Do auto workers really earn $73 an hour?

Other than a single letter from NTEU, did the union fat-cats do anything to try to prevent the IFT limitations put on us? Did they?

The union bosses take care of themselves and punish the workers. Being a union bo$$ is where the real money is now days.

First of all, how do you think that NTEU letter got there?

I will tell you that I personally flew to Washington, and met with the NTEU's political director, and explained what was happening. NTEU said at the time that no members of NTEU were on the phone telling them it was a problem. When I showed them the numbers, they agreed, and sent in the letter in opposition.

The other Unions never heard from people in the field.

Real money in being a Union boss? Hardly. If you pull the LM2's for most federal unions, you'll find that the pay isn't all that great. It is a fraction of the pay of corporate executives. NTEU has 77,400 members, and has a $33 million budget.

Colleen Kelly, as president, NTEU, earned $222,639 in 2007, according to the LM-2. There are sixteen Executive VP's of NTEU, who each was paid between $1,240 and $6,700. The average was about $3200.

Several of the attorneys in the NTEU national office make around $150K, several others earn in the range of $120K.


The LM-2 for the American Postal Workers Union, AFl-CIO shows William Burrus, President, earned $149,703 in 2007. It also had a large number of "business agents", who earned on average about 85K a year.

The LM-2 for NAGE, the National Association for Government Employees, shows National President David Holway earned $233,654, and national VP Barbara Osgood earned $134,792.

The LM-2 for the National Weather Service Employees Union shows President DANIEL SOBIEN earned $0. However, he was reimbursed $34,389 for expenses over the course of the year.


Just thought you would like to see the facts.

Any Union's LM-2 report is available on-line to look at, at this address: http://kcerds.dol-esa.gov/query/getOrgQry.do


So tell me- is there any other organizations that are required to file all of their expenses as public information, as Unions are required to do?

You won't find Congressional Office expenses broken out like that, nor Corporation earnings statements in that kind of detail all filed in one place.
 
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I will tell you that I personally flew to Washington, and met with the NTEU's political director, and explained what was happening. NTEU said at the time that no members of NTEU were on the phone telling them it was a problem. When I showed them the numbers, they agreed, and sent in the letter in opposition.

Thanks James for doing that and for answering the question.

I asked my union local president to write a letter and that he request the national write a letter. He said he would, then 3 days before the deadline he asked me to write-up the issues. He sent him a lot the info that you posted here and then wanted more info. He never sent a letter (he's in CSRS so it didn't effect him).
 
Let's talk for a minute about what a Union is.

It seems many people think "the Union" is some far off entity, who has gobs of staff people, and runs around and fixes things. Greg, you seem to think that they are all "fat cat bosses" sucking up the money of workers.

I'll let you in on a little secret-

YOU are the Union.

A Union works like this- it is the legal entity that allows WORKERS to band together to try and help EACH OTHER.

If it is functioning like it should, then if YOU have a problem or issue, you should be able to raise it first with your local rep. Your rep should ensure it is made known to higher levels, but the first line of action is that each member, at the local level, bands together and helps the member address the issue.

For example, in the TSP problem, what SHOULD have happened, is that at YOUR local level, the Union leadership should have asked each member of the Union to write a letter to the thrift board. If your local has 25 members, there should have been 25 indiviuals who wrote. And then if that is not enough, the next level up should have notified all the locals to each get involved, with phone calls, and letters, so that hundreds, or thousands, of contacts were made with decision makers.

And ALL of the Unions should have gotten involved- so that there were tens of thousands of phone calls and letters mailed.

A good Union "fat cat boss" should have recognized the significance of the issue, and mobilzed the resources they had available to make it an issue.

Now, I will tell you, that "fat cat bosses" don't really always know what the issues are out there. The only way they know, is when someone tells them.

And, unlike many other organizations- the Unions rely on (or are supposed to rely on) the message being passed from the bottom up. Your dues paying money should allow you to pick up the phone, and personally contact an executive of YOUR union. YOU are who they work for.

If your local president didn't follow through, that's poor leadership at the local level. He/She may have had other issues to deal with. Your issue may have seemed small at the time. In cases like that, it is up to YOU to impart the seriousness of the issue, and to raise the issue up, and to make sure it gets "in the face" of the national leadership.

