Sports fans, don't be fooled. GM is not your favorite sports team. Resist the urge to identify with this global corporation's "success."
The Free Press reports:
"'We’ve been No. 1 for 76 years. We like being No. 1, and we’re going to stay focused on our long term goals,' said GM spokesman John McDonald."
This renewed No. 1 status amounts to 10,000 more vehicles than Toyota sold globally over the first nine months of the year. GM's total, 7.06 million.
Not to rain on your parade, GM, but that's .14 (point one four) percent more vehicles sold globally -- a statistically insignificant amount.
There's no trophy for selling a statistically insignificant greater number of significantly less profitable vehicles globally. According to the Free Press,"Last year, Toyota clearly beat GM on the profitability point. Toyota reported a profit of $14 billion, while GM reported $2-billion loss."
More troubling is the impact of lack of profitability on workers. The ink is barely dry on the recent agreement between GM and the UAW. Workers were pleased to sign the agreement with promises of future production of certain vehicles. GM proudly and strategically announced production of the Chevy Volt in Hamtramck in 2010 just before laying off 767 workers in Hamtramck last Tuesday. More Hamtramck layoffs are planned for the fall.
GM announced yesterday that 1,000 workers would be laid off by year's end at the Lansing cross over plant.
GM is only profitable in its oversees operations. There will be more pruning in North America for the foreseeable future. Workers would be well advised to consider immediate and profound retooling of their skill sets.
Showing posts with label labor unions. Show all posts
Showing posts with label labor unions. Show all posts
Tuesday, October 23, 2007
Thursday, September 6, 2007
Thursday Morning News Round Up
Michigan Cyber Safety Initiative--Attorney General Mike Cox announced a new program to teach kids about internet predators. Staffers from the Attorney General's office will train teachers in the program this fall.
Detroit Free Press--"A study by the Michigan Association of Home Builders found that 1.35 million Michigan households, or 35%, can afford only homes priced under $100,000, yet the average price was $139,155 in June." Be sure to scroll down in the article for a very enlightening graph displaying how many Michiganders can afford how much home. Shocking numbers.
Detroit Free Press--Nurses at Detroit Medical Center have been attempting to form a union since February.
Detroit News--Attention, bargain hunters. Chrysler announced six-year, no interest loans to stimulate sales. "The six-year loans are available to buyers of the Dodge Grand Caravan, Chrysler Town & Country long-wheel-based minivan, Dodge Dakota, Dodge Durango and Chrysler Aspen, Pinter said. Five-year loans, which began in May, are offered for purchases of the Jeep Liberty, Jeep Grand Cherokee and Chrysler Pacifica."
Globe and Mail--"Pending sales of existing U.S. homes plunged by a record 12.2 per cent in July, and private employers hired the fewest workers in more than four years in August, according to reports released yesterday."
Guardian Unlimited--"Updating its half-yearly forecasts for the global economy, the Paris-based Organisation for Economic Cooperation and Development added to growing pressure on the Federal Reserve to ease the pressure on US borrowers when it meets later this month." Translation: Experts abroad are very concerned about ongoing problems stemming from the subprime crisis.
New York Times--"Stocks slip as Fed says credit crisis is contained." Translation: We mustn't panic.
Detroit Free Press--"A study by the Michigan Association of Home Builders found that 1.35 million Michigan households, or 35%, can afford only homes priced under $100,000, yet the average price was $139,155 in June." Be sure to scroll down in the article for a very enlightening graph displaying how many Michiganders can afford how much home. Shocking numbers.
Detroit Free Press--Nurses at Detroit Medical Center have been attempting to form a union since February.
Detroit News--Attention, bargain hunters. Chrysler announced six-year, no interest loans to stimulate sales. "The six-year loans are available to buyers of the Dodge Grand Caravan, Chrysler Town & Country long-wheel-based minivan, Dodge Dakota, Dodge Durango and Chrysler Aspen, Pinter said. Five-year loans, which began in May, are offered for purchases of the Jeep Liberty, Jeep Grand Cherokee and Chrysler Pacifica."
Globe and Mail--"Pending sales of existing U.S. homes plunged by a record 12.2 per cent in July, and private employers hired the fewest workers in more than four years in August, according to reports released yesterday."
Guardian Unlimited--"Updating its half-yearly forecasts for the global economy, the Paris-based Organisation for Economic Cooperation and Development added to growing pressure on the Federal Reserve to ease the pressure on US borrowers when it meets later this month." Translation: Experts abroad are very concerned about ongoing problems stemming from the subprime crisis.
New York Times--"Stocks slip as Fed says credit crisis is contained." Translation: We mustn't panic.
Sunday, July 15, 2007
Detroit Three and UAW Prepare to Talk
The Globe and Mail reports that the UAW and GM, Chrysler and Ford will square off in talks that could result in massive off shoring of North American jobs.
According to the article, pressures on the Detroit Three include health care obligations to retirees and current employees, high hourly labor costs, and reduced demand for pickups and SUVs. Unions can expect to be asked to take large cuts in wages and to assume greater responsibility for funding health care and retirement.
Sounds grim, but it really isn't news. In the context of global competition and production, well-paid American workers have much to lose and have been losing for years. The former Big Three, now the Detroit Three, will ask workers to make greater concessions than ever before in order to remain viable.
Did it have to be this way? We have known since the early 1970s that our excessive use of oil would create economic vulnerability. Yet, here we are in 2007 producing gas guzzling cars, trucks and SUVs. And why? Because, say the auto makers, "consumers wanted them." Who are these consumers and how could they have been so short sighted? Are these consumers also workers?
What happened to Henry Ford's idea that workers who produced cars should be able to afford them? It seems today's auto manufacturers have a different vision for their workers. Workers are workers; consumers are consumers. And producers are producers.These days, it is a lucky worker who can also be consumer.
According to the article, pressures on the Detroit Three include health care obligations to retirees and current employees, high hourly labor costs, and reduced demand for pickups and SUVs. Unions can expect to be asked to take large cuts in wages and to assume greater responsibility for funding health care and retirement.
Sounds grim, but it really isn't news. In the context of global competition and production, well-paid American workers have much to lose and have been losing for years. The former Big Three, now the Detroit Three, will ask workers to make greater concessions than ever before in order to remain viable.
Did it have to be this way? We have known since the early 1970s that our excessive use of oil would create economic vulnerability. Yet, here we are in 2007 producing gas guzzling cars, trucks and SUVs. And why? Because, say the auto makers, "consumers wanted them." Who are these consumers and how could they have been so short sighted? Are these consumers also workers?
What happened to Henry Ford's idea that workers who produced cars should be able to afford them? It seems today's auto manufacturers have a different vision for their workers. Workers are workers; consumers are consumers. And producers are producers.These days, it is a lucky worker who can also be consumer.
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