Alternative title: Dicke E Dauch, More Evil Day by Day

Welcome to the world that has become the United States Labor market.

It's filled with companies that pay CEO's hundreds of thousands of dollars and into the multimillions of dollars.

From the American Red Cross' Multi-Billion dollar Blood Business to Wal-Mart's sticking it to folks like Debbie Shank (and yes, they were well within their legal right to do so), but what Dick E Dauch did and continues to do, well, it just kind of makes me ill, to the nth degree.

Why you might ask, well, I think the Detroit News kind of figured that one out:

Since American Axle was spun off from General Motors and reconstituted in 1994, the union negotiates with American Axle, not GM, and does not get the sweetheart deal other UAW workers will get. In fact, Local 235 went on strike for three months last year and lost. It was a cold, bitter dispute, complete with fires in the oil drums. The unionized workers, numbering nearly 2,000 at the time, gave in to deep wage cuts, in some cases from $28 an hour to $14, in exchange for keeping their jobs. Apparently it was not enough. Fewer than 300 union members were working in the plant Monday.

In the meantime, Dick Dauch, the CEO and chairman of American Axle, was given an $8.5 million bonus by his board of directors after the strike and gave assurances to the workers and the city of Hamtramck that he would keep production here.

Yes, emphasis is mine.

I followed the strike. I was a bit obsessive about it.

I posted pictures like that of a 60 year old woman in an officer's chokehold. Or how Republican staffers who were meeting with UAW members about the bridge loans to the auto industry had NEVER heard of American Axle or their 11 week strike.

I followed one of my favorite workers Jerd0708, and cross referenced worker pay and executive pay, an issue that resinates with workers from Wal-Mart to the American Red Cross to the guys and gals on the docks. It's the Entitlement Mentality of the highest levels of executives that seals the fate of so many of us who simply want to work. Folks who just want to put in an honest day of work for an honest day of pay.

More than ever, I believe in the power of unions, but we need stronger labor laws to make it possible for union workers to rebuild the middle class. We need to pass the Employee Free Choice Act to make it possible for more workers to sign a union card and join a union. Together maybe we can start holding boards of directors, CEOs and other executives accountable for their actions when they give an $8.5 million bonus to Dick E Dauch (I said BONUS here) just for the hell of it.

One other thing:
We as a nation need to do a better job of ensuring that companies can't just flee one jurisdiction to go to another because somewhere, down the road, doing so might be cheaper (think of what American Axle is doing in moving jobs to Mexico or Kongsberg Automotive moving production into Poland) in terms of labor costs and environmental costs. Again, from the Detroit News:

Chris Son, the director of communications at American Axle, called late Wednesday to say that the layoffs are "fallout from the GM and Chrysler shutdowns." He also confirmed that the Mexicans will continue to work as the Americans are out on the street.

"For logistical reasons, a level of production will continue in Mexico," said Son. "At the same time, there will be lower production requirements in Detroit. Other than that, I have no further comment on that matter."

Logistical reasons, right. Chris and Dick, if American workers can't buy cars produced with your parts, what's the point in moving to Brazil, Poland or continuing operations in Mexico? If we can't buy these cars, who will? Oh wait, I know the answer, guys like you, right?

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Yesterday was absolutely amazing in DC. My eyes are still watery and I don't know if that's emotions or just the cold still seeping out.

I got into the office this morning to no one. There's seriously no one here. It's eerily quiet. So, I decided to read the web a little and get my head back into the game after weeks of inaugural planning and events. So, I headed over to CUPE and noticed this piece on a lock out that happened yesterday in British Columbia:

January 20, 2009 07:44 PM
GRAND FORKS, BC — CUPE 2254 members were locked out of their workplace this morning by the Grand Forks & District Library Board.


The five library workers were locked out at 9 a.m., then “invited to return to work” if they accepted a long list of management proposals that would gut their collective agreement. The contract at the public library expired on June 30 and the two sides started bargaining on October 5, 2008.

The members rejected the Board’s “offer” and spent the morning picketing the public library. They were joined on the line by several community members including Grand Forks Mayor Brian Taylor.

You see, there was one major reason why I decided on Obama back in January of last year, the Congress Hotel Strike. He walked a picket line when it didn't amke a difference on a political level for him, he did it because it was the right thing to do. That simple act said a lot to me, still does.