ANd it is up to YOU to motivate others around you to also join you in the seriousness of the task.

IN this case, it was a case where most of the members didn't know, because most of the members weren't moving money around. And didn't understand that the stock market was about to plunge 48%.

You do what you can do.

You try.

The victory goes not to the man who sits on the sidelines, and criticizes the leaders he sees in the fight.

The victory goes to the man who actually enters the ring- who drips sweat from his brow, who raises the fist, and takes the punch. He who actually enters the ring, and leaves bloody and broken. For HE is the one who suffers the results of the punches thrown, and can take pride in having fought the good fight.
 
They might get paid $73 an hour with benefits, but they dont EARN $73 an hour. Sitting on Job banks, retire health, more vacation days that anyone on the planet. All that without anything more than a high school diploma at most is just insane. They deserve a lot less. I toured the Toyota factory in Kentucky. That is a class act unlike the UAW facilities. Employees work hard, proud of their work and the place is spotless. You will never see that in Detroit.
 
They might get paid $73 an hour with benefits, but they dont EARN $73 an hour. Sitting on Job banks, retire health, more vacation days that anyone on the planet. All that without anything more than a high school diploma at most is just insane. They deserve a lot less. I toured the Toyota factory in Kentucky. That is a class act unlike the UAW facilities. Employees work hard, proud of their work and the place is spotless. You will never see that in Detroit.


Sorry Ros, but I don't think you've seen the whole picture. I invite you to tour a GM plant and learn more.

First, they don't get paid $73. We already had that discusson. The fact is starting wages at UAW facilities are now $14.50 an hour, with journeyman assembly people making $28 an hour- which is BELOW Toyota, and just $1.50 above Honda. They don't "sit on job banks". Yes, they do have health insurance. Hopefully under the new Congress and Administration we can get equal health care for UAW employees and NON_UAW employees through a national health care program. While you might enjoy making sure the American worker does not have health insurance, I believe the opposite- we should all have it available to us.

Second- have you ever been inside a GM plant?

Here is an article for you to learn more.

http://www.autonews.com/article/20080811/ANA03/71348723/1186


-------------------------------------------------
GM factory a model of sustainable manufacturing


Green ideas take flight at plant near Lansing, Mich.

Andrew Grossman
Automotive News
August 11, 2008 - 12:01 am ET

The lights on the factory floor turn off during breaks.
Cisterns collect rainwater from the roof to use in the toilets.
Workers build bird feeders and hike in the nature preserve that takes up part of the nearly 680 undeveloped acres around the plant.



The big General Motors factory near Lansing, Mich., that cranks out crossovers doesn't fit the old, gritty smokestack image. But the scene could become more common. Automakers are realizing that sustainable manufacturing helps their bottom line. After all, eliminating waste is a foundation principle of green and lean manufacturing.

More: http://www.autonews.com/article/20080811/ANA03/71348723/1186

------------------------------------------------------

And GM is not just building cars in the USA. GM is global, providing quality cars and quality jobs for people around the world:

GM opens first Russian factory

Posted 11/7/2008 12:59 PM
By Dmitry Lovetsky, Associated Press Writer

ST. PETERSBURG, Russia — U.S. car giant General Motors Corp. launched its first Russian assembly plant Friday, hoping that sales in this emerging market will bolster its staggering global performance.

GM executives basked in the praise of Russian authorities attending the opening of the $300 million, 70,000-car-a-year factory outside St. Petersburg, just hours before the world's largest car maker announced it lost $2.5 billion in the third quarter and warned that it could run out of cash in 2009.

President Dmitry Medvedev thanked GM "for all the work they have done" and described the new factory as a "good investment project that looks into the future."

More: http://www.usatoday.com/money/economy/2008-11-07-694987216_x.htm
 
Auto Workers Write Open Letter to Non-Union Auto Workers in the South, Plan to Rally Sunday, Jan 11 outside Detroit Auto Show

While organizing for a Jan 11 rally outside the North American International Auto Show in Detroit, Midwest auto workers wrote an open letter to workers in non-union “transplants” in the South.

They wanted to reach these sisters and brothers because some Southern Congressmen have been vocal leaders pushing union workers to take concessions, as part of the government’s auto loan package. Non-union auto companies like Nissan, Mercedes, Toyota and Honda are big in the South--and now these lawmakers say UAW auto workers need to drop their wages and change their working conditions to those of workers in their states. In other words, union conditions should be the same as non-union!

UAW members hope to share a vision of solidarity with their non-union brothers and sisters--and to let them know that once cuts go through in the Midwest, Southern wages will be next. The race to the bottom is on!

HOW TO SUPPORT:

  • If you’re an auto worker or family, please sign the letter, which will be distributed to our sisters and brothers in the auto transplants, by going to www.autoworkercaravan.org. Please forward this message to your contacts in auto.
  • Join auto workers and their supporters Jan 11 at 1 PM outside the North American International Auto Show, outside Cobo Hall. www.autoworkerscaravan.org
  • Plan a solidarity rally, encourage UAW locals in your area to get involved in a fight back, or include talking points about the need to fight concessions as part of your push on Congress and President Obama in upcoming months. Remember--this isn't about auto workers. We can't allow the government to demand deep cuts from working folks while handing out billions to banks and corporations.
 
(The Open Letter, from MidWest Autoworkers to Southern Autoworkers: )


Dear Brothers and Sisters:

The crisis in the auto industry is being used to pit us against each other – union vs. non-union, north against the south. We rank and file autoworkers would like to speak directly to you as fellow autoworkers. Some of us work at assembly plants, some in the parts industry, while others are retired.

First, we want to say that we are not enemies. Like you, we are everyday, hard-working people who are trying to provide a decent life for our families and hoping for a better life for our children. As working people we have more in common with each other than we do with those that run corporate America.

Some corporations and politicians have developed a great strategy: create a culture where workers are resentful of each other but admire CEOs who make 440 times the average wage. And don’t question the worth of our leaders in Congress, whose salaries start at $172,000 with an annual cost-of-living increase plus excellent health care and pension benefits. (They just gave themselves a raise.)

The media glorifies wealthy people and encourages us to desire the “lifestyles of the rich and famous.” The contradiction is that this same corporate media paints a picture of autoworkers as lazy and greedy. Unfortunately, too many working people buy into the propaganda, which is designed to make one group of workers blame another.

Working people did not create the financial mess we’re in. The real villains are the corporate CEOs and the big shots in banking that made the decisions that destroyed our economy. Yet they are still raking in tens of millions of dollars in bonuses for the little work they do. Talk about being lazy and greedy!

Let’s clear up a popular lie used by those who seek to turn us against each other. We do not make $72 + an hour in wages and benefits. That is the total labor cost per active worker, when the cost of pensions and health care for retirees is added to their wages and benefits. The truth is that a long-time production worker makes $28 an hour and benefits. New hires only make about $14.50 an hour, with far fewer benefits.

In reality, labor costs are only 8-10% of the vehicle cost.

Some Senators, who are against the bridge loan to the automakers, say that the industry has to cut their “legacy costs.“ “Legacy costs” means the pensions and health care for the over 1.5 million retirees and surviving spouses at GM, Ford and Chrysler. It would be criminal to cut out the benefits contractually promised to people who have worked for these carmakers.

Because the U.S. plants of Toyota and other foreign automakers are newer, there are few retirees. Legacy costs at companies like Toyota, Honda, Mercedes, Nissan and Hyundai will continue to grow as more of you get older and look to retire. We’re sure you would agree that if they promised you something, you would expect them to honor their promise after you held up your end of the bargain. The same holds true for us.

One of the reasons we have pensions, decent wages and health care is because we belong to a union. In the 1950s and ‘60s we set the bar in wages and benefits to which other workers aspired. And as our wages and benefits increased, it helped to raise wages and benefits for others. Many workers are envious of our wages and benefits, which we receive because we are organized for our mutual support. Because you are some of the highest paid workers in your communities, you have probably experienced some of that same, misplaced resentment.

Over the last several contracts union autoworkers have taken enormous concessions in the name of competition. Those concessions haven’t brought us job security, but have only fueled the demand for more concessions. As the wages and benefits of workers at the Detroit automakers decrease, there will be pressure on you to take cuts.

This is what we call the race to the bottom -- it’s a race in which we are all losers.

Already, Toyota, which lost $1.7 billion in 2008, is planning wage cuts according to reports in the media and is cutting back production at many of its U.S. facilities. Workers in Smyrna, Tennessee are taking days off without pay to keep Nissan going. As the economy continues to unravel, there’ll be even more pressure to cut labor costs.

