Labor Relations 101

President Obama To Repeal 4 Executive Orders

Well, you can never accuse President Obama of not being proactive.  In a move that has served to further distance him from his predesesor George W. Bush, President Obama repealed 4 Executive Orders that unions opposed, a labor official announced yesterday.

President Obama reversed the the "Bush Doctrine" which allowed unionized companies to post signs indicating that the employees have the right to decertify their respective unions.  Labor unions and other critics charged that this rule was unfair because companies were not required to post signs indicating that they are legally allowed to vote for a union.

The other three orders addressed similiar administrative rules for labor.

How Will President Elect Obama Handle The EFCA Issue?

Interesting post at Firedoglake.com.  Pachacutec asked a great question "Will A President Obama Fight for the Employee Free Choice Act?"

Let's explore this a bit...President Elect Obama is in a precarious position.  He entered into what some would say is a defining moment of leadership.  The economy is terrible; wall street is on a roller coaster ride; America is fighting two wars with Iran waiting in the wings; the jobless rate has reached a record high...need I go on?  President Elect Obama is literally poised to either sink or swim.  

Now, labor unions are pressing President Elect Obama to make the Employee Free Choice Act his number one priority when he gets to Washington.  

Obama's campaign was predicated upon bringing people together; it was a campaign of inclusivity; a promise of change that galvanized citizens of every walk of life both here and abroad.  And alas, those that were brought to the table now want their pound of flesh.  It is a widely known fact that labor unions were instrumental in organizing voters and signing up new voters.  Labor unions proved to be a formidable force largely because they are a built in demographic.  What do I mean by this?  Take a look at the demographic composition of any given union...there are Blacks, Whites, Hispanics, Asians, Immigrants from every country imaginable, Males, Females and the list goes on.  This is part of the reason why unions are so valuable to the Democratic party. 

On the other hand, unions are starting to demonstrate that they are no longer willing to give their campaign dollars (to the tune of $400 million and counting) and man-power just to get a Democrat elected.  Now they want something in return.  They want the Employee Free Choice Act to be signed in the first 100 days of President Elect Obama's presidency.  They want the Secretary of the Department of Labor to be a pro-union leader.  Change to Win is marshalling a $100 million dollar media blitz to force Obama to sign the EFCA. Quite simply put...they want the access that many corporate leaders had during President Bush's tenure as president. 

President Elect Obama is on record as promising that the EFCA will be passed during his administration, and yet conversations regarding the EFCA have taken a back seat to the concerns of the nation and the world abroad.  I believe the world will give President Elect Obama a 6 month to 1 year grace period but I am starting to see more and more that organized labor is unwilling to extend him the same courtesy.  Part of this has to do with the fact that labor is decreasing in numbers and the prevailing thought is "it's either now or never."  Obama will have no choice but to give the unions the EFCA.  Too much has been promised and the Democratic party cannot afford to lose such a strong constituency which will be needed should Obama run for office in 2012. Mark my words...the EFCA will pass.  The question is are business entities prepared for a life that does not include the protections of a secret ballot election?

The Big Three's Cost Saving Plans

Just a quick update on the Senate Banking Committee's Hearing for the Big 3 Auto Makers:

General Motor's cost saving plan is as follows:

1) Sell Saab & Saturn Brands

2) Close Plants & Dealerships around the country

3) Cut Executive Pay

Chrysler's cost saving plan is as follows:

1) Seek partners to share business costs

2) Cut Executive Pay

3) Accelerate Alternative Vehicles

Ford's cost saving plan is as follows:

1) Sell the Volvo brand 

2) Close Dealerships Around the Country

3) Close 6 Plants by 2011

4) Produce More Hybrids

GM Pulls The Plug On Tiger's Endorsement Deal

In an effort to save cost General Motors has pulled the plug on their endorsement deal with golf legend Tiger Woods.

Tiger Woods has been carrying the Buick logo on his golf bag for the past 14 years.  He had one year left on a contract that pays him a reported $7 million dollars a year.

Although Tiger stated that he wanted more time to spend with family, considering he and his wife are soon to welcome a second child, this is really about General Motors doing all it can to conserve cash.

Wood's Agent at MIG, Mark Steinberg, said the decision to end the contract early was mutual.

Buick's US sales have dropped over 54% since 2000, although foreign sales are up 17% particularly in China where Buick remains a popular brand.  

GM's cost cutting makes since considering the automaker spent $7 billion more than it took in last quarter. GM has also scaled back its advertising for the Super Bowl and has completely pulled out of advertising for the Oscars and the Emmy's.

Citigroup Slashes 53,000 jobs

Citigroup has announced that they will shred another 53,000 jobs in the upcoming quarters to stave off loses from a massive amount of debt.

