Kongsberg Automotive Screws Van Wert Ohio, Again

Kongsberg officials said the decisions were a result of the "global automotive market collapse" that has resulted in a steep drop in demand for automotive components especially in North America.

Kongsberg officials have said a lot, most of it is a bunch of hogswallow.

The Businessweek piece goes on to say:

Kongsberg said its Van Wert, Ohio facility will close sometime in the summer and its production will be transferred to the company's Nuevo Laredo, Mexico facility, eliminating about 105 jobs.

The company said it also plans to move its Haysville, Kan. facility's production to its facility in Matamoros, Mexico. The Haysville facility will also close sometime in the summer, affecting about 100 jobs, Kongsberg said.

Not a problem. When Kongsberg decideds that Mexico is too expensive, they'll move to Poland, Haiti, India, maybe back to the US, you know where ever the taxes are cheap and the workers are so desperate they'd crawl all over themselves to get the jobs. Cause in the end, they're really just greedy bastards.

And why do I call them greedy bastards, well, because while they talk about the poor auto market from one side of their mouth, they accept a huge German contract out of the other side.

Kongsberg Automotive has booked an order valued at MEUR 18 (MNOK 151). The new business includes delivery of Seat Heat to the European market. The contract term is 7 years with production start in 2010.

The seat heaters will be manufactured at Kongsberg Automotive's plant in Pruszkow, Poland.

The customer is a German automaker and one of the world's premier manufacturers of passenger cars.

Ah, yes, Poland. This is the operation begun by closures of Amotfors, Sweden. But don't take my word for it, here's what Kongsberg had to say:

Kongsberg, 8 December 2008.

Kongsberg Automotive (KA) has booked an order valued at MEUR 4,3 (40
MNOK). The new business includes delivery of Seat Heat to the Russian
market, where a German automaker is preparing the launch of a small
sized car.

"The customer is one of Europe's leading carmakers and this contract
represents a door-opener to the emerging Russian automotive market",
says Hans Peter Havdal, President of Automotive Systems at KA.
"Further, this contract is the first ever to this particular
carmaker, and we expect new business opportunities to follow as a
result of this award", he concludes.


###

Kongsberg Automotive is headquartered in Kongsberg, Norway and has
more than 50 facilities in 20 countries on all continents. Kongsberg
Automotive, with revenues of about EUR1 billion and over 9.500
employees, provides system solutions to vehicle makers around the
world. The product portfolio includes gearshift systems, cables for a
wide variety of applications, fuel lines, tubing and hoses,
couplings, clutch actuation, stabilizing rods, seat heaters, seat
ventilation, lumbar supports, head restrains, arm rests, steering
columns, pedals, electronics and displays. Find more information at
www.kongsbergautomotive.com.

Yeah, right, market is down, so we have to close Van Wert (despite an illegal lockout) and we will have to close operations in Kanasas (another 100 jobs) because we have to move those operations into Mexico. It's just business, after all. Just business. Greedy fucking bastards.

Ohio: Locked-out Kongsberg workers, solidarity rally

Original story at Union Review: Ohio: Kongsberg Automotive Holding locks out USWA workers, hires temp. workers and the fear of global environment (4/5/08):

Yesterday, I asked my readers over at Union Review to get me some of the information about the rally in Van Wert for the locked out Steelworkers at Kongsberg Automotive. Michelle obliged, from the Van Wert Independent (6/16/08) :

Kongsberg workers who are members of USW Local 1-524 march on Central Avenue this past Saturday following a rally in Fountain Park. Dave Mosier/Van Wert independent

t was a day for union solidarity and community support,
but also one of bitterness and frustration,
as members of United Steelworkers (USW) Local 1-524 held a rally in Fountain Park Saturday to thank supporters.

Hundreds of people, some of them union officials – including other USW locals and district officials, United Auto Workers officials and even representatives of the Van Wert Federation of Teachers – turned out to provide support, both emotional and financial, for the locked-out workers of Kongsberg Automotive’s Van Wert plant.

