Showing posts with label Stronach. Show all posts
Showing posts with label Stronach. Show all posts

Friday, November 02, 2007

Time For A Made In Canada Auto Industry

Here is a perfect example of Branch plant economics. Despite the auto pact,there is now a disconnect between our national auto industry and it's American owners.

Time to create a made in Canada auto industry. But not one that means co-opting workers through unionization without the right to strike.

Domestic auto sales up in Canada

Detroit's Big Three automakers did something in October they haven't been able to do in 10 long years - they outsold their overseas rivals in Canada by a wide margin.

Chrysler axes 1100 jobs at Brampton plant

By John mccrank TORONTO (Reuters) - Chrysler is cutting around 1100 jobs at its Brampton, Ontario, assembly plant as part of wider layoffs planned by the automaker, the head of the Canadian Auto Workers union said on Thursday.

Brampton's muscle-car party is over

Two years ago this month, Canadian Auto Workers union President Buzz Hargrove joined other car industry big shots on a stage at Chrysler LLC's Brampton assembly plant northwest of Toronto to celebrate what was then the hottest car on the road and one of Chrysler's most popular products ever: The beefy Chrysler 300.

This week, he took a call from Chrysler brass informing him that sales of the 300 and its two sister cars built at Brampton -- the Dodge Charger and the Magnum wagon -- had slipped enough in North America to warrant a major cutback in production. The unbridled optimism in 2005 among the CAW and Chrysler executives that the car would stand the test of time has now hit a cold wall of realism suggesting it may not. And in a flash, Brampton's muscle car party is over.

Blaming a slowing U.S. market, Chrysler announced yesterday it will discontinue the Magnum and cut the third shift at Brampton in February, putting 1,100 factory workers on layoff. It's part of a wider and deeper cutback effort under new owners Cerberus Capital Management that will see the automaker dump four models and cut an additional 10,000 hourly, 1,000 salaried and 1,000 contract jobs as it aims to steer the company back to profitability. Chrysler lost US$2-billion in the first quarter this year before splitting from Mercedes-Benz maker Daimler AG.

Chrysler bows to price pressure

Chrysler Canada is boosting cash incentives on its vehicles to address consumer concerns that they're paying more for cars and trucks here than in the United States -- the biggest automaker to date to adjust prices to the rising Canadian dollar.


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Tuesday, October 16, 2007

Unions=Competitiveness


Yep I know it appears counterintuitive but it' s true. Labour and Capital go together like a horse and carriage. Labour produces capital and so a merger like this is the very anti-thesis of the term One Big Union.

In order to be competitive Mr. Anti-Union has made a satanic pact with Mr. Union.

In this case its the grandest merger of them all, between Frank Stronach's Magna and Buzz Hargrove's CAW.

In the global economy corporations and unions are swept up by merger and acquisitions mania. However usually it was corporate mergers or union mergers, now we have a union-corporate merger in order to compete in the global market.

After all that is why they are called 'business' unions. They sell workers labour to the boss.

Auto parts entrepreneur Frank Stronach and Canadian Auto Workers leader Buzz Hargrove have signed a deal allowing the union to organize at Magna International, citing the need to work together in non-traditional ways.

Hargrove said that the two sides have been working for years on developing non -adversarial relationship to help deal with challenges from offshore manufacturers.

Stronach, who founded the company and grew it into Canada's largest auto parts manufacturer, says society needs "checks and balances" and unions help balance the profit motives of companies.


Buzz has now really joined the Liberal family. Literally. After all they both hate Harper.

Canadian Auto Workers leader Buzz Hargrove says he's at least partly to blame for it taking so long to unionize the workers at Magna International . "It's probably more my fault than it is Frank Stronach's," Hargrove said today at a signing ceremony with Stronach, Magna's founder, at the auto parts manufacturer's headquarters in Aurora, Ont.

Frank Stronach, the founder and chairman of the auto parts maker Magna International, urged his 18,000 hourly employees in Canada on Monday to join the Canadian Auto Workers.

Mr. Stronach’s endorsement followed two years of talks that concluded Monday with a formal agreement on how the union would organize the company’s employees. Under its terms, the C.A.W., Canada’s most prominent union, agreed that Magna’s workers would not strike and the company, in turn, waived its right to lock out employees.

