UAW hands auto workers a double whammy
Filed under: Transportation, Career, Recession, Bankruptcy
The United Auto Workers Union has now given new meaning to the old saying; "Bend over, and we'll do the driving."The UAW has made a good faith pledge to the auto industry, regarding moves to shave employee benefits in exchange for the possibility of preserving jobs through a massive $34 billion government bail out. Unfortunately, those people who may be affected by the proposed UAW concessions shall most likely include auto industry workers who are sick or indefinitely laid off from work.
According to a report from Bloomberg, money-saving union agreements which will delay contributions to medical funds and suspend a program that pays laid-off workers, have been offered as sacrifice to the bail-out gods of congress. Bloomberg quotes Harley Shaiken, a labor relations professor at the University of California at Berkeley as stating: "This should be interpreted as a meaningful and a painful sacrifice.'' However, no one seems to truly take notice of exactly who is doing the sacrificing here.
First, let's remember that the stinking bailout money doesn't originate from congress. That money, amounting to about $2,400 per American household, is being forwarded on the names of each and every one of those sacrificing UAW workers. In essence, they will now be paying on both ends. It's their money which their employer is seeking from congress, and now their union says that those employees might have to bite down a little harder yet.
I haven't heard anything about UAW leaders making their own pay concessions. I haven't encountered one hint about union dues being reduced for workers. I haven't witnessed one little mention about any union curtailing its payments to political action interests. Just exactly who is sacrificing whom here?
There is no question that the UAW played its own part in creating this auto industry mess. All the while, they were getting quite fat and sassy through the process. If you want some constructive sacrifices made, which could improve the American auto industry's outlook, I say we might make a good start by unceremoniously dispatching some well-paid and shiny suited UAW fat cats.
But of course, that's just my opinion.
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Reader Comments (Page 1 of 2)
12-04-2008 @ 6:11PM
Laura said...
According to the anti-union website unionfacts.com, UAW President Ron Gettelfinger makes about $158,000 a year. Sure, he could offer to cut that back, but that would hardly make a dent in the problem, and it's a far cry from what the CEO's make. And your idea about reducing dues is impractical, given that the union has been given responsibility for providing health care for some of the workers now instead of the companies. Besides, laid off workers are not currently paying dues unless they are still getting paid by the company, because dues are taken as a small percentage (usually 1-2%) of a union worker's wages in the union job. So workers who are laid off indefinitely are not paying union dues.
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12-04-2008 @ 9:15PM
janet bajan said...
the sacrificing auto workers who are paid up to 95% of their salary when they're laid off?
give me a break.
long ago, american unions became just another form of big business. they need to go down the road of other businesses that haven't served us well.
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12-05-2008 @ 12:33AM
zeebs said...
amen to that!
12-04-2008 @ 9:55PM
RAYZ said...
I'VE READ THAT AFTER PAY AND BENEFITS AUTO WORKER MAKES $70.00 PER HOUR. UNION GREED PUT THE AUTO INDUSTRY IN THIS POSITION. UNSKILLED LABOR MAKING MORE THAN TEACHERS. WHEN WILL UNIONS BE ACCOUNTABLE FOR THE MILLIONS THEY COLLECT IN UNION DUES?
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12-04-2008 @ 10:25PM
Gary said...
Unions negotiate for fair and equitable benefits based on the profits of the employer. Why do you blame the workers for getting their fare share of an employers profits. Just because you don't consider them skilled compared to teachers is just plain silly. Working at an auto assembly plant is alot harder than sitting in a class room teaching kids to read and write. Besides, most teachers form unions to get better benefits too! You can thank the republican party for limiting what unions can do for those professons, including the medical field and others.
12-04-2008 @ 10:27PM
Bob said...
The unions need to implode. When the members get their priorities straight then maybe they will realize that a union does not need a $1 billion strike fund and workers who are laid off should not get any of their pay to sit home. People ought to start thinking about moving out of Michigan because in 10 years it will be a ghost town. We should all move down to Mexico and start all over again without skyrocketing taxes, healthcare thats unaffordable for many and more ways to constantly pull money out of our pockets. It seems to me that people in these so-called "third world" countries have a greater degree of freedom than we do.
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12-04-2008 @ 10:30PM
Arthur said...
