GM prepares to shut Indianapolis plant after workers reject concessions

[6 Shooter]

​

General Motors Co. has started the wind-down of its Indianapolis stamping plant after UAW-represented workers yesterday overwhelmingly rejected a proposed 50 percent pay cut that was sought by a potential new owner of the plant.

GM spokeswoman Kim Carpenter said GM has ended its search for a potential buyer.

“We are disappointed that UAW Local 23 was not able to ratify the proposed labor agreement,” Carpenter said in an e-mail.

“As previously announced, we will continue steps to wind down the facility, which will cease production in mid-2011 and close by December 2011.”

Gregory Clark, UAW Local 23 shop chairman, said last week that the cuts were too deep and the plant's 650 workers would take their chances transferring to another GM plant should jobs open. He said about one-third of the hourly work force is eligible to retire.

Clark was critical of the intervention by the UAW International into the issue. In May, the workers overwhelmingly said they did not want to initiate concession talks with the potential new owner, stamper J.D. Norman Industries.

Despite that, the UAW International picked up negotiations and tried to sell the workers on the merits of the new contract. The vote yesterday was 457 no to 96 voting in favor.

The contract proposed to cut production wages from $28 an hour to $14 an hour. A 14-an-hour wage equates to straight-time annual compensation of less than $30,000.

The proposed contract also contained a “buydown” provision that would have paid workers a total of $25,000 over two years to compensate them partially for the wage and benefit cuts.

Clark said the massive plant makes large stampings, such as hoods, doors and fenders, for several GM cars.

AN

 

[hotmtrsports]

If you added the 25K for 2 years, That's over $20 per hour. Doesn't sound like a 50% cut to me. Why didn't they stick it out for 2 years so that everybody works.

Instead of having a job, 650 people will collect unemployment and probably get additional compensation from the UAW while watching another plant rot! Bring those jobs to other states that are at 10+% unemployment (probably an effective 15+%) and watch what happens. You'll have 10,000 apps for those 650 jobs. I would think stampings can be done in any state. Nevada, envite them over! Ohio, invite them over! Not the workers that voted to be unemployed, but the plant to bring employment to your states.

Bring it to Maine...We have empty mills that would work perfectly for this with workers waiting!!!

There's got to be more to this story.

Drastic moves, but drastic times!

Chuck M

Here goes!

I'll probably be blasted for these comments!

 

[warren s]

For someone working 40 hours a week @ 28 and hour, to get 14 an hour but a $12500 per year "adjustment" its still close to a $17,000 a year cut.

Cant say I would want those folks making parts for my new car - no matter what brand.

There has to be more to this as far as "taking their chances"

 

[hotmtrsports]

That means you would not want our streets protected either. Most small towns in Maine pay the local police from $11 to $14 per hour. They are great dedicated people protecting us with their lives.

Let's not pretend they are not looking to improve themselves with higher pay. But the dedication is still there!

Again, bring those $20+ hourly wages to Maine and you'll get great dedicated workers WANTING to work.

Chuck

It doesn't help with those few UAW (I know, yes just a few) Jeep workers that were caught smoking dope and drinking during their lunch break only to return to work building the cars. I didn't see the clips but heard about it on the radio.

 

[warren s]

Are you saying they were earning between 22 to 28 bucks and hour and all got pay cuts?

OR that was their pay when they took the job?

Big difference in resulting work ethic

 

[hotmtrsports]

That's their pay when they took the job.

The point I'm making is that they are just as dedicated.

You do have a good point there. It would be hard to stay focused. It's still better than being unemployed.

I tried unemployment for about a year. It isn't fun! There wasn't much out there so I went self employed and took control!

I guess now you're seeing from my prospective.

Chuck M

 

[warren s]

Its a bad situation no matter what side your on. Americans out of work that actually want to work is a sin.

 

[LLC5]

For someone working 40 hours a week @ 28 and hour, to get 14 an hour but a $12500 per year "adjustment" its still close to a $17,000 a year cut.

Cant say I would want those folks making parts for my new car - no matter what brand.

That's a good point, lots of animosity there.

 

[killain]

The Company and the UAW

This is sad, but I knew this would happen at some point. UAW Local 23, might very well be out a hell of a lot more than cuts in benefits and pay. General Motors has made it clear as a bell they'll not be going back to the U.S. Congress or the White House for any more money. If local 23 doesn't want the work, they could move here to Pennslyvania or down In a decent southren state. And those worker would be happy to be paid $13.00 and hour and what ever benefits GM will give them !

