In this morning's Detroit Free Press, Tom Walsh declares that United Auto Workers (UAW) president Ron Gettelfinger had to "flex worker's muscles" by staging a six-hour strikelet against Chrysler. Gettelfinger "felt compelled to deploy the biggest weapon in his arsenal, the strike" to get agreements from GM and Chrysler. Granted, a strike is any unions' ultimate bargaining tool. But get real. I've had doctor's appointments that lasted longer than the Chrysler "strike." Exactly what did the UAW accomplish yesterday– besides costing its members six hours' pay?
When Detroit was king of the American automotive hill, The Big Three were loathe to shut down an assembly line. Factories were churning out cars 24 hours a day; they were making billions by feeding the American public mediocre products based on other mediocre products. So the automakers gave the union pretty much whatever they wanted, just as long as they helped keep the money train on the track and on time.
Then them damned furriners showed up and spoiled the party. Fast forward forty years and everything is turned upside down. The Big Three Minus Twenty Percent are losing money on almost every car they produce in North America. Their "foreign" competitors have invaded their home turf. With the weak dollar, more automakers are threatening to set up operations stateside.
On the union side, UAW membership is the lowest its been in decades, as factories shut down and workers take buyouts. Apparently no one bothered to tell the UAW they no longer have the upper hand. At the UAW's bargaining convention in March, Gettelfinger said they'd fight in whatever way necessary in order to defend their members' pay and benefits, even "if need be, on the picket line."
Perhaps he should have taken Teddy Roosevelt's advice about soft talk and big sticks. After issuing nuclear option threats, Big Ron had no alternative but to call a strike at some time during the negotiations. He had to put his members' money where his mouth was.
So Gettelfinger decided he'd take on GM and call a strike. Industry analysts were all abuzz, speculating how long it would last. The more jaded amongst them wondered how long before GM followed protocol and caved to whatever demands the UAW was making. Two days later it was over.
UAW leadership claims the strikelet broke the logjam with GM and forced their employer to settle on terms favorable to the membership. In reality, shutting down production for two days did GM more good than harm. GM entered September with a 67-day supply of vehicles, most of them 2007 models. The strike gave them most of what they wanted– a two-tier wage system and a health care VEBA. AND it saved them two day's union pay and cleared a bit of inventory. When seen in this perspective, this UAW strike was, at best, a mosquito bite on an elephant's ass.
The six-hour coffee break at Chrysler was even more meaningless. Chrysler had a 72-day supply of vehicles going into September. Six hours didn't even give time for the impact wrenches on the assembly lines to cool down. The details of the agreement aren't available yet, but there's no way the UAW's token tantrum got Cerberus to change their mind on anything.
Ford's next. They had a 68-day supply of vehicles going into September. No question: they're in the worst financial shape of The Big 2.8. The Blue Oval Boyz will be demanding the most back from the union. How will the union respond? Based on performances so far, they'll probably have the workers bow their heads for a moment of silence on the assembly lines, and then capitulate on all fronts (as long as they get some more billions into the plunder-ready health care VEBA).
The Freep's Walsh sings Gettelfinger's praise. He claims Big Ron "is on the verge of doing something … historic, forging the most important UAW contracts since the GM sit-down strikes of 1936 – 37." David Cole from the Center for Automotive Research agrees: "When all this is over we'll look at Ron Gettelfinger and say this is an amazing guy to have pulled all this off."
The only thing Gettelfinger pulled is the wool over his members' eyes. The entire strike scenario was just a way to get them to buy into a contract that gave up a lot more than it gained. By having them walk a picket line, even for a few hours, he convinced them they had a part in making management cry "uncle." They'd look pretty foolish to reject a contract they went on strike to get.
And it worked. Sixty-six percent of GM's UAW workers ratified their new contract. Gettelfinger called the approval a "triumph." He crowed: "we helped protect middle-class manufacturing jobs in communities throughout the United States." Of course, in protecting them, he put their retirees' health care benefits at risk, lowered the wages for many of them and got unenforceable promises of future jobs. That doesn't sound much like a positive strike outcome to me, in either the short or the long-term.
