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Report: Worker Productivity Has Slipped At GM Since 2009 Bankruptcy

One of the driving factors behind the General Motors-UAW strike is a downturn in employee productivity, according to a new report from news agency Reuters.

The publication says GM is keen to boost worker productivity as it prepares itself for an expected downturn in the global automotive market and to compensate for swelling development costs for electric vehicles and semi-autonomous vehicles.

But with the UAW looking to land larger profit sharing cheques, a better healthcare plan and pensions for temporary workers, amid other concessions, the two entities remain at clear odds.

Data obtained by Reuters indicates the number of vehicles GM in the U.S. per production employee fell 13.5% between 2010 and 2018. GM does not publicly release productivity numbers, with Reuters basing its data on annual production numbers from a third party, along with GM’s U.S. employee count from its 2018 annual filings.

A UAW member claimed they believed that GM’s productivity has actually improved since 2010, as the data would be more accurate if it were based on total hours worked rather than employment numbers vs. production output.

One possible reason for the alleged decline in worker productivity could be the increasingly complex nature of vehicles. More advanced infotainment systems, active safety technology and the advent of hybrids, plug-ins, and EVs may have contributed to a decrease in overall productivity. Additionally, American automakers like GM are selling more large vehicles like trucks and SUVs, which take longer to produce.

GM declined to comment on the report, with a spokesperson saying the company remains focused on “negotiating a new labor agreement that builds a stronger future for the company and our workers.”

While worker productivity at GM seems to have slid, the report claims profit per employee has risen 40% to $94,097. At the same time, Reuters claims operating profit, which is the profit made after overhead, interest, and taxes, has reduced at GM between 2010 and 2018, though it did not say by how much.

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Source: Reuters

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Comments

  1. So let me get this straight…

    The best paid autoworkers union of the big 3 wants even MORE money, and better healthcare, to do something so simple and menial that literally anyone could do it while simultaneously being less productive? Damn. when can I start working for GM?!

    I toured the F150 plant during my time in Michigan. It’s not like the skills needed to assemble a vehicle are something special. Damn near anyone could attach a mirror to a door, or guide a robot to lay the moon roof in the right area.

    Reply
    1. to be fair, a lot of us could learn to attach a mirror to a door quickly and maybe do it for an hour. but could we do it a few hundred times per day, every week, every month? i know i wouldn’t be able to do that.

      Reply
    2. Tou dont have a clue. I would like for you to work one day in our Springhill plant then talk that bs.

      Reply
  2. Hard to be sympathetic to the UAW workers when GM is paying for 97% of their healthcare costs and that isn’t enough.

    Reply
    1. So it’s fine for GM to want to maximize profits, and wrong for employees to want to maximize earnings? GM’s ruthless outsourcing and off-shoring has cost the entire Country. If GM’s motives were even vaguely to cooperate and protect it’s own workforce, the the Union would be wrong, but that’s nor the case. GM is back to their old tricks – you know the ones before they needed the Employees cooperation and concessions to keep them in business. I’ve never been in a Union, and I have been a corporate negotiator, and even I can see the Union point.

      Reply
  3. End the UAW…

    Reply
  4. This article is at best misleading.

    We are not striking for better health care, we are striking for our healthcare to remain the same.

    We are not striking so part-time workers can receive a pension. I have no idea where that even came from.

    We are not striking for larger profit sharing checks. We just want the formula to remain the same.

    We are striking so people who have been temps for years can have a chance at being hired permanently where the company want to hire even more temps to work permanent jobs.

    We are striking so the person working the job next to you receives the same pay.

    We are striking because GM closed factories despite massive concessions that were supposed to guarantee they remain open while sending production to Mexico, Korea, and China.

    Please correct this article.

    Reply
    1. Absolutely no one has job security and the UAW demands that, 97% company paid healthcare is not sustainable, “temp” employees make very good money and are fortunate to have employment… GM already pays $13. More per hour which equates to $5B competitive disadvantage vs non union mfrs.

      GM is in business to return shareholder value and make vehicles, in that order. The employees are extremely expensive expenses and GM needs to CUT costs. The UAW won’t permit GM to trim expenses so it will need to find a way to not only eliminate the $5B mill stone but other costs. This is the line in the sand for both. I seriously doubt GM is going to blink which doesn’t bode well for GM employees and families.

      These jobs are going to leave the US permanently. The UAW gave up nothing the greed is what caused the bankruptcy in the 1st place and this simply is not sustainable. You cannot run a company with this type of situation when your direct competition does not.

      Reply
      1. You are correct to use quotation marks around temp. A person shouldn’t be classified as temporary for years.

        GM temps get three unpaid days off a year.

        GM temps make half of what a seniority permanent employee makes.

        GM temps are afraid to report workplace injuries because there is a very real chance they will be fired.

