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GM bans unscheduled overtime, union officials say

http://www.usatoday.com/money/autos/2008-10-20-gm_N.htm?csp=34

General Motors (GM) has told local union officials at two factories that make its hotter-selling small and midsize cars that it will not allow any more unscheduled overtime, a move seen as a way to further cut costs.

GM is burning through about $1 billion in cash per month and has promised to raise $10 billion through cost cuts and another $5 billion through asset sales and borrowing as it tries to outlast a U.S. auto sales slump that could run into 2010.

Union officials at factories in Orion Township, Mich., which makes the Chevrolet Malibu and Pontiac G6 midsize cars, and Lordstown, Ohio, where GM makes the Chevrolet Cobalt and Pontiac G5, each say they were told of the overtime ban Friday.

The officials say they do not know if the ban affected just their plants or if it was companywide.

GM spokesman Tony Sapienza said Monday that the company has not announced any ban on unscheduled overtime, but it is looking at ways to conserve cash.

"Officially we haven't told employees anything," he said. "As we weather very difficult economic conditions, we're looking at a variety of ways to be as efficient as possible while balancing the needs of the market for our products."

Unscheduled overtime generally is used when a worker calls in sick. An employee who is on duty at the time usually works half the shift for the sick employee, and another worker is called in early to work the other half.

The union officials were unsure how the company would fill assembly line positions for those who are ill.

Jim Graham, president of UAW Local 1112 in Lordstown, said GM probably will have to make an exception at his plant because its small cars are selling.

"We will have to. We need the cars," he said.

As of Sept. 30, GM had a 43-day supply of Malibus and G5s, a 48-day supply of Cobalts and 73 days worth of the G6, according to Ward's AutoInfoBank. A 60-day supply is considered ideal to meet demand and have enough of a selection in dealerships.

Through September, Cobalt sales were up 6.3% and G5 sales rose 1.7%, even though overall U.S. light vehicle sales were down 13% compared with the first nine months of 2007. Malibu sales are up 51%, while G6 sales have risen 8.4%, according to Autodata.

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This is not that unusual in times of slow sales. Been there, done that several times before.
 

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Got that where I work. Expect it to be commonplace for some time.
 

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I've had that happen to me in several different areas and instances. Not a big deal if you ask me. I'm one of the few (apparently) people who think it is utterly stupid to base ANY finances on hours worked over 40. I know of many people who purchase/plan for things with the idea that they always have 10-15 hours OT a week, then when it gets cut out, I find myself almost laughing at their ignorant selfishness. What I would do is base everythiing on a 40 hour week, then when I did get OT, it would go toward paying off a credit card, car payment, or even make a big purchase once I had enough saved up.

Funny how I did things that way and didn't always have the newest or nicest techno stuff (even though I may have wanted it bad), but now that I'm unemployed for over a month, those extra little bits I saved are coming in handy.
 

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Wait....

Union types actually worked overtime? I assume that they just hang around doing nothing for 8 hours and go home watch NASCAR???

Weird
Ignorance is bliss.

Anyways, this pertains to workers choosing to work 'double shifts,' or working more than 8 hours in a 24 hour period (requiring higher-than-normal pay). There tended to be a big opportunity for workers to work double shifts when overtime was scheduled for Saturday shifts, as many people, especially those with higher seniority, did not want to work more than 5 days a week, or wanted the Saturday afternoon shifts off. However, now with most plants down the 5 days a week again, it seems as though they are doing what they can to make sure people don't pull off double shifts.
 

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Wait....

Union types actually worked overtime? I assume that they just hang around doing nothing for 8 hours and go home watch NASCAR???

Weird
Lol, I was shocked also. Turns out that the union workers GOT overtime, not actually WORKED overtime. There is a big difference.
 

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CAMI has worked that way since it began. Somebody doesn't show up, a team leader, or somebody with an off line job (repair, quality or materials) gets put on line to cover. I have seen them put electricians and millwrights on line during aa weather emergency.The need to do this doesn't arise very often, as there is a strict attendance policy and an over 99% attendance rate.
 

