Downside Of JIT - Johnson Controls Strike Halts GM and Chrysler Production
CHICAGO, June 13 Reuters treported that four Johnson Controls Inc. auto parts plants remained idled on Thursday, as talks continued a day after nearly 600 workers walked off the job in a strike that is already disrupting production at General Motors and DaimlerChrysler plants that use the parts.
Strikes at three Johnson Controls facilities and picketing at a fourth caused parts shortages at two DaimlerChrysler AG and two General Motors Corp.factories in a chain reaction.
"We are continuing to talk and hopeful of a swift resolution," Johnson Controls spokesman Bill Dawson said.
He declined to discuss contingency production plans for the four plants in the event of a lengthy strike.
The plants supply seats for General Motors' Chevrolet S-10 pickup trucks built in Shreveport, Louisiana, and GM's GMC Envoy and Chevrolet Trailblazer sport utility vehicles manufactured in Oklahoma City.
The plants also produce interior roof and door components for DaimlerChrysler's Chrysler and Dodge minivans made in St. Louis and dashboard instrument panels for the popular Jeep Liberty SUV produced in Toledo, Ohio.
The United Auto Workers union, representing about 80 percent of the total 700 work force at the four Johnson Controls plants, has accused the company of anti-union acts and unfair labor practices.
The strike marks the first action under new UAW president Ron Gettelfinger, who has promised to work to ensure respect for the union at all companies doing business with Detroit's Big Three automakers.
Company and union officials are negotiating the first labor contracts at plants in Shreveport, Louisiana, and Earth City, Missouri, which became unionized in the past two years. Talks at the company's Oklahoma City factory, also for an initial contract, had been set to begin later this month.
The fourth plant, in Northwood, Ohio, has no official union representation.
Union members have set up picket lines at all four plants.
PRODUCTION HALTED
"The negotiations are continuing, the strikes are continuing, and as I understand it, they continue to be effective in that Johnson Controls is not producing much if anything at these plants," said UAW spokesman Frank Joyce.
The union said it had filed numerous charges with the National Labor Relations Board over alleged labor law violations at each of the four plants.
The union's charges include failure to provide legally required information; publicly belittling and disciplining union supporters; unilaterally changing work rules, job rotations, attendance policy, overtime, insurance packages and shift-operating times; and failure to bargain in good faith.
Chrysler spokeswoman Michelle Tinson said on Thursday the automaker had sent home the first and second shifts at its Toledo, Ohio, assembly plant that builds Jeep Liberty SUVs and at one of its St. Louis assembly plants that builds minivans.
Chrysler usually builds about 700 Liberty SUVs a day in Toledo and about 1,000 Chrysler Voyager and Dodge Caravan minivans a day in St. Louis. The Liberty is one of the company's hottest-selling vehicles.
Robert W. Baird & Co. analyst David Leiker said the strikes could shave 1 cent to 2 cents per share off earnings for Johnson Controls for each week production is shut down.
Leiker in a research note said he would maintain for now his third-quarter and 2002 earnings estimates for Johnson Controls and noted shutdowns at the automakers could have a residual impact on other parts suppliers.