In the states, a lot of Dems won't cross a picket line. Yeah, there's that at least, but I can pobably count on one hand how many have walked a picked line. I've heard that our new Labor Secretary, Hilda Solis has walked a picket line and I believe that Sherrod Brown has as well and I know Dennis Kucinich's dad had been out on strike when he was growing up in Cleveland, ain't no way he didn't walk a picket a line. But outside of these folks, I'm hard pressed to find a local mayor or councilmember or State representative or senator...basically, I'm hard pressed to find this kind of thing happening in the States.

I'm not sure it's as much about the issue as it is about our laziness in showing support for anything outside of sending an e-mail, writing a blog post (I've walked a picket line, so it's not me of which I speak) or maybe dashing off a letter or a phone call. This mayor in BC walked a picket line with 5 locked out workers. In Van Wert Ohio this past April, Kongsberg Automotive locked out the United Steelworker employees that they inherited from Telefles in their buy out of Teleflex. But in all my coverage and reading of the issue, I don't ever recall the mayor walking the picket line with the workers. I hope he did, but it sure didn't get reported.

So, here's a tip of my hat to Grand Forks Mayor Brian Taylor. You're definately, one of the good guys.

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Kongsberg officials said the decisions were a result of the "global automotive market collapse" that has resulted in a steep drop in demand for automotive components especially in North America.

Kongsberg officials have said a lot, most of it is a bunch of hogswallow.

The Businessweek piece goes on to say:

Kongsberg said its Van Wert, Ohio facility will close sometime in the summer and its production will be transferred to the company's Nuevo Laredo, Mexico facility, eliminating about 105 jobs.

The company said it also plans to move its Haysville, Kan. facility's production to its facility in Matamoros, Mexico. The Haysville facility will also close sometime in the summer, affecting about 100 jobs, Kongsberg said.

Not a problem. When Kongsberg decideds that Mexico is too expensive, they'll move to Poland, Haiti, India, maybe back to the US, you know where ever the taxes are cheap and the workers are so desperate they'd crawl all over themselves to get the jobs. Cause in the end, they're really just greedy bastards.

And why do I call them greedy bastards, well, because while they talk about the poor auto market from one side of their mouth, they accept a huge German contract out of the other side.

Kongsberg Automotive has booked an order valued at MEUR 18 (MNOK 151). The new business includes delivery of Seat Heat to the European market. The contract term is 7 years with production start in 2010.

The seat heaters will be manufactured at Kongsberg Automotive's plant in Pruszkow, Poland.

The customer is a German automaker and one of the world's premier manufacturers of passenger cars.

Ah, yes, Poland. This is the operation begun by closures of Amotfors, Sweden. But don't take my word for it, here's what Kongsberg had to say:

Kongsberg, 8 December 2008.

Kongsberg Automotive (KA) has booked an order valued at MEUR 4,3 (40
MNOK). The new business includes delivery of Seat Heat to the Russian
market, where a German automaker is preparing the launch of a small
sized car.

"The customer is one of Europe's leading carmakers and this contract
represents a door-opener to the emerging Russian automotive market",
says Hans Peter Havdal, President of Automotive Systems at KA.
"Further, this contract is the first ever to this particular
carmaker, and we expect new business opportunities to follow as a
result of this award", he concludes.


###

Kongsberg Automotive is headquartered in Kongsberg, Norway and has
more than 50 facilities in 20 countries on all continents. Kongsberg
Automotive, with revenues of about EUR1 billion and over 9.500
employees, provides system solutions to vehicle makers around the
world. The product portfolio includes gearshift systems, cables for a
wide variety of applications, fuel lines, tubing and hoses,
couplings, clutch actuation, stabilizing rods, seat heaters, seat
ventilation, lumbar supports, head restrains, arm rests, steering
columns, pedals, electronics and displays. Find more information at
www.kongsbergautomotive.com.

Yeah, right, market is down, so we have to close Van Wert (despite an illegal lockout) and we will have to close operations in Kanasas (another 100 jobs) because we have to move those operations into Mexico. It's just business, after all. Just business. Greedy fucking bastards.