Donations from union representatives totaled between $10,000 and $15,000 on Saturday.

Several speakers angrily denounced Kongsberg management officials for what is perceived as a failure to bargain in good faith with local union officials. Kongsberg President Peter Spencer was depicted by a person in a rat’s costume as those at the rally clapped and cheered.

Van Wert Mayor Louis Ehmer, who had taken some heat earlier for not doing enough to support Kongsberg workers during a City Council meeting, spoke at the rally and said the community was behind the workers, while also commending the local union for its demeanor on the picket line.

“You people have demonstrated that you are out there in a dignified way trying to protect and secure your jobs,” the mayor said to applause, adding that he was a bit surprised at union workers’ good behavior since he was originally from Detroit, Mich., where union disputes often turned violent.

Aaron Collins, the 37-year-old president of Local 1-524, bitterly denounced both company officials – most specifically former human resources manager Tom Herman – and government officials who have allowed workers to be exploited by domestic and foreign companies.

Collins talked about how, as a child, he thought it was neat that astronaut Neil Armstrong, the first man on the Moon, was from nearby Wapakoneta. “It seemed like, as a child, anything was possible” in America, Collins said, adding, though, that “the American Dream is slipping away from us right now as we speak.”

He angrily criticized both major political parties for their lack of support for U.S. workers, noting: “Both sides are out to get us, both are out for themselves,” and adding that a third party dedicated to middle class Americans may be the answer to make changes at the federal level.

However, he did have praise for U.S. Senator Sherrod Brown, a Democrat, who has phoned and written letters to Kongsberg company officials in support of local workers.

John Ryan, Senator Brown’s state director, attended the rally and had words of support for the locked-out workers. Ryan outlined the senator’s actions in support of the local workers, commended non-company employees attending the rally for their support of the locked-out workers and also used the USW’s fighting slogan, “One Day Longer,” in saying the senator would back the workers “one day longer than you need” until Kongsberg returns to the table to bargain in good faith.

USW District 1 Director Dave McCall also spoke during the rally, and later to media representatives, about Local 1-524’s struggle to get back to the bargaining table. McCall said the union was working on a couple of fronts to put pressure on Kongsberg to resume negotiations. Those include a complaint with the National Labor Relations Board (NLRB) that accuses Kongsberg of bad faith bargaining, illegal surveillance and failure to provide necessary financial documentation to union negotiators.

McCall said the NLRB had investigators in Van Wert last week to take depositions related to the complaint.

The USW district president also said the USW was working with international unions doing business with Kongsberg to put pressure on the company to resume negotiations from outside the United States. A return to the bargaining table is all union officials want, he said.

“We stand ready and prepared to go back to the table and bargain for a fair and just contract,” McCall added.

He added that the situation in America today, with companies “outsourcing” operations to Mexico, China and other countries, needs to stop.

“Workers have had enough,” McCall said. “Companies cannot continue to exploit workers like this.”

Following the rally, local union members and supporters staged a peaceful march through downtown Van Wert.

My apologies to The Independent for clipping the entire article, it just seems that this is so totally ignored, I wanted all the information I could get.

These American workers are getting screwed for corporate quarterly profits at any cost.

Video: When union busters attack

Thanks to Bert at MySpace for giving me the heads up on this video, link below

Bert

Kongsberg Automative, a History of Greed

By Bendygirl
crossposted on Dailykos and Uniongal

I have been watching the American Axle strike and now I'm also following the strikes at CBS (Aramark run Cafeteria) and the LOCK OUT in Van Wert, Ohio.
So, what do these things have in common? I think it's money. Not necessarily the cost of labor or the cost of benefits. It's about taxes, trade, environmental standards, in short, it's about the American Way.

Over on my site today, I talked about the UNITE-HERE actions against Aramark in Canada and also at the CBS cafeteria. I also discussed the issues involved in the Kongsberg Automotive lock out in Ohio and it's this action I want to draw your attention to now.

