GM's "ground breaking" deal with the United Auto Workers (UAW) was a national negotiation; implementation occurs on a plant-by-plant basis. The main issue facing local leaders: determining which jobs are "core" to auto assembly and must be paid the old $28/hr rate, and which are "second tier" and can be filled with cheaper labor. According to The Detroit News, at least three local UAW leaders have accused GM of trying to bring in hundreds more "second tier" workers than the agreement allows. Well they would, wouldn't they? The wage reductions constitute the contract's main financial benefit to GM (for which the automaker agreed to establish a $32b health care superfund). And the clock is ticking. "The lack of agreement on wages likely wouldn't cause major problems until later this summer, when GM will need to bring in new employees to fill spots vacated by workers who took retirement incentives or buyout offers."
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One man’s first tier is another’s second tier.
As the Beach Boys might have sung:
When we go into the turns
Lean with me and hang on tight
We better turn on the lights
So we can make cars cheaper tonight
First tier (Union Union) fall from sight
Second tier (GM GM) price is right (faster faster)
Third tier (China China) fall from sight (faster faster)
Faster Rick, it’s alright
Or if you like Hank Williams:
There’s a fear in my tier
cause I’m crying’ for us dear
Jobs are on our Union mind.
I don’t get it. Do they really need the new employees? They can’t sell the cars they are making at a profit now. Haven’t we all been convinced that they are building extra cars because they have to pay the labor anyway?
Explanation? Anyone?
Landcrusher: Everyone currently gets $28/hr to do everything from assembly to janitorial services. Under the new plan, janitors, paintshop workers and other “non core” jobs get paid less… except that GM will be filling a lot of those jobs with “flowback” from failing suppliers, so yeah, the whole thing is basically a wash.
Edward Niedermeyer
Under the new plan, janitors, paintshop workers and other “non core” jobs get paid less…
As someone who has spent enough time around a production paint shop, I am shocked you would put paintshop employees in the same category as Janitorial. WADR you come on as an expert,but with comments like that I question your knowledge of automotive or any other kind of production processes.