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UAW Brand Faces New Moment of Truth

Posted by Dale Buss on March 22, 2011 05:30 PM

United Auto Workers President Bob King faced several audiences when his union opened a three-day convention in Detroit today to finalize its strategy for new-contract talks with the Big Three US automakers.

His opening speech to the UAW rank-and-file tried to convince them that the union will fight for their interest in restoration of wage and benefit cuts they sustained during the Great Recession and federal takeover of General Motors and Chrysler.

"The more jobs we can bring back under the umbrella of the collective agreements … the more power we have," he told attendees during a speech in which he also took aim at Ford CEO Alan Mulally's compensation.

“When Alan Mulally can make over $50 million in a bonus, temporary workers have a right to a decent job and benefits,” King said.

That opening salvo must have made for some interesting meetings today with Ford, GM, and Chrysler execs, viewed as a litmus test for whether the UAW is willing to tie more of its future compensation to the automakers’ own growth and profitability, as company executives have been requesting.

The UAW president also will be nodding toward the public-union unrest in Michigan, Wisconsin and other Midwestern states — where there also happen to be big portions of his membership — trying to persuade the American people that auto workers’ struggle for a better life is part of the same fateful drama.

And finally — and, arguably most important — King is on a charm offensive, promoting the UAW brand to foreign-owned automakers in America. He has already served notice to the likes of Toyota, Honda, Nissan, Hyundai, Kia, BMW, Volkswagen and Mercedes-Benz that the union wants to be free to organize their workers. Understandably, King has gotten a tepid reception from these “transplant” operators.

But now, King has an opportunity in bargaining with the Big Three to demonstrate to these other automakers that the UAW is a reasonable entity whose leadership understands that corporate success is the key to long-term worker prosperity. If King and his colleagues reach for too much at the Big Three bargaining tables in a short-term bid to recover pocketbook losses for their members, they might well doom their new organizing effort before it really starts.

The UAW brand is beaten and battered. King wants to restore some luster by winning a foothold in foreign-operated plants in the U.S. – a UAW pipe dream for 30 years. And the first big step toward his goal starts today.

Comments

Ed Kriese United States says:

I grew up in a Detroit area auto industry household and currently drive a 2003 Dodge Durango. I will be replacing that car soon with either a Toyota or Nissan.

The UAW only cares about the UAW; not the cars they make, customers or the country.

I will NEVER, EVER buy another vehicle assembled by UAW workers.

March 23, 2011 08:55 AM #

Frans United States says:

The UAW is the reason the American auto makers are failing. The only reason Ford is kicking butt is because it did some out of the box thinking, re negotiated, and copied some Japanese car makers.

The day we get rid of the UAW is the day that we will see American cars back on top. There is no reason a UAW worker should get paid MORE if they make an inferior product.

On the Ford front... Ford is doing better, yes, that's true. But pulling more money from them before the ink dries on the books is a fantastic way to take it back to what it was before it entered the black. Let the company breath first, stop punching it in the gut right when it starts a decent breath pattern.

Truth be told, I had my eye on the CTS-V coupe. I LOVE that car, but no matter what I won't buy it. After that bail out there is no way I would support ANY GM product or company. It's only a matter of time before GM runs out of money and gets purchased out by Toyota/Honda/VW or some other import brand and then gets on the track of logic. Until then, it's a money pit and a failure waiting to happen.

March 23, 2011 11:13 AM #

David Morawski United States says:

I agree with the comments although I have a problem with someone making $50,000,000. That's 1100+ workers at $45,000 per year. Is anyone that valuable?

March 23, 2011 01:37 PM #

Frans United States says:

David,

I have no problem with a QUALIFIED person making 50,000,000. In fact did you know for many years he didn't draw a paycheck of any-kind because the company was in the red and he didn't want to get a paycheck until he put it into the black?

And BTW. Not even the person that cleans the toilets makes 45k a year at GM. Average workers in the UAW at GM make MUCH MUCH MORE. It's more like the 75-90k area WITHOUT overtime being added in the mix.

My wife is a Pharmacist and she had to go to school for 10 years over and above highschool and she's making roughly the same amount that some of these people with NO education that are putting screws in cars.

The problem is that no one is talking about the FULL package of employment. We need to get off the hourly rate here, we need to add pensions, health care, and everything else that is in the employment package.

Let me go back to the person that made 50,000,000, and the question of "is anyone that valuable".

Answer: YES.

Why: Because a person that made 50,000,000 earned it by putting a company back into the black from being in the red for a very long time. This person also saved BILLIONS to tax payers by not going with a government bailout program. This person was paid because he's the head of a company that makes a product that people now want, it's profit from an actual product, not a government.

March 23, 2011 01:46 PM #

russ homrich United States says:

I can't believe all the ignorant comments on this site. The wage scale is 14.00 dollars a hour. It is the workers that put GM in the black. The product iss what took GM out of the black and I don"t recall the CEO turning any wenches.or adding any value to the product. Just remember once the union is gone the middle class is gone along with osha any work place safety

March 23, 2011 04:10 PM #

Ed Kriese United States says:

That's BS. The middle class won't be gone. Without the UAW the American auto industry would stands a chance however.

The UAW killed Detroit; I saw it happen.

March 24, 2011 07:46 AM #

Frans United States says:

Russ,

CEO's don't make good wrench turners and wrench turners don't make good CEO's. If you can with a straight face say that the unions are NOT what is the problem then I have to say that you are part of the problem.

So what you're telling me is near the Honda and Toyota factories there is no middle class? You're telling me that there are no middle class employees at BMW?

Ignorance is bliss my friend, and from the sound of it, you're living in bliss.

Great example.

If you own an ice cream shop and employ a person for 20 years. Should you still pay them after they stop working for you? It's simple math, STOP comparing pay check, compare TOTAL compensation.



  

March 23, 2011 04:20 PM #

Frans United States says:

BTW: GM is NOT in the black

March 23, 2011 04:21 PM #

Jon United States says:

A number of you make very valid points.  I am pleased to see that Ford, unlike the rest did not take government bailout money.  I personally, will never buy a foreign made vehicle, so long as I still have the option.  That is a personal choice.  While the unions are part of the problem, largely do to similar types of corruption suffered in government and business, they are not the primary problem.  The primary problem, at least as far as industry goes, is the legislation that made it possible for greedy corporations to take our jobs elsewhere.  The idea of free trade is a very idealistic point of view.  It might work in a world where nations and societies are more mature.  Sadly, in our world, currently, other nations are perfectly happy to participate in what amounts to economic warfare.  It is not a balanced, or free world economy; this isn't free trade.  Until the rest of the world wants to play nice, on the same playing field; for the peoples' sake, we need to look out for our own.  It does no good to destroy ourselves to try and hypothetically improve the rest.  It isn't just the 'wrench turners' that have suffered.  Lots of other types of professionals have been badly hurt too.  Machinists, engineers, sales people have all suffered as well.  You can't support the same kind of economy we've historically had by taking a factory worker who made $25/hour and replacing his job with 6-11 dollars an hour.  I know engineers who have had to work retail for years.  There are design houses that were so big and busseling that you had to be shuttled in; they were out of business with grass growing in the parking lots nearly 10 years ago.  All this, and we've said nothing of the problems with Wall Street.  That is a bucket of filth to tackle another day.

March 28, 2011 01:26 PM #

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