The Press would have you believe that the typical UAW worker makes 70 to 80 bucks per hour if you pick up a magazine or watch the news.If you watched the talks today you would have heard that a Pennsylvania Senator said that it was wrong for the press to keep saying that and later the average pay by a UAW Auto Worker stated today by Senator Dodd was $28.00 an hour while Toyota Workers at Georgetown Kentucky are paid $25.00 an hour.The 70 to 80 dollar an hour figures come when you try to include the the current workers pay plus their medical insurance,dental insurance,vision insurance,vacation,holidays,jury duty,bereavemant pay,and the monetary funds tied to Legacy Workers(retired workers )benefits and add all those quirks to their base hour salary.
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12-05-2008 @ 9:55AM
Parker said...
So, what the hell is your point? I think most of us clearly understood that what the 'press' was referencing was the inclusion of all those 'benefits' you've alluded to... as "their pay package". The comparison between 'Detroit' workers and 'toyota' workers... is still valid. The relative value of Toyota's "pay / benefits compensation package"... is still roughly half that of "Detroit's". Absolutely outrageous.
Robots and a few 'trained monkeys' could accomplish the same quality of 'build'... and at a much cheaper accounting.
Besides, you simply ignore the "fact" that all those ridiculous costs and expenses are passed onto the rest of "us"... the consumers. In truth... the Japs build a much better product... and do it a lot less-expensively.
Screw Detroit (they've been screwing us for the past forty years, or more), and, screw the unions. Americans should unite... and put their hard-earned dollars where they will get the best deal... the best product. Enough... is enough.
12-04-2008 @ 11:58PM
Rhonda said...
I can't believe that so many people want to believe that auto assembly line workers are paid $70.00/. What other industry do people put benefits like health insurance, vision care, retirement and into their wages. That is not a wage. That is a benefit. I have never heard about office managers or even city workers benefits being rolled into their wage like they do for auto workers. It is amazing how many people think it is the line workers who are greedy. They are the ones who get injuries from doing the same motion over and over again. That is where your quality car comes from. Most really do earn what they make. Many can't retire with their health. They deserve to earn a fair wage and benefit package. CEO's pay is way out of control. Most could never spend it in their lifetime and use more company money for extras. That needs to stop. Let's get real!
How about those Senators who wrote themselves such a nice retirement package on our tax money. Social Security is suppose to be good for everyone, except them! They live very nicely off us even when they retire, up until they die. Do you ever hear about that? They have the package we could only dream of. Don't blame the hard working little people!
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12-09-2008 @ 5:29PM
helen said...
you are so right would be nice if people would take a step back and actually take a look at what will happen if the auto industry goes under. it would be devestating to this country. the jobs that would be lost. lives would be destroyed from being homeless and retirees. people worked all there and there penisons could be gone in instant. there are no sure things in this world. so to the people who are harsh to judge you might not relize this but it will affect you no matter what kind of work you do. so all must pray that bailout happens.
12-05-2008 @ 12:30AM
Judy said...
what a joke. so, you don/t like unions. well, you are going to have a mighty big stomach ache when unionization turns into general strikes. you won't even be able to get your toilet flushed properly as general strikes sweep the country. it's so annoying not to be able to go anywhere, get any food or any merchandise delivered. better stock up for those empty shelves and your cable tv and telephone going blank, when every worker walks. and, you might want to go to a bookstore now and get yourself a good read on labor history in america. you can still be stupid, but at least you won't be ignorant.
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12-05-2008 @ 9:55AM
Ronnie said...
Let the unions strike nation wide.
It will not affect the South.
12-05-2008 @ 10:14AM
Parker said...
Therein, lies a major problem... the unions represent "extortion"... not, fairness... not, honesty.
Putting a gun to the rest of the nation's head, to satisfy your own greedy "needs and desires" is NOT appropriate... is NOT justified.
12-05-2008 @ 6:54AM
just me said...
I remember when I was little and my mother was laid off from GM. The union thought they were "helping us" because they offered us tickets to go and see the Buffalo SAbres play. Looking back it doesn't make much sense as she had to pay for gas and parking and we had a snack at the game. This was when she was laid off for I think a year. go team.
Then there was the time she was laid off and we drove up to the UAW because they had two trucks of that nasty government cheese. She was allowed to get two blocks of free cheese. I think that was around 1980. It's been roughly 30 years and I still can't eat grilled cheese sandwiches.
Yes, I think the car companies should have to fall a bit as it isn't all the Union's fault. I've never liked the union, it's like a special club and I never liked the reps, but upper management needs blame as well.
Aside from my from myself, whatever happens will affect my everyone in my family either from current worker or retired parents.