        Most of our plants are constantly hiring permanent temps if you find their compensation package to be so attractive.

        GM entered into a contract with the men and women of Lordstown to remain open through the expired contract in exchange for massive concessions. GM broke contract and closed the plant. How would you feel if a massive multi-national corporation broke a contract that it made with you?

        I respect your opinions on this matter I just ask that you try and take a look at it from an hourly GM worker’s perspective.

        Reply
        1. Is there communication with UAW members with other car brand manufacturers,(like GM UAW members with Ford UAW members) and if so what’s different with contracts

          Reply
        2. Go apply with another company if you’re so unhappy with your working conditions.

          Reply
        3. You have your, very personal and very connected opinion but that’s all it is. If GM broke a legally binding agreement I’m pretty sure we’d be discussing the lawsuits!

          The problem here is emotions and fantasy. The UAW constantly talks about all the concessions and all they did there is never any mention of what the Obuttma Adminstrative GAVE the UAW At taxpayer expense. Recall the shareholders were screwed so they lost “everything!”.. ok let’s start there… they lost everything! The UAW was given Billions with a B… ok so all this bs talk of “we’ve given up this and we’ve sacrificed that” is a lie and those that spew it are cowards!

          The employees who are working next to you are being paid market wages what YOU’RE making is $13.00 more per hour than the market. In a global economy, and with unemployment at a 50 year low, your days are numbered… its not about “fairness” or “sacrifices”, or any other corrupt UAW BS, “marketing” or PR.. it’ reality, it’s economics, and it’s a global economy.

          You gave up nothing that’s emotional marketing and I’d be embarrassed to stand on that if I were you!

          I personally think GM Sr Leadership stinks but the UAW has to die here. This is the 21st Century and a global market. You cannot do what is being done to GM when there are global players begging for these jobs. GM suffers a simply enormous disadvantage and as a CEO the UAW demands are not competitive and are not sustainable. So we shut off the lights and move production. THAT, is unfortunately going to be the legacy, you people permanently lose YOUR jobs.. the UAW is not your friend….

          Reply
      2. Reply
      3. If you think $13 an hour is very good money, You must be living in 1978.

        Reply
        1. Never said $13 was a good rate, thats how much MORE UAW Rats make per hour, than the tens of thousands of others that do exactly the same thing. NO company can compete with that type of disadvantage?

          GM is going to move these jobs out of the US and you have no one to blame but yourselves and the UAW. Enough talk about “sacrifices” and how horrible GM is, you’re pathetic and greedy. YOu’d kill the goose just to line your pockets…

          All you idiots that thumbs down my comments, must be striking idiots… I speak the truth…

          Reply
        2. Gearhead, learn to read Mate. He said $13 MORE than market.

          Reply
  5. Reply
    1. Rich, you’re lost…. “collectivism” vs “individualism”… the later built America, the former the USSR… Unions served a purpose at one time, NO QUESTION, but with all the labor laws, govt agencies, and lawyers out there now, no, there is zero need for a union, especially in a global economy.

      I don’t want folks in Vietnam putting together Chevys, but how do YOU expect GM to compete with Kia and Hyundai who do not have this disavantage? GM has already lost Oldsmobile, Saturn, Hummer and the glorious Pontiac… yet Hyundai, Kia, Honda, Toyota, etc…. ALL fill this void… Its because they could no longer build vehicles to a competitive standard and make money. So they built crap and lost money and market share and brands and eventually went bankrupt. You can blame that all on mismanagment, poor engineering, poor design… blame it on whatever you’d like but the economics of it all are fixed and without resources the company WILL fail or move high cost jobs out of the country. Its the last domino GM has…

      The employees need to accept GM’s first offer, it will be their best. The “temps” can go find other work because GM is NOT going to make them permanent and thus add to the UAW, add to their healthcare costs, retirement, pension, what have you. GM must cut fixed costs not add to them….

      Reply
  6. I wish I made the money some of these factory workers make. If the strike keeps up, everyone loses and I mean everyone in this country and many abroad. If you want more money, start your own business, maybe a Pizza Parlor, lots of cash there. You cannot stop progress and if electrification is progress (which it is), maybe GM can retrain some workers. They can go make the batteries and electrical components at subcontractors. Both sides need to work this out and very quickly.

    Reply
  7. This articles is a sham as there are many variables to vehicle production. Also very irresponsible for this website to post something like this and further advance the anti union narrative.

    Reply
    1. Unions are not needed in America and if you think they are you’re in one and lost… Also the SEIU needs to be abolished. Govt employees work for the taxpayers they should absolutely have NO ablity to hold the taxpayers hostage AND bureaucrats who want their votes are the ones negotiating their pay and benefits. That does not serve the interests of the taxpaying constituents. Hopefully in President Trump’s second term this will be addressed.