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Somehow, I missed this news of TWO more plant closures in the US care of Kongsberg Automotive and their Greed:

Kongsberg, Norway, April 18, 2008 - Kongsberg Automotive, a global supplier of automotive, commercial and industrial products, today announced that they are restructuring their Interior Systems operations in North America.

Production at their Westland, Michigan facility will be transferred to an existing plant in Mexico.

The Westland facility today produces lumbar support assemblies for the automotive market. This production will be transferred to the Kongsberg Automotive facility in Reynosa, Mexico. The Westland facility is expected to close in the autumn of 2008.

Another restructuring project is to transfer the current production of Interior Systems parts from Willis Texas to the Kongsberg Automotive plant in Matamoros Mexico. This is also scheduled to be completed during 2008.

All together 120 people are affected by this transfer. The Willis plant will however continue manufacturing of other products within the Kongsberg Automotive portfolio.

"This restructuring will better align us to market needs and improve our overall competitiveness" said Olav Volldal, CEO Kongsberg Automotive Holding ASA. "Our recent acquisition of Teleflex's GMS Division has created a need for facility consolidations and we are pursuing a low cost footprint in North America."

That last paragraph is the same crap they've been selling for years now in their Scandanavian plant closures so they can move production to new facilities in Poland, despite the move COSTING the company MILLIONS.

I know, they're looking at LONG TERM issues, and losing on short term instead. Whatever. In the end, it's still all about greed. If it weren't, they wouldn't be bussing in SCABS in Van Wert Ohio.

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Boeing executives say a prolonged strike could wound the company, which is behind schedule on the fuel-saving Dreamliner 787 and has seen high demand ramp up production by 50 percent this year.

I’m all shits and giggles for Boeing. I know in my heart that they think about their workforce the same as the likes of Kongsberg Automotive and American Axle, not a squat.

When fuel prices soared and profits plummeted, the Executives of Continental Airlines did something different, they decided to forego pay.

The virally anti-union JetBlue’s CEO took a 50% pay cut from August to the end of the year and Airtran’s Bob Fornaro opted for a 15% pay cut. Clearly, these are nothing in comparison to the massive pay cuts taken at Continental by CEO Lawrence Kellner and President Jeff Smisek.

With the recent talk of a bailout of Wall Street and the massive salaries for CEO’s, actions like that of Kellner and Smisek are even more out of the ordinary, they are down right singular. That’s one of the reasons I wonder about the current actions of Boeing and their desire to only compensate workers when what they want is to help make Boeing a better company, more profitable and producing a better product. Boeing has a work force dedicated to the success of Boeing.

The union is using the strike to attack the company's relentless outsourcing. In the 2002 contract Boeing won the ability to use non-union suppliers for more parts. The union wants a six-month window where it could bid on work before it is outsourced.

If the Machinists can come up with a proposal and show that we can do it cheaper, better, that quality work is there, we should be able to keep that work in-house," said Local 751A steward Steve Parsley.

Boeing hasn't shown much interest in letting the union make its case. The company complained the union was trying to tell it how to run the business, and instead touted its proposed 11 percent wage boost over three years. Boeing negotiator Doug Kight reportedly called his proposal "the best contract offer in America this year."

Wage increases are great, especially for the worker coming in making $11 an hour, however, it means nothing if you have to pay higher prices for prescriptions and insurance and oh yeah, this one:

Boeing's proposal, however, would… take away the family's right to a pension if a worker dies.

With Boeing hovering at 5 to 7% labor costs per plane produced and…

Aircraft maker Boeing has been groaning under a $275 million backlog of orders for new airplanes that waste less fuel. The company booked a $4.1 billion profit last year, and its principal union, the Machinists (IAM), says Boeing's profits have soared by 828 percent in recent years.

When your workers make you profitable, why is it they can’t share in the success? When things are bad, they take concessions to keep the company afloat, but when things improve and they have made it possible for the company to bring in $4.1 BILLION in profits in 1 year, then then contract that’s offered, the one that’s put forward should take into consideration the sacrifices made to bring the company to this position. I know American Axle and Kongsberg Automotive don’t understand this concept, but if Continental’s CEO and President can get it and sacrifice themselves, then why can’t Boeing figure this out?