Thanks for reading my rambling.
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12-05-2008 @ 7:00AM
justme said...
AFTER WATCHING OVER 5 1/2 HOURS OF BIG 3 , AND 51% OF CITIZENS DOESN'T APPROVE TO HELP BIG 3 , IT TELLS ME , THESE PEOPLE HAS NOCONCERN FOR ANYONE BUT THERESELVES , THEY'RE SELFISH PEOPLE. BUSH COULD HELP IF HE WANTED TOO , BUT HE'S NOT WORRIED , WHYBECAUSE HE HAS HIS BANK ACCT FILLED WITH MONEY BEFORE HE LEAVES OFFICE . NO IM NOT A DEMOCRAT , BUT MY HEART GOES OUT FOR ANYONE WHO NEEDS HELP , ESPECIALLY IN THIS ECONOMY . YOU PUT YOURSELF IN PEOPLE SITUATION BEING LAID OFF , WHEN ACTUALLY THEY WOULD RATHER WORK , THE PROBLEMS IS WE'VE TO MANY POLICTIANS AND CITIZENS WHO CAN CARELESS ABOUT ANYONE EXCEPT FOR THERESELVES. ........ALOT OF SELFISH CITIZENS IN USA . SHAME ON YOU !!!!!!!!!!!! THERE'S THINGS , I DON'T LIKE , BUT I DO HAVE LOVE FOR PEOPLE , AND I REALLY FEEL BAD FOR THOSE WHO'S LAID OFF ....ALL 10 MILLION CITIZENS AND THOUSANDS MORE WEEKLY
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12-12-2008 @ 11:28AM
thom said...
hello, you know your right people (or alot of them) are just worried about #1. Like the auto workers ( I mean they can vote yes for a reconstruction ) the auto union is really to blame, But so goes (ALL those in the BIGSHOT roles) but I read so many emal/blogs "wait till people see what will happen when the big 3 go under"... well lets talk about people looking out for others and not caring JUST about THEMSELVES... Restructure! Have you ever heard of the term "fat &Sassy "..
P.S. I've worked (a union job) for over 20 yrs, I'm making 14.00 an hr. of course plus my benefits. I'm making it (THANK YOU LORD) It's in a warehouse , unloading trucks, stocking merchandise, etc. the autoworkers are making double that, and I"M SURE there NOT doing double the work! (thats probally what most people just don't like)...
but back to what you were saying about caring only for oneself, let them tighten there belts a little, to benefit the many , not hurt them, I won't even go into what they could trim, you probally know that just as well as me... enough is enough , unless a course your a politician (well you know there reputation, probally worse than being a lawyer). than it's more,.more, more,
12-05-2008 @ 7:04AM
Its a lie , they don't make $70an hour said...
This isn't a Giveaway , it's a Loan . Its not true they make $70.00 , even the Senator said that yesterday on TV .
Get your facts straighten. I know people who work and they don't make $70.00 or higher an hour . They make $15.00 an
hour ......I'm so tired of being lying , they don't have there facts right ........ We've people who's selfish , so they want to make everyone else miserable .
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12-05-2008 @ 7:10AM
canada said...
Tired of people lying too ,,,,,,,,,people are very self centered , only thinking of thereselves and heck with everyone else .
You've no clue what "layoffs " about and if you do , you would realize what's going on .
United States has to many self centered citizens , "think about me " forget about everyone else who's having hardship.
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12-05-2008 @ 7:25AM
Ronnin681 said...
ll I have to say if the big thre collapse due to the governmental stupidity by the Bush administration and their clowns,especially on the Republican side all in the name of "one way" Free TRade" is WELCOME TO ZIMBAWE 2!
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12-05-2008 @ 8:27AM
Vern Fix said...
Of course rank and file employees of the former "big three" do not receive $70 an hour average on their paychecks, they get an average of around $27 an hour on their checks and the rest of the $70 is the cost to the company of their (and retired and laid off employees) benefits. No company can survive with this burden on their payroll; (about $47 an hour for those actually doing work!). Nor I have not heard of anyone in blue collar manufacturing jobs that makes this kind of money and has the fat benefits of the "big three"; have you?
If the government doesn't bail out these companies, what will happen? Bankruptcy may occur, including restructuring of the companies and wipeout of the Union contracts. If the Union wants to survive, they could step up and redo their contracts so that employee cost wold be not in excess of employee cost of the auto companies operating in the south.
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