>> WELCOME BACK TO CHEDDAR
BUSINESS TALKS BETWEEN GENERAL
MOTORS AND THE U A W LABOR
UNION HAVE APPARENTLY TAKEN
TO COURT AND FOR THE WORST
THAT'S ACCORDING TO U A W VICE
PRESIDENT THE AUTO WORKERS
STRIKE IS NOW IN IT. THE SECOND
DAY AND JOINING US NOW IS NEW
ABOUT THAT REPORTER FOR THE NEW
YORK TIMES YOU KNOW, THANKS FOR
JOINING US ON THIS. ACCORDING
TO
YOUR REPORTING. WHAT IS THE
STICKING POINT HERE WHY DID THE
U A W PUBLICLY REJECT GM'S
LATEST.
>> NOW THE LATEST ISSUE IS
WHETHER THE GENERAL MOTORS
WILL BRING WORK BACK FROM
MEXICO TO US PLANTS AGN SOME
PICKUP TRUCKS
3 SUVS DOWN IN MEXICO, MOST OF
THE VEHICLES AND MAKING MEXICO
RX 40 WERE IN TO ADD TO THE
UNITED STATES. AND SO HE LAID
OUT THE EU WANTS TO SEE THOSE
THOSE VEHICLES ARE SOME
OF THEM MADE IN US PLANTS AND
OF COURSE GM HAS SINCE CLOSED
DOWN ONE VEHICLE PLANT IN OHIO.
IT'S GOT ANOTHER ONE IN
DETROIT THAT SLATED TO CLOSE IN
JANUARY AND THEIR ARGUMENT IS
LET'S TAKE SOME OF THOSE
VEHICLES OUT OF MEXICO AND PUT
THEM IN THE US AND KEEP THOSE
PLANTS OPEN.
>> NEIL IS THAT A
REALISTIC DEMAND IS THAT A
REALISTIC THING THAT THE U A W
COULD FORESEE OF WE GOT HER AS
THAT
SHIP CELT.
>> THE ON IT WE'LL LET YOU KNOW
GET AUTO COMPANIES CAN MOVE
PRODUCTION AROUND THERE IS A
COST WITH THAT.
>> YOU HAVE TO MOVE EQUIPMENT
OR BUY
NEW EQUIPMENT AND THAT'S NOT
MATTER BUT IN PAST CONTRACTS,
THAT'S ALWAYS BEEN A
BIG THING FOR THE UNION TO
WIN COMMITMENTS TO MOVE PUT
PRODUCT IN IN
CERTAIN PLAN US IT'S GOING TO
BE VERY HARD FOR GM TO GET AN
AGREEMENT IF THEY DON'T
HAVE SOME KIND OF WALK ON
CREATED A AGREEMENT
OUR WHICH PLANTS ARE GOING TO
GET FUTURE PRODUCT IN THE PAST
THAT'S ALWAYS BEEN A BIG THING
U A W
HAS TRUMPETED HEY WE GOT A
COMPANY TO AGREE TO KEEP THIS
PLAN AND AND IN IN 2 YEARS
WE'RE GOING TO START MAKING
THE NEW. VEHICLE HAPPENS TO BE
SO IT'S GOING TO BE HARD
WITHOUT THAT.
>> WHY DID GM THAT YOU NEED TO
MAKE A DEAL THE STOCK DOWN 12%
IN THE
PAST MONTH UP TO A MILLION A
DAY YOU KNOW WHEN THEY FINALLY
GOT IT THE NEGOTIATION TABLE
AND JUST MAKE A DEAL TO MOVE
FORWARD ON A POSITIVE FOOTING.
>> WELL IF THEY HAVE A LOT OF
GOOD BIT OF INVENTORY. I HAVE
TALKED TO SOME DEALERS AND
THEY'RE SAYING
THEY'RE NOT A PROBLEM RIGHT
WITHIN THAT THEY GOT YOU
HOSTESS IGN PROBABLY
HOLD OUT SOME
TIME LONGER. ON THE OTHER
SIDE UNION THOSE WORKERS ARE
NOW GETTING $250 A WEEK IN
STRIKE PAY IT IN STOCK TO PAY
THE MORTGAGE ON ON THAT KIND
OF MONEY. SO THERE'S THERE'S
ECONOMIC HARDSHIP ON BOTH OF
NEGOTIATING TABLE.
