Unions Zero In On GM/Nissan

[nadepalma]

Source: http://www.thecarconnection.com/Auto...75.A10738.html

Unions Zero In On GM/Nissan: American, German and Japanese unions begin to coalesce against new alliance.
by Joseph Szczesny
2006-08-07

Unions are staking out a position against any kind of an alliance between Renault/Nissan and General Motors and the intercontinental opposition could be enough for Carlos Ghosn to drop the idea.

In North America , United Auto Workers president Ron Gettelfinger has expressed reservations about the proposed merger. Gettelfinger's Canadian counterpart, Buzz Hargrove, also has expressed concern about the potential impact of an alliance.

Unions in Europe, particularly in France, the home of Renault, and Germany, the home of GM's Adam Opel AG subsidiary, also have spoken out against the possible alliance.

Meanwhile, the Confederation of Japanese Auto Workers, while it hasn't taken a stand against the proposed alliance, is watching the situation carefully, according to members of a JAW delegation that toured North America last week. Isao Yoshida, the leader of JAW delegation, stressed that JAW indicated that the union's currently excellent relations with Nissan and Ghosn were one of the key reasons for holding off on any kind of criticism. Japanese unions don't criticize management unless key union interests, such as jobs and compensation, are directly threatened.

However, during the lunch with reporters at the Japanese consulate in Detroit, leaders indicated that JAW was keenly interested in insuring that Japanese automakers generally maintained a significant production base in Japan.

Yoshida said he expects Japanese automakers this year to build more cars outside Japan than they do in Japan. JAW, however, does not want Japanese auto production to drop below 10 million units annually and will pressure Japanese manufacturers to maintain the production level, which is critical to the job security of Japanese auto workers, he said.

Ghosn, while he has a fearsome reputation as a cost cutter, generally follows a pragmatic path in dealing with unions at Nissan. Faced with a strike threat at Nissan during the late 1990s, Ghosn negotiated buyouts for 21,000 workers. The buyouts were a compromise that helped protect the interest of the workers who retired and the lifetime jobs of thousands of other Nissan workers who remained. Contrary to his image in the press as a hardline foe of any and all entrenched interests and practices inside the company, Ghosn has been mindful of the union position at Nissan. Thus compensation has continued to rise for workers as Nissan has become more profitable.

Yoshida said the JAW was interested in working more closely with its counterparts in the American and European auto industries and with the International Metal Workers Federation, the Swiss-based alliance of auto unions. Over the years, the transnational union organization has been relatively ineffective because its members tend to follow their own narrow interests in dealing with the world's top automakers.
However, in the case of the proposed General Motors-Renault/Nissan alliance, it could well be that the IMWF could well wind up speaking with one relatively united voice.

With unions in Europe and North America already leaning the alliance and Japanese unions sitting on the fence, union opposition could potentially become a very significant obstacle to any kind of two- or three-part deal that could emerge from the current discussions.

Europe is very likely to emerge as the center of the battle with the unions for the simple fact that unions representing the GM/Opel workers were already restive while the French unions have been bracing for a fight with Ghosn anyway. In addition, the relatively labor-friendly rules on mergers, consolidations and plant closings that prevail in the European Union gave any union opposition in Europe added weight and power.

In addition, as the Japanese union officials noted, Ghosn, despite is reputation as a can-do executive, has been a pragmatist on labor issues. He seems to prefer the best deal to confrontation.

When he came back to Renault, Ghosn pressed for cost-cutting measures and made plans for moving production away from France but so far has generally avoided any kind of messy confrontations with volatile French unions.

Indeed, Ghosn was quoted by the press in Paris recently as saying he wasn't going to endorse any kind of an expanded alliance or investment in a larger alliance that interfered with the ongoing restructuring plans at Renault and Nissan. The alliance also would have to deliver substantial returns for the French-Japanese partnership, he said. A messy fight with unions around the world might not fit into that formula.

[nadepalma]

This isn't a surprise by any means, but some good information. I didnt' know that Goshn wasn't really confrontational on issues like labor. If the UAW and the Euros get really unsettled, they might actually do our work for us and the alliance may never move forward.

[01cavalier]

So it seems the unions may cause enough trouble to prevent the deal. That would be great, then the companies dont have to deal with the pressures from Tracinda.

[rsbaker]

Absolutely nobody thinks this is a good Idea except maybe Carlos Goshen because he probably dreams of being President of the largest Carmaker on the planet, and Kurt Kokorian of course. But if Kurt told the real truth he would have to say that it not a good Idea for GM or anybody else. It is only good for one Man...Kurt himself so this octogenarian can go to his grave in the next year or two having made one last killing in the market.

[megeebee]

Well, well, well. It seems the orgaization (s) so demonized on this site and in the world as a whole, Labor Unions, may be the heros after all.

[eaton53]

I don't know about heroes, they're just doing what they do... obstruct change. For once it's a good thing.

[johnny smallblock]

Originally Posted by megeebee

Well, well, well. It seems the orgaization (s) so demonized on this site and in the world as a whole, Labor Unions, may be the heros after all.

Don't expect many to see the good in unions.

[jbartley]

Originally Posted by megeebee

Well, well, well. It seems the orgaization (s) so demonized on this site and in the world as a whole, Labor Unions, may be the heros after all.

Don't call them heros, they only have one thing on their mind. Their own self-interests.

[Ming]

I wonder if the JAW, UAW, CAW, etc. will all merge into one mega-Union with the UAW like a "local" branch of a larger organization....the GAW...? (Global)

[Stéphane Dumas]

Originally Posted by Ming

I wonder if the JAW, UAW, CAW, etc. will all merge into one mega-Union with the UAW like a "local" branch of a larger organization....the GAW...? (Global)

I taught of the same thing, I could even said then the JAW members will probably ask one day to Toyonda to have almost all the same stuff as the UAW asked over the years.

And strange then all these unions didn't taught of their own mega-merger.

[Angry Dad]

Originally Posted by Ming

I wonder if the JAW, UAW, CAW, etc. will all merge into one mega-Union with the UAW like a "local" branch of a larger organization....the GAW...? (Global)

The "election" of leadership would be quite a sight to see.

[T-Type]

Originally Posted by Ming

I wonder if the JAW, UAW, CAW, etc. will all merge into one mega-Union with the UAW like a "local" branch of a larger organization....the GAW...? (Global)

How about MAW? I can't think of something for the M, but the name MAW (as in gaping maw) struck me as appropriate and funny.

[Geotpf]

Originally Posted by T-Type

How about MAW? I can't think of something for the M, but the name MAW (as in gaping maw) struck me as appropriate and funny.

I always thought MAW stood for Model, Actress, Whatever. That is, a party chick who somehow managed to be famous or semi-famous without actually doing anything of note-Paris Hilton is a MAW.

[steverino]

This alliance is DOA

[IROCNROL1]

Originally Posted by T-Type

How about MAW? I can't think of something for the M, but the name MAW (as in gaping maw) struck me as appropriate and funny.

How about Multinational?