Eastern Railroad Discussion > GM Strike - trains anulled?

The UAW and GM appear headed for a strike Sunday night.

GM is supplied with parts by rail companies, and rail takes many finished vehicles into the retail and fleet channels.

The company says it has a nearly 90 day supply of cars. But observers say many are slow selling sedans. The supply of faster selling trucks and SUVs is much smaller.

So, which trains get cut?

Posted from Android

Would the current admiinstration at the Whitehouse put a stop to if it felt it went too far?

Victor A. Baird
http://www.erstwhilepublications.com

Hate to see it. I have a feeling that this is not going to end well for anyone.

Lackawanna484 Wrote:
-------------------------------------------------------
> The UAW and GM appear headed for a strike Sunday
> night.
>
> GM is supplied with parts by rail companies, and
> rail takes many finished vehicles into the retail
> and fleet channels.
>
> The company says it has a nearly 90 day supply of
> cars. But observers say many are slow selling
> sedans. The supply of faster selling trucks and
> SUVs is much smaller.
>
> So, which trains get cut?
>
> Posted from Android

Parts and components moves aren't what they used to be! Finished auto will make a dent.

Then again, today there is only one domestically built Buick in the entire line. This is in part what the strike is all about.

The strike is about money, benefits, job security, and corruption in the UAW leadership. Many UAW leaders have been convicted and many  are awaiting their day in court. The strike was expected to start with the Arlington, TX plant, but likely GM will lock out the others. The locals and their membership don't trust the National leadership which will make it hard to get a deal. GM has the highest labor costs in the industry with benefits and they want to get them in line with Ford and FCA. 



Edited 1 time(s). Last edit at 09/15/19 22:04 by SOO6617.

SOO6617 Wrote:
-------------------------------------------------------
> The strike is about money, benefits, job security,
> and corruption in the UAW leadership. Many UAW
> leaders have been convicted and many  are
> awaiting their day in court. The strike was
> expected to start with the Arlington, TX plant,
> but likely GM will lock out the others. The locals
> and their membership don't trust the National
> leadership which will make it hard to get a deal.
> GM has the highest labor costs in the industry
> with benefits and they want to get them in line
> with Ford and FCA. 

Thanks for that analysis.

Looks like it is on and GM does not have to agonize over locking-out:

https://www.freep.com/story/money/cars/2019/09/15/uaw-strike-gm-autoworker-contract-talks/2333883001/

SOO6617 Wrote:
-------------------------------------------------------
> The strike is about money, benefits, job security, and corruption in the UAW leadership. Many UAW leaders have been convicted and many are awaiting their day in court. The strike was expected to start with the Arlington, TX plant, but likely GM will lock out the others. The locals and their membership don't trust the National leadership which will make it hard to get a deal.  GM has the highest labor costs in the industry with benefits and they want to get them in line with Ford and FCA. 


From the Detroit Free Press article already linked elsewhere:

"GM reported that it made $11.8 billion in pretax profits in 2018, down 8.3% from 2017. CEO Barra's total compensation was $21.87 million, about 281 times as much as the median GM worker's compensation, company disclosures showed. "


It would appear GM has room to maneuver.  Did not even Henry Ford understand it was a good idea to pay your workforce well enough they could afford to be consumers?

Brian

The media enjoys using the "total compensation" metric for a CEO, without unpacking it.  The SEC requires that number to include the huge value of future stock options grants, and other non-cash items like supplemental retirement and medical plans, etc.  The cash portion of the comp is usually a much smaller value.  Still big by most folks' reckoning.  In the NFL / NBA star salary range.

GM has made a huge amount of money since the bailout and forced restructuring of contracts.  If the union membership received their annual profit share payment of $11,000 in company stock since 2009, the distribution and price increase would make a lot of people quite wealthy.

(It's the same thing for many companies.  If you look at the corporate proxy and 10-K, you can separate the value of the options grants from the cash component.  Management  lays the long game,  looking at share price increases.  Not this month's rent check.)

As far as auto parts go, would the only train likely to be on the chopping block the NS Roadrailer/Triple Crown train between Detroit and Kansas City?

Jimbo Wrote:
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> As far as auto parts go, would the only train
> likely to be on the chopping block the NS
> Roadrailer/Triple Crown train between Detroit and
> Kansas City?

I’m thinking most of those are parts for Ford’s Claycomo plant.

Andrew

choodude Wrote:
-------------------------------------------------------
> SOO6617 Wrote:
> --------------------------------------------------
> -----
> CEO
> Barra's total compensation was $21.87
> million, about 281 times as much as the median GM
> worker's compensation, company disclosures showed.
> "
>
> Brian

What does the CEO pay have to do with all of this?  Does really matter how much they make?



 

Much less inbound parts moving by rail today compared with 30 years ago. GM,Ford and Chrysler learned from Nissan, Honda, Toyota who have parts plants a short truck drive down the road from their assembly plants. These nearby parts plants do receive supplies by rail such as coil steel and plastic pellets. More parts stamping operations are at the assembly plants today.

gmojim

flarails882 Wrote:

> What does the CEO pay have to do with all of this?  Does really matter how much they make?

Considering that real middle income has remained stagnant since the Ronald Reagan days, while income at that level has skyrocketed, it at least makes a "we are too poor to pay you what you make us" argument unbelievable.

Brian 

gmojim Wrote:
-------------------------------------------------------
> Much less inbound parts moving by rail today
> compared with 30 years ago. GM,Ford and Chrysler
> learned from Nissan, Honda, Toyota who have parts
> plants a short truck drive down the road from
> their assembly plants. These nearby parts plants
> do receive supplies by rail such as coil steel and
> plastic pellets. More parts stamping operations
> are at the assembly plants today.
>
> gmojim

That coupled with the fact that the plants outside of the the Midwest are closed for the most part. Arlington TX and the Mexican plants are the exceptions.

Posted from Android

florida581 Wrote:
-------------------------------------------------------
> Jimbo Wrote:
> --------------------------------------------------
> -----
> > As far as auto parts go, would the only train
> > likely to be on the chopping block the NS
> > Roadrailer/Triple Crown train between Detroit
> and
> > Kansas City?
>
> I’m thinking most of those are parts for
> Ford’s Claycomo plant.
>
> Andrew

Yes, Ford makes sense.

flarails882 Wrote:
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 Does really matter how much they make?
>


Yes.