You see, Kongsberg has a most unsavory recent history of closing a profitable plant in order to maximize profits not only by lowering wages from one operation to the next but also through lowering the taxes they pay from one country to the next and the cost it takes to meet specific work or environmental standards. Here's what Kongsberg had to say on their closure of Amotfors seat heating system plant.

"We are one of the world's leading suppliers of seat heating systems for cars. To maintain this position we must adapt our production costs to a level which yield acceptable earnings also in future," said Olav Volldal, CEO of Kongsberg Automotive.

"The potential closure is not because our employees have not performed. It is due to the significant cost gap between high cost and low cost countries," Volldal added.

Wow, you can work for a company, do really well there and then kiss it good bye, because, well, Poland does it cheaper. That's right, POLAND.

Kongsberg closed their Swedish Amotfors plant to move operations to Poland where the tax rate, according to the Kongsberg annual report from 2005, is 19%

The Group is reporting a tax cost percentage of 26 % in 2005. The tax cost is around 28 % for all the countries where Kongsberg Automotive operates, except for Poland where the tax rate is 19 % and the USA where the tax rate is around 33 %.

Hmm, 33% for the US, that must be why they refused to negotiate with the Kongsberg employees in Ohio. After the employees rejected the contract with steep losses in income and benefits, Kongsberg advertised for SCABS and locked out the Steel Workers! and, now they're also threatening to just move all those operations to Mexico, hmm, what a surprise, right?

But this just seems par for the course in World Wide Corporate standards. I mean, it's the same kind of thing that Dick Dauch is suggesting at American Axle and has been since the workers went on strike on February 26th.

The thing is that Kongsberg and American Axle don't seem to get that their actions have consequences to the rest of the automotive industry. More specifically, American Axle not only has already shut down production at about 28 different GM factories and related industry factories nationwide, but the continued strike now will shut down Lordstown prodcution, TOMORROW. From the Mahoning County Tribune Chronicle

Dave Green, president of United Auto Workers Local 1714 of the Lordstown Metal Center plant, said management told him Thursday afternoon the estimate for running out of a brake part had been moved to Tuesday from the previous estimate of April 18.

Green said he’s scheduled to meet management at 9 a.m. today to get more details about how the situation may develop.

The Metal Center stamps and fabricates steel body parts for the small cars built at the next-door assembly plant. Some of the plant’s 1,000 hourly workers may stay on the job to make parts to bring inventory levels up to required levels, Green noted.

A UAW Local 1112 handout at that plant on Monday stated the factory was second in priority to GM’s Fairfax, Kan., plant for closure if the strike at American Axle continues. No update on the assembly outlook was available Thursday.

So, anyone taking bets on when Dick Dauch is going to take his head out of his ass and bargain in good faith?

And while we're at it, do you think we might all take a step back from the Presidential race and actually ask these candidates on Wednesday what they're doing today to help Aramark workers who make $400 a week in NYC after 9 years on the job, or locked out workers in Van Wert Ohio and the workers walking the picket line at American Axle? Can we have a real discussion about why we're bitter, angry and frustrated? I'd appreciate such a conversation. Um, it's still called Solidarity.

Some of the Dailykos Diaries I've written on the American Axle strike


End in Sight
Equality of Sacrifice
Help Wanted?
Clinton, McCain and Obama SILENT on Strike
Dick Dauch's Entitlement Mentality
I Remember the Day the Shop Closed
When Strikes Happen
When Are You Going to Get Off Your Ass?
9 Million Reasons to Support Strikers
We Aren't Disposable
Strike An American Tragedy

From the picket lines: American Axle and Kongsberg Automotive workers speak out on the internet

With the "Free Trade" threat over their heads and information getting even harder to find, as media outlets continue to narrow their pool of journalistic talent, having those affected by these labor disputes speaking their minds on the internet is one of the only ways to reach into the lives and get an understanding of the human side of these events.

