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More then a few posts have recommeded that GM just set up a little overtime to get more Solstices built. Well I did somethinking on that. This assumes that materials would be available for this increase.

The Delewareonline.com site that has been linked for a few stories, says almost 1,100 workers work at the plant.

The line rate hopes to peak at 56 per day during the EOP build. It isn't there yet so lets use 45.

The UAW says that in the 2nd quarter of 2003 an assembler made $25.63 per hour and skilled trades $29.75 per hour. Without finding and reading their contract, Delaware labor rules, wage increases, factoring in shift premiums, make up time, payroll taxes, workers comp, cost of having the plant open or what ever, lets say the half in "time and half" is $15.00.

(1,100 workers x 8 hours x $15 per hour)/45 Solstices = $2,933 premium (or more?) on each Saturday or Sunday car.

Of course this is just a simple model filled with errors, but dosen't it show why Gmlinedog and friends will have Saturday & Sundays off for a time.
 

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More money yes but much cheaper than adding a 3rd shift (new hires, training, equipment etc.) that then later might need to be down-sized when demand drops off.

But your point taken, OT does eat into the bottom line by increasing the cost of labor.
 

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Is the plant now running more than one shift? If so, how many of those 1100 workers are on each shift? Because that would make a difference in how much it adds to each car. But, no question, it affects the bottom line regardless.
 

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Ot

Small Dealer said:
More then a few posts have recommeded that GM just set up a little overtime to get more Solstices built. Well I did somethinking on that. This assumes that materials would be available for this increase.

The Delewareonline.com site that has been linked for a few stories, says almost 1,100 workers work at the plant.

The line rate hopes to peak at 56 per day during the EOP build. It isn't there yet so lets use 45.

The UAW says that in the 2nd quarter of 2003 an assembler made $25.63 per hour and skilled trades $29.75 per hour. Without finding and reading their contract, Delaware labor rules, wage increases, factoring in shift premiums, make up time, payroll taxes, workers comp, cost of having the plant open or what ever, lets say the half in "time and half" is $15.00.

(1,100 workers x 8 hours x $15 per hour)/45 Solstices = $2,933 premium (or more?) on each Saturday or Sunday car.

Of course this is just a simple model filled with errors, but dosen't it show why Gmlinedog and friends will have Saturday & Sundays off for a time.
We do this all the time, put on a product promotion and we get more orders than we can handle on straight time so we add Saturday OT shifts.
In summary, Sell more product at a cheaper price that costs us more to produce. The saving grace is the fixed factory overhead costs get spread out over more units procuced and that offsets some of the OT premium paid.
You also don't have a choice when you offer a promotion, you have to keep the customer satisfied and deliver the product not matter what it is costing you.
 

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The problem with having overtime at assembly plants is that you need 100% of the people to accept it, which is very difficult to do. There are clauses in most contracts that would allow the company force the people to work the overtime (I am not sure the exact specifics of Wilmingtons contract), but usually, it requires permission from the shop committe, and even then, I think they can only make it manditory 9 hour days (maybe 10 in some cases), and only a few Saturdays each year.

gmlinedog would be able to give better the details of what Wilmingtons contract states.
 

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Small Dealer said:
More then a few posts have recommeded that GM just set up a little overtime to get more Solstices built. Well I did somethinking on that. This assumes that materials would be available for this increase.

The Delewareonline.com site that has been linked for a few stories, says almost 1,100 workers work at the plant.

The line rate hopes to peak at 56 per day during the EOP build. It isn't there yet so lets use 45.

The UAW says that in the 2nd quarter of 2003 an assembler made $25.63 per hour and skilled trades $29.75 per hour. Without finding and reading their contract, Delaware labor rules, wage increases, factoring in shift premiums, make up time, payroll taxes, workers comp, cost of having the plant open or what ever, lets say the half in "time and half" is $15.00.

(1,100 workers x 8 hours x $15 per hour)/45 Solstices = $2,933 premium (or more?) on each Saturday or Sunday car.

Of course this is just a simple model filled with errors, but dosen't it show why Gmlinedog and friends will have Saturday & Sundays off for a time.

I'd guess that not all 1,100 workers work on the production line or in production related occupations (such as mechanics).

In addition, a lot of the assembly won't be directly linked. For example, maybe assembling a door is faster than putting together an engine. You need to identify where the bottlenexk is in the operation. That's the part that will require the overtime. A lot of the other people working there may be able to keep the line supplied in the normal 40 hours.
 