But you'd think since Mr. Gettlefinger sits on the board of directors, he see how much damage a single strike would do to a company just recovering from Bankruptcy. Can't they see it's their own throats their cutting ?

 

[Dad]

Interesting, I would have taken the 50% cut right after the top management did the same to show good faith. That would include loss of their bonus also so they could not make a profit from others loss. It is way past time for true bargaining of peoples pay.

Now if you own the company you should be able to make the money you deserve for your efforts without someone feeling they were slighted by not investing what you did to build the company.

 

[hotmtrsports]

Interesting, I would have taken the 50% cut right after the top management did the same to show good faith. That would include loss of their bonus also so they could not make a profit from others loss. It is way past time for true bargaining of peoples pay.

Now if you own the company you should be able to make the money you deserve for your efforts without someone feeling they were slighted by not investing what you did to build the company.

Maybe that's what happened. Now 650 people are at a 100% cut in pay and yes, including all bonuses. Sorry, had to say that .

I'm sure that potential new owner worked his/her butt to get the money together trying to make the purchase work too.

Chuck M

 

[vetteboy86]

I work in Elkhart, IN. For while, this area had the highest unemployment rate in the country due to the huge decline of RV manufacturing.

The company I work for was hit hard by the decline. There were layoffs, but to keep the maximum amount of workers employed pay cuts were implemented.

I think many places in this country would welcome the opportunity at that many jobs at that pay. Unemployment in Indiana only pays at most 400 a week. Don't expect top executives to take pay cuts, that just isn't reality. So is 400 a week not sure how much taxes are taken out, better than 800 a week? I don't think so. The only difference is that on unemployment you can sit on the couch and collect pay.

I wish all those workers and their families well.

 

[Mac]

I wish all those workers and their families well.

I second that.

I'm not a fan of unions but if this is a portent of the future of negotiations for the UAW/CAW, things are going to get ugly... :ugh

-Mac

 

[6 Shooter]

A lot of good comments/opinions, but ...

... if your not globally competitive, your days are numbered! ​

L8TR - D

 

[Mac]

That is very true, especially in the auto industry.

-Mac

 

[catbert]

Everyone who is OK with their pay being cut in half, raise your hands.

 

[hotmtrsports]

With all the respect, you have to look at the whole picture, not just a short spin type question like that.

Mine went down by 100% for 11 months (well maybe 80% if you count unemployment),

now I'm at about 60% from where is was before...

ssssoooo

It's reality. Even today, if they brought that plant to Maine at $20+ per hour plus the benefits I imagine they are getting, I'd go see what that was about and put an application in!

Chuck M

 

[Buccaneer]

I think this is a bad situation for the workers no doubt, but after reading this and seeing what they are getting paid, I think its rights in-line with the education level. I lived close to the Motorcity back in the day and saw a huge number of high school drop outs making lots of cash in any of the auto makers factory's, lots of my friends included back then just out of HS. Now, jump forward a few decades. C’mon, $28hr for a person that may have not even graduated from HS or is a HS grad and that’s it.
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It's a real shame to see highly educated college grads working for less than what these people make in a factory with no education. Now, is it fair to have to take a 50% cut? No, but if they were being paid what they should be making, $15-$16hr is just about right for the education required. The UAW is why GM is probably going to go under at some point because of the over inflated pay rates of its employees. Then you wonder why the new car sticker is so high. Does it really cost $70K to make a corvette, really…really?<o></o>
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Yes, you can make the argument that there is so much technology in today’s vehicles and that costs money to develop and then there's the material costs, plant operations costs and the ROI to GM among others and the list goes on and on. If the pay was adjusted to what it really should be, the cost of a new vette would be much less along with all the rest of the vehicles made by GM and the other auto makers.<o></o>
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And yes, I did work in a factory for a very short time in my early youth and know what its like, but hated that type of boring, no brainer work, but it still doesn't justify that kind of pay for the education level required...none for the most part.<o></o>
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So, yes its tragic that yet another plant will close and even more people will be out of work, but maybe that needs to happen to wake people up. I don't know how 1/3 of the workers can possibly retire and be able to get their UAW pension either, the unions can't pay for it and is unsustainable at least not for very much longer. Now, where’re back full circle and the unions are an issue. It just never ends. Just my thoughts on this mess that the auto makers have gotten themselves into over decades of mismanagement and union bullying.

 

[hotmtrsports]

WOW.

Very good!!!

Chuck M

 

[Mike G]

The New Reality

We have cars from Korea. What else needs to be realized about the new reality?:ugh