Doyle leads delegation to Detroit
Gov. Jim Doyle and a local delegation will be in Detroit on Friday to try to convince General Motors’ officials not to shutter the automaker’s assembly plant in Janesville.
Sources have told the Gazette that the delegation will meet with Troy Clarke, president of GM’s North American operations, and Tim Lee, vice president of manufacturing.
GM officials cited a rapidly diminishing consumer demand for full-size sport utility vehicles when they announced in June that the Janesville plant would cease production by the end of 2010 at the latest.
Coalition members have acknowledged the effort to save the plant is an uphill battle but one that must be made.
The coalition is expected to include the two men appointed by Doyle to lead it: United Auto Workers Local 95 President Brad Dutcher and Tim Cullen, a retired business executive and Janesville School Board member. Janesville City Council President Amy Loasching is part of the group, as is Rock County Economic Development Manager James Otterstein. Mark Cullen of J.P. Cullen & Sons will be along to represent the private sector.
Besides Doyle, U.S. Rep. Paul Ryan is the only other elected official included in the group. Consultants hired by the coalition as well as state government officials also are included.
An important part of the group’s proposal will be a recently ratified local contract between Local 95 and the plant’s management.
Union members ratified a national contract last fall that sets wages, benefits and policy on broad matters. The local contract, however, covers particular operations in a plant, such as the amount of work performed by union members that can be given to outside suppliers. It also deals with job standards, worker classifications, seniority rights and grievances.
In addition to the elimination of decades-old work rules, the local union agreed to allow outside companies to handle more sequencing and sub-assembly work, whether it’s done inside or outside of the plant. An increase in supplier work would significantly cut GM’s costs and reduce its payroll in Janesville, which after a series of layoffs and an early-retirement/buyout package now stands at about 1,200.
The local contract is a “competitive operating agreement” that GM is using as a new standard to assess each plant’s commitment to world-class manufacturing. Under what GM calls its “True North” system, plants and their local contracts are scored on a 100-point basis.
Local 95 officials said recent Toyota contracts, as well as ratified deals at GM plants in Lansing and Pontiac, Mich., scored in the mid-90s. They said the Janesville contract should score out at 100 percent, which would generate a lot of attention in Detroit.
Sep 13, 2008 at 10:04 a.m.
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This proposal is much more complicated than it seems from the outside. As somebody who unofficially studies the auto industry, this is really bad timing. GM nor Wisconsin is in the position to take or offer any proposal even if it was significant.
First off - Wisconsin is not finacially in position to offer any significant proposal to GM. I am really interested in what they will have to offer. Historically, WI will not and has not, been in the business of supporting current or future business with huge incentives. WI has a current administration that is content on exploiting what we already have (natural resources etc.)which is the low cost tactic for growth.
Second - GM is also not in a financial position to accept any offer from WI, unless it is almost a free situation. The current site is a no-go. It doesn't model the effecient layouts required for lean and flexible manufacturing. The only chance for the current site is a complete demo, and rebuild. In reality, Janesville needs a whole new site and building. If GM was given a proposal that was something they couldn't pass on, it would have to be with a new site and incentatives so large, ($500M range) that GM would then have to pony up money of their own, and they don't have any. They would have to borrow it, and with their current bond rating in the tank, it would be very expensive for them to do the investment. The only investment on GM's table is small cars. They don't garner enough ROI to make it a go.
Third - GM has excess capacity (hence the reason for the cuts and closures) all over North America. The could think outside the box and convert the current facility (with major demo work on the older side) to reduce it, and use it for something other than auto manufacturing. But this is against their current business plan deployment of shedding all business activities not related to design, engineering, production, and marketing of light vehicles. This was all outlined in the manifesto of GM written by Jerome York a couple of years ago.
If anybody has an opposing view (with facts to verify) I would be interested in seeing it.
Sep 12, 2008 at 11:24 p.m.
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GM should just request a tax payer, government bail out. Heck, everyone else is before the election. Freddie Mac, Fannie Mae, Indy Mac, Bear Sterns. Lehman Brothers and Washington Mutual are on the verge of going under, and no doubt they will get some government candy. GM should just request a few billion now. The candy won't be so easily given out after the election. Lets see if we can get next years deficit over $1 trillion!
Sep 12, 2008 at 5:49 p.m.
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This could be interesting ... eagerly awaiting further updates.
Sep 12, 2008 at 2:38 p.m.
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If GM is serious about turning the company around and is keeping their eyes on the prize (longevity), they will go forth with their plans in Janesville. I applaud the efforts the taskforce is putting out. But, pretending to be illiterate when the writing is CLEARLY on the wall is not the most intelligent move the CURRENT workforce can make right now.
Sep 12, 2008 at 1:43 p.m.
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If GM doesn't take the offer today from all involved they should all be fired !!!! After all the main goal for all is a win-win situation.Only time will tell if GM is serious about wanting to turn the company around .
Sep 12, 2008 at 8:49 a.m.
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State News
Sen. Russ Feingold, D-Wis., said he would meet with GM CEO Rick Wagoner Friday afternoon at the senator's Washington office.
Sep 12, 2008 at 1:34 a.m.
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All sorts of action in GM stock today. HEAVY volume, and the stock was up near 12%, making a huge rally near the closing bell. The options have all sorts of strange action, which suggests a big insider move is going on. I'm sure the heavy trading volume and huge open option interest has something to do with this coming meeting.
Sep 11, 2008 at 9:53 p.m.
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should say..why they have done so well as a company.
Sep 11, 2008 at 9:51 p.m.
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br549...Mark Cullen may be going to make GM a deal they can't refuse on retooling the plant !Maybe J.P. Cullen is going to give back to the community after all Janesville is a big part on my they have done so well as a company !
Sep 11, 2008 at 9:11 p.m.
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The council president is a stretch, but why does Mark Cullen need to go along?
Sep 11, 2008 at 8:29 p.m.
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I believe that Sen. Feingold is working on this issue at the DC. end as well as Kohl. Kohl is also projected to be in town this Sat. The real question is... why is Ms. Loasching there??? Who is paying her way? Or is she being the "true public servant" she likes everyone to believe she is; and is paying her own way. Hmmmmmm. I really don't she what she can possibly bring to this meeting as a city coucil pres. Good luck to those genuinely involved in bringing a product back to town.
Sep 11, 2008 at 3:58 p.m.
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Where are Senators Kohl and Feingold? I thought the Democratic party was fighting for workers in America? Guess Representative Ryan is the only one with a vested interest. But I'm sure Local 95 will want you to vote for the Dems again.
Sep 11, 2008 at 1:35 p.m.
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DrTalk - are you kidding me? $10M???
GM's annual payroll is around $300M of which the state would get appr. 7-7.5% from income taxes. Not including everything down stream - sales tax from spending the wages etc. To give you an example; Tennesee just gave VW $557M to open a new plant there. $10M is chump change. You can call the TN incentive corporate welfare, but what do you call all of the money the state loses out on (not including county and city)when GM and all of the local suppliers leave? Then consider all of the unemployment, job assistance etc the state will have to pony up with all of these people without jobs.
Sep 11, 2008 at 11:22 a.m.
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Perhaps Doyle should not have had harsh words for GM immediately after they announced they were going to close. As if he can convince them to come back now...
Sep 11, 2008 at 10:59 a.m.
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futureGMretiree,
What are you talking about? Wisconsin gave $10 million to GM.
Sep 11, 2008 at 10:26 a.m.
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Seems we sent the same driftwood that hasnt done anything for the plant in the last few years.
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