State of the Union August 31, 2011

    August 31, 2011 online at www.uawlocal2250.com



    •    Reminder: Tomorrow is a VR blackout day. Tuesday, Sept. 6 is the holiday pay qualifying day and a VR blackout day. Also, today is the deadline for getting your entries in for the Women’s Committee golf tournament to be held Saturday, Sept. 10.

    •    Here are some notes from the diagonal slice meeting with Diana Tremblay:

    A question was asked about the future of this plant regarding second shift and another product.



    Diana Tremblay said that when GM went through bankruptcy the company sized the manufacturing footprint so that all of the plants left would be on three shifts (except Bowling Green because of the specialty of the Corvette) So the future of Wentzville is three shifts. The question is when does the market come to drive the additional shifts. The market has not come back as strong as we had expected. As far as second shift here you are right on the edge and she thanked everyone for working the crazy hours to build the vans the market is asking for. She said the intention of her visit was never to announce a second shift and that GM would be very cautious in adding a shift because they don’t want to have to undo it.



    A question was asked about the future of the van and if the new fuel economy requirements would have any impact on it.



    Diana Tremblay said that there are different standards for cars and trucks so there is a future for the van. There will also be credits for battery use in powertrains and other technology that will help offset the lower mpg products. GM will be OK with the product portfolio we now have, although the trucks like the Suburban and Tahoe that are not work vehicles will be a little trickier. She said we will build the van as far as she can see into the future. There will be a model change in 2016 and she expects the Ford Econoline to drop out of the market in a couple of years so we will be the only game in town.



    A question was asked about money for plant improvements.



    Diana Tremblay said the GM has protected more money for future plant investments to maintain their facilities. She acknowledged that there has been little money invested here in the past few years and that there is money for the plant now and she is working hard to protect that money.





    •    Diana Tremblay also had some conversations with several members in Trim. Team leader Roger Spradley in HVAC was asked to compare being a TL when we built cars versus now with the van. He said that in the car days he had more people and fewer responsibilities and now he had fewer people and more responsibilities. She asked him if he felt he had enough time to fulfill all his responsibilities and he said yes and she said that’s good because we’re going to give you a new project to work on.

    Core team member Jeff Queen was asked if the kitting area that was recently set up in the IP area for steering columns could support another product and he said yes. She asked if he was sure it could support another product and he said he was positive and she said we’re going to see if you can.

    Team leader Doug Clark of the IP line told Diana Trembay that one of his – and other 1985 seniority members - concerns was being able to retire from this plant and she told him that he had nothing to worry about.

    •    From Automotive News: A strike at Ford Motor Co. or arbitration at General Motors and Chrysler Group could be handled without harming the union's long-term relationship with the affected company, UAW President Bob King said today. King also said the union has asked for a wage increase for its 112,000 members at the Detroit 3, not just profit-sharing and performance bonuses. All parties want to avoid a strike or arbitration in this year's auto talks, he said, but the union had a short strike against GM in 2007 without lasting harm to the union's ability to work cooperatively with the company afterward. "I just feel we can do better" than a strike, King said during a press conference after a luncheon speech to the Detroit Economic Club. King said the current talks are about keeping the Detroit 3 competitive so they can continue to put jobs in the United States while allowing workers to share in the new-found profitability of the carmakers. The rank-and-file at the Detroit 3, King said, want and deserve a raise. For that reason, the union has proposed an increase. But King cautioned that that he is most interested in maximizing overall compensation for workers, not necessarily wages. The best route, he said, might be through profit-sharing and performance bonuses and some combination of wage increases and restoration of cost of living allowances. Only bargaining, however, will determine the best way to achieve that goal without hurting the long-term competitiveness of the Detroit 3 vs. the U.S. transplant operations of the German and Asian automakers. "There is room because of the current framework to make gains in different areas" and still keep the companies competitive, King said. He reiterated that the UAW is not allowing the contract talks to detract from efforts to organize the U.S. transplants. He said he was optimistic that at least one of the transplants would accept the UAW by the end of the year.



Post Title

State of the Union August 31, 2011


Post URL

https://manufacturing-holdings.blogspot.com/2011/09/state-of-union-august-31-2011.html


Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

State of the Union September 1, 2011

    Sept. 1, 2011 online at www.uawlocal2250.com



    Reminder: This year’s Labor Day Parade will be Monday, Sept. 5 with the theme of “We Are One”. The UAW location in the parade lineup is 8th. Line up begins at 7 am on 18th Street north of Olive Street where we will decorate the fhttp://www.blogger.com/img/blank.gifloat. All are invited including friends and family.