You know, I didn’t even think of it like that. Good point made. When it comes time to negotiate with Ford, Ronny G. will toss out “don’t make us strike”, and the Ford boys will probably say, “go ahead.”
Who knows. Maybe if we are lucky enough a third long weekend or coffee break will sound the knell for the Union. UAW Suicide Watch, perhaps?
Does the new GM contract still have a jobs bank?
I was a naysayer from the start on the strike. I really believed it was going to embolden the SOS and others and lead to work stoppages, etc when they saw the “deal” they were going to get. Instead, it worked. For once it seems the UAW did compromise. While this whole strike business looks foolish to me perhaps Ron’s smarter than we give him credit for. At least he was smart enough to realize concessions had to be made. Well that or all he could see were those Veba dollars.
Just my opinion but the strike is probably necessary in order to get the membership to ratify the concessions. The strike is needed in order to not put fear into the companies but rather to put fear into the heart of the individual union members. Most probably don’t want to strike and sweat bullets when a strike is called. They will then gladly ratify a contract with concessions that they otherwise would not have approved.
I’m very disappointed, I had hopes the Cerebus would make some significant changes apparently it will be business as usual.
Ford can’t afford a long strike so they will cave as well.
The point of the VEBA agreements is to get the automakers out of the health-care business. Based on current market values, our domestic auto industry is a worker and retiree benefit manager, with a car building sideline component. The obligations to the union dwarf the book value of ALL the Big Three's stock, and not by a small amount, but by what may be a factor of ten-or more. By putting the UAW in control of these programs, it will give them the incentive to rein in costs, negotiate with medical corporations for group discounts, and possibly finance their own health care system like Kaiser-Permanente. They could do a lot worse than use them as a template for change. They could even finance some of the brighter medical students, with a proviso that all loans will be forgiven after a five year term with the company. They do it in Canada, and it works well, because instead of graduating with $5-600,000 of school and practice set-up debt, they do three years at an underserved area (with commensurate pay)and have their loans forgiven. Imagine- a program that works for the public good- not just the deepest pocketed lobbyist. What a concept. I am obviously a UAW supporter, because what is good for the average blue-collar worker is also good for our whole country. We need to be doing everything we can to prop up the middle class, because their rise after WWII is what fueled the growth and formation of the country as we know it today. The current shift to an oligarchy of the super-rich is reminiscent of the so-called "Golden Age" of the late 19th century. We all know how that turned out- the depression was the dying gasp of their corrupt institutions, and it took an unprecedented commitment by a FOUR term president to pull us out of it. I would hate to think that we learned nothing from that fiasco. I do not want my children and grandchildren to pay for the follies of both Bush's and that closet Republican, Bill Clinton. Let's all give the UAW a mention in our hearts, because their success will be all of our success. Remember, the rising tide floats all boats. Sermon over. Amen
olddavid: I am obviously a UAW supporter, because what is good for the average blue-collar worker is also good for our whole country.
The UAW has lobbied, over the years, to restrict vehicular imports, either directly or indirectly. Please explain how this is good for the “rest of us,” as all protectionist measures – even half-hearted ones – have ever done is drive up the price of ALL cars.
olddavid: We all know how that turned out- the depression was the dying gasp of their corrupt institutions, and it took an unprecedented commitment by a FOUR term president to pull us out of it.
The Depression was caused by a series of complicated financial and monetary policies. Two of the biggest were President Hoover’s attempts to prop up failing companies (he should have left them go broke) and restricting access to credit, because he feared inflation (when the problem was DEFLATION). Both of those moves were initially applauded by progressives at the time.
President Roosevelt did some good things, but bringing about a full economic recovery from the Great Depression wasn’t one of them. Unemployment was in the double digits for most of the 1930s. That hardly spells success by any standard. Compare that to the 1920 Depression. It was severe, but short-lived, thanks to more convential (what you would condemn as Republican) economic policies. The economy was roaring again by 1922.
What really ended the Great Depression was World War II.
olddavid: Let’s all give the UAW a mention in our hearts, because their success will be all of our success.
The transplant operations seem to be doing quite well without them. The success of the transplant operations is keeping a lid on new vehicle prices, and forcing every manufacturer to produce superior products.
