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6:52 am
Fri February 11, 2011

GM: Workers to get bonus checks

Credit Spacing Magazine / Flickr
General Motors says most of its 26,000 white-collar workers will get bonus checks

General Motors says most of its 26,000 white-collar workers will get bonus checks. The automaker says the bonuses will be between 4 and 16 percent of their base salaries. The Associated Press reports:

The company says in a statement Thursday that bonuses will be based on the performance of the worker and the company. GM made $4.2 billion in the first three quarters of last year and is expected to post a fourth-quarter profit shortly. The bonuses come just 19 months after GM needed a $49.5 billion government bailout to make it through bankruptcy protection.

The company says that more than 96 percent of the salaried workers will get bonuses of 4 to 16 percent of their base pay. Fewer than 1 percent will get 50 percent or more.

Economy
6:11 pm
Thu February 10, 2011

Manufacturers need more skilled workers

Credit Rich Allosi / Flickr
Manufacturing jobs are growing, but finding skilled labor can be a challenge (manufacturing t-shirts at American Apparel in LA).

The national economy added 49,000 manufacturing jobs in January. That’s more new jobs than in health care, retail or any other major sector of the economy.

It’s good news for the Midwest, where thousands of manufacturing workers are expected to be hired over the next few years.

The number of students enrolled in manufacturing training and engineering courses is on the rise at two year colleges. But some employers say they still have a hard time finding qualified candidates.

Michigan Radio’s Changing Gears project is looking at the economic future of the Midwest.

Michelle Kanu filed this report from Cleveland:

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Economy
9:52 am
Thu February 10, 2011

Foreclosures didn't spike as expected

Credit (photo by Steve Carmody/Michigan Radio)
A foreclosure sign sits in front of a home in Lansing, Michigan

Analysts expected a big jump in home foreclosures in Michigan in January.  But the jump didn’t materialize.


 Home foreclosures slowed last fall in Michigan and around the country as banks dealt with a scandal about robo-signings.   Essentially mortgage lenders signing foreclosure documents without checking to make sure what they were signing was accurate or truthful.  Foreclosures were expected to spike this month.  But they didn’t.  Realty Trac reports Michigan saw only a 4% increase in foreclosure filings in January.   Nationally only a one  percent increase.

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Auto/Economy
2:53 pm
Wed February 9, 2011

Big checks coming to GM workers

Credit Rich Evenhouse / creative commons
GM's Headquarters in downtown Detroit. GM's Akerson says he "wants compensation for hourly workers to more closely mirror that of white-collar employees and executives." - Wall Street Journal

Profit-sharing checks to GM's 45,000 workers are expected to break a record. The news comes as GM is tallying its profit numbers for 2010. The company will release the amount of the checks soon.

The Wall Street Journal reports:

General Motors Co. is planning to pay its hourly workers in the U.S. at least $3,000 each in profit-sharing payouts, the largest amount ever, after the company's return to profitability in 2010, people familiar with the matter said...The auto maker is trying to tow the line between fiscal prudence and expectations that it will share recent gains with workers as the company heads into labor negotiations with the United Auto Workers.

Other U.S. automakers are also sharing the wealth.

Ford Motor Company paid hourly workers more than $5,000, "more than the company was required to pay under the profit-sharing formula in its contract with the UAW," according to the Wall Street Journal.

And Chrysler gave their workers $750 despite the company's losses in 2010.

The Detroit Free Press reports that the checks are expected to be handed out in the months ahead, and the size of the checks could help the automaker in its negotiation with the United Auto Workers union. From the Freep:

The Detroit Three, which will negotiate new labor contracts with the UAW this year, may be giving higher-than-required payments to autoworkers as part of a strategy to convince the rank and file to keep labor costs flat in return for bigger profit sharing in the future, labor experts previously told the Free Press.

Economy
12:48 pm
Wed February 9, 2011

Grand Rapids officials take pay cuts, hope unions will follow

Credit Steven Depolo / Flickr
Grand Rapids Mayor George Heartwell says the city's financial future depends on employee concessions in pay and benefits.

Appointed officials in Grand Rapids agreed to scale back the wage increases they recently received.

In a press release, the City officials said they were "responding to Governor Rick Snyder's call for realigning public employee compensation."

City Manager Gregory Sundstrom, City Attorney Catherine Mish, and City Treasurer Lauri Parks said they will return to their salary levels that were in effect in 2009.

