The National Labor Relations Board has been a model of instability these last half-dozen years. And the drama, though temporarily resolved last July, won't likely end soon. Last Thursday, June 26, the Supreme Court unanimously ruled in Noel Canning v. NLRB that President Obama exceeded his authority in making three "recess appointments" to the NLRB on January 4, 2012 during a Senate break which, in the eyes of the Court, did not qualify as a recess. "The Senate is in session when it says it is," wrote Justice Stephen Breyer. Yet the ruling was not a full defeat for Obama. By 5-4, the four liberals on the Court, joined by Justice Anthony Kennedy (in photo), also ruled against the near-elimination of presidential recess authority and thus undercut a circuit court ruling in January 2013.
General Motors has finally responded to our May 13 request that it recall 6 million Chevy Silverados and other light trucks and SUVs. In a letter from Jeffrey Boyer, Vice President for Global Safety, GM is sticking to its longstanding claim that a brake line corrosion problem results from "wear and tear." From Boyer's letter:
Brake line wear on vehicles is a maintenance issue that affects the entire automotive industry. As with every vehicle part, our safety personnel regularly investigate brake line complaints for possible defects.
This statement is directly refuted by National Highway Traffic Safety Administration (NHTSA) data. The kind of corrosion affecting GM vehicles does not plague the rest of the industry. In the only other situation with any similarity, Subaru last year undertook a recall.
NLPC has extensively documented how Tesla Motors has taken advantage of market distortions to reap revenues – including government mandates, subsidies, and taxpayer support – not the least of which have been so-called “zero emission credits” from the state of California. But much of the revenue Tesla enjoyed last year – which often meant the difference between profit and loss – was credited based upon theoretical technological capabilities and not ones actually put into practice.
CEO Elon Musk has also relied on accounting gimmicks to enhance his bottom line over the last 18 months, during which a couple of quarterly earnings reports even showed a profit – albeit under non-Generally Accepted Accounting Principles. Those handsome returns were achieved in part thanks to a scheme administered under the California Air Resources Board in which additional zero emission credits are awarded to vehicle manufacturers based upon the ability for models to “fast fuel.” In the case of Tesla and other electric vehicle makers, the faster a car can recharge to the point it can drive a longer distance, the more credits it receives.
Rep. Charles Rangel (D-NY) faces a primary election tomorrow against State Senator Adriano Espaillat, who came within 1,100 votes of upsetting him two years ago, and Harlem preacher Rev. Michael Wolrund. If elected, Espaillat would be the first Dominican elected to Congress. In a June 6 televised debate, Rangel invoked Espaillat's ethnicity:
Just what the heck has he done besides saying he's a Dominican?...He wants to be the Jackie Robinson of the Dominicans in the Congress, which is ambitious, but the fact is, Jackie Robinson was a star before he reached the major leagues. And he's not a Jackie Robinson.
Well, it looks like New GM is not much different than Old GM when it comes to addressing serious safety issues on its vehicles. The Associated Press reports that General Motors CEO, Mary Barra, claims that GM has not turned up any other major safety issues. I guess Ms. Barra feels that two tons of steel traveling at high speeds with brake lines that can burst at any moment is nothing to be concerned about. The continued denial by GM that there is no safety issue with their trucks that are prone to brake line corrosion proves that the company has a long way to go before they change a culture that puts profits ahead of motorists' safety.
The United Auto Workers may have declined in numbers, but its taste for confrontation appears as strong as ever. And its new leader, Dennis Williams, isn't about to let anyone forget. Last Wednesday, June 4, Williams, the UAW secretary-treasurer these last four years, overwhelmingly was elected president at the union convention in Detroit. Inaugurated the following day, Williams, now 61, replaces one-term President Bob King, who at age 67 retired in the face of the union's mandatory age limit. Williams' main priority is ending the two-tier wage system to which the union agreed in 2007 as part of a deal to keep General Motors, Ford and Chrysler afloat. He'll get to test his mettle in contract negotiations next year. The union shouldn't lack for funds in this or any other endeavor; delegates approved a 25 percent dues hike.
The long-awaited General Motors recall report, which was compiled by attorneys with longstanding and lucrative ties to the company, has been released with few surprises. GM-hired attorneys claim that no high-level executives at the company were responsible for the deadly ignition switch recall delay that cost at least 13 people their lives. The report does nothing to vindicate GM. The company's management must be investigated by the Justice Department.
It is expected that GM's internal investigation will absolve GM CEO Mary Barra of responsibilty for the deadly recall delay that resulted in at least 13 deaths and 31 injuries.
I don't think anybody expects an investigation paid for by GM and conducted by lawyers with longstanding cozy relationships with GM to be anything but a whitewash. This only increases the necessity of NHTSA and Congress getting to the bottom of the delay. They owe it to the victims and the public.
People are tired of hearing leaders at the highest levels of responsibility claim that they were simply not aware.
Here are some questions for GM, NHTSA and Congress: