Ukiah Daily Journal from Ukiah, California on June 10, 1998 · Page 5
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Ukiah Daily Journal from Ukiah, California · Page 5

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Ukiah, California
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Wednesday, June 10, 1998
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Page 5
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THE UKIAH DAILY JOURNAL Commerce WEDNESDAY, JUNE 10, 1998 — A-5 ^Strike forces GM to close two assembly plants, affects three By BRIAN S.AKRE AP Auto Writer DETROIT - A United Auto Workers Strike at a General Motors Corp. plant in Flint has idled two. of the automaker's assembly plants and affected work at three others. It is expecfpd to spread further unless a settlement is reacheWsoon. A plant in the town of Orion, north of Detroit, and another in Kansas City, Kan., were idled Monday because the strike by nearly 3,400 workers at the Flint Metal Center caused shortages of hoods, fenders, doors and other sheet-metal parts. GM and UAW officials recessed talks Monday afternoon. Talks were scheduled to resume today. Norm McComb, a vice president for UAW Local 659, said Monday that there had been no progress in the talks. GM officials declined to comment. The strike, which began Friday, is largely over work rules and staffing levels. » In addition to the Orion and Kansas City plants, the shutdown affected three other of GM's 16 North American assembly plants supplied by Flint: •The light truck plant in suburban Moraine, Ohio, was to be closed today. Employees there worked reduced five-hour shifts Monday. The plant makes GM's midsize sport utility vehicles, including the Chevrolet Blazer. About 4,300 workers were affected t> •One thousand of the 2,700 workers at the plant in Oshawa, Ontario, that makes the Chevrolet Lumina and Monte Carlo, were sent home Monday. The second shift was scheduled to work Monday night. There was no word on whether the plant would operate today. , ; »GM sent home 2,100 of the 2,550 employees at (he Buick plant in Flint on Monday. The plant makes Buick LeSabre and Ppntiac Bonneville sedans. GM said it had not decided whether work would resume today. , j At the GM Truck and Bus Group in Fort Wayne, Ind., UAW Local 2209 President Joe Burkhamer said the assembly plant likely would run out of parts for Chevrolet C/K pickup trucks by Thurs- day. Burkhamer said a prolonged strike could result in layoffs for many 6f the plant's 2,700 workers. The Fort Wayne plant also makes me GMC Sierra. In Orion, about 2,800 workers on the early shift were sent home and about 1,100 were kept to do maintenance and repairs, GM spokesman Gerry Holmes said. The plant makes five full-size cars: the Oldsmobile Eighty-Eight and Aurora, Buick Riviera and Park Avenue, and Pontiac Bonneville. The Fairfax plant in KanSas City, Kan., which makes the Pontiac Grand Prix and Oldsmobile Intrigue, was closed after Monday's day shift, affecting 2,900 workers. The strike's effects was spreading to other parts plants as well. GM's Delphi Interior & Lighting plant in Auburn Hills was closed, affecting at least 200 workers, Delphi Automotive Systems spokesman Ray Deibel said Monday night. He said the total number of affected workers would be released Tuesday. GM's cost-cutting and plant closures over the past two decades have resulted in the loss of about 50,000 jobs in Flint. Workers at the stamping plant fear their jobs may be next. "I feel like they want to reap the benefits, but don't want to let us have anything," plant welder Charles Elam Jr., a 13-year GM veteran, said on the picket line Monday. GM says it cannot save money using new equipment at the plant unless restrictive work rules are changed. Officials cite a rule that allows workers to meet a daily production quota in less than eight hours but get paid for a full shift. The Flint plant is among the least competitive within GM, according to the Harbour Report, an independent ranking of the efficiency of North American auto plants. The UAW has threatened to strike at a second parts plant in Flint on Thursday if no settlement is reached. The Delphi-Delco complex, with about 5,800 hourly workers, makes instrument panels, spark plugs and other parts used in nearly all GM cars and trucks. Window winner Julia Orpheus/The Daily Journal Ken Fowler, (left) Carole Jones (second from right), and Mayor Sheridan Malone congratulate Candice Peroni of "Completely Candice" for her winning window display honoring "A Taste of Downtown." Philadelphia market agrees to be acquired Company announces jetliner production rates The Associated Press SEATTLE - The Boeing Commercial Airplaiie Group plans to cut production on the jumbo 747s by 30 percent in 1999 because of a decline in demand stemming