The company has said that it is shrinking its work force by 20 percent from an all time high of 375,000. Citi had announced in October that it would be eliminating 22,000 jobs.  

Tom Krishner, of the Associated Press, did a great piece on the ongoing struggles of the Big Three auto companies.

Just as I alluded to in my post on Tuesday the Big Three will have to become more innovative if they hope to reclaim their thrown from the Japanese Auto makers.  Before they can do this though, they will have to adjust some things internally.  Specifically:

1) Legacy Cost.  Considering that GM, Ford, Chrysler charge an additional $2000 per vehicle to cover the costs of retired UAW members smacks of "What do we do now?"  The Big Three is essentially financing the benefits and pensions of workers that have long retired or passed.  Although the auto makers agreed to pass the costs of the pension onto the UAW where will they get the cash to fulfill this contractual obligation?  

2) Create New Innovations.  The Big Three must start thinking in terms of creating fuel efficient vehicles, and off loading the huge SUV's that brought them early returns, but have been an incredible financial drag for the past 5 years.

3) Someone has to be the bigger person. What do I mean by this?  The Big Three and the UAW have to sit down at the table and discuss how they can help each other.  This is not about who has the leverage, or who has the juice.  This is about business partners down to their last cent struggling to prove their relevancy to the world.  

Come on folks!  Let's get it together.

As if things couldn't get worse for the struggling car maker, General Motors has announced more layoffs at parts-stamping, engine and transmission plants in North America.

General Motors announced a layoff of 1,900 employees for the first quarter of 2009.  This is in addition to the 3,600 layoffs that GM announced on November 7,2008.  GM is in a serious crunch!  Although the company is still hoping with struggling Chrysler, neither party can find a financier to back the deal. Wall Street just announced that GM stocks hit a new 65 year low, and that's not counting the number of white collar jobs that will be lost as a result of GMAC's announcement that it lost $2.52 billion dollars in the third quarter.  

Although GM and members of the Congressional wing have petitioned the Bush Administration and President Elect Obama to include the struggling automobile industry in the $700 billion dollar bailout, the result is that it might be too late for GM.  Let's say that GM receives $25 billion tomorrow.  Granted the company will stay afloat, but what happens if car consumers do not turn out to purchase GM's products?  Then it becomes likely that the company will burn through the cash and again turn to the government to bail it out.  

It is not unheard of for companies as established as GM to file for Chapter 11 protection.  There is nothing wrong with it.  In fact, if the company filed for Chapter 11 then it would give the automaker some leverage as it pertains to dealing with the UAW.  I have one thought that keeps coming to me as I grapple with the issues that are dragging down the automobile industry, which I still believe is the back bone of this great country.  Innovation is the only thing that will save General Motors, Chrysler, Ford, Toyota, Honda and any other auto maker worth their weight.

It's time for the automotive industry to come up with something fresh and new for their customers. Whether it's new product design (remember what the Chrysler 300 series did for their bottom line), or advances in new forms of cheaper fuel, the auto industry needs to provide a new mechanism to grab the country's attention.  

GM, Chrysler, Ford...if you build it WE will come.

The Change to Win Coalition is priming a huge nationwide push to ensure that President Elect Obama passes the Employee Free Choice Act (EFCA) in his first 100 days in office.

Kasie Hunt at CongressDaily writes:

The union political coalition Change to Win is priming a nationwide campaign to push for passage of the Employee Free Choice Act "card check" legislation in the first 100 days of the Obama administration, union officials said today. "We intend to have a campaign all across this country, all 50 states, all congressional districts ... and we intend to win passage of the Free Choice Act," said Tom Woodruff, Service Employees International Union executive vice president and Change to Win organizing director.

Card check would enable workers to unionize without a secret-ballot election if a majority of workers sign authorization cards. It will depend on the Senate, where Democrats are short of the 60 votes needed to avoid a filibuster. When asked if that meant unions should not spend money and political capital on card check in the first 100 days, Change to Win Chairwoman and SEIU Treasurer Anna Burger responded sharply: "No. Is that clear enough?"

Democrats had 51 votes in favor of card check in 2007. Sen. Arlen Specter of Pennsylvania was the sole Republican defector and Democratic Sen. Tim Johnson of South Dakota did not vote. With 57 seats now in Democratic hands, a unified majority would need Specter and two more Republicans to pass the legislation. "I think there are a number of Republicans, in order to save our economy, [who] can be brought around to supporting" card check, Woodruff said. Unions have been selling card check as legislation good for the middle class, an argument business groups worry will have resonance during difficult economic times. The Chamber of Commerce spent millions running ads against card check in advance of the elections.