That’s the kind of success that benefits us all, but somehow, I don’t think that the UAW will be saluting that success…
Olddavid: Well said.
Although I am not a unionist I recognize what the UAW has done for this country. But that is all in the past. The unions now protect the lazy and the useless and a hard worker gives 4-5 hours of actual output for 8 hours pay. If the workers actually worked 6-7 hours for 8 hours pay Detroit would be wildly profitable, with a lot fewer people on the payroll. There would be fewer management people required also.
Someone needs to explain to me why anyone should expect a “job for life” from a company that is going under, just becasue they are UAW. I guess they need one because if they left the company and tried to get work elsewhere they would be expected to actually do something.
“and that closet Republican, Bill Clinton”
Um..do what now? Clinton was pro-Chinese, anti-military, pro-big government, pro-gay, pro-choice, etc.
The only time I would call him a Republican is on backwards day.
Re: RyanK02 on Clinton…
More so on Hillary than Bill, but you know you have problems when your husband finds Monica Lewinsky the better option…
would hate to think that we learned nothing from that fiasco
Generally, governments don’t learn from fiasco’s.
I do not want my children and grandchildren to pay for the follies of both Bush’s
Oh, but you will, as will your grandchildren’s grandchildren. One look at the federal debt should convince you of that.
Gettelfinger did what he had to do, I guess, when looked at it closely. The ball is back in Cerebrus’ court to make some bold product decisions and…oh forget it.
I think it’s more like “UAW Irrelevance Watch 2.” The UAW probably isn’t going away anytime soon. But it’s smaller, and less relevant every year, and increasingly grasping for low-wage non-skilled labor. Signing up bus-boys and dry cleaners? Yeah, good idea.
The UAW could not do what it did without the force of the US government behind them. They are propped up by outdated laws that give them power over the property of the stockholders who must give in to anything the UAW wants.
Giving the UAW credit for anything positive is a farce. The good and bad that they do are all credited to the legislators, judges, citizens and voters that continue to allow these backward practices. Any idiot could have done these negotiations for the UAW. It’s the corporations that need teams of lawyers to figure out what they can and can’t do.
When the free market goose gets killed, the eggs will stop laying for everyone. The only guarantee that will be achieved by these contracts is the continued slow death of the 2.8 and the UAW.
“Granted, a strike is any unions’ ultimate bargaining tool.”
The way Smith and Wesson are any muggers ultimate bargaining tool….
Perhaps the Wagner Act should be renamed The Smith and Wesson Act…Or the Legalized Crime Act.
OldDavid: Please read a new book called “The Forgotten Man”. In many ways FDR was a disaster for the U.S., the social programs he started are bankrupting this country now. The UAW? they need to go out of existence. They have outlived the need for them. They protect an over indulged, awful efficiency bunch. They promote universal health care and have been supporters of protectionist policies, in other words, imo, they hurt the country now more tha help it.
Bill Clinton a closet Republican? surely you jest, of course many Republicans now don’t what a republican should be. Clinton was another failed experiment, along with Johnson, Nixon, Carter etc….
“The Big Three Minus Twenty Percent”
I realize this is meant simply as a term of disrespect (and to some it would be evidence of bias), but if we take 20% off for Daimlers stake in Chrysler, why don’t we increase that 2.8 for fords 33.4% stake in Mazda?
2.8 + .334 = The Big 3.124?
Not to mention Saab, Jaguar, Volvo…
Naw… That doesn’t have the same zing we like to show to detroit.
RyanK02
Does the new GM contract still have a jobs bank?
Yes, with some modifications. They’ve expanded the geographic area workers would be required to take a new job if one’s available (currently they can’t be required to take a job more than 50 miles from their current location). Also there will be time limits on how long a worker can remain in the jobs bank. I couldn’t find the exact distance or time in the new agreement but it should cut the number of workers in the jobs bank.
Perhaps it is just my overly cynical nature coming out, but I just can’t shake the belief that these strikes by the UAW were nothing but dog ‘n ponies whose sole purpose was to convince the UAW faithful that “see, this was the best deal we could get! But, your walking out showed them we really mean business! Really!”.
