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https://www.wsws.org/en/articles/2019/10/30/genm-o30.html?fbclid=IwAR38_801FycDQK6ylN3h9D8PuQleUjoEXzU6y0F_auq5M_Fub_l9O65cTo4

GM execs gloat over new UAW contract in call with Wall Street investors

By Jerry White
30 October 2019

The WSWS Autoworker Newsletter urges call workers to attend the call-in meeting Thursday, 7pm Eastern Time to discuss the lessons of the GM strike. To register, go to: wsws.org/autocall

In a conference call with Wall Street analysts Tuesday morning, General Motors CEO Mary Barra and the company’s chief financial officer boasted that the new four-year agreement with the United Auto Workers would allow GM to slash billions in manufacturing costs and give it the “flexibility” to replace higher-paid veteran workers with temps.

Although the walkout cost the company an estimated $3 billion in profits for 2019 and 2020, the savings from the contract will lead to far larger long-term gains, Barra and CFO Dhivya Suryadevara told the analysts. The new agreement, Barra said, would maintain the “competitiveness” of GM, “strengthen the future of this company and create shareholder value.”

Despite the 40-day strike, the longest national auto strike in half a century, GM made $3 billion in third-quarter profits in North America. This is up $200 million from last year, with an 8.4 percent profit margin. GM International reported a $65 million loss on slowing sales in China and elsewhere.

The large North American profits were largely due to sales of the highly profitable Silverado and Sierra pickup trucks, which the UAW helped the company stockpile by sanctioning forced overtime and speedup before the strike.

GM’s stock rose 4.3 percent on Tuesday. Since the UAW announced the contract was ratified last Friday, GM shares have risen by eight percent.

Barra, who made $22 million last year, said workers and management would go forward as “one team” after the strike. In fact, GM has responded to the UAW’s shutdown of the strike with a campaign of retaliation aimed at intimidating workers who widely opposed the UAW-backed sellout.

The UAW claimed the contract passed by a narrow 57-43 percent margin, but there are widespread charges that the vote was rigged. In any case, workers knew that if they rejected the deal, the UAW would leave them on the picket lines for weeks or months and would not bring back anything better.

Over the weekend and on Monday, at least three Flint Truck Assembly workers, including 19-year veteran Juan Gonzales, were fired due to comments posted on workers’ Facebook pages, which GM Global Security regularly spies on. In addition to this flagrant violation of free speech, the company has also refused to rehire nine GM workers at the Silao, Mexico plant who were fired for defying demands by the company and the union that they increase output and undermine the impact of the US strike.

Inside the plants and distribution warehouses, workers are reporting a virtual reign of terror, with management harassing and disciplining workers. The UAW is enforcing speed up and mandatory overtime to make up for the loss of 300,000 vehicles during the strike.

With the plants already running at “max overtime,” Barra told investors, it would take “discipline” to boost production and get profits rolling again by the second quarter of 2020.

In her comments, CFO Dhivya Suryadevara said, “The new labor agreement preserves our competitiveness, manufacturing flexibility and balance sheet strength, without sacrificing our earnings power.

Gloating over the terms of the contract, she added, “We have maintained our ability to adjust our workforce in response to changing industry levels, protected the balance sheet with no increases to defined benefit pension obligations and no payments or increased obligations to retirees. We maintained out breakeven point of 10-11 million units in the US and therefore maintained our ability to navigate through a downturn. It is important to note that while this labor agreement is inflationary, we expect to offset incremental economics over the course of the contract period with productivity in our system.”

The UAW agreed to the closure of the Lordstown, Ohio plant, which once employed nearly 5,000 workers, along with transmission plants in Michigan and Maryland and a parts distribution center in Fontana, California. The plant closures would allow the company to move ahead with plans to cut $4.5 billion in annual labor costs, the GM’s executives said.

The unrestricted expansion of temps, which will be overseen by the UAW, will provide GM with a disposable workforce that can be expanded or reduced depending on market conditions without incurring the costs of laying off traditional workers, like supplemental unemployment pay or buyouts.

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  • Gold Member
6 minutes ago, Pete said:

Average truck will cost $80k soon 

Even the ones built in Mexico haven’t cheapened the cost of buying one.  Cutting cost doesn’t lead to a cheapened cost of products for the consumer....  it just means greater profits for the companies

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8 minutes ago, spin_dry said:

Buy used Japanese minivans. You’ll have a fortune of retirement funds invested by the time you’re 50. 

Going on 8 years with my current truck

Ill never buy new again 

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  • Platinum Contributing Member
1 minute ago, f7ben said:

Enough to own a home , a vehicle and raise a family. That ain't fucking happening on 66k

Sure it is and if your spouse works better yet....does depend on where someone lives though.

Edited by Jimmy Snacks
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2 minutes ago, Jimmy Snacks said:

Sure it is and if your spouse works better yet....does depend on where someone lives though.

I'm just saying.....32 bucks an hours is shit. These companies make billions.

Look at this stupid bitch Bara brag about how they can fuck over middle class workers even harder now 

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  • Platinum Contributing Member
6 minutes ago, f7ben said:

I'm just saying.....32 bucks an hours is shit. These companies make billions.

Look at this stupid bitch Bara brag about how they can fuck over middle class workers even harder now 

Well she is a  dumbfuck for thinking that and saying it...honestly what should someone on an assembly line make...not skilled tradesman.

 

Edited by Jimmy Snacks
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