American Axle to close Detroit plant, send jobs to Mexico

[lilpup]

Has anyone read this story. AAM is not closing US plants, ONLY its DETROIT plant. Why?well, forget the strike, NO ONE COMES TO WORK. THE WORKFORCE IN DETROIT IS LAZY AND UNRELIABLE. Please, read the story. The other US factories are thriving, because PEOPLE COME TO WORK EVERY DAY UNLIKE IN DETROIT.

Get your heads out of the sand and start living life in the real world, especially you ORF.

As a side point, you can't open a nice grocery store or retail business either if you can't rely on your employees to show up. Just a thought as to another reason Detroit is missing amenities that are taken for granted elsewhere.

Which story are you referring to? You do not link one and there's nothing of what you claim in the story linked in the original post.

BTW, don't think you're immune to any of this type of corporate behavior just because you live somewhere else. Even Wall Street jobs can be offshored [[actually they can be more easily than most manufacturing jobs).

[detmich]

Enjoy the read.

I remember when Dick Dauch bought American Axle Manufacturing from General Motors and poured tanker truckloads of bright blue paint over what was then a dreary complex of parts plants sprawling across Hamtramck and Detroit.

Dauch, the quintessential factory man, was hell-bent on proving heavy manufacturing could still be done here, with a union work force, and with the Big 3 automakers as the customer base. That eye-catching paint job was the symbol of his hopes.

Now, 15 years later, Dauch is cutting the Detroit work force sharply and consolidating the work in Three Rivers, Mich., and Mexico. He isn't mealy-mouthed about the reasons:

"This isn't a North America problem, or a Michigan problem. It isn't a union problem. It's a Detroit problem," says Dauch, who has headed manufacturing for GM, Chrysler and Volkswagen North America. "Detroit has an entitlement culture -- 'You owe me this job.'

"Detroit can compete on quality, but it can't compete on costs. And the difference in the global economy is cost structure."

Dauch is still obviously angry over the 87-day strike by the United Auto Workers union against AAM last year in response to demands for concessions. In the end, the new contract reduced wage and benefit costs, but that was only part of the answer.

"The No. 1 disadvantage to being in Detroit is labor costs," Dauch says. "No. 2 is reliability."

Detroit has the highest absenteeism rate of any AAM facility. In Mexico, Three Rivers, Indiana and elsewhere, absenteeism is barely a blip. Many days, the Mexican plant -- also unionized -- has no workers absent.

But in Detroit, absenteeism runs at least twice as high, and on some days it can approach nearly one-third of the workforce in parts of the plant. Lines have been shut down because not enough employees show up.

"I've been working since Aug. 24, 1964, and I've taken three-and-a-half sick days," says Dauch. "I've got employees who miss two or three days a week."

Maybe that would have flown 30 years ago when Detroit was still fat and happy. But jobs are fungible today. Employers like Dauch have a fiduciary responsibility to take work where it will be done most efficiently.

It isn't just about hourly wages. Dauch's employees in Three Rivers, also UAW members, make about the same hourly rate. But they've agreed to a contract that gives the company more operating flexibility, and they show up for work.

Dauch says he hasn't given up on North America. In fact, he's opened four plants in the United States, including one in Indiana. He hasn't even given up on Detroit. He's keeping the equipment here and, if business picks up, may bring back work.

But he offers fair warning to this job-starved city. We aren't entitled to anything, least of all a job that someone someplace else is willing to do not just cheaper, but also better.

Wednesday, I listened to several autoworkers complain on the radio about union-busting corporations, unfair trade policies and the loss of middle-class manufacturing jobs.

But not one mentioned that on the same day, there were places in Dauch's now-faded blue Detroit factory where nearly one in three workers were AWOL.

http://www.detnews.com/article/20090...ht--blue-dream

[oldredfordette]

Nolan Finley and Dick Dausch. They'll tell us the real deal!

Those AAM workers should have reduced that place to smoking ash. This was in the pipeline a year ago, they just needed to squeeze a little more out of the workers before the move was announced.

[lilpup]

Lousy management will drive away good employees.

