Uaw and Gm Negotiations on Ceasefire
June 18th, 2010 | by admin |
Evander Klum asked:
Due to the rising of several new problems and new demands from both parties, the GM and UAW negotiations have been recessed on Monday instead of being settled last week. One of the very significant issues the two parties are putting a solution to is the complexity of retiree health care that is eventually putting too much delay on the deal.
According to Katie McBride, the spokeswoman for GM, the compromise will resume today after recession yesterday at 9 p.m. and had begun at 11.am.
According to one source, requesting his anonymity, both sides are making progress. But it’s taking much time for them to settle on things concerning large billion dollar amounts.
“It’s billions of dollars and the security of somebody who’s put 30 years into the company on an assembly line, so both sides want to get it right,” said Harley Shaiken, a professor at the University of California at Berkeley, a specialist in labor maters.
“So that’s going to slow things down a bit.” he added in his statement.
GM’s stocks are on the rise. The company had a 15 percent rise in shares last week and it still continues. GM’s shares closed at $35.23, it gained $1.01 or almost 3 percent.
Ford Motor Co. had a modest rise last week. Ford’s shares finally closed at $8.28, with 25 cents increase or 3.1 percent.
On the other hand, the other of the three Detroit based automakers, Chrysler’s stocks are not available in the NYSE because the ownership turned private ownership from DaimlerChrysler to Cerberus Capital Management LP.
According to one auto industry corporate bonds analyst, Pete Hastings of Morgan Keegan & Co., investors should not worry because the two parties are settling things that will eventually prevent a strike from happening. As the lead, whatever will be agreed, GM will force the other two companies to accept the terms.
“This labor agreement is monumentally important and would be a big step towards completing the turnaround for GM,” Hastings said.
“I fully expect them to get a deal done. It’s in both of their interests to get something in place.”
Although bargaining and talks had been on the heat, and even a strike was planned, GM workers are still on their jobs last Monday. The 73,000 GM employees are UAW members and are employed in GM’s 82 U.S facilities that including assembly and parts plants and warehouses.
According to Chris Sherwood, president of UAW Local 652 in Lansing, workers are asking him if they should go to work or picket duty instead.
Unlike Ford and Chrysler that extended their contracts indefinitely, GM’s four year contract with the UAW expired last Friday midnight. Extensions had been made by the UAW and GM including a 16 hour bargaining session and all weekend talks.
For the side issue of Health Care for retirees, the three Detroit-based companies have unfunded retiree health care obligation of $90 billion and $51 billion of which is GM’s. GM, Ford and Chrysler all wanted to remove the obligations from their account books to improve both their ratings and stocks.
“With the health care issue on the sidelines, we believe investors need to focus a lot more attention now on international growth and additional cost-cutting opportunities,” wrote Jonathan Steinmetz, an analyst in his note to investors.
Only in the US have reported labor problems, in other countries where auto makers are based, the company and their workers seems like working in harmony. Like in Germany, home of BMW (maker of BMW 328is parts), Volkswagen and others, or in Japan, they are not facing what the three Detroit-based automakers are facing.
Point Of Use Water Heater
Due to the rising of several new problems and new demands from both parties, the GM and UAW negotiations have been recessed on Monday instead of being settled last week. One of the very significant issues the two parties are putting a solution to is the complexity of retiree health care that is eventually putting too much delay on the deal.
According to Katie McBride, the spokeswoman for GM, the compromise will resume today after recession yesterday at 9 p.m. and had begun at 11.am.
According to one source, requesting his anonymity, both sides are making progress. But it’s taking much time for them to settle on things concerning large billion dollar amounts.
“It’s billions of dollars and the security of somebody who’s put 30 years into the company on an assembly line, so both sides want to get it right,” said Harley Shaiken, a professor at the University of California at Berkeley, a specialist in labor maters.
“So that’s going to slow things down a bit.” he added in his statement.
GM’s stocks are on the rise. The company had a 15 percent rise in shares last week and it still continues. GM’s shares closed at $35.23, it gained $1.01 or almost 3 percent.
Ford Motor Co. had a modest rise last week. Ford’s shares finally closed at $8.28, with 25 cents increase or 3.1 percent.
On the other hand, the other of the three Detroit based automakers, Chrysler’s stocks are not available in the NYSE because the ownership turned private ownership from DaimlerChrysler to Cerberus Capital Management LP.
According to one auto industry corporate bonds analyst, Pete Hastings of Morgan Keegan & Co., investors should not worry because the two parties are settling things that will eventually prevent a strike from happening. As the lead, whatever will be agreed, GM will force the other two companies to accept the terms.
“This labor agreement is monumentally important and would be a big step towards completing the turnaround for GM,” Hastings said.
“I fully expect them to get a deal done. It’s in both of their interests to get something in place.”
Although bargaining and talks had been on the heat, and even a strike was planned, GM workers are still on their jobs last Monday. The 73,000 GM employees are UAW members and are employed in GM’s 82 U.S facilities that including assembly and parts plants and warehouses.
According to Chris Sherwood, president of UAW Local 652 in Lansing, workers are asking him if they should go to work or picket duty instead.
Unlike Ford and Chrysler that extended their contracts indefinitely, GM’s four year contract with the UAW expired last Friday midnight. Extensions had been made by the UAW and GM including a 16 hour bargaining session and all weekend talks.
For the side issue of Health Care for retirees, the three Detroit-based companies have unfunded retiree health care obligation of $90 billion and $51 billion of which is GM’s. GM, Ford and Chrysler all wanted to remove the obligations from their account books to improve both their ratings and stocks.
“With the health care issue on the sidelines, we believe investors need to focus a lot more attention now on international growth and additional cost-cutting opportunities,” wrote Jonathan Steinmetz, an analyst in his note to investors.
Only in the US have reported labor problems, in other countries where auto makers are based, the company and their workers seems like working in harmony. Like in Germany, home of BMW (maker of BMW 328is parts), Volkswagen and others, or in Japan, they are not facing what the three Detroit-based automakers are facing.
Point Of Use Water Heater
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