Kongsberg Automotive Of Norway Lock Out of Steelworkers in Van Wert, Ohio

Not much of the goings on at Kongsberg Automotive Of Norway is known, aside from the fact that the company, formerly known as Teleflex was acquired in the first quarter of 2008. After the local USWA Steelworkers rejected a new contract on April 2nd., the company locked them out, then proceeded with temporary worker replacement and threats of moving outside the country, while the community leaders of Van Wert, Ohio have been trying to convince the company to stay put at any costs, oddly enough, the new owner Kongsberg , "has not paid their property tax for the first half of the year, which was due Feb. 13", according to Van Wert County Treasurer Bev Fuerst.

After cross-posting the original Kongsberg story at Union Review on (4/5/08), I got a response from one of the locked out workers, Mr. Tom Potter:

(4/8/08):The Union came to the bargaining table expcecting to bargain in good faith. The Company only wanted to take back. Take back in wages, pension and health insurance. Maybe one or two but all three concessions at one time could not be acceptable. Especially not in light of any facts to back up any claim the Company made in reference to competitives.

This Company bought a plant that was making money the day it became their property. The Company negotiator even clarified that the company was not pleading poor mouth. One of the main issues of contention is that the company wants to implement a two tier wage system that would drop the current worker down to a lower rate of pay simply if a part number would change. This would have the negative effect of a wage reduction ranging from $2.54 up to $7.38 hour. The company is a billion dollar co. every worker at this location has the potential of being placed in this two tier before the new contract would run out, put that with a freeze in the current defined benefit pension, higher insurance premiums and out of pocket, and deductible on the insurance with no raise in wages over the three year agreement - without any real explination - the members did not think so - so the turned the offer down.

This meeting took place in the christain life center church - may "god bless" those for standing up to tough obsticiles

I asked on 4/9, "Thank you Tom for adding that info, I take it you are one of the locked out workers?" and on 4/11 Tom responded:

I am on the front lines of this battle.

I will inform you of what happens when a Foreign National Company, buys a U.S. Company. How that Company comes in and tries to destroy the will of the u.s. workers, to break their Spirit And Determination. How it reeks havoc upon those u.s. workers by the Company Locking Them Out of the plant so they cannot perform their work.

The picket line in Van Wert, Ohio tonight is wet and windy but brave men and women walk those lines. Standing up against all obstacles, having the Courage to know what is right. These workers are members of the community of Van Wert and the surrounding area. They are honest and respectful people. They are U.S. Veterans, leaders in the community, neighbors, friends and patrons, the list could go on forever, they are community.

Kongsberg Automotive Of Norway is intent on breaking the will of these Made In The U.S.A. Workers - Kongsberg Automotive Of Norway will "Preach a Company Code Of Ethics but they do not practice it in The United States.

Before I could respond, Mr. Potter added...

This Company now has stooped as low as contacting former workers of the Company, that the Company claimed to "Terminate For Just Cause," asking them if they would come back to work. What a "Code Of Co. Ethics." Even their own salary group that they just let go are being asked to come back to work.[All have said "No"] All in their attempt to run this plant with temporary workers and put not only themselves in jeopardy but that of the customers and the general public. If certain components for Ford, Chrysler or General Motors are not made to specifications then they are prone to failure and potential recall after the components have been installed on the car makers vehicles.

Kongsberg Automotive Of Norway is wanting to impose upon these U.S. Workers their philosophy on competitiveness in a global economy by bringing them down to Chinas' living standards rather then bringing China's up to the United States. In other words lets pay our U.S. Workers less. I do know that Kongsberg Automotive V.P Of Operations N A Operations Driveline Systems Kevin McMahon was present one day at these negotiations and pretty much was raising the flag of China all across the table.

It's Cold on the picket line today, the wind in much stronger and the temperature is dropping. It will be a cold night.

Tomorrow will be Sunday and the Community will be in prayer, Kongsberg will keep busing in temporary workers and the guards will meet them at the gate. These proud U.S. Workers Of Van Wert will man their post. May all the prayers be heard to bring this Company to their senses, for this senseless act. Amen .

