Chairman's Report
May 6, 2008
Sisters and Brothers,
The announcement by Allegheny Holdings and GM in April that the sale of the plant has fallen through along with manufacturing manager Cathy Clegg's visit in mid-April to notify us that GM intends to shutdown the location was quite a change for all members.
The Special Attrition package was extended with the new deadline of 5-29-08 to sign forms A & B with GM. The 7-day period to change your election goes to 6-5-08.
Members that elect to take one of the options under the SAP have a new effective date of 7-1-08 to leave GM. The UAW both locally and nationally are in discussions with GM about moving the 7-1-08 effective date due to the plant now going to closed status. This would allow members to elect an option by the 5-29-08 deadline and leave when GM no longer requires our services in the coming months. We will keep members updated about this issue. Keep in mind, as is stands now, if you elect an option under the SAP 7-1-08 is the effective date.
When Cathy Clegg was on site, she spoke of GM developing a plan in 2 to 4 weeks on how GM would exit Pittsburgh. She also committed to share this plan with us once completed. This will give members some idea of what the future timeline will be to move product out of the plant.
We will also explore Para 96 moves for members both production and skilled when work begins leaving. Bear in mind, that under Para96, members take their full seniority date, not the 1-7-85 corporate date the downside with that members moving under Para 96 receive enhanced relocation monies, $30,000, in the new agreement. It appears that GM is looking to place at least some of the work in Indianapolis, Indiana.
The Auto industry, in general, and GM in particular, is in a very unsettled state at this time. The ongoing American Axle strike as well as strikes or the threat of strikes at other GM locations make short-term predictions almost impossible. Any one of these events could affect plants where we ship product. This in turn could cause lay-offs at some point at our plant. Any lay-offs caused by these events would be volume related and effected members would get sub & unemployment unless GM takes the position that the lay-offs were caused by strikes internal to GM, in which case they will try and deny both sub & UC Benefits, subject to the UAW's ability to appeal.
Any member that is an A-10 that is laid-off will file for PA UC Benefits and depending on what position GM takes relative to what caused the event will determine if the state awards or denies benefits, again subject to our ability to appeal.
We have forwarded to the UAW legal Dept. information in regards to filing a TAA/TRA petition. This petition is filed with the Dept. of Labor and applies to all employees at our location. This includes hourly seniority & A-10's, & salary employees. There is no action required at this time my members. We will keep members updated to the progress of the petition.
Thus far we have 10 seniority members on volume related lay-off. There are indications that Management is looking to reduce production on 3rd shift. We had 2 jobs leave so far, 1 to Indy. and a factory assist going back to Flint. Also, 3 jobs from G line appear headed for Grand Rapids. The work going to Indy and Grand Rapids will trigger potential Para 96 moves. Seniority members that may be interested in these relocations please contact the Shop Committee.
In closing, events continue, to move along relative to the plant being shutdown. One thing is for sure, it's not going to be business as usual. From here on out, we are going to see reductions in our membership as people leave under the SAP. There are also going to be lay-offs as work leaves. These events make it very difficult to plan a Shop Committee election. We currently have questions about the District set-up, and members in those particular districts, their eligibility to run, nominate, and vote. Also the A-10 issue raises some questions, such as, all current A-10's that are active can vote, nominate and even run on a ballot. However if they go to lay-off due to their A-10 status they are released from the rolls and become non-members under our by-laws. They would not be able to vote, nominate or appear on the ballot. We are in contact with the International UAW Region-9 try to work through these questions.
-Rick Mismas
Shop Chairman
UAW Local 544