City Treasurer Albert Mooney agreed to return 2% of his salary increase.

The Grand Rapids Press reports that if their request is granted:

Sundstrom's pay will fall back to $142,000; Mish's pay will return to $114,092; Parks' pay will go back to $93.731; and Mooney's pay will fall to $108,755.

The officials said in 2010, "appointed officials again led by example, voluntarily accepting an additional 10% reduction in overall compensation." This included turning down a 2.5% pay increase that was scheduled to take effect on June 30, 2010.

The Grand Rapids officials say the the 2.5% pay increase was "received, and is still being enjoyed today,  by all of the City's unionized workforce."

The city is in the middle of re-negotiating it's collective contracts with the City's unionized workforce. And the negotiations are "difficult" as Mayor George Hearwell said in his State of the City address last Saturday.

As Michigan Radio's Lindsey Smith reported, Heartwell said:

The city’s financial future depends on city employees taking further concessions in pay and benefits.

"There’s no doubt in my mind that unless we tackle this problem today, we cannot be sustainable over the long term," says Heartwell.

The vast majority of the city's workforce in Grand Rapids is unionized.

I called up City Attorney Catherine Mish, one of the officials taking the pay cuts. I asked her whether she and the others are sending a signal to the city's unionized employees:

"I would have to say 'yes.' We're hoping the unions agree to similar concessions."

Mish said the unions are under current contracts that run from July 1, 2010 to June 30, 2013.

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Auto/Economy
9:54 am
Wed February 9, 2011

Toyota's electronics exonerated in unintended acceleration claims

"The jury is back, the verdict is in."

That’s how Transportation Secretary Ray LaHood announced that faulty electronics played no role in cases of unintended acceleration in Toyota cars.  It’s unequivocal good news for a company attempting to rebuild its reputation.

Last year, Toyota recalled millions of its cars for gas pedal defects that could cause unintended acceleration.

Those recalls shook the company’s reputation for safety like an earthquake.

Dean Stewart is Service Manager for Victory Toyota in Canton, Michigan. The dealership's huge - and nearly empty - service garage, has only one car on a lift that was brought in under a recall.  But last year at this time, the place was bustling:

"I mean we were open 7 days a week, we had two shifts, we were working 90 hours a week just to make sure we could take care of our customers," says Stewart.

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Auto/Economy
1:56 pm
Tue February 8, 2011

Government: No electronic throttle problems in runaway Toyotas

Credit Rebecca Bolwitt / Flickr
Some safety advocates thought software problems could have led to sudden acceleration problems in Toyotas.

After a ten-month investigation, the results are in.

From the Associated Press:

A government investigation into Toyota safety problems has found no electronic flaws to account for reports of sudden, unintentional acceleration. Transportation officials and engineers with NASA say two mechanical safety defects previously identified by the government - sticking accelerator pedals and gas pedals that can become trapped in floor mats - are the only known causes for the reports of runaway Toyotas. Both issues were the subject of large recalls by Toyota.

Transportation Secretary Ray LaHood says the department's 10-month study has concluded there is no electronic-based cause of unintended high-speed acceleration in Toyotas.

Toyota has recalled more than 12 million vehicles globally since fall 2009 for a series of safety issues. The company has denied that electronics are to blame.

Agriculture
12:12 pm
Tue February 8, 2011

Michigan Farmers to learn about labor laws

Credit Craig Camp / flickr
Migrant farmworkers live and work on Michgan farms during the harvest

Sarah Alvarez-Michigan Radio Newsroom

The Michigan Farm Bureau is starting a six month series to educate farmers about laws that apply to migrant workers and youth labor. Michigan’s agriculture industry is dependent on migrant labor. The industry is still dealing with the effect of a harsh report on worker conditions by the Michigan Civil Rights Commission.

Hannah Stevens is with Michigan State University Extension, one of the sponsors of the series.

In agriculture it’s complicated because there immigration issues there’s housing issue, you know, so many regulatory agencies that look closely at management of labor.  I think particularly it’s a sensitive topic.

Stevens says that pressure to comply with labor laws is also coming from retailers.

The retail stores, Meijer’s and Walmart’s and all these, are beginning to demand that there’s certain responsibility that growers have in terms of managing their workforce. They may reject Michigan produce if they don’t feel that’s being handled correctly. That may put growers in a very awkward position.

The farm bureau expects only about 25% of growers in the state will attend their seminars. The seminars will run from February to July.

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