Tom Potter brings the news into our living rooms, from a community that is behind the workers and built around this plant, he lets you view the real story from that front line, where the media doesn't bother, they would rather you didn't care about your fellow American workers.

This is one of the many reasons I have started the series of Free Trade's working victims, highlighting the conditions which American workers must try to compete against in parts of the world where our industrial base is being vacuumed into, the current focus is that these places the common workers cannot even afford to buy food. If the workers in America are going to drop to that level, we are all in trouble and any politician who is voting for more Free Trade agreements is the opponent of the American worker, union or otherwise. Which brings us to the other company that is being threatened by "Free Trade"...

American Axle UAW Workers Strike in Michigan and Buffalo, New York

American Axle, has been demanding overwhelming concessions from their employees, threatening to run itself out of the country if these demands are not met. Around 35,000 GM workers have been put out of work, laid off or have had hours dropped due to this struggle. While the owner and CEO of AAM, Dick Dauch, has finally came back to the bargaining table in the sixth week of the strike, he still has been sticking to his guns, in fact some of the companies points are very factual, the total labor costs of manufacturing auto parts has been declining because of Free Trade, concessions have been given in many other UAW affiliated shops and in a larger scale, the BIG 3 have recently received tremendous concessions, it is a different world, it's the world of "Free Trade" where eventually it would seem if we keep bowing down to the effects of the actions of our Representatives, none of us will be able to afford rice.

Jolyna - A wife of AAM employee, has responded to the original story from 3/2/08, which I turned into a story here at the site, on 3/16, "An open letter to the AAM cofounder and CEO, Dick Dauch", has made another comment, and it sums up what must be going on in the hearts and minds of those striking employees:

(4/11/08) Dick Dauch and the shareholders of American Axle, enough is enough!!!

I am sick and tired of the CRAP that Dick Dauch and American Axle is trying to dish to its employees and their families.
I can’t believe that this man has the nerve to sit there and offer insulting wages with insulting “buy downs” and “buy outs”. He should be ashamed of what he is putting our 3600+ families through. Let’s not forget the other hundreds of thousands families that are being affected by this strike too. Not only in our country; but world wide.

He seems to think that his “buy downs” and “buy outs” will be “cushy and comfy” for his employees. These figures must be enough to replace the 14 years my husband has in at your company, the fact that we have to completely start over somewhere else – without the same pay – and allow our families to keep our houses. In my opinion, this man will never offer enough for the damage that has already been done and the wrath we are about to endure.

He smugly accepts a huge salary and bonuses while he threatens to close our plants because we aren’t making a profit large enough. However, he fails to announce to the world that these 5 plants fund the off shore plants and the off shore plants rake in the profits. How do you expect my husband and his co-workers to produce enough to finance all of these operations? Meanwhile, he is taking machines out of my husband’s plant and sending them to non-union plants. It’s a disgrace! AMERICAN Axle …yeah, real American.

I resent the fact that he is turning our lives upside down. I resent the fact we have to start over. I resent the fact we may have to TRY and sell our home and my kids may have to leave their school and the friends they know. Above all, I resent the fact that this is all because of 1 company’s greed!

I hope the whole Dauch family and members of the board can sleep well at night with their million dollar salaries; knowing their jobs and salaries are safe. While we are worrying and wondering how we are going to repair this financial and emotional mess that he has thrown us into. We can only hope that he acquires a conscience before it’s not too late!

Thank you, Tom and Jolyna,

I continue to hope for the best and will continue to help spread the message of your families struggle, in solidarity,
Joe

Ohio: Kongsberg Automotive Holding locks out USWA workers, hires temp. workers and the fear of global environment

Workers at the Kongsberg Automotive Holding facility, formerly known as Teleflex, have been locked out by the company after failing to approve a contract which asked for deep pay cuts and increased health care costs, not much more information is known aside from the fact that the company has been bringing in replacement workers.