Maybe AAM needs to overhaul its hiring and management practices if its absenteeism is so high.

Ford Motor seems to be doing fine in SE Michigan. I'm sure there are non-automotive companies doing OK in SE Michigan, too.

[CountrySquire]

Enjoy the read.

http://www.detnews.com/article/20090...ht--blue-dream

Of course Dick mentions nothing about his own entitlement mentality to reap obscene bonus payments while investing very little back into his company to make it more high tech, competitive and innovative. If it where these things maybe, just maybe he could have secured himself some business from companies other then GM and brought profit in raising morale in the work place and he would not have to demand insulting concessions from people who poured 20 years of their lives into that plant. What a self loving Jack Ass!!

[Thames]

I think some of you need to go back and reread that article. He is saying that people around here routinely don't show up for work. He is saying there is chronic absenteeism. He is saying he doesn't have that problem with the folks in Indiana and elsewhere.

From the article:

"But in Detroit, absenteeism runs at least twice as high, and on some days it can approach nearly one-third of the workforce in parts of the plant. Lines have been shut down because not enough employees show up."

A lousy work ethic is indefensible. In the real world [[non-union) you will lose your job if you don't show up.

All I want to say to those employees is, welcome to the real world. Welcome to MY world. Jackasses.

[irish_mafia]

Cincinnati,

A couple points: You are not required to post intelligently here [[you should be ok there) but you are required to post respectfully. I would guess that if you haven't heard from an administrator yet, you will shortly. Keep it related to the facts and you won't be banished to CincinnatiYes.

American Manufacturing is being destroyed and taken over by a govt that is in love with the socialist model. If you want to blame Bush for the next 20 years feel free, end result is a totalitarian state and the primary driver of that is President Obama and his handlers.

AA is in trouble because GM is in trouble because the banks were not offering credit to consumers to buy cars. Instead of govt. takeover of banks and manufacturing, the solution was simply to offer the TARP capital to banks in a fully traceable manner to be used exclusively for consumer credit. Our govt. did not do this [[and still has not). My guess is that Bush's team didn't do it because they were inept. Obama doesn't seem inept, he seems very focused on taking over the private sector.

Not good if you are a fan of american manufacturing for capitalistic and defense needs for our country.

Not good if you live in Detroit and manufacturing drives your economy.

[detmich]

Cincinnati,

A couple points: You are not required to post intelligently here [[you should be ok there) but you are required to post respectfully. I would guess that if you haven't heard from an administrator yet, you will shortly. Keep it related to the facts and you won't be banished to CincinnatiYes.

I see that IrishMafia is leading by example.

Scream and wail all the way to the poor house folks. There are Americans in Michigan, Indiana, Ohio, and New York that are happy to show up for their jobs with AAM. Detroit is getting spanked because it has becaome a dysfunctional society with a dysfunctional populace. Most people need to hit rock bottom before they begin to straighten out. Detroit seems to be heading in that direction.

[CountrySquire]

Thames, IrishMafia and DetMich,

Imagine working at a job you had to train or apprentice for and took great pride in your work and made a wage that reflected your experience. Not too mention that this work on top of being physically demanding required long unexpected hours of OT and missed weekends with the family, so going to college at night to get a professional job is out of the question. Now just imagine how angry you'd be if some one who's idea of working hard is moving numbers around on a balance sheet, and taking two hour martini lunches shows up and wants at least half the company's profits to be his personal bonus tells you your over paid and under worked, and you are lucky at 50 years old to have the job at half the wage you make now. Doesn’t this sound like a job that would make you want to use up any sick time you had?

[exdetroiter]

What benefit is there for Obama to take over the automotive industry? If he wanted to run a manufacturering company such as GM, Chrysler or Ford, he would have taken that career path rather than run for President of the U.S. left to clean up the ruins left by BUSH. He certainly would have made a lot more money as an CEO or CFO than he's making as President, with less hassle, stress and risk of safety. Stop blaming the President because he doesn't look like many of the previous Presidents whom have sent this country into its current economic situation. Give the man a chance instead of scrutinizing his every step.