The unusual agreement developed from an unsolicited approach Mr. Stronach made to the union’s president, Basil E. Hargrove, in October 2005.

At the expense of the workers he represents.

Magna's union deal: no strikes



Gee that's what Sam Gompers father of business unionism said too;

The worst crime against working people is a company which fails to operate at a profit
The more thoroughly the workers are organized and federated the better they are prepared to enter into a contest, and the more surely will conflicts be averted. Paradoxical as it may appear, it is nevertheless true, that militant trade unionism is essential to industrial peace.

What we have endeavored to secure in industrial relations is industrial peace.
Hey Buzz whatever happened to; "workers control of the means of production?"

Guess Sam Gindin will have to quit ghost writing his socialist articles in the Monthly Review.

Magna, union in `template' pact
CAW secures representation at auto-parts giant in return for suspending workers' right to strike

Magna International Inc. and the Canadian Auto Workers have reached an unprecedented deal that will make union organizing easier at the company's plants here but eliminate the right to strike for several years.

Under the deal, the Aurora-based auto-parts powerhouse will allow workers to decide on union representation at each plant by voting on tentative contracts, instead of experiencing the divisiveness of organizing drives and lingering acrimony.

The deal follows an initiative by Magna chair Frank Stronach more than 1 1/2 years ago to develop a "Framework for Fairness" so the company could improve productivity, innovation and labour relations in North America amid growing competition offshore.

It will give the CAW a major opportunity to gain thousands more members in a sector where its traditional membership and clout have plunged over the past two decades, at slumping General Motors, Ford and Chrysler.

Magna operates 61 manufacturing plants with 20,700 workers in Canada, mostly in southern Ontario.

The union currently represents only about 1,000 workers at three Magna plants.

One reason the CAW never broke into Magna, despite numerous attempts, is that employees were happy with Magna's deferred profit-sharing plan, recreation areas, and daycare facilities, Mr. Lilley said.

For more than a year however, Mr. Stronach has been talking about letting both the Canadian Auto Workers and the United Auto Workers unions in as a way to put aside old management-labour divisions in the North American auto industry and ensure its survival. The hope is that the newfound co-operation could foster a new work model -- and keep auto parts and automaking jobs that might otherwise move to other continents. As Dan Luria, an analyst at the Michigan Manufacturing Technology Center put it, Mr. Stronach "wants to be able to say he remade labour relations in North America."

Unions such as the CAW have become more pragmatic by promoting productivity and other business goals at the same time Magna has warmed up to organized labour, one analyst said yesterday.

It's the final nail in the coffin of the labour movements failed anti-NAFTA campaign.

This merger between the CAW and Magna gives new meaning to North American Union and deep integration.


In practical life we find not only competition, monopoly and the antagonism between them, but also the synthesis of the two, which is not a formula, but a movement. Monopoly produces competition, competition produces monopoly. Monopolists are made from competition; competitors become monopolists. If the monopolists restrict their mutual competition by means of partial associations, competition increases among the workers; and the more the mass of the proletarians grows as against the monopolists of one nation, the more desperate competition becomes between the monopolists of different nations. The synthesis is of such a character that monopoly can only maintain itself by continually entering into the struggle of competition.
Karl Marx
The Poverty of Philosophy
Chapter Two: The Metaphysics of Political Economy


See:

Unions the State and Capital

Chrysler Made In Canada?

Buzz the Protectionist

Steel Merger

Union M&A

Mittal Plays Monopoly

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Friday, March 09, 2007

Chrysler Made In Canada?


Since the Harpocrites love Made In Canada Solutions here's one; nationalize Chrysler through tripartite fund raising and purchase. Both levels of government; provincial and federal funding for compact and hybrid cars and trucks, with funding from CAW and Big Daddy Warbucks; Magna's Stronach confirms Chrysler interest

With CAW members along with environmental and consumer advocates on the board as worker and public representatives. This is how the German Auto Industry built itself up. An why it will cut its relationship with Chrysler.

Because Dahlmer wants to sell. And if these guys get it the will slash jobs and contracts, affecting CAW and Stronach.
It is widely rumoured that private equity powerhouses Cerberus Capital Management LP and Blackstone Group LP are also considering putting Chrysler in their portfolios.

$700-million Chrysler plan at risk, union says

Potential Chrysler buyers call CAW's Hargrove

Magna chief looking at Chrysler



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