Even though we have problems with some of the decisions and direction of our union leadership, we still believe that democratic unions are the best way workers can protect themselves. We would welcome you in our union—when we stand together we amplify our voices. Statistics continue to show that, overall, unionized workers make 25% more in wages and benefits than non-unionized workers. That’s the power of unity.

Given the economic crisis, what can we do?

We believe we can work together with you to demand that health care and pensions not be based on jobs, but guaranteed to all workers as they are in other industrialized societies. We need a universal, single-payer health care system and the HR676 health care bill can help us get there. We can tell Congress and the Obama administration that the auto industry—including the workers at Honda, Toyota, Nissan, Hyundai, Subaru, BMW, Kia, Volkswagen and Mercedes-Benz,--is at the center of the American economy, employing more than three million jobs and indirectly effecting millions more.

The industry needs to be revitalized with a plan that can produce not only fuel efficient cars but can manufacture light rail and high-speed trains, buses and the wind, water and solar technology needed to meet the needs of the 21st century.

Frankly we don’t think the same old management will be capable of putting together or implementing such a creative proposal; but we feel confident that workers, production and skilled trades, along with a bevy of engineers, consumers and environmental experts have a lot of valuable experience and knowledge and need to find our voices so we can build a future.

We want to put an end to anti-labor laws, to make sure that as autoworkers, we don’t lose our democratic rights when we punch in. We demand the repeal of unfair trade laws like NAFTA. We want a world in which workers are valued because we produce, transport or service products that are needed. We don’t want to be in competition with other workers—we all have the right to a decent job and a life where the next generation has an opportunity.

We ask those of you who are interested in having a dialogue with us to write us at info@autoworkercaravan.org.

Your Union Sisters And Brothers
 
James, I really appreciate your posts about the UAW worker. The pension fund
was funded by taking a few cents per each hour an employee worked and a couple years ago the pension fund was almost fully funded. I know lots of people, who have health benefits, who don't belong to unions. If 40 million people are uninsured, that means over 250 million have some kind of insurance.
 
The pension fund has never been fully funded by GM ford or Chrysler. Employees simular to Feds pay just a fraction of the cost. Thats the problem... Their pensions and retiree health, thats all folks. UAW needs to cave to save this industry.
 
The pension fund has never been fully funded by GM ford or Chrysler. Employees similar to Feds pay just a fraction of the cost. Thats the problem... Their pensions and retiree health, thats all folks. UAW needs to cave to save this industry.


Wrong, Rosko.

GM's pension fund is fully funded. And that money belongs to the workers, not to the company.

See http://www.nytimes.com/2008/11/25/business/25auto.html

and you'll read that workers have contributed in order to keep the pension plan solvent. It's fully funded now.

"G.M. says it will be paying retirees about $7 billion a year for the next 10 years. The fund’s assets were worth $104 billion at the end of 2007, more than enough to cover its obligations of $85 billion. Since then, the assets have declined and the obligations have grown, each by undisclosed amounts. The company says it does not plan to add any money to the fund for the next three or four years."


See, the pensions of workers is NOT the problem. Why are you insisting that workers have to take pay cuts, or pensions eliminated, in order for GM to survive? It's not the workers who are the cause of the problem.

Workers ALREADY made MAJOR contributions towards fixing the health care problem. They agreed in the 2007 contract to TAKE OVER HEALTH CARE COSTS in 2010. That's right- the UNION will be paying health care costs in 2010, not the company. But the Company, in order to get that concession, agreed to give seed money towards the costs between now and 2010. That seed money is a problem now for GM, but the workers said they would work with the company on this issue. But now the press, the Southern Senators, etc, are all saying that only the workers must pay an additional price.

Before you bash, please learn the FACTS.

"Hourly wages for UAW workers at GM factories already are about equal to those paid by Toyota Motor Corp. at its older U.S. factories, according to the companies. GM says the average UAW laborer makes $29.78 per hour, while Toyota — generally viewed as the main competitor of the Detroit Three — says it pays about $30 per hour."
Source: http://www.google.com/hostednews/ap/article/ALeqM5jEd-GFu2ItWsA3J_6xEOljY9yLpgD95J7M900
 
GM, Chrysler offer workers cash, cars to leave

Tue Feb 3, 2009 12:38am GMT


By Poornima Gupta
DETROIT (Reuters) - General Motors Corp (GM.N) and Chrysler LLC on Monday began offering a new round of retirement incentives including vouchers for cars as the automakers move to reduce workers and inventory.

