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Posts Tagged ‘UAW jobs’

Health Care Could Be Big Sticking Point Between UAW and Big Three

“We’re focused on jobs,” contends UAW’s King.

by on Jul.07, 2011

UAW Pres. Bob King. Will the union make concessions on health care in order to win more jobs?

Steadily rising health-care costs will again become a key issue when the United Auto Workers begins contract talks with General Motors, Ford Motor Co. and Chrysler Group later this month.

Critics of the Obama administration’s 2009 bailout of General Motors and Chrysler Group have complained the union’s health-care benefits went through bankruptcy with only modest modifications – despite the union’s agreement, in 2007, to shift responsibility for retiree health care to independent trusts or Voluntary Employee Benefit Associations for each company.

Union members still pay less than 10% of their health-care bills through co-payments and deductibles. In the face of steadily rising health-care costs, so if the two sides win up with no change in the current formula it will represent the equivalent of a pay increase for union members.

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But that is something the carmakers insist they cannot accept as they struggle to hold total wage and benefits costs to around $50 an hour, roughly on par with the major transplant assembly lines operated by Toyota, Honda and Nissan.

Along with the cost-of-living increases now abandoned by the UAW, rising health care costs helped drive Detroit’s Big Three labor costs from about $47 an hour in 1999 to more than $76 by 2006 – before concessions began driving costs back down again.


GM Investing $2 Bil in Plants – Adding 4,200 Jobs

Move impacts 17 factories in 8 states.

by on May.10, 2011

GM CEO Akerson will announce $2 billion in plant investments - and 4,200 new jobs.

General Motors hopes to reassert its role as the preeminent U.S. automaker as it rolls out plans to invest $2 billion in 17 of its plants across eight states.

The move, which will be formally announced by CEO Dan Akerson during a visit to a transmission plant in Toledo, Ohio today, should create at least 4,200 new jobs.  It is unclear how many of those new positions will be filled by workers paid on a lower, second-tier wage structure, however.

The Toledo plant, for one, is expected to receive $250 million in upgrades that will lead to the creation of 250 new jobs.  But other plants on the list include the so-called “Poletown” plant, that straddles the Detroit-Hamtramck border, where GM produces a variety of products including the new Chevrolet Volt plug-in hybrid.

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Akerson, a former telecomm executive named GM CEO last year, is expected to reveal only some of the details during his Toledo appearance.  Additional information will be released as the project moves forward.  That could help increase media coverage for a company intent on shedding its image of insolvency.

But the maker may also use the dangling carrot for wrangling further concessions from the United Auto Workers Union.


GM To Invest $494 Million In U.S. Manufacturing

Three plants will be upgraded to make new “Ecotec” engines.

by on Feb.18, 2010

Oh, how the mighty V8 engine has fallen...

General Motors Company said today that it would invest more than $494 million and create about 550 jobs in three U.S. plants to produce the next generation fuel-efficient Ecotec engine. The project consists of the following:

  • Tonawanda, NY – $425 million site investment will add capacity for the next generation Ecotec engine at 370,000 per year and bring about 470 jobs to that community
  • Defiance, OH – $59 million site investment will support precision sand cast block at a capacity of 188,000 annually and result in about 80 jobs to that community
  • Bay City, MI – $10.5 million site investment will bring new product to the plant (Ecotec connecting rod) and will create about 15 jobs for that plant.

The investment includes facility renovation, new machinery, equipment and special tooling to support this engine program at the three plants.