realistically take less then 3 months to train and hire a new workforce on a lower pay scale. At that point in time if former workers wanted to hire back in they would have to accept the current system. GM also doesnt need as many workers to hire back either since they were already over-producing before the strike so the hiring process wouldnt take nearly as long as it may seem. There is also plenty of managers in canada and in the united states who are young and would be willing to work in these plants. Effectively youd be transforming an old workforce for a more youthful workforce. During this time some of GMs more experienced plant mangers who moved up in the ranks of GM could work with the younger plant managers at the GM plants to gain experience and ensure quality is up to standard.

If anyone see's a problem with this idea please speak up.

[spudglo08]

GM has such a big supply of cars right now.It wouldnt matter if the workers went on strike.GM prolly encourages it right now.

[spudglo08]

HAHAHAHAHAHAHA its owned by FIAT.

[spudglo08]

GM coulda made tractors.

[327]

Originally Posted by FusionSVT

I know why Wagoner and other CEOs have been hesitant to go against the UAW/CAW in the past and future. The beauty of the UAW/CAW is that they work together and control run almost every Big 3 North American plant (aside from the mexican plants) so if they dont get what they want they can shut down the companies factories, suppliers, and competition. Wagoner needs to realize that his business will continue to post losses even if he does sell assets and that unless he addresses the core issue of fixed costs and either files for chapter 11 or lets the unions strike it out then he will continue to lose market share in the long term.

Im not normally a short term thinker, but in this case a short term solution of allowing the unions to strike it out will have far greater long term effects. By going on strike the workers are forfeiting their pay so GM will not have to pay the 95% salary rule.

The question that Wagoner should seriously be considering is how long the average worker will go on strike for? If a worker is without work for 3 months, 5 months, or 8 months will he go back to work? Is the short term loss outweighing the long term gain? How long will it take to hire replacement workers on a lower pay scale? During the strike can we close plants?

GM has one resource that will aid them greatly if a long strike is to occur and that is its large inventory of unsold vehicles. GM currently has a 101 day supply of unsold vehicles, more then enough to last for multiple months. GM also has the incentives which can aid them in controlling selling rates. If the strike lasts longer then 2 months they can begin to roll back the incentives effectively extending the day supply and increasing profit per vehicle sold.

As mentioned earlier there are companies dedicated to replacing workers on strike. If the UAW/CAW was to go on strike it would realistically take less then 3 months to train and hire a new workforce on a lower pay scale. At that point in time if former workers wanted to hire back in they would have to accept the current system. GM also doesnt need as many workers to hire back either since they were already over-producing before the strike so the hiring process wouldnt take nearly as long as it may seem. There is also plenty of managers in canada and in the united states who are young and would be willing to work in these plants. Effectively youd be transforming an old workforce for a more youthful workforce. During this time some of GMs more experienced plant mangers who moved up in the ranks of GM could work with the younger plant managers at the GM plants to gain experience and ensure quality is up to standard.

If anyone see's a problem with this idea please speak up.

If they did strike and i was the president of GM N. A. I would be saying this right now. "Well since you UAW are on strike, YOURE ALL FIRED!!!!