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The cantract reads that 30 days prior or 90 days after a chande over or untill full line speed they can work us up to 10 hr day and 3 saturdays a month.
 

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I've seen many suggestions here to add a third shift. Just to add my .02$ worth, I've never seen that done at an assembly plant, it's more feasable at some fab plants. If anyone can correct me, please advise.
 

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I'm not sure about GM, but I know Chrysler has done this several times in the past (St Louis assembly, Jefferson Avenue North) to supply hot products - but you're right, it is MUCH easier to do this at a component plant. Far fewer interdependencies - at an assembly plant, you pretty much have to run the whole plant or nothing at all.
 

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jwally said:
I've seen many suggestions here to add a third shift. Just to add my .02$ worth, I've never seen that done at an assembly plant, it's more feasable at some fab plants. If anyone can correct me, please advise.
You are correct. At the fab plants you can add a third shift of just a few people to run only 1 or 2 machines. And then increase it as you hire more people. At the assembly plants you would have to hire all the people, add them to first and second shift until they are trained, and them move them to third.
 

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Third shift

jwally said:
I've seen many suggestions here to add a third shift. Just to add my .02$ worth, I've never seen that done at an assembly plant, it's more feasable at some fab plants. If anyone can correct me, please advise.
The Chrysler minivan plant in Windsor Ontario has worked a three shift operation. If I recall they worked about 7 hour shifts and got paid for eight and PM maintenance was done between shifts.
 

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take into account the fixed costs of and employee such as benefits, management and vacation (pro rated) and the cost of overtime becomes a bit less
 

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The bottom line is this is a business. As long as they can get the first 1000 out in a reasonable time frame and deliver on their promises (summer delivery) then they will not add any more expense than they have to. Just my .02 cents
 

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If they add a 3rd shift then they have to be willing to commit to that shift for a long time.

I'd like to see it happen right now.

If they could produce 40 cars x 3 shifts x 5 days a week then that's 600 cars a week. And they could take thier time when it came to quality becuase they aren't running at 100%.

Now 6 months from now if they arn't selling 600 cars a week (sol + sky + opel) then getting rid of that 3rd shift requires a lot of layoffs and i'd imagin they would be paying the union a large chunk of change to do that.
 

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Or they could just get people from shifts 1 and 2 to volunteer for shift 3.

Some people, I'm sure, wouldn't mind the extra money.
 

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GM has people who get paid big bucks to predict how many they can sell long before the car is announced for production.

They might as well throw darts at a board. (that goes for all the auto manufactures)
 

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Overtime cost calculations

From a labor cost standpoint, overtime is generally far cheaper than straight time. All benefit costs are allocated to the forty hours of straight time. This includes costs such as healthcare, worker's compensation, holiday, pension, FUI, SUIetc. These rates typically in an assembly plant are in the 70% of straight time compensation. Therefore, working employees overtime at time and a half is cheaper than hiring a new employee.

Assuming that you are able to maintain productivity, it is generally 20% cheaper to build cars on overtime rather than straight time.

This, however, assumes that employees don't simply shift their hours to work a premium time Saturday rather than a straight time Monday.
 

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Scorch said:
From a labor cost standpoint, overtime is generally far cheaper than straight time. All benefit costs are allocated to the forty hours of straight time. This includes costs such as healthcare, worker's compensation, holiday, pension, FUI, SUIetc. These rates typically in an assembly plant are in the 70% of straight time compensation. Therefore, working employees overtime at time and a half is cheaper than hiring a new employee.

Assuming that you are able to maintain productivity, it is generally 20% cheaper to build cars on overtime rather than straight time.

This, however, assumes that employees don't simply shift their hours to work a premium time Saturday rather than a straight time Monday.
Thanks for the explanation Scorch, and welcome to the forum! :thumbs:
 

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Scorch said:
This, however, assumes that employees don't simply shift their hours to work a premium time Saturday rather than a straight time Monday.
Saturdays are Double time and Sundays are tripple time. And that doesn't include the Midnight shift premuium (if there was a 3rd shift)

I guess we better all pray that the UAW doesn't strike.. lol.. But that's pretty much a done deal from what I hear. That could halt production for a month or so! I hope I get my car before sept.
 
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