Business groups throughout America had rallied for a last ditch effort to elect Senator John McCain as the President of the United States.  It is no secret that the Republican party has been the party favored by the majority of Corporate America, especially under the Bush/Cheney administration (at least, until the market collapse).  

Many businesses have been weary of a Obama/Biden administration largely due to the populist nature of President Elect Obama's rhetoric.  So now that he is officially President, businesses are clamoring to find some common ground with President Elect Obama.

At the core of this conversation will be an economic stimulus plan that big business is hoping to see pushed by early 2009.  A weakened economy will create strange bedfellows.  

The prevailing thought among business and political groups is to move full speed ahead, despite the $1 trillion dollar deficit the United States is currently in.

President Elect Obama is facing an uphill battle once he assumes the Oval Office in January 2009.  Wall Street is expecting President Elect Obama to make the $700 billion dollar bailout package top of mind, all the while the U.S. Department of Labor is reporting that companies cut 200,000 jobs in October. 

This will be an interesting dance between a man forged through the ideas of the new grassroots generation and the old world establishment of Wall Street.  

The Center for Investigative Reporting did a piece on how labor unions are funneling their money through attack ads against Republican Candidates.  Worth checking out.

http://centerforinvestigativereporting.org/blogpost/20081030unionpower—morethanmeetstheeye

Michaline Maynard of the New York Times wrote an excellent story about the cultural shift that is gradually taking place in Detroit, Michigan as General Motors and Chrysler continue to discuss merging. The prevailing notion is that half of Chrysler's manufacturing plants would close if this merger takes place, not to mention the number of auto parts makers that will go out of business.

http://www.nytimes.com/2008/10/31/business/31detroit.html_r=1&partner=rssnyt&emc=rss&oref=slogin

Not to be outdone, Ford is vowing to become the automotive industry leader...no matter what GM/Chrysler has to say about it.

http://www.nytimes.com/2008/10/31/business/31ford.html?partner=rssnyt&emc=rss

Meanwhile, Forbes is offering a different perspective to the GM/Chrysler merger.  Consulting firm Grant Thornton LLC is predicting that this merger will devastate Chrysler.  GM will only retain seven of the 26 models in Chrysler's lineup.  Chrysler, as we know it, will cease to be.

http://www.forbes.com/2008/10/30/automobiles-chrysler-gm-biz-manufacturing-biz-cz_jm_1031gmdeal.html?feed=rss_news

The Big Three Need Help!

Tom Krishner, of the Associated Press, did a great piece on the ongoing struggles of the Big Three auto companies.

Just as I alluded to in my post on Tuesday the Big Three will have to become more innovative if they hope to reclaim their thrown from the Japanese Auto makers.  Before they can do this though, they will have to adjust some things internally.  Specifically:

1) Legacy Cost.  Considering that GM, Ford, Chrysler charge an additional $2000 per vehicle to cover the costs of retired UAW members smacks of "What do we do now?"  The Big Three is essentially financing the benefits and pensions of workers that have long retired or passed.  Although the auto makers agreed to pass the costs of the pension onto the UAW where will they get the cash to fulfill this contractual obligation?  

2) Create New Innovations.  The Big Three must start thinking in terms of creating fuel efficient vehicles, and off loading the huge SUV's that brought them early returns, but have been an incredible financial drag for the past 5 years.

3) Someone has to be the bigger person. What do I mean by this?  The Big Three and the UAW have to sit down at the table and discuss how they can help each other.  This is not about who has the leverage, or who has the juice.  This is about business partners down to their last cent struggling to prove their relevancy to the world.  

Come on folks!  Let's get it together.

General Motors Announces More Layoffs...

As if things couldn't get worse for the struggling car maker, General Motors has announced more layoffs at parts-stamping, engine and transmission plants in North America.

General Motors announced a layoff of 1,900 employees for the first quarter of 2009.  This is in addition to the 3,600 layoffs that GM announced on November 7,2008.  GM is in a serious crunch!  Although the company is still hoping with struggling Chrysler, neither party can find a financier to back the deal. Wall Street just announced that GM stocks hit a new 65 year low, and that's not counting the number of white collar jobs that will be lost as a result of GMAC's announcement that it lost $2.52 billion dollars in the third quarter.  

Although GM and members of the Congressional wing have petitioned the Bush Administration and President Elect Obama to include the struggling automobile industry in the $700 billion dollar bailout, the result is that it might be too late for GM.  Let's say that GM receives $25 billion tomorrow.  Granted the company will stay afloat, but what happens if car consumers do not turn out to purchase GM's products?  Then it becomes likely that the company will burn through the cash and again turn to the government to bail it out.  

