Detroit carmakers mull imports to gain leverage over unions
Source: Bloomberg News
August 21, 2015
Detroit carmakers mull imports to gain leverage over unions
(Bloomberg) The Detroit Three automakers are contemplating building cars with lower-paid workers in Mexico and China, a strategy that would improve their hand in contract talks as the United Auto Workers seeks higher pay.
General Motors Co. is weighing a plan to import the Buick Envision sport utility vehicle, now built and sold only in China, to the U.S., people familiar with the matter said. Ford Motor Co. is shifting production of its Focus and C-Max small cars from Michigan to outside the U.S., a person familiar with its plans has said. Mexico is a possible destination.
The automakers and union are in their final weeks of talks to replace four-year contracts that end Sept. 14. Previous pacts let the companies hire lower-paid workers and spurred U.S. production and jobs after Ford's restructuring and the 2009 bankruptcy of GM and Chrysler. Speculation about shifting work abroad may give the companies leverage as the UAW seeks raises for some workers for the first time in a decade,
It's a veiled threat to the workers, said Gary Chaison, a professor of labor relations at Clark University in Worcester, Massachusetts. He said the automakers' message is: If you ask for too much, we can take the work out of the U.S. So, give us a reason not to shift more production overseas.
Read more: http://www.chicagobusiness.com/article/20150821/NEWS05/150829972/detroits-big-three-automakers-mull-imports-to-gain-leverage-over
kelliekat44
(7,759 posts)Omaha Steve
(99,780 posts)All GM made in the USA & Canada. The BIG three might lose more than they gain.
HFRN
(1,469 posts)American in use of market, and bailouts ONLY
valerief
(53,235 posts)littlewolf
(3,813 posts)Xithras
(16,191 posts)As we learned after buying it, the Buick Encore was actually designed by Opel in Germany, who exported its production to Korea. Since GM owns Opel, they decided to rebadge the car (known to the rest of the world as the Opel Mokka) and import it into the U.S. as the Buick Encore. The only American labor that worked on it were the dockworkers who pulled it from the ship.
It's a great car, but the Buick namebadge is the only American thing on it.
Pedoviejo2
(14 posts)It comes down to whether the UAW wants higher wages or more jobs, Chaison said.
Professor Gary Chaison, professor of labor relations, Clark University, Worcester, MA.
Sad.
It comes down to whether the UAW wants raises after 10 years or keep jobs. Face it; today corporations own Congress, have been widely successful in prohibiting collective bargaining, and are enjoying record profits. There is little that workers can do except hope to maintain jobs at today's level.
branford
(4,462 posts)The threat to build cars outside the USA is part of the car companies' strategy to increase their leverage in upcoming contract talks with the UAW. No one is prohibiting collective bargaining; everything is part of the collective bargaining process and has absolutely nothing to do with Congress.
Collective bargaining doesn't mean workers receive all or most of the concessions they demand or even get a good contract, and neither the UAW or Congress has control over where the companies build their cars absent express agreement by the companies. Since manufacturing costs are generally cheaper outside the USA, and the companies already have an international manufacturing infrastructure, these threats and discussions are entirely expected and unsurprising. Contract terms, regardless of industry, reflect the realities of competition and costs.
Pedoviejo2
(14 posts)Sorry, I was speaking to much in generalities I guess.
Union membership has declined some 24% since 1945 - not just UAW membership according to ProQuest. Also understand that workers do not receive agreement on all requested terms.
Please check the difference in salary increases of workers compared to increases of executives in the same period. And, no, I am not implying that company officers should receive the same compensation as their employees, nor that Congress or the UAW control where autos and other manufactured goods are made. But you see, if GM says they will shift manufacture of vehicles out of the country then the jobs go too.
Uben
(7,719 posts)Any companies that outsources their work better look elsewhere for a customer cuz I'm damned sure not gonna buy their product....period. I'm tired of the rich and entitled class of this nation tearing our nation apart. I think we need to grab our torches and pitchforks and go get the bastards now before they completely ruin what our ancestors have built. American traitors like the Kochs and the Romneys beware....we will come for your ass, and there aint shit you can do to stop us! And they'll wonder, "Why are they pissed at us?"