[irish_mafia]

Exdetroiter,

Your argument appears to be to give Obama a chance to do whatever he wants because he is black and it would be insensitive not to do so.

My answer is no. I don't recall any of the leftists giving George Bush a chance because he was white.

Obama is what he is. He appears to be very straight forward about his plans. His vision is shared by a whole bunch of far-left guys [[many quite white) and his vision is irrelevant to a lot of folks who just like the fact that we have a black President.

If you agree with them, then accept the results.

As for myself and millions of other Americans, I think his policies are a disaster and will destroy many industries including those that this city is dependent upon.

[Thames]

Thames, IrishMafia and DetMich,

Imagine working at a job you had to train or apprentice for and took great pride in your work and made a wage that reflected your experience. Not too mention that this work on top of being physically demanding required long unexpected hours of OT and missed weekends with the family, so going to college at night to get a professional job is out of the question.

Been there, done that, still doing it, but here's the deal: The work week is a mandatory 58 hours - M-F 10 hour days and Sat. 8. However, there is no overtime and no guarantee that 58 hours will be paid because this job is not an hourly wage for the time at work, you are paid by the job. Sooo, you may be there for 58 hours but since the work is slow, you may only "turn" 40 hours. And time with the family would be nice, but so would time to fix that leaky faucet or stain the deck or do any other of the million things that need to be done around here.

Now just imagine how angry you'd be if some one who's idea of working hard is moving numbers around on a balance sheet, and taking two hour martini lunches shows up and wants at least half the company's profits to be his personal bonus tells you your over paid and under worked, and you are lucky at 50 years old to have the job at half the wage you make now.

If this person owns the company and is signing the paycheck, not much you can do about that, is there?

Doesn’t this sound like a job that would make you want to use up any sick time you had?

Sick time? Really? That was a perk that was lost last November, along with 1/2 of the vacation time, increased deduction for health insurance and $50 a week pay cut. All told, lost income of over $6000 and along with the loss in wages, there will be over 420 extra hours of work added to the schedule for 2009.

The company is just trying to keep the doors open and we're thankful that there is still somewhere to go everyday. EVERYDAY and on time to boot.

And yes, anger is a good word to describe the situation [[exhaustion is another one), but you know what? Can't let that get in the way of doing the job, especially since jobs are so scarce right now.

"I'm mad at the boss so I'm not going to work" is an immature attitude. Obviously, people that hold that attitude, don't hold their job.

[exdetroiter]

Exdetroiter,

Your argument appears to be to give Obama a chance to do whatever he wants because he is black and it would be insensitive not to do so.

My answer is no. I don't recall any of the leftists giving George Bush a chance because he was white.

Obama is what he is. He appears to be very straight forward about his plans. His vision is shared by a whole bunch of far-left guys [[many quite white) and his vision is irrelevant to a lot of folks who just like the fact that we have a black President.

If you agree with them, then accept the results.

As for myself and millions of other Americans, I think his policies are a disaster and will destroy many industries including those that this city is dependent upon.

I am not suggesting let him do whatever he wants because he is black, actually he is brown on the outside and a blend of many on the inside. Your words not mine is because he is black.

As our elected President, I'm just of the opinion that we should give the man a chance. No one has any better ideas or suggestions on how to turn this economy around. Not one person on this site has laid out a plan to change the current state of the economy. Its a lot easier to criticize the one whom is making an effort.

[irish_mafia]

I gave a very specific example of how to improve the economy regarding the tarp funds. Read it.

Here is another example: Instead of spending massive amounts of money on non-stimulative, long term govt. programs, offer tax breaks to companies based in the US [[the country that now carries the highest corporate tax burden in the world). This will allow them to invest in infrastructure and hire new employees.

Offer tax breaks to US citizens [[yes this includes high wage earning citizens that pay over 70% of the tax burden today). This will allow these people more cash to use in the marketplace keeping retailers and manufacturers busy and employing people.

Of course, these are not new suggestions, they were all proposed by the Republican members of congress when they voted in unison to reject Obamas massive spending plans.

What are your specific suggestions besides letting Obama do whatever he wants to do because you want to give the President with the least experiencein the history of our country a chance?

