- UAW workers at mass labor rally in Lansing April 13 2011
LOW EXPECTATIONS ARE MET IN GM-UAW DEAL
Labor Notes
by Jane Slaughter | Mon, 09/19/2011 – 4:39pm
Update: For an analysis of the contract by UAW bargaining committeeperson Gary Walkowicz, click here.
For an analysis of the contract’s “lowlights” by the Autoworker Caravan reform group, click here.
The United Auto Workers settled the first of the Detroit 3 contracts Friday night with an agreement that appeared to meet the low expectations union bargainers had worked hard to instill in members.
Although the union has not disclosed details, it appeared that second-tier workers at GM, who make $14-$16 an hour, will go up $2-$3 by 2015. They comprise about 5 percent of the workforce. While welcome, the raises will leave them far behind first-tier workers, whose $28 wage will remain frozen, as it has been since 2005.
Diego Rivera mural: autoworker at central, portraits on side include Karl Marx; the original version of this mural was destroyed in New York City but restored in Mexico
A $5,000 signing bonus will sweeten the deal, and the union promised a more “transparent” profit-sharing formula. One GM worker writing on a website for reformers fumed, “We lost that much since the ’09 giveaway.”
UAW President Bob King has said that each Detroit 3 worker has given up a total of $7,000 to $30,000 since 2005. He stated repeatedly over the course of negotiations that he wanted to keep costs for the automakers down, to help them compete with non-union companies.
Nick Waun, an outspoken reformer at GM’s Lordstown, Ohio, plant, says his strategic location—near the restroom—means that workers usually stop to chat.
Lordstown Ohio Complext East plant
“I haven’t talked to anybody who says they’ll vote yes,” Waun said. “The main reason is that it doesn’t look like they get anything back at all. And it doesn’t sound like there’s any kind of bridge between tier two and tier one—it’s total separation.”
NO CONTRACT CAMPAIGN
Unlike many unions, the UAW runs no contract campaigns to pressure the companies during bargaining—no buttons, T-shirts, rallies, or even clear demands. Rank and filers and local officials glean snippets from the newspapers, and wait to see what bargainers will bring back. Under the terms of the 2009 government bailouts, neither GM nor Chrysler workers are allowed to strike.
At Ford, the most profitable of the three companies, workers face no such restriction. Yet rather than go to the strongest company first to set the pattern, as was the union’s strategy in pre-concessions days, King bargained first with GM and Chrysler.
Ford workers turned down concessions 3-1 in fall 2009, and workers there are seen as more restive and willing to vote “no” again.
Ford made $6.6 billion in 2010 and GM $4.7 billion. Chrysler saw an operating profit but posted an overall loss of half a billion because of interest on its loans paid to the American and Canadian governments.
The tentative agreement is said to reopen GM’s closed Saturn assembly plant in Spring Hill, Tennessee. Reformers who’d campaigned for “equal pay for equal work”—ending the two-tier system—are watching to see whether those jobs will be at the lower pay.
They note the Saturn plant is one of 14 factories and three warehouses the company has announced for closure since 2009, costing almost 22,000 hourly jobs.
Over the summer reformers sold T-shirts and circulated flyers by the thousands that demanded equal pay and restoration of the cost-of-living allowance. At Detroit’s Labor Day parade, workers held banners demanding “End 2-Tier” and got thumbs-ups from UAW marchers. They will post an analysis of the tentative agreement at autoworkercaravan.org.
Gary Walkowicz, a bargaining committeeperson at Ford, said workers need to look for hidden concessions or loopholes not explained in the union’s “Highlights” handout.
At GM in 2009, for example, a seemingly harmless clause said the parties “will work together…to arrive at innovative ways to staff [small car] operations.” That language was used to justify slashing wages at a Michigan small-car plant, where 40 percent of the workforce was placed on permanent second-tier wages—without a vote.
Local informational meetings will take place next weekend, followed by ratification votes. A UAW talking points memo said, “Once again the UAW has shown that it is completely committed to helping the U.S. auto companies succeed.”
Related stories
- Will Auto’s Three-Tier Wages Be on the Table?
- Rank and File Auto Workers to Take On Concessions
- UAW Dissidents Push Second-Tier Workers into Contract Talks
- Auto Workers at the Auto Show: End Two-Tier!
- Canadian Auto Parts Workers Say ‘Enough Is Enough!’