GM will offer its U.S. hourly workers $20,000 in cash and a $25,000 voucher to buy a vehicle as an incentive to retire or leave the company, an official with the United Auto Workers union briefed on the plan said.

The No. 1 U.S. automaker declined to comment.

Chrysler's program offers retirement-eligible workers $50,000 in cash and a voucher of $25,000 for a new Chrysler vehicle if they leave, according to a person with direct knowledge of the offers.

Workers who opt to leave Chrysler with no retiree health care benefits would get $75,000 and a $25,000 car voucher, the person said.

Chrysler confirmed that it was offering a new round of buyouts to workers that would be available until February 25.

Both GM and Chrysler are under pressure to cut labor costs further under the terms of a $17.4-billion U.S. bailout extended to the two struggling automakers.

Under the terms of that emergency lending, Chrysler and GM face a February 17 deadline to show how they can cut debt, labor costs and other expenses in order to be viable in a deeply depressed market for new cars and trucks.

As Chrysler's sales have tumbled, the automaker has slashed production, cut models and eliminated jobs. The automaker, controlled by private equity firm Cerberus Capital Management CBS.UL, has cut some 32,000 jobs, $3 billion in costs and about 30 percent of its production capacity.

But sales continue to retreat. Chrysler led a sinking market lower with a 53-percent drop in December sales, and analysts see a chance for a drop near 50 percent when it posts sales results for January this week.

Both GM and Chrysler have offered buyouts to trim factory payrolls in recent years.

But the terms of the current round of offers appeared to be less generous than prior buyout packages.

GM said last May that about 19,000 U.S. factory workers -- just over a quarter of its blue-collar work force at the time - -- had taken buyouts to leave the payroll.

In September, Chrysler had offered some 14,000 factory workers in Michigan lump-sum payments of up to $100,000 plus tuition assistance and some support for moving.

Many UAW workers have been reluctant to take the most recent buyout offers since the deep drop in the housing market has made it almost impossible to sell their homes.

GM and the UAW worked out details of the larger automaker's early retirement offers on Monday, one union official said.


More: http://uk.reuters.com/article/motor...1920090203?pageNumber=2&virtualBrandChannel=0
 
End of Chrysler job bank affects 21 in Kenosha
Action comes in the wake of the federal bailout package
BY DENEEN SMITH
dsmith@kenoshanews.com
and THE ASSOCIATED PRESS

Chrysler’s “job bank” program ended this week, closing in response to criticism that preceded the federal bailout package for automakers.


The program gave union workers at Chrysler, General Motors and Ford most of their pay and benefits while they were laid off, sometimes for years. It was a controversial program, one singled out for criticism by lawmakers when auto industry leaders went before Congress seeking a $17.4 billion loan.


The United Auto Workers agreed to end the program as part of an effort to meet government demands for the United States auto industry to become more competitive. General Motors announced Wednesday it would end its job bank program next week.



According to UAW Local 72 President Glenn Stark, there were 711 Chrysler employees in job banks nationwide. “It’s about 1.2 percent of our total Chrysler employees in the U.S.” Stark said.


In Kenosha, he said, there were 21 people in the program.
Stark said in recent years, so many Kenosha workers retired there were only a small percentage of people who became eligible for the program.


The job bank program began about 25 years ago. After laid off workers

were on unemployment for 48 weeks, they could be eligible for the job bank, which would pay them nearly full pay and benefits in exchange for reporting to the factory, where they could be assigned tasks around the plant or to community service projects.


In Kenosha, those in the job bank were assigned to community service programs like working at Bong Recreation Area, the Racine Zoo or the Kenosha Achievement Center.


According to Stark, the program was designed to promote job security for union members, and to help the company keep workers who would likely find jobs elsewhere on extended layoff.


But, over time, the program became a focus of critics who saw it as a symbol of excess by the UAW and wasteful spending by the automakers.


In December, UAW President Rob Gettelfinger said the union would suspend the job bank after members of Congress criticized the program. It was one of a series of concessions made by the union, including earlier agreements to cut new workers’ pay in half and reductions in retiree benefits.