Boeing, let me break it down for you:

When you invest in your people, they’ll invest in you. When you’re good to your people, they’re good to you. When YOU sacrifice for your people, they’ll sacrifice for you. But when you screw them with reduced benefits and offer nominal pay increases in the face of massive profits and current substantial backorders, well, don’t expect anything less than a strike, it’s really the only option left on the table for your workers.

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Okay, the headline is really just my opinion, but then again, this posting is actually based on opinion. The opinion of the editor of the Van Wert Independant:

Kongsberg: It's what they don't say
Once again, a contingent of top Kongsberg Automotive officials have come to Van Wert to try and make their blue-collar workers look like the bad guys in their labor dispute.

Like Peter Spencer a few months ago, Kongsberg group vice president Jarle Nymoen met Thursday with a local news medium to let the community know how hard company officials are trying to keep the local plant here in Van Wert. Their words nearly brought tears to my eyes. Well, almost. Actually, I think they were tears of laughter.

When you strip the rhetoric out, Nymoen basically said there is a bright future for the company’s shift towers here in Van Wert if it wasn’t for those greedy union workers who demand a wage they can live on.

While workers in Mexico and China may be able to live on $9 an hour, one very much doubts that Norwegian workers back in Kongsberg could even pay to put gasoline in their cars on that wage.

In addition to trying to put public pressure on local Kongsberg union workers to settle for an unlivable wage, Nymoen and attorney Todd Dawson of Baker & Hostetler, who sent a letter to local news media earlier in the week, are trying to make union officials look bad for “lying” that Kongsberg is unwilling to meet and negotiate with them.

Actually, I think the meaning of the word “negotiate” is what Kongsberg and union officials seem to disagree on the most. While Dawson asserted that United Steelworkers District 1 President Dave McCall was wrong when he said company officials weren’t willing to meet for negotiations, what McCall actually said was: “We stand ready and prepared to go back to the table and bargain for a fair and just contract.”

Dawson’s own letter included the company’s idea of negotiations when he said that, while the company was willing to sit down and talk, it was committed to its final offer made prior to the lockout.

Does that sound like someone willing to sit down and talk about a “fair and just contract”? It's like someone saying they're willing to talk, as long as they don't have to say anything.

In addition, the word “negotiation,” as defined by the New Oxford American Dictionary, is “discussion aimed at reaching an agreement.” If 303 out of 312 people voting on a contract turn it down, it seems highly unlikely that an agreement will be forthcoming without some change in what's being discussed. One would even think it disingenuous of Kongsberg officials to feel such an agreement was even possible.

When I look at statements made by Nymoen and Dawson, I also read the subtext: In effect, what they really mean, but don't actually say.

First, Dawson says the temporary workers are just that and won’t get permanent jobs. However, Nymoen says the company feels there are American workers who will work for the wages it wants to pay (9 bucks an hour) and notes that the temp workers have basically shown the company was right by doing just that. Does that sound like they want their union workers back?

Nymoen, always the reasonable guy, then says he is in Van Wert to listen. Of course, the only people he has listened to so far are management people, but he says he would like to hear the union’s side as well. Makes you wonder why, though, if he was so eager to hear from guys like USW Local 1-524 President Aaron Collins, he didn’t set up a meeting beforehand so they could sit down right off. I guess local Kongsberg management officials don’t know where Collins could be located. If he wasn’t locked out, he probably would have been at the plant. Go figure.

There’s also what I think is a veiled threat in the Nymoen statements. Nymoen states that, failing to attempt to work through a contract with union workers would have meant, and I quote: “the plant would have been shut down by the spring of 2009.” Makes me think that was the plan all along, but I’m probably just cynical.

I WILL agree with Mr. Nymoen’s unspoken inference that someone is being greedy here. However, it isn’t union workers trying to earn enough to pay their bills who are greedy, but company officials who want blue-collar workers to shoulder ALL the costs of becoming competitive, while they continue to rake in mounds of cash for socking it to them.

The main unanswered question in this whole Kongsberg mess is this: If the company is not competitive, what sacrifices are its white-collar workers and top executives making to improve that? The unspoken answer to that is “finding cheaper blue-collar workers.”

If that were NOT the answer, we in the media would certainly have been bombarded with information on white-collar wage cuts and downsizing. After all, those actions make the company look good when negotiating with the union.

When you’re taking cuts as well, you can say this to the union: “Why are you unwilling to take a wage cut when we’re making financial sacrifices ourselves to make this company more competitive?”