- UAW Forces Indy Members to Vote on Cutting Pay in Half
- Indianapolis GM Workers Resist Company, Union Pressure to Cut Pay
- UAW Contract’s Hidden Surprises for Skilled Trades
Sent from Ron Lare: Cick on Putting the new GM-UAW contract in historical context
From Gary Walkowicz (forwarded from Ron Lare)
UAW brothers and sisters, I got word tonight that the UAW will go to Ford next. If we want to get a better contract than GM, we have to get ready for a fight. I think the Ford contract will be similar to GM, except that they will probably put the money for the grievance into our contract. The money for the grievance may even seem like a large amount. They may hope that it will be enough to get us to vote for the contract. People need to think about how much money we have lost over the last several years of concessions and how much more money we would lose if we don’t get back our raises, COLA and all the other concessions we have lost.
From Gregg Shotwell
GM CEO Dan Akerson and UAW President Bob King
The problem with UAW contracts is that the “parties” as the UAW and the companies like to call themselves frequently get together and change the contract after it is ratified by the members. Thus, I am more concerned about things the UAW doesn’t say about a tentative agreement than what they do say. If you read the “white book” you will see language that is crossed out. This indicates old contractual language that has been deleted. When new language is added it is underlined.
As I cited before: in June GM reported that its pension was $10.8 billion underfunded.
GM VP Stephen Girsky who is also a UAW-VEBA trustee (that’s right, he negotiates with himself which is why he doesn’t experience any conflict of interest) told investors, “We want to take the pension risk off the table.”
UAW sign at April 13 labor rally in Lansing
In the 2011 UAW-GM pension supplement under the title Pension De-Risk it states:
“The parties further discussed the possibility of amending the Plan to provide additional options for certain current retirees that would help GM manage its pension risk and benefit such retirees that voluntarily agree to participate. To this end, the parties agreed that the National Parties may mutually agree during the term of this Agreement to amend the Plan to add retirement options for some or all existing retirees that help GM reduce the volatility and risk related to the Plan and benefit existing retirees by providing an additional voluntary option.” — Pension De-Risk Consideration : 2011 UAW-GM Supplemental Agreement Exhibit A (Pension Plan) page 161.
What is troubling is that the “parties” have given themselves legal cover “to amend the Plan” during “the term of this Agreement.” Perhaps, dear reader, you are comforted by the word “voluntary.” It denotes a certain safety for those who don’t wish to walk the plank. In my experience parties that seek volunteers are inclined to influence choice with persuasive tactics that resemble a sword in the back. But the point is: if members ratify this contract, the “parties” have legal justification to amend the pension plan.
why should you be concerned about unions when the retirees are no longer associated with GM but with their government sponsored pension program. I wouldnt pay dues if I were retired, thats retarded.
I would first look at all the “bedtime” the UAW has with each company/How can the UAW represent GM, FORD, ,Chrysler, Veba, retirees and active employees??!?!?!? This is an insult ! Whp do I trust more ? NOT ONE SINGLE ONE OF THESE PEOPLE…I will guarantee that when the time comes, and the current ‘veba’; idiots are ready to retire the cash drawers WILL OPEN…Screw them all it’s time for a federal investigation ! I know that during MY time I was told every contract that our benefits were absolutely guaranteed..If they were not WHAT THE HELL WERE THESE IDIOTS DOING!! Reminds me of the old teamsters,,welcome aboard the train to dollars for the reps and payments made by the membership!! They dare protect new employees before me , the one who fought to get those benefits and now you low life’s take them form me and are so worried about 2 tier ….!!!!! I made a bad decision going union I can honestly say…STAY AWAY FROM UNIONS AND FIGHT YOUR OWN BATTLES>>BECOME MANAGEMENT AND TAKE FROM THE HILLBILLIES INSTEAD OF BEING THE HILLBILLY SUCKER
I am sorry to say this, “My union embarrasses me and all labor unions”.
I remember walking picket lines in all kinds of weather, earning $40 wk., for equal pay and retiree benefits. After working for GM 30 yrs. and being a UAW rep, I thought I had reached the promised time of retirement. Instead my pension was cut in half when I became eligible for Social Security and I am paying more for health care. Rather than give retirees a little help at Christmas ($700 bonus), the UAW has decided to give active employees thousands in a signing bonus. The active workers
are earning paychecks, working overtime, getting profit sharing, and signing bonuses. The retirees aren’t getting anything except a few health perks that simply replace the benefits that I walked the picket line for, many years ago.
Is there no legal recourse to pursue when you retire with certain benefits and after you’re gone, they begin taking those benefits away? How do they continue to get away with that? Yes, Virginia, there is a Grinch.