From TimesBulletin.com (4/01/08) :

Contract negotiations between Kongsberg Automotive Holding, formerly known as Teleflex, and the 328 United Steel Workers employed at the Van Wert facility took on a more ominous tone on Tuesday.

A labor contract offer, which was given to union representatives last Friday afternoon, will be voted on by the employees tonight at 8 p.m. The president of the United Steel Workers local, Aaron Collins, was informed on Tuesday by Kongsberg officials that if the union does not ratify the contract as offered, union employees will be locked out of the facility starting at 10 p.m. tonight.

"Knowing what they're going to do doesn't help the vote, and it doesn't hurt the vote's chances," said Collins. "I just want everyone to know what is going on before we decide."

The issues remaining between the two sides involve deep pay cuts, pension plan changes, and health insurance costs.

Apparently the members did not ratify the contract, heres more info from From TimesBulletin.com (4/04/08) :

VAN WERT - The first full day of the lockout at Kongsberg Automotive saw no changes in either labor or management positions. Workers who voted down the auto parts manufacturer's contract offer stood just off company property with picket signs. Meanwhile private security remained on site at the facility to make sure the locked out workers stayed out.

Early in the morning hours, windows at the facility were boarded up and private buses began bringing in replacement workers to make parts for considerably less wages than the locked-out employees.

Meanwhile city officials expressed their hope for an early end to the lockout. "I just hope the union and company management can get this worked out," stated Nancy Bowen, Van Wert County economic development director. "I think everybody feels the same. We'll do anything we can do to help, and I've let the company know that."
Read More

Which leaves us with the latest news from TimesBulletin.com (4/05/08)

Picketers from the local United Steel Workers union watch as replacement laborers leave the Kongsberg Automotive facility in Van Wert. State and local officials met with Kongsberg management on Friday in an effort to bring an end to the lock out.

Meeting Held with Kongsberg Automotive Lock out continues despite effort

State and local officials met with Kongsberg Automotive representatives today to convey the importance of the plant to the local, regional and state economy and to express the desire to work with the company to retain and expand the plant in Van Wert County. Officials also expressed the desire to maintain open lines of communication with the company while they work to resolve labor issues and maintain their customer base.
(continued)
Company representatives assured state and local officials that they are committed to the Van Wert facility and want to increase the productivity of the plant to attract new work and stay competitive in a global environment.

Wheres the story about the workers? How many are involved? It seems evident that this company is trying to break the union.

The line "stay competitive in a global environment" about sums it up as far as what Free Trade has done to the workers in the United States, while the Clinton administration sold us the first of which, NAFTA, under the promise of it bringing up the workers in Mexico, and with the continuance of such "Free Trade" agreements in the Bush Administration creating this "Global economy", has done exactly the opposite, they have pitted the 3rd. world workforce against us as a bargaining chip.

Over 470 textile mills have relocated to places where workers make about $60 a month. While the corporate media urged consumerism amongst the citizens, and banks with the encouragement of the Fed gave out mortgages to those who couldn't afford it and Big Boxes such as Wal-Mart through Lobbyists and anti-union campaigns sold you the idea of lower prices. We are now entering this brave new third world.

This is not a recession, this is an adjustment into the global economy, and when you need to place the blame, you should only get as far as the mirror, for your allowance to be mislead and letting big business know matter of factly by your purchasing foreign products, that you didn't give one shit about American jobs. So now lie in your beds, you helped to make them.

Now the administration is jamming the Colombian Free Trade Agreement, which Hillary's campaign chief strategist Mark Penn has an involvement through his law firm and has been in meetings with ambassadors of that country, is being jammed down our throats.

It's not too late to sway this, you have to get involved. Say no to the Colombian Free trade Agreement

Act Now! Click Below!!

Thanks to Omaha Steve at Democratic Undergrounds' Labor section for the initial story

and to Jason Lefkowitz at the Change to Win WebBlog for the Hillary campaign info