Lewenza's letter. Be sure to see the ratio of imports to exports. Terrible...

http://www.cawlocal.ca/222/uploads/8...r_Apr_2009.pdf

 

"If we cut our wages, it's almost like we're agreeing that our wages caused the problem. That is 100% false."

Actually by cutting wages it's more a sign that you are willing to make a sacrifice for the good of the companies future. Sometimes you have to give a little to get a little back.

I wish these guys would honestly stop fear mongering their members and actually sit down with company management and work together to produce a viable go-forward plan. Both the unions and management need to make concessions and reorganize for the good of the companies future. If the two sides could work cooperatively and effectively problems could actually be solved and solutions put into place.

Stop focusing on laying blame and start focusing on the future.

 

These guys sing the same song over and over and the tune never changes.

It's "Not our fault"

 

I'm also tired of hearing about unfair trade and trade ratios. The US (North American) market is one of the largest and hence attractive markets for companies to sell their vehicles in. The cost of producing vehicles in North America and selling in China, Japan or other places is extremely high and because of that it will limit sales. Also, the domestics do not have the product line to meet the needs of Japanese/Chinese consumers. GM does not produce mini/micro vehicles which are the big sellers in Japan.
The import auto makers are in a better position to export vehicles because they can produce products for their own market but also produce products for the NA market.
I'm all for free trade or fair trade but you can't expect Japanese consumers to buy Malibu or Impala or Silverado sized vehicles when they are accustomed to micro vehicles. You also can't expect a Chinese person to buy a $20,000 (priced here in NA) Malibu when the average yearly wage is approximately that much.

 

A MODERN PARABLE . .


A Japanese company ( Toyota ) and an American company (Ford) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing.

Feeling a deeper study was in order, American management hired a consulting company and paid them a large amount of money for a second opinion.

They advised, of course, that too many people were steering the boat, while not enough people were rowing.

Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 3 area steering superintendents, and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 1 person rowing the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners, and free pens for the rower There was discussion of getting new paddles, canoes, and other equipment, extra vacation days for practices and bonuses.

The next year the Japanese won by two miles.

Humiliated, the American management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's racing team was out-sourced to India.

Sadly, The End.

Here's something else to think about:
Ford has spent the last thirty years moving all its factories out of the US, claiming they can't make money paying American wages.

TOYOTA has spent the last thirty years building more than a dozen plants inside the US. The last quarter's results:

TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.

Ford folks are still scratching their heads.

IF THIS WEREN'T TRUE, IT MIGHT BE FUNNY.

 

Yes, from that narrow view it is truly disconcerting. However, let's look at a couple more facts. The Average US all in hourly rate is $76/hour, while Toyota's is $48/hr. I did the math, that's 70% more just for all in labor costs. What about legacy costs for over 500,000 UAW retirees? That adds a huge lump more to the annual cost of the Big3.

Now, those cost camparisons are only for the assembly workers. Let's not get into the disparity of back office operations. That's right. The R&D, Designers, managers and thinkers who work in Japan. All the people who in the Big 3 are in Detroit and other areas while their counterparts in Toyota are overseas. THAT makes a HUGE difference to the bottom line as well.

 

I agree with you at some point. However, when you see guys like Wagoner run away with a $23 million check in his pocket... you can't really blame them. The workers always get the blame, and in the end, will have to pay for the mistakes/bad decisions of the management.

 

Yup the worhers on the line etc. HAVE TO take cut backs while upper management takes hugh salaries with expence accounts and bonuses.
Ask AIG about that.

 

UAW... how do i say something about them that ISNT pure hatred.

they have nearly killed the domestic automaker...

they're like a bear eating a deer

then asking the deer

"why dont you have more meat!?"

the deer says

"if you stop eating me, i could grow some more!!!"

bear says

"nope"

then starves.

a terribly weak example, but hopefully it expresses how i feel without being pure flame!

 

Another that does not understand the pure being of a workforce that does their job yet the rich keep abusing the system that they developed for their own greed. Some just think in the small sense of what the media writes to flame the ignorant. You keep believing what the media writes and follow along like sheep and read all the sensationalism that these reporters spew out so that you can be an authority on the economy...