To the UAW bargaining committee,
It sickens me to think that GM and the union so easily neglect the rights of retirees. When they made the decision to work for GM 30 or so years ago, part of that agreement was a negotiated wage with benefits and retirement. Many people stayed in the plants because they were looking forward to a little bit of security until they could collect social security (which isn’t much to live on these days). My husband worked long hard hours keeping the machines running to make parts for transmissions. He worked with toxic chemicals, and worked in extreme heat conditions during the summer. He was a hard worker just like the majority of people who worked for GM. You have slackers everywhere but it’s sad that the public has this image of GM workers being lazy. I worked in a GM plant and I know how hard people worked.
It sickens me to think that GM, the Union and the public talk about GM workers pensions being legacy costs and a huge burden to the company. Our country is falling apart. I believe it’s all a huge plan for corporate america to keep getting big money and systematically destroying the future of American workers. It started with the airlines, then the auto workers, next it will be fireman, police, nurses, teachers and professors. There is so much propoganda by our government and our leaders.
We have given up wages and agreed to concessions and now they want to screw the retirees. Kick the older workers in the ass after you have made all your money. As we age, we need health benefits the most and most GM retirees continue to work to supplement their income after they retire. Our country is falling apart all because of greed. I think it’s time that we all wake up and start picketing and complaining. People really don’t care about other workers until it hits them personally. I hear the public complain all the time about GM workers crying about their pensions. What most people don’t realize is that when workers are eligible for social security, some of their pension supplement drops. How many older retiree Americans can live onn $22,000 a year which is what my father-in-law gets ( he retired about 20 years ago). Sure his house is paid for, but he has to pay taxes, utilities, vehicle upkeep and health care costs. He is 83 years old and spends most of his money on prescriptions and medical costs.
Yeah union just kick the GM workers in the pants because they buy your cars too! GM and the union are sell-outs! Shame on you for screwing the retirees! Companies don’t care about workers they care about profits and profits only and they consider retirees a huge BURDEN. I believe in karma and those who behave this way will get their due reward one day. Just my 2 cents worth
you all will really be upset when you discover that the pension supplement that used to be paid until you reached 80% social security level….in my case until age 63…will now stop at age 62 and 1 month. Meaning we will lose about $14000.00 from what those in the last contract got…and when I draw social security at 62 and 1 month I’ll only get 75% instead of 80%
To the UAW Bargaining Committee,
it is a crying shame, that the UAW made no Effort to include the GM Retirees in the 2011 Contract.
After all the Sacrifices Retirees had to make in 2009, the UAW should have gotten
SOMETHING for us.
All the Bargaining was for active Employees and the Retirees were left out.
We are still paying Union dues, with no Representation.
The UAW needs to make good on this and restore our Faith in the Union.
Dear Bob King,
YOU ARE SUPPOSE TO REPRESENT ALL UNION DUES PAYING MEMBERS.
I worked 41 years and 30 years for GM and my wife did too.
We paid almost $15,000.00 in union dues. More than any worker still working today. AND WE STILL PAY UNION DUES. We lost over $5,000.00 in cuts to our pension checks per year already fuguring the cash cuts, increased co-pays for health insurace, medicines, dental and vision insurace we now have to pay for out of our pension checks.
U are right we got nothing sad but one day they be retire with nothing
I think the retirees ought to picket again to get back some of our benefits, that we got and don’t have. The rank and file gave us up so freely to take care of them self’s.I think Bob King and his board owes retirees an apology a long with the rank and file. I know they won’t reopen the contact for the retirees cause we can’t vote. That’s why we should hit the picket line again so we can be heard, then maybe they can us.
A GM retiree
I think every one should be at the Orion plant on Friday OCT. 14th when oOOOBAMMAA will be at the plant, he and along with all the other uaw top guns should have the nerve to say why they dumped on the retirees. I think they never needed the so called bailout it was just a ploy so they could say the retirrees were the old gm and now that it’s the new gm is making all their big money they can give 5000.00 + to the employees. Well the retirees were suppose to get their 700.00 up to dec. 2011. That was under the old contract but how can they break it. It was a signed deal. Furthemore you non uaw people think we have it so good! They have cut half our meds or raised them to a price we can’t afford.After 34 years all I got was I can’t walk, I lost my eye and a big kick in the butt from the union. Everyone should meet at the orion ( all retirees) on friday. We made gm, now they want us to just go away. Well Not Without A Fight!!