More: http://www.kenoshanews.com/news/end_of_chrysler_job_bank_affects_21_in_kenosha_4278416.html
 
GM Tonawanda lays off 65; job bank ends



Workers at the General Motors Corp. Tonawanda engine plant have learned the impact on them of the recently announced production cutbacks at GM’s U.S. assembly plants.

The plant disclosed today that 65 additional hourly employees will be placed on indefinite layoff as of Jan. 30.

As with earlier layoffs, blame was placed on a slowdown in orders caused by slumping new vehicle sales.

GM (NYSE: GM) announced on Jan. 26 that it will cut 2,000 jobs at plants in Michigan and Ohio, including Lordstown, Ohio, that receives Tonawanda-built 4-cylinder engines for the Chevrolet Cobalt.

The impact on salaried employees at the local plant is still being determined, spokeswoman Nina Price said in a statement.

In the Jan. 26 announcement, the Detroit automaker said it will halt production for several weeks at nine plants over the next six months and alternate schedules at its Lordstown plant starting Feb. 9 and end the second shift on April 6.

A second shift at GM’s Lansing, Mich., plant will be eliminated on March 30.
Currently about one-third of the 1,165-member workforce at Tonawanda are on indefinite layoff. The plant also has about 260 salaried workers.
GM also announced today that on Feb. 2 it will end its jobs-bank program, which provides hourly workers with most of their pay and benefits during layoff.

Chrysler LLC ended its own jobs bank recently.

The moves help satisfy conditions of the federal government imposed when it lent the automakers $17.4 billion late last year.

Source: http://www.bizjournals.com/buffalo/stories/2009/01/26/daily40.html
 
GM Jobs Bank Closes After 25 Years

Chrysler Dropped Its Job Bank Last Week, Ford Negotiating With UAW To End Program

UPDATED: 6:46 pm EST February 2, 2009

SAGINAW, Mich. --
For more than two decades, General Motors union workers have been able to rely on a paycheck, even when there wasn’t enough work.But tough economic times are hitting the Big Three hard and GM cannot afford to be generous anymore.Monday marked the end of an era as the Jobs Bank program was forced to end under an agreement with the federal government.For GM to get the bailout loan, it had to agree to terminate the jobs bank.

The move has sent hundreds of people to the unemployment line.Monday Tony Saunders went to the unemployment office in Saginaw.Last week he received a letter from GM alerting him to the upcoming jobs bank closure.

The jobs bank has been a part of the UAW workforce and the auto industry for 25 years.Saunders had been in the jobs bank since 2007, and now he’s not sure what he’s going to do.For 35 years, Saunders worked at Saginaw’s Malleable Iron. The plant closed in 2007 and instead of sitting around his Westside Saginaw union hall, or sitting at home, Saunders volunteered his time by working for Saginaw’s United Way.With the closure of the jobs bank, Saunders health care benefits and his volunteer work at the United Way came to an end.He is now looking for a job in a struggling economy, hoping for the best.

Around 1,600 workers are in the program and all will need to file for unemployment.Chrysler ended its jobs bank last week and Ford is in talks with the UAW to eliminate its program as well.The UAW also announced Monday that GM is working to reduce its factory workforce by offering early retirement and buyout packages to all hourly union workers.The company is offering $20,000 cash and a $25,000 voucher towards a new vehicle.
 
Jobs bank's demise sets end for some Saginaw GM workers

by Bree Fowler | The Associated Press and Jean Spenner | The Saginaw News Thursday January 29, 2009, 7:07 AM


medium_GMlogo.jpg

NEW YORK -- General Motors Corp. said it will end its "jobs bank" Monday, following a similar move at Chrysler.

The move, which the company announced Wednesday, helps satisfy conditions the government imposed when it lent the automakers $17.4 billion late last year.


Workers in the jobs bank receive most of their pay and benefits while laid off -- sometimes for years. It was the target of much ire during the companies' requests for a federal bailout.


United Auto Workers Amalgamated Local 455 union leader Paul Madejek was peeved that he first saw the news on the Internet.


"I found out on Yahoo," said Madejek, 55, bargaining chairman for workers at Saginaw Malleable Iron Plant, 77 W. Center in Saginaw which closed in May 2007. "No one from the international or regional union office called me."