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GM bans unscheduled overtime, union officials say

http://www.usatoday.com/money/autos/2008-10-20-gm_N.htm?csp=34

General Motors (GM) has told local union officials at two factories that make its hotter-selling small and midsize cars that it will not allow any more unscheduled overtime, a move seen as a way to further cut costs.

GM is burning through about $1 billion in cash per month and has promised to raise $10 billion through cost cuts and another $5 billion through asset sales and borrowing as it tries to outlast a U.S. auto sales slump that could run into 2010.

Union officials at factories in Orion Township, Mich., which makes the Chevrolet Malibu and Pontiac G6 midsize cars, and Lordstown, Ohio, where GM makes the Chevrolet Cobalt and Pontiac G5, each say they were told of the overtime ban Friday.

The officials say they do not know if the ban affected just their plants or if it was companywide.

GM spokesman Tony Sapienza said Monday that the company has not announced any ban on unscheduled overtime, but it is looking at ways to conserve cash.

"Officially we haven't told employees anything," he said. "As we weather very difficult economic conditions, we're looking at a variety of ways to be as efficient as possible while balancing the needs of the market for our products."

Unscheduled overtime generally is used when a worker calls in sick. An employee who is on duty at the time usually works half the shift for the sick employee, and another worker is called in early to work the other half.

The union officials were unsure how the company would fill assembly line positions for those who are ill.

Jim Graham, president of UAW Local 1112 in Lordstown, said GM probably will have to make an exception at his plant because its small cars are selling.

"We will have to. We need the cars," he said.

As of Sept. 30, GM had a 43-day supply of Malibus and G5s, a 48-day supply of Cobalts and 73 days worth of the G6, according to Ward's AutoInfoBank. A 60-day supply is considered ideal to meet demand and have enough of a selection in dealerships.

Through September, Cobalt sales were up 6.3% and G5 sales rose 1.7%, even though overall U.S. light vehicle sales were down 13% compared with the first nine months of 2007. Malibu sales are up 51%, while G6 sales have risen 8.4%, according to Autodata.

More at Link
That just shows the depth of ignorance and entitlement....that the shop chairman would think his plant would "have to allow exceptions" because the cars are selling. He needs to go, just like the rest of them.
 

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CAMI has worked that way since it began. Somebody doesn't show up, a team leader, or somebody with an off line job (repair, quality or materials) gets put on line to cover. I have seen them put electricians and millwrights on line during aa weather emergency.The need to do this doesn't arise very often, as there is a strict attendance policy and an over 99% attendance rate.
Off topic but when is CAMI re-tooling for new Equinox?
 

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If a plant is making cars that are selling and in short supply then production levels must be keep up even if it means overtime. GM must have steel to sell.
It's not about that. If a worker isn't there (calls in sick, whatever) SOMEBODY does still have to do that job. Whether that type of vehicle is popular or not doesn't make any difference. If a station has no worker, the whole plant would stop. Popular car or not, one sick guy idling thousands of workers isn't exactly "productive".

The issue is whether you have another worker (or workers) work that station in ADDITION to their own shift (which would of course be overtime) or have a non-lineworker work his station for the day INSTEAD OF his regular job.
 

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How is it that a thread like this gets twisted into a 90% auto worker bashing thread? Lotta hate going on in here.
Ted
 

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Great idea. Thousands of other companies make it work, why can't GM? Let's just hope quality doesn't get affected.
sure some employees like the time and a half or double pay, but less worked, more rested employees work better. gm could add 50% employees, get 50% more production...or work the same employees harder, and get maybe 25% more production. happy employee = happy car.

i read an article the other day about europe focusing on the "five day car". this means almost no dealer stock, and customers ordering cars to their specs, and receiving it in five days. the concept is a steel monocoque, with plastic body panels...a lot like a Fiero! the japanese hybrid craze started because of the pngv started in the u.s. in 1998. americans CAN design very good cars, but they don't produce them.
 
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