    General Motors Co. (NYSE: GM) today reported total sales of 218,479 vehicles in August, an 18-percent increase compared with August 2010. Retail deliveries were up 22 percent compared with the same month a year ago and accounted for 74 percent of GM sales. Deliveries to fleet customers increased 8 percent. “Our balanced portfolio of trucks and fuel-efficient vehicles like the Chevrolet Cruze, Chevrolet Equinox and GMC Terrain are helping GM continue to gain market share, which has now increased in seven of the past eight months,” said Don Johnson, vice president, U.S. Sales Operations. “We’re carrying good momentum and we’re cautiously optimistic that we’ll see U.S. economic growth improve in the months ahead.” In August, year-over-year passenger car sales increased 18 percent, crossover sales increased 17 percent and truck sales increased 18 percent.



    Van sales came in at 6714, up 16.8% over last August.



    Chevrolet: Cruze sales surpassed 20,000 for the fifth month in a row; Equinox sales rose 58 percent compared with August 2010.



    GMC: Terrain sales were up 88 percent; Acadia was up 54 percent compared with August 2010.



    Cadillac: Combined sales of the Cadillac CTS sedan, coupe and wagon increased 39 percent compared with August 2010. Cadillac reduced its fleet sales by 51 percent.



    Buick: August was the brand’s 23rd consecutive month of year-over-year sales gains, and the Regal had its best month since launch, more than doubling sales.

    Month-end dealer inventory in the United States was 556,884 units, including 212,520 full-size pickup trucks. GM is on track to meet its target of ending 2011 with a full-size pickup inventory of about 200,000 units, thanks to improved sales, which were up 10 percent compared with July, and production adjustments. GM is closely monitoring consumer sentiment and other economic indicators but the company continues to expect that the full-year seasonally adjusted annual rate (SAAR) for U.S. vehicle sales will be in the low end of a 13.0 million – 13.5 million unit range.



    One other issue that Diana Tremblay was asked about in the wrapup meeting was the status of national negotiations (in addition to being Vice President of Global Manufacturing she is in charge of Labor Relations). She said that most of what the press was reporting was not true and she didn’t know who these “people close to the negotiations” were because those folks were not speaking with the press. She also said that she would be “amazed” if the contract was settled early, although she didn’t rule it out entirely. The last thing she wanted was a hasty contract that got ratified that the parties had to spend the next 4 years trying to figure out what had been agreed too. With that said, here is a report from the Detroit News on negotiations: Talks also appear to be in full swing at General Motors Co., where another round of hourly buyouts is being discussed at the bargaining table, sources familiar with these negotiations said. GM-UAW negotiations haven't yet gone late into the night, nor spilled into the weekend, and topics at the bargaining table remain in the "idea phase," said one person close to the talks. "Talks continue as both the UAW and GM work on issue important to employees and our business," GM spokeswoman Kim Carpenter said, declining further comment. The UAW also declined comment. UAW President Bob King, however, told at least one GM union official to be ready to meet in Detroit late next week. King didn't specify the purpose of the visit. But typically, local union leaders are called to Detroit when the national bargaining team has reached a tentative agreement. GM and the UAW also are discussing another buyout program for factory workers, even as the company adds thousands of jobs. It's unclear whether the buyouts would be offered companywide or target certain plants or skilled trades. Sources said talks on the buyouts are preliminary and among many options being discussed.



    From the Cleveland Plain Dealer: About 4,500 GM autoworkers in Lordstown will be working some unexpected extra hours as General Motors struggles to keep the popular Chevrolet Cruze on dealer lots. "That's the demand that's out there," said GM spokesman Tom Mock. "We're building them as fast as we can." "There's definitely a shortage" of Cruze models on dealership lots, said Steve "Zap" Zapotechne, owner of Brunswick's eInventoryNow.com, an Internet-based business that lets GM dealers swap cars with each other. Zapotechne monitors GM's inventory levels and said the Cruze has been in short supply since April. Jim Cain, a spokesman for GM's Chevrolet brand, said the company tries to match plant production with market demand, but Lordstown can't produce vehicles fast enough. "It's a good problem to have," Cain said. The automaker plans to release August sales figures on Thursday, and Cain said it expects the Cruze to top the 20,000-vehicle mark for the fourth consecutive month. And that's not including the several thousand models that got to Canada and Mexico each month. The Cruze has been the best-selling compact in the country since May and was the best-selling car of any size in June.

Post Title

State of the Union September 1, 2011


Post URL

https://manufacturing-holdings.blogspot.com/2011/09/state-of-union-september-1-2011.html


Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Gender Wage Gap and Occupational Fatality Gap




    "Are women discriminated against in the workplace? Looking at the data, women on average earn an annual wage that is approximately 75% that of men, which many people believe is the result of discrimination. However, when Prof. Steve Horwitz analyzes the data more closely, he finds that women make certain choices, such as career selection and raising children, which tend to result in lower wages than men. These choices could be the result of personal preferences or sexist cultural expectations for women's work, though the relative influence of these two factors remains unclear."