Has anybody heard Kongsberg officials say anything like that? I haven’t.

Of course, if you do say that, you then have to prove your sacrifices are as great as those you’re asking of the union, but that would likely be the case, wouldn’t it, if becoming competitive were a team effort?

Moreover, Kongsberg knew what the financial situation was when they bought the local Teleflex plant. Apparently, Teleflex was doing all right with the plant. If Kongsberg can't run the plant at a profit, maybe they need to sell it to someone who can.

I don’t know about my fellow community members, but I, for one, am sick of a company that thinks it can operate like the “union-busting” companies of the 1930s that hired scabs to replace union workers, goons to enforce their will on those locked out, and threats to force them to comply. Sound familiar?

Unlike most members of the Van Wert community, Kongsberg officials obviously only see their union workers as obstacles to their own greed, rather than as neighbors and friends just trying to make a living.

How very sad.

--Dave Mosier

You can show Dave some love at his e-mail address: editor@vwindependent.com I think his analysis of Kongsberg Automotive's greed is dead on. And what's more, the greed aspect sure reminds me a lot of what's been happening on WallStreet. At what point do American workers stand up and say enough already? I know how we can, by putting pressure on Kongsberg Automotive to acutally bargain in good faith AND run a profitable operation in Van Wert without trying to run a greedy one. I suppose, that's too much to ask for from Kongsberg Automotive. I know, wait a day, they'll announce the plant closure and its subsequent move to Poland. See President Buch, I didn't forget Poland.

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From AP (and no, still not a fan of AP for lots of previously stated reasons)

The Labor Department reported Thursday that the number of people filing new claims for unemployment benefits last week increased by 25,000 from the week before. The unemployment rate in May jumped to 5.5 percent, up from 5 percent in April. It was the biggest one-month gain in 22 years.

"The American people are waiting to see if Congress is going to help them," House Speaker Nancy Pelosi, D-Calif., said.

But the White House already has threatened to veto the bill, and Senate Democrats have said they won't try and force their Republican colleagues to consider the House legislation.

Okay, so Reid isn't going to waste several weeks battling over a bill that will never be considered (meaning that Republicans will block it by voting to continue debate, i.e., cloture), so Reid, has decided that he wants to make sure that unemployment benefits are extended, and what better way than to attach it to a bill Republicans won't defeat:

Senate Majority Leader Harry Reid, D-Nev., said he will try to bring up the House bill, but he won't force the issue if Senate Republicans object. "We're not wasting weeks" on it, he said. Instead, Reid said, Democrats might attach the jobless benefits extension to the Iraq war spending bill, a move also opposed by the White House.

Nice, Reid, nice, I applaud your resolve to help American workers.

Of course, the article goes on to listen to the whining Republicans who seem to think it's okay to fund war, but not help out Americans like those in Van Wert who've been locked at by Kongsberg Automotive.

And just to be even more clear, how much are we talking in weekly benefits for these workers? Depends on what state you live in, for instance, if you are one of the Janesville GM workers who will lose your job due to the closure of the facility, you're looking at a weekly benefit of: $278.89 while the Moraine Ohio worker would get $299.55. But if you're one of those mortgage industry folks working in Mississippi, you can expect to receive $178.67.

Now for everyone thinking wow, that's free money, think of it this way, at minimum wage of $5.25 an hour and 40 hours a week, these same people would earn $210 a week. On the other hand, they are likely losing a job that paid $500 to $1000 a week with benefits and now, they're getting almost nothing with no benefits.

So, explain to me why it's okay to screw workers? I'm sure there's some great explanation about Market forces and how raising the minimum wage destroys the economy, but I have to wonder how many of these people talking about market forces have any idea what it's like trying to get by on $178.67 a week with no benefits. I'm guessing, there's no clue on their part.

You can check out the Bureau of Labor Statistics info on the Washington Post.

If you're in Ohio this weekend, head out to Van Wert

United Steelworkers of America Local 1-524 is organizing the rally set to kick off at noon at Fountain Park, located at Main and Jefferson.