[detmich]

Thames, IrishMafia and DetMich,

Imagine working at a job you had to train or apprentice for and took great pride in your work and made a wage that reflected your experience. Not too mention that this work on top of being physically demanding required long unexpected hours of OT and missed weekends with the family, so going to college at night to get a professional job is out of the question. Now just imagine how angry you'd be if some one who's idea of working hard is moving numbers around on a balance sheet, and taking two hour martini lunches shows up and wants at least half the company's profits to be his personal bonus tells you your over paid and under worked, and you are lucky at 50 years old to have the job at half the wage you make now. Doesn’t this sound like a job that would make you want to use up any sick time you had?

CS, are you stupid?

[LodgeDodger]

>>Detroit has the highest absenteeism rate of any AAM facility. In Mexico, Three Rivers, Indiana and elsewhere, absenteeism is barely a blip. Many days, the Mexican plant -- also unionized -- has no workers absent.

But in Detroit, absenteeism runs at least twice as high, and on some days it can approach nearly one-third of the workforce in parts of the plant. Lines have been shut down because not enough employees show up.<<

With an absenteeism rate as quoted above, how do AAM-detractors explain this? If I owned a factory with a workforce with that rate of absenteeism, I would also consider leaving this area.

[detmich]

>>Detroit has the highest absenteeism rate of any AAM facility. In Mexico, Three Rivers, Indiana and elsewhere, absenteeism is barely a blip. Many days, the Mexican plant -- also unionized -- has no workers absent.

But in Detroit, absenteeism runs at least twice as high, and on some days it can approach nearly one-third of the workforce in parts of the plant. Lines have been shut down because not enough employees show up.<<

With an absenteeism rate as quoted above, how do AAM-detractors explain this? If I owned a factory with a workforce with that rate of absenteeism, I would also consider leaving this area.

they don't LD. They keep repeating that the owner made too much money and made them mad at him. I suppose that is an attempt at explanation.

[exdetroiter]

I gave a very specific example of how to improve the economy regarding the tarp funds. Read it.

Here is another example: Instead of spending massive amounts of money on non-stimulative, long term govt. programs, offer tax breaks to companies based in the US [[the country that now carries the highest corporate tax burden in the world). This will allow them to invest in infrastructure and hire new employees.

Offer tax breaks to US citizens [[yes this includes high wage earning citizens that pay over 70% of the tax burden today). This will allow these people more cash to use in the marketplace keeping retailers and manufacturers busy and employing people.

Of course, these are not new suggestions, they were all proposed by the Republican members of congress when they voted in unison to reject Obamas massive spending plans.

What are your specific suggestions besides letting Obama do whatever he wants to do because you want to give the President with the least experiencein the history of our country a chance?

I have a better proposal:
Press 1 for English' is immediately banned. English is the official language. Speak it or wait at the border until you can.
[[2) We will immediately go into a two year isolationist posture to straighten out the country's attitude. NO imports, no exports. We will use the Wal-Martpolicy, 'If we ain't got it, you don't need it.'
[[3) When imports are allowed, there will be a 100% import tax on it.
[[4) All retired military personnel will be required to man one of our many observation towers on the southern border [[six month tour). They will be under strict orders not to fire onSOUTHBOUND aliens..
[[5) Social security will immediately return to its original state. If you didn't put nuttin in, you ain't gettin nuttin out. Neither the president nor any other politician will be able to touch it.

[[6) Welfare - Checks will be handed out on Fridays at the end of the 40 hour school week and the successful completion of urinalysis and a passing grade.
[[7) Professional Athletes--Steroids. The FIRST time you check positive you're banned for life.
[[8) Crime - We will adopt the Turkish method, the first time you steal, you lose your right hand. There are no more life sentences. If convicted of murder, you will be put to death by the same method you chose for your victim; gun, knife, strangulation, etc.
[[9) One export will be allowed, Wheat. The world needs to eat. A bushel of wheat will be the exact price of a barrel of oil.
[[10) All foreign aid using American taxpayer money will immediately cease, and the saved money will pay off the national debt and ultimately lower taxes. When disasters occur around the world, we'll ask the American people if they want to donate to a disaster fund, and each citizen can make the decision whether it's a worthy cause.
[[11) The Pledge of Allegiance will be said every day at school and every day in Congress.
[[12) The National Anthem will be played at all appropriate ceremonies, sporting events, outings, etc.
Sorry if I stepped on anyone's toes

[Johnlodge]

I love how the Union excusers find a way to blame management for 1/3 of the fucking workforce not showing up on any given day. Why is it that at the Three-Rivers plant they don't have this problem?

