UAW-GM Joint Leadership Conference

Detroit Tuesday, April 1, 2003

• In the last decade, GM has put $40 billion into our Pension Fund; and with the stock market problems, we have a $19 billion under-funding. Market Share for GM in 1972 was 43.7% and for 2002 - 28.3%.
• GM’s strategy to win:

1. Great Products
1. Aggressive Market Plan
1. Improve Quality and Cost
1. General Cash

In order to accomplish this, it will take teamwork between GM and the UAW.

Safety: It’s about our family and friend’s lives.

Quality: It’s about our job security.

Diversity: Is about our dignity and respect.

• We take safety for granted. It is our job to point out unsafe acts. Brother Gettelfinger, while in the plant and observing an unsafe act, would have that worker stop what they are doing and call a family member before they continue, because it might be the last time they talk with them.
• When a foreign competitor builds a plant in North America, they bring their suppliers with them.
• The corner stone of our relationship is our contract. We expect to move forward, not backward. Carrying the message back that those not with a negotiation role, need to stay focused on their jobs and leave the process to those elected to do the job of negotiations.
• Since Bush took office, we have lost 2 million manufacturing jobs. Our deficit is $435 billion of which $133 billion was with China for 2002. Our deficit is over $1 billion per day.
• Twenty-five percent of employers fire at least one worker in an organizing campaign. American workers have the right to form a union without fear of their jobs.

• We are bringing in approximately $2,000 less per vehicle than we did in 1997. Transplants have no retirees or legacy costs. We have 450,000 retirees.
• Toyota represents our biggest threat. They are building 2 million engines by 2005 in the U.S. and opening nine new dealerships in Texas, truck country, to handle the new 150,000 trucks Toyota will build by 2004.
• Toyota has a $580 labor cost advantage on us for costs per vehicle. They made more profits last year than the Big Three did in ten years - 17.3 billion. They spend $150 less on a warranty than we do. They also made $1500 more per vehicle.
• We need to focus on quality in all areas.
• GM announced that as of April 1^st, they are offering 0% financing for 60 months. All products; no exceptions.

• Many auto companies have announced cutbacks in production. The housing markets are suffering 15% (in new starts). Auto sales are also down. The influx of consumer confidence is down to its lowest point in ten years. The stock market’s spiral downward decline is to blame. Deficits are being created to fund the President’s tax break.
• There were 16.8 million vehicles sold last year; of that, GM’s share was 28.4%. Thirteen GM vehicles were noted by Consumer Reports this year as good high quality vehicles.
• GM/UAW work sites in manufacturing facilities lead the nation in safety. In the last four years, UAW has stepped up to help GM be prepared to be one of the leaders in quality sales and safety.
• The foundation we have achieved in the relationship, (we have worked on between the UAW and GM), is why we have done well in the last four years. Our aggressive bargaining agenda will move us forward. We have no desire or plans to move backwards.

We are making the journey together.

• I would like for all of you to cut cost and improve quality.
• For Safety, we are better than Toyota. We want everyone to go home to their families as they came to work. GM is the benchmark in safety. Our people are good.
• For Quality we need to focus on perceived quality and improve responsiveness. We need to redouble our efforts to beat Toyota. Quality will guarantee the UAW/GM success. Indirect labor and quality network beliefs and values continue to work with Quality Network to help reduce indirect labor.
• We need to grow market share two years in a row, and cash is king to grow market share.

• Health care costs are up 8.6% and ran $4.9 billion for 2002.
• Pension plans are under-funded by $19.1 billion.
• Intense focus on cost reduction. Cost target for 2003 is $7.2 billion. Total expense for GM in 2003 - $41 billion.

• Seventy (70%) percent of transplant content is from abroad.

• This year, 2003, marks the fifth year as a public company.
• Can we get our cost in line and our quality and worksites in place before the transplants can make an alliance with our competitors?
• Non-GM work provides jobs for just over 3200 UAW workers.

• Delphi has to determine if it will survive or not. If they don’t face the economic reality, they will not be around in the future.
• Delphi has a new team made of former Toyota and Honda Executives to get the corporation lean and redefine their process if they want to keep GM and exploit the transplants.

In solidarity,

Don Southwell

Home Page