goodfellowsmansfield.com

Wednesday, May 27, 2009

Workers at the Linamar automobile parts factory in Swansea, Wales voted by a wide margin today to strike, after an dispute over the firing of one of the worker’s union organisers remained unresolved.

An 88% turnout resulted in a vote of 139 in favor of striking to 19 against.

Canada-based Linamar took over the plant from Visteon in July 2008. Shortly after the takeover, Linamar offered 208 of the plant’s 360 workers voluntary redundancy, hoping to transfer work to Mexico; 140 accepted. Linamar claims to have no long-term plans to close the plant. On April 28, however, Linamar fired political activist and union convener Rob Williams. Upon Williams’ firing, he refused to leave the Visteon plant. The police escorted him from the building as the day shift workers at the plant staged a spontaneous walkout. Williams was temporarily reinstated after emergency negotiations between Unite and Visteon management, but his dismissal was made permanent a week later.

Unite, Williams’s trade union, describe Williams’s firing as an “illegal” “attack on the union” and has brought the matter to the attention of UK Prime Minister Gordon Brown. Williams himself told left-wing newspaper Socialist Worker: “They have sacked me because they want to weaken the union and intimidate the shop floor.”

Workers at the plant also say Linamar is breaking a promise made to the union when the plant was taken over to keep Visteon’s terms and conditions, particularly to establish a final pension scheme for workers who were part of the company before its 2000 spin-off from Ford.

Linamar has not given comment to the press on the dispute as of this writing.

Rallies in support of Williams, who is also running for European Parliament on the No2EU ticket, and of the union have drawn sizeable crowds, with about 90 at the most recent rally include three Members of the Welsh Assembly representing the ruling coalition of the Labour Party and Plaid Cymru as well as the Liberal Democrats, on May 17 outside the Visteon plant in Swansea.

Linamar Swansea has close ties with Visteon factories in Enfield, Belfast and Basildon. Workers at those three factories recently won a victory against Visteon by occupying their plants and locking management out when redundancies were announced in April.

Sunday, June 26, 2005

The median house price in the United States plunged 6.5% in May to $217,000. In February of 2005, the median price of a home was $237,300.

The Economist newspaper said in its June 16th issue; “In other words, it looks like the biggest bubble in history.” by way of reference to what is happening with housing prices in the USA and much of Europe.

Japan provides an example of how a boom can turn to bust. Property prices have dropped for 14 years in a row (40% from their peak in 1991); and yet, the rise in prices in Japan during the decade before 1991 was less than the increase over the past ten years in most of today’s “housing boom” countries.

The total value of residential property rose by more than $30 trillion over the past five years in developed economies, an increase equivalent to 100% of the combined GDPs of those countries. This increase dwarfs all previous house-price booms and is greater than the global stockmarket bubble in the late 1990s. Much of the recent housing activity is being driven by speculative demand. The National Association of Realtors (NAR) reported that 23% of all American houses bought in 2004 were for investment, not for owners to live in. Another 13% were bought as second homes. NAR also found that 42% of all first-time buyers made no down-payment on their home purchase last year.

Many investors are buying solely because they think prices will keep rising, which is a warning sign of a financial bubble. In Miami, Florida, as many as half of the original buyers resell new apartments even before they are built, and properties can change hands two or three times before somebody finally moves in.

Britain’s Royal Institution of Chartered Surveyors (RICS) reported prices have been falling for ten consecutive months. Forty nine percent of their surveyors reported falling prices in May. This was the weakest report since 1992 during Britain’s previous house-price bust.