>> THERE ARE OTHER OURS ARE NOT
HERS TO ACCORDING TO YOUR
REPORTING, YOU THEY INVOLVE
TIME A TIME OF SERVICE HIRED TO
REACH TOP UNION WAGE AS WELL AS
A COST OF LIVING IN INFLATION
ADJUSTMENTS FOR 4 O ONE K AND
PENSION AND RETIREMENT PLANS
TAKE US THROUGH THOSE
NEGOTIATIONS.
>> AND AFTER 2007 HAVE TO
BE THAT COMPANY 8 YEARS BEFORE
THEY GET TO THE TOP WAGE TO
COME IN AND
NOT SEND IN DOLLARS AN HOUR AND
THEN OVER 8 YEARS WORK THE WAY
OUT TO ABOUT
THE UNION WANTS TO SHORTEN THAT
TO 4 YEARS OF 5 YEARS OR SOME
AND SOME SMALLER NUMBER THAN 8
WE ALSO HAVE TEMPORARY WORKERS
AND A
THERE'S ONLY A SMALL NUMBER
THERE'S 3,004 1000 TEMPORARY
WORKERS. THOSE PEOPLE MAKE
ABOUT $15 AN HOUR. THEY DO
NOT HOW ON DENTAL AND VISION
COVERAGE THAT YOU HAVE MET A
MEDICAL COVERAGE WITH THEIR
SORT OF IN LIMBO DAY THEY CAN
BE TEMPORARY WORKERS FOR 3 OR 4
YEARS WITH NO PATH TO BECOMING
PERMANENT EMPLOYEES AND THAT'S
ONE THING YOU WANT IS TO HAVE
THESE TEMPORARY WORKERS HAVE A
WAY OF BECOMING
PERMANENT EMPLOYEE.
>> HAVING A STICKING POINT IS
THAT NEIL IN THE NEGOTIATIONS.
>> WELL I THINK THEY MORE OR
LESS HAVE RESOLVED. THE
TEMPORARY WORKER ISSUE I
DON'T THINK THEY HAVE HAVE COME
TO A FINAL AGREEMENT
ON THAT TIME IT TAKES FOR THOSE
WORKERS HIRED SINCE 2007 TO GET
TO THE TOP WAGE, THEY'RE STILL
NEGOTIATING OVER THAT. I
SUSPECT THAT'S NOT A HUGE BLOCK
IN THIS THAT THE
BRING PRODUCTION BACK FROM
MEXICO'S A MUCH BIGGER
QUESTION.
>> NEIL HOW DO THESE
NEGOTIATIONS ARE HEADING OUT
THE U A W THINK
ABOUT PREPARING. THESE WORKERS
FOR A FUTURE OF ELECTRIC
VEHICLES AND ONE WERE
INCREASINGLY PERHAPS PEOPLE
HAVE TO RELATIONSHIPS WITH
THEIR OWN WITH THE OWNERSHIP OF
THE VEHICLE OF MAYBE 4 GO OUT
OWNERSHIP AND INSTEAD A RIDE
HAILING APPS LIKE UBER LEFT.
>> WELL ELECTRIC VEHICLES ARE A
BIG ISSUE FOR THE UNION
IT TAKES FEWER WORKERS TO MAKE
ELECTRIC VEHICLES THAN IT DOES
TO PRODUCE
A VEHICLE WITH FROM THE
INTERNAL COMBUSTION ENGINES
THERE IS NO EXHAUST SYSTEM
THERE'S NO FUEL SYSTEM. SO
THERE'S FAR FEWER PART INVOLVED
IN THAT MEANS THERE THERE'S
THERE'S LESS LABOR INVOLVED
IN SO A COMPLETE SWITCH OVER
FROM INTERNAL COMBUSTION TO
ELECTRIC VEHICLES IS GOING TO
MEAN THAT THERE'S THE NEED FOR
FEWER. FACTORY WORKERS AND THE
U A W IS CONCERNED ABOUT
THEY WERE IT WAS THOUGH THAT
IT'S INEVITABLE NOT GOING TO
ABLE TO STOP THAT, BUT THEY
WANT TO
MAKE SURE AND IN THE END IS
GOING TO SWITCH WELL THAT THEY
MAY BACK PARENTS ARE ASSEMBLED
BATTERY PACKS AND UNITED STATES
RIGHT NOW GM GETS.