Judy Grubb, union vice president, said the rally is a chance to boost morale for the workers at the Kongsberg Automotive plant who have been locked out since April 2. The company locked out more than 300 employees who had voted against ratifying the existing labor contract because the company sought to slash wages

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We can work together to stop corporate abuses, but we have to do it together. In that spirit, I'd recommend we all nominate my favorite "screw" the worker companies of the day, American Axle and Kongsberg Automotive.

Here's the current list of nominees:

The Nominees
Archer Daniels Midland for making Indonesia the world’s worst contributor to global warming (after the U.S. and China) through its clearing of endangered forests and wildlife habitat for palm oil plantations. Read more.

BlackWater for killing unarmed Iraqi civilians, hiring paramilitaries trained under military dictatorships, and using its close political and financial ties with the Bush Administration to secure lucrative contracts. Read more.

Countrywide for predatory mortgage lending to elderly and non-English-speaking borrowers, and for gouging minority borrowers with discriminatory rates and fees. These actions have forced nearly a quarter of subprime borrowers into default, at the same time their CEO earned a $120 million salary. Read more.

Mattel for producing tens of millions of lead-contaminated toys and aggressively lobbying against bans on other highly toxic chemicals. Read more.

Nestle for numerous labor violations including child exploitation, contributing to the obesity epidemic, and threatening community water supplies for its bottled water brands. Read more.

Toyota for aggressively lobbying against increased fuel economy standards and state measures to reduce global warming gas emissions, while hypocritically spending millions to advertise its environmental leadership and popular Prius line. Read more.

Wal-Mart for displacing local businesses, failing to cover employees under the corporation’s health plan, and opposing legislation that would increase homeland security. Read more.

Wendy's for its contribution — as America’s third largest fast food franchise — to the growing childhood obesity and diabetes epidemics, and for refusing to meet nutritional labeling regulations. Read more.

Even though these are their current list of corporate slime, let's face it, there are lots more and right now on the top of my list are AMERICAN AXLE and KONGSBERG AUTOMOTOVE. And it would be absolutely fantastic if you'd give them some love, too. And head over to the Corporate Hall of Shame and push them in as write in candidates. I think they both deserve this honor.

Corporate Hall of Shame

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I know this is coming as a SHOCK to everyone here, but Kongsberg has decide to CLOSE another plant. This one is in Sweden, again. Wonder if they’re moving those operations to the new Polish plant or somewhere with even fewer environmental laws and lower taxes. But hey, don’t take my word for it, take a read of ABN:

Kongsberg, Norway, April 23, 2008 - Kongsberg Power Products Systems AS, which is a subsidiary of Kongsberg Automotive Holding ASA, has declared it is considering proposals regarding closing the factory in Märsta, Sweden and intends commencing negotiations with the Unions. The factory in Marsta has 54 employees, and the workforce will be informed at meetings today. The facility today produces heavy duty cables, pedals, hand controls, hydraulic valves and electrical components to the Commercial Vehicle and off-highway vehicle market. The potential closure of the factory may lead to a transfer of production in Märsta to existing Kongsberg Automotive locations within Europe. Kongsberg Power Products Systems AB will continue to service its customers through its operations in Ljungsarp, Sweden. The potential closure is due to the company's need for realizing cost savings in order to improve overall competitiveness. "To Kongsberg Automotive, it is decisive that we find ways to optimize our production in order to stay competitive in an ever increasingly competitive global market. The potential transfer of business from Märsta will better align us to market needs and restore profitability for the Division to an acceptable level", says President for Power Products Systems, Jim Ryan.

I want you to take a look at the emphasized text. I bolded it for one reason, this is the theme for Kongsberg.

Closure of plants despite profitability in hopes for greater profitability down the road. Basically, it’s Greed for Greed sake.

So, I look to the locked out workers in Van Wert and I have to say, I’m not sure why I’d ever take a reduction in income to work for a company that treats it’s works like they’re disposable.

The profitability of any company is based on the production and frequently also the quality of work that is done on that company’s behalf. Well, all except Wal-Mart who seems to think they can do anything without recourse, but I digress.

Kongsberg Automotive seems to be of the mind that being profitable isn’t enough, they must better align to market needs so as to bring each Division up to their acceptable level for profitability. I wonder what that level is? And why it is that the people who helped to make the company profitable in the first place are the people reduced to nothing in the hunt for greater profits down the road, somewhere else.

Kongsberg Automotive seems hell bent on adding to their history of greed.

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