Union leaders promised that the 50 or so workers that remained when the Powertrain Division foundry closed its doors would eventually have work at a GM plant, Madejek said. Thirty-three of those workers remain in the jobs bank.


"They said we would be going to (Saginaw Metal Casting Operations)," he said. Metal Casting, 1629 N. Washington in Saginaw, is a sister Powertrain Division foundry.


Madejek said he doesn't know what he or the other workers will do.


"That's 33 more people in Saginaw taking a pay cut," he said. At 55, Madejek added he doesn't want to retire.


The 1,600 GM workers in the jobs bank will go on layoff and need to file for unemployment, GM spokesman Tony Sapienza said. They'll receive about 72 percent of their salaries, which state unemployment benefits and GM subsidies will pay for.


Christine Moroski, a UAW spokeswoman, declined to comment.


While in the jobs bank, workers often did volunteer work or community service jobs. In Saginaw, workers helped at the United Way and at the Castle Museum, Madejek said.


The move will allow cash-strapped GM to use state unemployment benefits to help cover some of the costs of paying the workers, Sapienza said.
Union officials said late last week that Chrysler was eliminating its jobs bank effective Jan. 26. Like at Detroit-based GM, Chrysler's affected workers will receive supplemental pay to make up much of their wages after unemployment compensation.


Auburn Hills-based Chrysler also had to eliminate its jobs bank as a condition of its $4 billion in Treasury Department loans. GM was granted $13.4 billion and has received $9.4 billion of those funds.


Both automakers must submit plans by Feb. 17 showing that they can become viable. If the Treasury isn't satisfied with the plans, the government could call in the loans at the end of March.


Ford Motor Co. didn't take any government money, but company officials and UAW president Ron Gettelfinger have said they expect the Dearborn-based automaker to get the same concessions as the other companies so it's not disadvantaged.



Source: http://www.mlive.com/business/mid-michigan/index.ssf/2009/01/jobs_banks_demise_sets_end_for.html
 
Unemployment hits 24.2% in one michigan county:

"It's a very humbling experience to have to collect unemployment, and it looks like I might even have to go on food stamps. It's embarrassing," said McCormick, who said she and her two daughters will likely have to move into her parents home in Drayton Plains. "My girls don't want to leave their school and their friends, but I may not have a choice if I can't make my house payment."

The numbers were equally bleak in counties neighboring Lapeer County in December.

In Sanilac County the jobless rate jumped to 15.5%, in Tuscola County 13.7% of the workforce was out of a job, 13.5% in St. Clair County, 12.3% in Genesee County, 10.9% in Macomb County, and 8.6% in Oakland County.

Elsewhere in the region, Huron County recorded a jobless rate of 12.4%, Saginaw County 10.4%, while to the south in Wayne County the unemployment rate in December was 11.7%.

The state's lowest unemployment rate for December was in Washtenaw County (Ann Arbor) with 6.9%, while Mackinac County in the Upper Peninsula had the highest jobless rate with 24.2%.

In December, around three-quarters of Michigan's counties (63) reported jobless rates of 10% or above.

Source: http://www.countypress.com/stories/020109/loc_20090201147.shtml
 
GM SALES DOWN 49% IN JANUARY

Detroit-based GM sold 128,198 light vehicles in January, while Ford's sales totaled 93,060. Toyota sold 117,287 cars and trucks.

GM said its fleet sales fell 80 percent to just over 13,000 vehicles in January, marking their lowest sales level since 1975. GM's retail sales fell 38 percent.

Dearborn-based Ford said January's drop in sales of Ford, Lincoln and Mercury vehicles included a 27 percent drop in retail sales and a 65 percent decline in fleet sales.

U.S. sales at Ford's Sweden-based Volvo division fell 64 percent to 2,910 vehicles in January, from 8,036 a year earlier. The company is exploring a possible sale of the unit.

Toyota Motor Corp.'s sales of light trucks fell 35 percent on about equal declines in SUV and pickup truck demand, while its car sales dropped 29 percent. Sales of its Prius hybrid slid 29 percent.

Honda Motor Co.'s car sales fell 27 percent and its truck sales dropped 29 percent, but the Japanese automaker saw a 6 percent increase in sales of its Fit subcompact, and sales of the updated Acura TSX sports sedan rose 16 percent.
 
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