from the economic crisis in Asia, the company said. Boeing plans to produce five 747s per month in the first quar- ter of 1999 and 3.5 per month in- each of the following three quarters. : "The continued slow traffic •growth in Asia has caused some airlines to negotiate slides in deliveries of their 1999 747 'orders or to substitute other Boeing airplane models for their •existing 747 orders. This means we have to reduce the rate on the 747 program," Fred Mitchell, "the group's executive vice presi- 'dent of airplane production, said •Tuesday. ' Boeing also said its production plans would likely result in elimination of some jobs in the Commercial Airplane Group, in Addition to the 12,000 already •'announced. The company plans to begin reducing employment in mid-1998. Still, the aerospace giant plans to increase overall production of jetliners from the current 47 a month to 51 airplanes a month by the first quarter of next year, followed by 50.5 per month in the second and third quarters and 48.5 per.month by the fourth quarter. Mitchell said there,is strong demand for some-mpdelSj.partic- ularly the Next-Generation 737. Production will increase in the second quarter of 1999 for the 737 models from 21- airplanes per month to 24 airplanes per month as it decreases on "Classic" 737-300, -400 and 500 models from five airplanes per month to three airplanes per month, by mid-1999. In total, 737 production will rise from 26 airplanes per month to 27 airplanes per month in the second quarter of 1999. As planned, Boeing will also change production of the 777. from seven airplanes per month to five airplanes per month in the fourth quarter of 1999, but plans to return to the seven-per- month rate in 2000. Rates will remain unchanged for the Boeing 757,767, MD-80, MD-90 and MD-11 programs. Also, Boeing plans to deliver its first 717-200 in the second quarter of 1999 and will continue further 717 deliveries during the year, establishing a formal production rate for the 717 in 1999. By DAVID KINNEY Associated Press Writer PHILADELPHIA - Merger fever isn't just for companies these days. The Philadelphia Stock Exchange, North America's oldest trading floor, has agreed to be acquired by the American Stock Exchange. The Amex is already joining forces with the parent company of the Nasdaq Stock Market. The Amex beat out a competing bid Tuesday from the Chicago Board Options Exchange for the Philadelphia exchange's lucrative stock-options business. "We can preserve the best of the past and assure our strong future," said John Wallace, the acting chairman of the Philadelphia exchange, which also has merger plans with the National Association of Securities Dealers. The nation's securities exchanges have been combining in an effort to upgrade technology, cut trading costs, and lure capital and corporate listings away from powerful rivals like the New York Stock Exchange. The Philadelphia exchange is handling more business than ever despite executive vacancies that have delayed the release of its 1997 annual report. Approval of the deal may face several obstacles. The 21-member Philadelphia board includes several allies of Securities and Exchange Commission Chairman Arthur Levitt, who ordered reform of the Philadelphia exchange last spring and has said he wants the regional markets to stay indepen- dent. Amex's competing offer had several key advantages over the Chicago proposal. Amex said it would keep a trading floor in Philadelphia for five more years while the Chicago exchang planned to move the Philade phia floor to a new location over a two-year transition period. Closing the exchange would cost Philadelphia some 1,000 jobs. The exchange has a solid position in currency, stock and stock- sector index options, but its market share in stock trading has diminished in recent years. Regional markets like it have survived by relying on their options, which allow investors to bet on the future price of U.S. stocks and 10 foreign currencies. Regalos 463-0611 Catholic Gift Shop Open Tuesday thru Sunday 10:00 am to 7:00 pm 2195 South State Street Ukiah, California 95482 Gifts of Christian Faith • Music • Cards • Statues • Wedding Gifts • Deuotionals Children's Gifts And Much More! • Videos • Books • Jewelry • Baptism Gifts • Rosaries • Pictures Spanish Gift Items r Roofing contractor? ..roofing contractor.. Quick... name a Roofing Contractor. Enroll Now For Summer Fun! Q Fees Reduced to Only $12 per Unitl Free Summer & Fall Schedules Available - Call For Your Copy Q Summer Registration: June 8-16 Monday-Thursday, 9:00 AM-4:QO PM Q Summer Classes: June 15-July 23 Classes: Administration of Justice, Agriculture, Art, Automotive Technology, Biology, Business, Business Office Technology, Child Development, Computer Science. 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