As was pointed out, a 6 hr. strike against Cerbsler hardly cooled the impact wrenches, let along “forced” any concessions from them a bit more negotiating was going to gain anyway.
I am predicting another “show strike” against Ford in the next week or two.
The Soviet Union referred to military maneuvers were the participating units were drilled in what to expect as “Bolshoy(sp?) Ballet”, and I think that applies to the UAW and their “strikes”.
Bruce
i don’t suppose even if for a second that it could be the companies that caved and not the union could we? its easy for the anti union clique not to give the union any credit, even when credit is due. The union gave the companies what they wanted, as always they shown they are willing to work with the best interests of the companies as well as the workforce at the forefront.
With GM, if the strike lasted a week or more it would have adversely impacted Wagoners ‘turn around plan’. he knew it and so did gettlefinger,it was GM/s decision to end it when they did since throughout the weekend before it was constantly reported they were close to an agreement, it would have been illogical to let it go on.
With Chrysler, cerbeus has to much invested and to much to lose, they caved immediately and everyone with an ounce of intelligence knows it. There was no strike one or strike two, it was a homerun for the union. if they have to strike ford, it will be short lived as well. The anti-union cliques contention that it was some type of ploy aimed at the workers is absurd, and shows their ignorance of labor relations.
jdv: “I realize this is meant simply as a term of disrespect (and to some it would be evidence of bias), but if we take 20% off for Daimlers stake in Chrysler, why don’t we increase that 2.8 for fords 33.4% stake in Mazda?
2.8 + .334 = The Big 3.124?”
3.124?!?! Using your logic, we are so close to being able to call it the Big Pi! Let’s make this happen…I am so on board!
Well, no surprises here.
I guess everybody just keeps on rowing the boat, not knowing if the downstream waters are calm or turbulent…
“The point of the VEBA agreements is to get the automakers out of the health-care business.”
Doesn’t it only get them sort-of off the hook for retiree health-care? My understanding is that little changes for employees.
I agree with the premise that the strike was probably called to get the members to ratify the contract. Something similar happened with my company when a business unit was negotiating a new union contract.
The management negotiators tried something different, they gave the union their BEST offer on the opening salvo. The union, in their arrogance, intransigence, and general lethargy, immediately rejected the offer. The negotiator kept repeating that there will be NO counter offer. Either you take this one or else go ahead and strike.
The union officials were not listening. They were soooooo used to the cat and mouse game of negotiation, the idea of a ‘no-haggle’ contract negotiation was absurd. Eventhough the contract was very nice, they could not go back to their membership and ask them to accept the FIRST offer…..that’s just now how it is done!
The days when the GM represented the fate of American industry, and the UAW represented the fate of the American Worker have vanished.
The economy has restructured itself, and I believe that the UAW is finally beginning to recognize that fact. I think that the fate of Chrysler has showed them that the collapse of GM and Ford really are possibilities and not just scare talk by management.
Now you can’t wean the babies off the teat too fast but the weaning is happening. Gettelfinger did what he had to do in terms of showbusiness for the troops, but I do believe that there is an intent shown by his actions to make sure that th e Golden Goose doesn’t starve.
Management is finally starting to do its part too. My wife’s BMW is in the shop for a new nose (don’t ask) and we have a Pontiac G-6 as a loaner for a month or so. The only thing (price considered) that the Pontiac needs to improve on is the rough-as-a-cob engine. Otherwise, a decent enough designed car that (at 2600 miles) seems well bolted together. My wife still has fears about how it would be at 50,000 miles, but that can’t be forecast now.
So perhaps – finally after 40 years, both GM management and the Union getting the message.
The only question is – Is it too late. Do they have the 5 years it’s going to take to turn my wife (and all the other soccor moms and guys) around?
I would never buy a vehicle made by the UAW. I will never buy a vehicle that was made by a company that has to deal with a workforce that includes lazy people who don’t care, but can’t be fired. I will stick with my Lexus and shop at Marc’s and Wal-Mart….until they are forced to go union. PRO-USA = ANTI-UNION