[Locke09]

If 1/3 of your workforce is out sick on any given day, I would suggest you need to take a serious look at your sick time policies. I'm trying to imagine how many sick days are given to employees that would allow for such huge absenteeism. 800 employees with 10 sick days per year would only allow for 8000 sick days, or an average of 33 people being out sick per day [[based on 260 work days minus a generous 15 holidays per year). Even if they are generous and give 15 sick days per year, that would only be about 51 people per day.

Now that is still a lot, but no where near 33%. More like 4% or 6% depending on how many sick days they give.

Why exaggerate?

[CountrySquire]

CS, are you stupid?

I guess if being treated fairly at work is stupid, then yes I am stupid. Happy?

[lilpup]

I love how the Union excusers find a way to blame management for 1/3 of the fucking workforce not showing up on any given day. Why is it that at the Three-Rivers plant they don't have this problem?

The Three-Rivers plant probably has better floor managers and/or a better HR department.

Believe me, the quality of the management can make a huge difference in morale and even labor v management relations. I once worked for a company that had a manager whose department regularly ran around a 40% personnel turnover every year. No other department in the company was that bad and when the stupid higher ups promoted this manager to be the company's general manager the employee churn spread throughout the entire company.

[d.mcc]

I love how the Union excusers find a way to blame management for 1/3 of the fucking workforce not showing up on any given day. Why is it that at the Three-Rivers plant they don't have this problem?

Because the bosses made them angry! See...this pisses me off, seeing as how I am unemployed, with NO medical coverage what soever, I would gladly go work at American Axle...I hate that shit, people who can't take responsibility for their own actions, blame it on others, and then excuser's come to THEIR aide...ridiculous...

[exdetroiter]

Well there was a thing called a budget surplus before GWB took office. Have you forgotten already? Oh right, it's all Obama's fault now. I know it's tradition to blame the last guy but can you really seriously believe that the last 100 days can even make a dent in the last 8 years?

I am on the same page as you Vince, that is what I meant by saying give the man a chance!

[Flanders]

I gave a very specific example of how to improve the economy regarding the tarp funds. Read it.

Here is another example: Instead of spending massive amounts of money on non-stimulative, long term govt. programs, offer tax breaks to companies based in the US [[the country that now carries the highest corporate tax burden in the world). This will allow them to invest in infrastructure and hire new employees.

Offer tax breaks to US citizens [[yes this includes high wage earning citizens that pay over 70% of the tax burden today). This will allow these people more cash to use in the marketplace keeping retailers and manufacturers busy and employing people.

Of course, these are not new suggestions, they were all proposed by the Republican members of congress when they voted in unison to reject Obamas massive spending plans.

What are your specific suggestions besides letting Obama do whatever he wants to do because you want to give the President with the least experiencein the history of our country a chance?

Yawn...

Yet again the RW whines about the onerous tax burden, and only if more tax cuts are given to the wealthy, they would create more jobs.


"But the report said that about a quarter of large corporations - ones that had more than $250 million in assets or $50 million in gross receipts - paid no taxes. In 2005, for instance, 3,565 large U.S. companies and 998 large foreign-owned companies operating here did not pay any income taxes"

"In fact, despite its high nominal rate, U.S. corporate taxes as a percentage of gross domestic product are lower than in most other industrialized nations. From 2000 to 2005, revenue from federal and state corporate income tax averaged 2.2 percent of the U.S. GDP, compared to an average of 3.4 percent in 30 of its trading-partner countries, according to the Treasury Department."

Most US Firms Paid No Taxes Over 7 Year Span