      Reply
      1. If you think just because there is labor laws that companies don’t violate labor laws and pray on people that are desperate for any job your wrong. How much does GM ceo make vs Toyota ceo?

        Reply
  8. I advocate FIRING Each and EVERY Striking employee. Re-hire those that want to work at lower REAL Marketplace wages with Healthcare to match. GM is a Business, NOT A “Golden Goose.” Otherwise you think GM won’t move plants to other Countries to stay in business ?? Damned straight they will. I Support GM, Have a new Corvette on order, and will wait as long as it takes to get it.

    Reply
  9. Fool

    Reply
    1. Fool.. thy name is Chevyman… why are unions dying… because they’re not needed. Why doesnt any transplant workforce want one, because they destroy the relationship between employer and employee… unions help no one except Democraptic politicians… and they’re notoriously corrupt… which is all over the news currently…

      Reply
      1. Xjug
        What kind of name is that?
        You are really mary barra. Right? I’ll bet I’m right.
        You obviously never worked on these factory jobs. Your probably one of those people that never got their hands dirty doing anything. You should sign up for a temp job at GM and work for a year or two and then tell us what you think.
        I find it sad that people that have never been inside a factory seem to think they are experts about everything.
        Here’s a fact. We really don’t sit around drinking coffee and putting a few bolts on and make $90,000.
        Come to work and see.

        Reply
  10. Xjug
    What kind of name is that?
    You are really mary barra. Right? I’ll bet I’m right.
    You obviously never worked on these factory jobs. Your probably one of those people that never got their hands dirty doing anything. You should sign up for a temp job at GM and work for a year or two and then tell us what you think.
    I find it sad that people that have never been inside a factory seem to think they are experts about everything.
    Here’s a fact. We really don’t sit around drinking coffee and putting a few bolts on and make $90,000.
    Come to work and see.

    Reply
  11. What worker concessions? GM pays it’s workers better than any of the other automakers, plus better healthcare than any other company. UAW needs to wake up! No one Owes them anything

    Reply
  12. The work ethic these days is horrible and the union protects the lazy asses who only do what they have to do. They are an entitled bunch of maggots who want more and more pay for less work.

    Reply
  13. Meanwhile, Chinese productivity is soaring while their employees and Mexicans never strike and do the exact same work at a fraction of the cost.

    American workers are lazy, fat, filled with drugs and are the source of a major problem in absenteeism. Especially at GM plants. No wonder US manufacturing is at a 50 year low and dropping like a stone…

    Reply
    1. EXACTLY!!!

      Reply
    2. What is the reliable source of your assertions? Do you have figures about absenteeism, substance abuse or any other worker data? A large part of productivity is design and production engineering, things that trump workforce efforts if not done right. The Corvette assembly line was replaced last year for the first time since the plant opened. When you consider the increased technology of the Vette since then, it’s a wonder those people at the plant were able to put them together at all. Chinese and Korean plants are brand new, and are updated as needed. Bottom line is that the manufacturers have a big impact on worker productivity. Worker overseas frequently make less money. That’s true for almost all jobs including those who post here.

      Reply
      1. “ABSENTEEISM AT GM NEEDS TO BE IMPROVED
        The UAW strike at General Motors continues to grind on and now thousands of workers at supplier companies are getting laid off. We keep hearing how the union wants more money, but at some point it’s going to have to help GM lower its total labor costs, which are the highest in the U.S. industry.

        One area that’s ripe for improvement is the absenteeism rate at GM’s plants, which is unacceptably high. Get this, GM averages 12% daily unscheduled absenteeism at its plants, what I call AWOL workers. A typical assembly plant has about 2,500 hourly workers, which means about 300 people don’t show up for work everyday, without any advance notice. That forces GM hire that many more people just to cover those who don’t show up.

        Non-union plants, like at Honda in Ohio, don’t tolerate this kind of unscheduled absenteeism. You pull a move like that a couple of times, you lose your job.

        I fully support the UAW workers desire to make more money. But in labor negotiations there’s got to be some give and take. And the UAW has got to address this chronic absenteeism for which there is zero justification.”

        http://www.autoline.tv/daily/?p=63862

        Many GM workers are BUMS.

        As China’s wealth and productivity continues to increase, they expect to be outsourcing to the US in the next 10 years…

        Reply
  14. Decreases in productivity may be balanced by increased quality. And productivity isn’t solely the responsibility of the workers on the line. GM should be pleased if productivity drops if the quality of the vehicles hitting the road is increasing. Producing higher quality cars produces repeat business. Unless the concept of quality is introduced to this discussion, it’s incomplete.

    Reply
  15. i would love to sip a cup of green tea each morning because it contains L-theanine which calms the mind::

    Reply

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