BATTERIES FROM A LG OF KOREA
AND SOUTH KOREAN
THERE'S NO UNION BATTERY PLANT
IN THE UNITED STATES GM HAS ONE
SMALL
OPERATION BUT NO
BATTERY PLAN THAT'S IN THE
UNITED STATES OR ARE UNIONIZED
SO THE WAY THAT HE WANTS TO
MAKE SURE THEY GET A PIECE OF
OR AMERICAN WORKERS GET A PIECE
OF THESE THESE NEW
TECHNOLOGIES THAT INVOLVED IN
ELECTRIC VEHICLES TO TRY TO
KEEP JOBS HERE IN IN THE UNITED
STATES.
>> AND THE O J P MORGAN
ESTIMATING THAT GM LOST A
BILLION
DOLLARS LAST BORDER BECAUSE OF
THE STRIKE IT IS THE FIRST
STRIKE BY THE U A W US SINCE
THE FINANCIAL CRISIS NOW
ENTERING ITS 4TH WEEK.
WHAT'S THE LONG-TERM LIABILITY
THAT THIS PRESENTS GM.
>> WELL CERTAINLY IF HE GOES
ON FOR A YOU KNOW MORE WEEKS OR
EVEN MONTHS THAT IS A BIG
PROBLEM
NORTH AMERICA IS GM'S BIG
PROFIT ENGINE LAST 3 YEARS THEY
PAID A 1011 $12 BILLION
A YEAR IN NORTH AMERICA, SO
THEY CAN'T GO IN DEFINITELY
WITHOUT NORTH AMERICA BEING IN
OPERATION AND OF COURSE WHAT'S
HAPPENED IS THERE ARE PLANS OF
US ARE SHUT DOWN BY THE STRIKE
THEIR PLANT IN CANADA AND
MEXICO ARE AFFECTED BY PARTS
SHORTAGES PARTS THAT COME FROM
U S
BACKED PEACE. SO IT DIDN'T
REALLY
FREEZES THERE THEIR WHOLE NORTH
AMERICAN OPERATIONS RIGHT NOW
THAT THEY STILL HAVE SOME
PRODUCTION GOING IN
IN MEXICO, BUT MOST OF THEIR
KIND OF THE PRODUCTION IS DOWN
AND THERE'S AT LEAST ONE PLANET
IN MEXICO THAT HAS BEEN SHUT
DOWN BECAUSE OF THE US START.
>> NEW IN YOUR OPINION WHAT
AMERICAN
AUTO AUTO. MAKERS WHO DO YOU
HAVE UNION LABOR THAT ARE
PUTTING IT MORE THAN NONUNION
LABOR
CAN COMPETE HERE IN THE US WITH
COMPANIES WITH FOREIGN
AUTOMAKERS WHO DO HAVE
OPERATIONS HERE IN THE US, BUT
DON'T HAVE
UNIONIZED LABOR. I MEAN TAKE US
TO THE TENSION THERE BECAUSE
THERE IS A DIFFERENCE IN IN
TERMS OF HER ABOUT IT.
>> IT'S A TOUGH YOU HAVE TOYOTA
HONDA NISSAN
BMW ALL MERCEDES BENZ OF
VOLKSWAGEN WITH PLANTS AND
NONUNION PLANTS IN THE SOUTH
AND THERE WORKERS GENERALLY
MAKING THE RANGERS, 1617 18 A
$19
AN HOUR
THE THERE AND WORKERS WHO ARE
HIRED BEFORE 2007 THERE TOP
WAGES, 31 AN HOUR. AND YOU HAVE
WORKERS WHO ARE WORKING UP TO
THE TOP WAGE. THEY CAN BE IN
THE 20'S OR BELOW THE
HIGH TEENS. SO BUT WHEN YOU MIX
IT ALL OUT CERTAINLY GM DOES
HAVE HIGHER
LABOR COST. AND THEY'RE IN A
TOUGH POSITION. THEY'RE TRYING
TO KEEP WAGES FROM RISING TOO
RAPIDLY BECAUSE THEY'RE ALREADY
BEHIND THE 8 BALL IN TERMS OF.