Today: the UAW President ratcheted up the pressure against Delphi, said DCX shouldn’t sell Chrysler as the troubled automaker announced a $3 billion investment to build new plants and modernize existing ones. GM continues to apply pressure to UAW locals representing its plants as contract preparations for negotiations between the “Big Three” and the UAW over the next contract get underway.
UAW/Delphi negotiations melt down
UAW President Ron Gettelfinger told reporters the UAW was taking matters between Delphi and the UAW “to the next step.”
“We are moving forward internally, because this thing has gone on long enough and people have taken advantage of the situation,” said Gettelfinger, seemingly accusing Delphi executives of abusing the bankruptcy process.
Delphi’s new proposal, which is rankling UAW members, is said to include new hires being paid less than the $14 starting wage, no cost of living adjustments in the contract, and massive cuts to health care and pension benefits.
UAW says don’t sell Chrysler
UAW President Ron Gettelfinger today told reporters what he thinks about the sale of the Chrysler Group should by Daimler Chrysler. In short, he doesn’t think Daimler should sell Chrysler.
He said he still believes there is value in keeping the companies together because of the combined synergy between Chrysler and its Mercedes counterpart. Gettelfinger also stated that there was support from many members of the DCX board to keep the “C” in DCX, according to The Detroit News.
Chrysler to build two new Detroit plants
As part of a $3 billion initiative to build new plants and modernize existing ones to build new more fuel efficient engines, transmissions, and axles, Chrysler announced it would spend more than $1.4 billion to construct to new Detroit area plants the Detroit News reported.
GM pressures UAW Locals to make concessions
GM is pressuring the UAW Locals to accept work rule concessions and the outsourcing of some jobs previously conducted by UAW labor to nonunion firms. Proposed changes to work rules include 10 hour shifts without overtime pay and would allow nonunion staff to clean facilities, drive trucks and replenish parts bins. GM says allowing them to outsource janitorial work would save the company between $300-$500 million a year according to Automotive News.
