For the first time since WWII, UAW membership has dropped below half a million hardhats, reports the Kansas City Star . The news comes from a Labor Department filing, which shows that the union was down to just 464,910 members by the end of 2007, compared with 538,448 at the end of 2006. This continues a trend of decline for the union since membership peaked in 1979, at 1.5m dues-paying members. Many of the losses can be tied to the dismal performance of the Detroit automakers, who have been cutting jobs, closing factories and buying out workers in hopes of returning to profitability. With American automakers tanking and taking their membership with them, the UAW is trying to rebound by targeting the North American factories of Toyota and Honda. But the transplants have carefully avoided building plants in union strongholds, and have thus far held off attempts to unionize their American factories. And no wonder. Although the UAW has done well by its members over the years, its colossal pension liabilities and uncompetitive approach to wages have been an undeniable factor in the decline of Detroit.
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If the auto workers were as concerned about doing their job properly as they are about their wages, I would imagine that there would be fewer “issues” with quality.
I’m not so sure it is that as much as it is the Union leadership mentality in this day and age. Things have changed and they don’t want to change.
I won’t justify RoweASs post with a comment.
Remember this folks, there is only one reason the transplants have kept the unions out.The transplants have untill now matched the big 3 in wages.
The transplants see the downward trend and they are going to take full advantage,beware transplant employees.
Yes unions are bleeding and theres more comming.
Let us not forget that CEOs are raking in millions in while workers barely survive.Let that stew for a few more years.Then you got the culture that unions were born in.
mikey :
March 31st, 2008 at 12:43 pm
I won’t justify RoweASs post with a comment
Mikey, I can’t argue with you regarding the CEO’s. It is a disgrace and I can’t conceive how they can live with themselves. However, to say that the union workers barely survive on their wages is an insult to the many more people who don’t make anywhere near those wages and yet somehow manage to survive. I certainly realize that there are different skill levels involved in the process, but the truth about cars is that mostly the american auto industry is full of overpaid underachievers which in great part is the reason the industry is in the sorry state that it is. From top to bottom
I make about $20,000 a year working at a grocery store, and I survive just fine. I don’t feel at all sorry for those auto workers who make more than double that and get great benefits and health care, among other things. Just barely surviving… bullshit.
By the way, I’m unionized, but I don’t want to be. All my union does is suck ‘dues’ out of my paycheck. Hell, I get higher and more frequent raises from the store owner than the union. All the union does is protect the mediocre workers. The transplants are right to keep the unions out – more power to them.
Why is it whenever people talk about unionizing the non-union plants, they assume that the UAW is going to be the union?
Have they considered the perhaps these employees don’t want anything to to with the UAW? And that if they want a union, they will start their own? One that doesn’t have all the baggage that the UAW has?
Think about it from a Toyota employee’s perspective. If they allow the UAW in, then who is to tell him that a UAW member with more seniority from a GM plant can’t take over his job?
Gosh… what was the children’s book where a king had a mouse problem? So he brought in cats, then he brought in dogs to get of the cats, then brought in lions to get of the dogs, and so and so on…
Mikey,
The transplant employees have not bet their financial lives on their employers. If the wages go down, many of their best workers will leave for better jobs.
Another union will end up having the same problems. The only mitigating factor will be different state laws that slow the process of union morphing from a pro-employ organization to an anti-company, socialist agenda promoting, non-employee representing thug squad.
I work for a Toyota owned supplier. The guys that have been around here longer than me said that the company said that they will not tolerate a union. Should we try to unionize, they will shutter the plant and head out.
RoweAS :Yes I have enjoyed wonderfull wages and benifits over the years.But the facts remain,I’m a dinasaur.When I retire? I will be replaced by a guy making half of my wages thats the trend and we ain’t gonna stop it.As far as the American auto industry being full of overpaid underachievers.I can only speak from my level.
I can tell you that we had our share of assholes,but they are few and far between these days.Most are either fired retired in rehab,or dead.IMHO its one of the only positives to come out of the downturn in the industry.
Landcrusher:I have bet my financial life{though not all of it}on my employer.I don’t think I’m the only blue or white collar,that thought,no way could GM go belly up.{I still have my doubts}
Mikey – the workers that you refer to as “barely survive(ing)”. Is it because they are underpaid in their current job, or is it they’ve lost their job because their respective companies are not competitive?
And what’s with the class warfare stuff – my CEO makes millions and it does not affect my pay at all. I don’t see a deduction on my check for his salary. If CEO’s consistently make that kind of coin then I need to keep upgrading my skills so I can get promoted – how do you spell “MBA”?
Mikey can you cite any precedant for Toyota and Honda screwing over their enployees by lowering wages simply because they could?
The thing that is killing Detroit is not the high wages paid to the UAW and similiarly it is not going to be a problem with the transplants. The problem is the healthcare to retirees and the pension obligations. The transplant employees get medicare and they get their 401ks so I fail to see why the transplants would lower wages.
I have yet to see any evidence of the FU attitude displayed by the Detroit 3 to be displayed by Toyota and Honda. They seem to actually follow the old saying treat others as you want to be treated.
The Detroit 3 conversely have a long history of F-ing anyone and everyone over be it customers, suppliers or employees.
Let’s put this in perspective here. The wages paid to workers at the transplant factories are comparable to UAW factories. The NUMMI plant in Fremont, CA which builds Toyota Corollas is a UAW shop. A factor for Toyota and Honda keeping their NA factories nonunion is by paying competitive wages and benefits. So the meme of the “overpaid UAW worker” just doesn’t fly.
As mentioned, the big difference is the liabilities of the healthcare benefits and retiree pensions – it’s a big problem for companies like GM, Ford, etc, who have older workforces and many retirees who were bought out in early retirement plans over the years. Interestingly enough, the total costs are lower in Canada which has a universal health care plan.
RowAS-Not sure if your generalizations are correct in regards to quality of vehicles built by UAW employees, in particular Ford’s UAW. Publications such as Consumer Reports, The Harbour Report, are among just some that have given praise to Ford/UAW for their outstanding achievements in quality. 3 MIS once was the standard and is now 1 MIS which has raised the bar to levels unheard off in years past. I can’t speak for GM and Chysler, but I’m sure their well aware of where they need to be.