UAW GM Sub Council #7 - March 10, 11, 2003

• There was no meaningful economic improvement in 2002.
• Two of the most important indicators are new housing starts and new auto sales, and they are both down.

• As we are all aware, General Motors will continue to do business as a global corporation.
• In an effort to continue to improve our position, the UAW will meet and strategize with other trade unions that provide materials and parts for General Motors and the rest of the auto industry on a world wide basis.
• All the unions that represent the workers at GM will meet to talk with General Motors about how we all work together to provide the products we make for the corporation.

• The economy remains to hover.
• Auto sales were down in February
• Car sales were down 19%
• Truck sales were down 21%
• General Motors is planning cutbacks in the number of vehicles we will provide in 2003.

• The stock market has had a downward trend in the months of February and March.
• Investors remain skeptical about the economy and the looming war with Iraq.
• Since September 11, 2001, the value of the stock investments of American’s and their pension funds have lost $25,000 on average for every man, woman, and child in America.

• Americans still without jobs - 8,600,000
• Americans looking for work for over six months - 1.9 million
• We are presently in a 30 month long trend of job loss within the manufacturing base in our country.
• Manufacturing jobs that have been lost since last February - 140,000

• Presently there are over 41 million uninsured Americans. One out of every seven men, women, and children have been without health insurance for over one year.
• Seventy five (75) million Americans were without health insurance for at least one to six months.

• Many analysts say the threat of war is the largest looming threat that is effecting our economy.

• All states are having many difficulties with their budgets.
• The collective deficits of our 50 states are in excess of $45 billion.

• As our national debt continues to rise, passing the Bush tax proposal will plummet our deficit past a trillion dollars; and this is just a tax break for the rich.
• The deficit spending for the rich doesn’t even take into account the effects of the cost of the war with Iraq, which is projected to be between $100 to $200 billion.

• Interest rates have gone lower and lower over the past two years and that’s great if you are buying a new vehicle, home, or other major purchase; or refinancing your present home.
• Lower interest rates have the opposite effect if you are trying to build and improve your investments. This is the dilemma we face with our pension funds.
• Almost nobody has been making money in the stock market over the past two years.
• General Motors’ pension fund is invested in the stock market. As the value of the investments decreases, so does the funding for our pension plan.

• The UAW will open National Negotiations with Chrysler on June 16, 2003; GM on June 17; Ford on June 18; and then Delphi.
• The International Union is looking to see what makes the most sense for all of us when it comes to when to open negotiations with the Saturn Corporation. The choice of opening Saturn’s negotiations at the same time as the rest of GM has not yet been decided.
• Our International Union is also investigating which length of contract will best serve the interests of our membership.
• The decisions on a three or four year contract will be decided by whichever makes the most sense to us.

• The GM Council, which is made up of all President’s and Chairperson’s from every Local UAW that represents GM workers, will meet in May to discuss and approve our agenda for national negotiations at GM.
• There they will review submitted national demands from sub councils and recommendations from our local membership.
• This will assist our Shop Committee with local negotiations.

As more information becomes available, we will make it available to the membership.

In solidarity,

Don Southwell, President

Local 730, U.A.W.

DS:jmb/opeiu459/presrep.mar03