"MESSAGE FROM GM ON THE FLINT STRIKE"
By now, virtually all General Motors watchers
are aware that the company has been engaged in
a prolonged shutdown due to strikes by the
United Auto Workers in Flint, Michigan. We
believe these strikes are unfortunate and we
are eager for an end to this dispute. The
issues at stake are critical to the future
health of our company. We have a responsibility
to everyone who depends on GM -- employees,
stockholders, customers, dealers, suppliers and
communities -- to make the sound business
decisions necessary to remain competitive in
the rapidly changing and highly competitive
automobile industry.
By going on strike, these two local unions have
hurt thousands of their fellow workers in other
plants across the country. They've also
threatened the economic stability of hometown,
USA. Small businesses are beginning to sting
from the rippling effect of the strike. As for
the financial impact on GM, we can expect
losses in the hundreds of millions.
The issue is not about jobs. Not a single job
at the Flint Metal Center is in danger. In
fact, the plant has had steady employment for
more than a decade. Workers at the Flint Metal
Center make nearly $100,000 annually in wages
and benefits including overtime. GM has spent
more than $400 million on new equipment and
planned maintenance at the Flint Metal Center
in the last five years. We have made a real
commitment to that facility. Unfortunately, we
are not realizing a return on that investment.
The real issue is the need to correct out-dated
work practices that make the plant
non-competitive. We must remove the barriers
that keep that plant from running the way it
should. For example, work rules allow some
employees in the engine cradle area to stop
work after as little as 4.5 hours, and get paid
for a full day. In fact, the engine cradle
section of the plant is running at under 65
percent of capacity. In another example,
transfer presses at other locations run at more
than 1,000 strokes per hour. At the Flint Metal
Center, the equipment is run at half that rate.
The fact is the Flint Metal Center loses $50
million a year. We are not asking our employees
at that facility to do any more than UAW
employees at other GM plants in the U.S. with
similar equipment and processes. In fact, we
have faith that our highly skilled work force
can perform at top levels. But, we need the
commitment of the UAW to abandon antiquated
work practices. We simply cannot afford to
continue investing in a plant unwilling to take
the steps necessary to survive in today's
market.
The UAW has questioned GM's commitment to the
U.S. Our record stands for itself. GM has plans
to invest $21 billion in the U.S. between 1997
and 2002. That's more than we're spending in
the rest of the world. No other company is
making that kind of investment in the U.S. This
money is solely earmarked for new product
programs and manufacturing.
But the game is different today. Even Richard
Shoemaker, UAW vice president in charge of the
GM Department, concluded in a recent New York
Times article: "Globalization is a fact of
life, and we recognize that General Motors just
like every other auto maker has to be a
player." We must be strong globally to be
strong in the U.S.
There are many people around the world who are
very happy about this strike. They work for
companies called Daimler-Chrysler, Ford, Toyota
and Honda, and many others. Strikes such as
this don't put America first. They ultimately
hurt the American economy and the American
consumer.
GM and its employees must be on the same side -
teammates in a game where the rules are
changing dramatically. There's a better way of
doing business than strikes and shutdowns. And
it involves making positive changes.
As for the ongoing negotiations, GM is in
Flint, totally dedicated to reaching a
settlement, ready to bargain. Nothing is more
important. |