It is not unheard of for companies as established as GM to file for Chapter 11 protection.  There is nothing wrong with it.  In fact, if the company filed for Chapter 11 then it would give the automaker some leverage as it pertains to dealing with the UAW.  I have one thought that keeps coming to me as I grapple with the issues that are dragging down the automobile industry, which I still believe is the back bone of this great country.  Innovation is the only thing that will save General Motors, Chrysler, Ford, Toyota, Honda and any other auto maker worth their weight.

It's time for the automotive industry to come up with something fresh and new for their customers. Whether it's new product design (remember what the Chrysler 300 series did for their bottom line), or advances in new forms of cheaper fuel, the auto industry needs to provide a new mechanism to grab the country's attention.  

GM, Chrysler, Ford...if you build it WE will come.

Change To Win Wages Nationwide Campaign For EFCA

The Change to Win Coalition is priming a huge nationwide push to ensure that President Elect Obama passes the Employee Free Choice Act (EFCA) in his first 100 days in office.

Kasie Hunt at CongressDaily writes:

The union political coalition Change to Win is priming a nationwide campaign to push for passage of the Employee Free Choice Act "card check" legislation in the first 100 days of the Obama administration, union officials said today. "We intend to have a campaign all across this country, all 50 states, all congressional districts ... and we intend to win passage of the Free Choice Act," said Tom Woodruff, Service Employees International Union executive vice president and Change to Win organizing director.

Card check would enable workers to unionize without a secret-ballot election if a majority of workers sign authorization cards. It will depend on the Senate, where Democrats are short of the 60 votes needed to avoid a filibuster. When asked if that meant unions should not spend money and political capital on card check in the first 100 days, Change to Win Chairwoman and SEIU Treasurer Anna Burger responded sharply: "No. Is that clear enough?"

Democrats had 51 votes in favor of card check in 2007. Sen. Arlen Specter of Pennsylvania was the sole Republican defector and Democratic Sen. Tim Johnson of South Dakota did not vote. With 57 seats now in Democratic hands, a unified majority would need Specter and two more Republicans to pass the legislation. "I think there are a number of Republicans, in order to save our economy, [who] can be brought around to supporting" card check, Woodruff said. Unions have been selling card check as legislation good for the middle class, an argument business groups worry will have resonance during difficult economic times. The Chamber of Commerce spent millions running ads against card check in advance of the elections.

Big Business Pushes Obama To Pass Economic Stimulus Package

Business groups throughout America had rallied for a last ditch effort to elect Senator John McCain as the President of the United States.  It is no secret that the Republican party has been the party favored by the majority of Corporate America, especially under the Bush/Cheney administration (at least, until the market collapse).  

Many businesses have been weary of a Obama/Biden administration largely due to the populist nature of President Elect Obama's rhetoric.  So now that he is officially President, businesses are clamoring to find some common ground with President Elect Obama.

At the core of this conversation will be an economic stimulus plan that big business is hoping to see pushed by early 2009.  A weakened economy will create strange bedfellows.  

The prevailing thought among business and political groups is to move full speed ahead, despite the $1 trillion dollar deficit the United States is currently in.

President Elect Obama is facing an uphill battle once he assumes the Oval Office in January 2009.  Wall Street is expecting President Elect Obama to make the $700 billion dollar bailout package top of mind, all the while the U.S. Department of Labor is reporting that companies cut 200,000 jobs in October. 

This will be an interesting dance between a man forged through the ideas of the new grassroots generation and the old world establishment of Wall Street.  

Goings On In The World Of Labor

The Center for Investigative Reporting did a piece on how labor unions are funneling their money through attack ads against Republican Candidates.  Worth checking out.

http://centerforinvestigativereporting.org/blogpost/20081030unionpower—morethanmeetstheeye

Michaline Maynard of the New York Times wrote an excellent story about the cultural shift that is gradually taking place in Detroit, Michigan as General Motors and Chrysler continue to discuss merging. The prevailing notion is that half of Chrysler's manufacturing plants would close if this merger takes place, not to mention the number of auto parts makers that will go out of business.

http://www.nytimes.com/2008/10/31/business/31detroit.html_r=1&partner=rssnyt&emc=rss&oref=slogin

Not to be outdone, Ford is vowing to become the automotive industry leader...no matter what GM/Chrysler has to say about it.

http://www.nytimes.com/2008/10/31/business/31ford.html?partner=rssnyt&emc=rss

Meanwhile, Forbes is offering a different perspective to the GM/Chrysler merger.  Consulting firm Grant Thornton LLC is predicting that this merger will devastate Chrysler.  GM will only retain seven of the 26 models in Chrysler's lineup.  Chrysler, as we know it, will cease to be.

http://www.forbes.com/2008/10/30/automobiles-chrysler-gm-biz-manufacturing-biz-cz_jm_1031gmdeal.html?feed=rss_news