    Another factor that can explain some of the "gender wage gap" is the huge "gender occupational fatality gap." Last year, men were 12 times more likely than women to get killed on the job, see the chart below and read my post today about this topic on the Enterprise Blog (link will be posted shortly).  More men than women are willing to work in high-risk occupations, with both higher wages and a higher chance of workplace-related injury or death, which can help explain some of the disparity in wages by gender.
     

Post Title

Gender Wage Gap and Occupational Fatality Gap


Post URL

https://manufacturing-holdings.blogspot.com/2011/09/gender-wage-gap-and-occupational.html


Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

One Solution for High-Priced Textbooks

    From Timothy Taylor at the Conversable Economist blog:

    "Take a look at prices for the best-selling and best-known introductory economics textbooks. A copy of the full-year, micro and macro version will typically list at more than $200, although students can often get discounted copies at sellers like Amazon.com for about $170-$180.

    My solution is my own introductory textbook, "Principles of Economics." The second edition of this text is out this fall through Textbook Media, Inc. The pricing works this way: $17 for access to an online e-textbook which has search, notes, and chat options, but that can't be printed; $22 for the e-textbook along with the ability to print out PDF files of the chapters; and $33 for the e-textbook along with a black-and-white printed softcover version of the book.  Textbook Media is a small company. It has no sales force to knock on the doors of professors and take them to lunch. It sponsors no junkets. The book is printed in black and white. But it does have e-textbook functionality, a workbook of problems and answers, a test bank, and some other add-ons. If you want a micro or a macro split, they are available."

    MP: I predict that we'll see more and more of this.  Spending $1,000 per semester on textbooks (5 courses x $200) seems like an unsustainable exercise of monopoly power and pricing. 

Post Title

One Solution for High-Priced Textbooks


Post URL

https://manufacturing-holdings.blogspot.com/2011/09/one-solution-for-high-priced-textbooks.html


Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Ratio Of Takers To Givers Reaches A Tipping Point


    Larry Elder has an editorial in today's Investor's Business Daily that starts out by quoting an Irish taxi driver who identified the No. 1 reason for the grim economic situation in Ireland as "too many takers - not enough givers."  The charts above help to graphically illustrate that situation in the U.S.  Read the full editorial here.  

Post Title

Ratio Of Takers To Givers Reaches A Tipping Point


Post URL

https://manufacturing-holdings.blogspot.com/2011/09/ratio-of-takers-to-givers-reaches.html


Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Watch Out for Political Solutions to Non-Problems

    Here's some editing of Jon Huntsman's recent comments:

    "When I was born in 1960, manufacturing agriculture comprised 25 four percent of our GDP. Ten years earlier it was about seven percent.  Today, it’s down to around 10 only one percent (see chart above). This does not reflect a decline in American ingenuity or work ethic; it reflects our government’s failure to adapt to the realities of the 21st Century economy.  It’s time for Made "Grown in America" to mean something again."

    MP: Even though the shares of GDP for both agriculture and manufacturing have fallen over time, the total production of agricultural and manufactured products have continued to increase to record levels in almost every year.  It's a testament to the increased productivity of American farm and factory workers that we can produce more output over time with fewer workers.  And it's those significant increases in productivity that have dramatically lowered the prices of food and durable goods over time, so that purchases of those goods represent a decreasing share of national and personal income.  That's a good thing (see chart below).

    If Huntsman is suggesting that increasing manufacturing's share of GDP back to 25% would make us better off economically, then wouldn't it also be the case that we would be better off if the farming/GDP share increased back to 7%? In both cases it would imply a significant reduction in worker productivity making the manufacturing and agricultural sectors much less efficient, leading to large increases in the prices of food and durable goods, and increasing the share of income spent on food and durable goods (see chart below for food). That would make us much worse off.       

    Bottom Line: It's a sign of remarkable progress, not regress, that the farming/GDP and manufacturing/GDP ratios have fallen over time, and means that our standard of living has risen, not fallen.  Be very skeptical of Huntsman's political solution of increased government intervention to solve this "non-problem" because it would certainly make us worse off, not better off.

Post Title

Watch Out for Political Solutions to Non-Problems


Post URL

https://manufacturing-holdings.blogspot.com/2011/09/watch-out-for-political-solutions-to.html


Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Price Discrimination in Pictures

    At the tavern:


    Local residents get a 50% discount to Six Flags:

Post Title

Price Discrimination in Pictures


Post URL

https://manufacturing-holdings.blogspot.com/2011/09/price-discrimination-in-pictures.html


Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Popular Posts

My Blog List