“Even as Detroit’s Big Three teeter on collapse,” The Detroit News [finally] concedes. “United Auto Workers President Ron Gettelfinger said Saturday that workers will not make any more concessions and that getting the automakers back on their feet means figuring out a way to turn around the slumping economy. ‘The focus has to be on the economy as a whole as opposed to a UAW contract,” Gettelfinger told reporters on a conference call, noting the labor costs now make up 8 percent to 10 percent of the cost of a vehicle. “‘We have made dramatic, dramatic changes and the UAW was applauded for that.'” And speaking of applause, GM CEO Rick Wagoner ought to give Big Ron a big hand; the UAW boss is towing the party line on the Motown meltdown. “”We’re here not because of what the auto industry has done,” Ronny G said. “We’re here because of what has happened to the economy.” But wait! More high fives to follow. Gettelfinger dismissed any talk of a GM (Ford or Chrysler) Chapter 11 with a Wagoneresque “Would you buy a car from a bankrupt automaker?”
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To quote the Wall Street Journal:
“The president of the United Auto Workers union said the dire financial troubles of the three U.S. auto makers is the result this year’s spike in gasoline prices and the meltdown on Wall Street, not missteps by management or high labor costs.”
If the UAW and management hadn’t been so greedy they would have had enough money to weather this crisis.
Every dollar that went to ensure that the UAW rank and file didn’t have to pay $10 for their blood pressure medication is $10 that could have gone to higher quality parts, more R&D, better quality control etc.
Managment and the UAW both killed the goose that layed the golden egg. They could have settled for taking 80% and still had an amazing deal. But no, they had to ask for 120% of what was sustainable and in so doing they killed GM, Chrysler, and Ford.
Hey Ron, I’ve got a news flash: You and your rank and file are on the precipice. If you are not willing to make any concessions, your name will be forever linked to massive pink slips by this Christmas, or next. It’s time to wake up.
It’s true, GM management has not executed well. But Rick Wagoner’s replacement won’t be the only thing needed to fix things. No one owes UAW members a living…is Detroit so insulated to forget that?
GM will probably be given a federal lifeline of one to two years to right-size the Company (yes, labor cost is one component). If you don’t come to the table with an open mind, there will be no more future “Death Watch” articles, because the funeral will have already happened.
Your choice, the red pill or the blue pill. Choose carefully.
Famous last words from the United Airlines Union debacle:
“We don’t want to kill the golden goose, we just want to choke it by the neck until it gives us every last egg.”
Good luck to ya, Big Ron Gettelfinger.
Ron:
You should visit an auto plant and see just how many of your members do sweet dick all for the highest wages in the country. Why don’t you take that 20% of union workers and put them on your payroll at headquarters if you thing they are so great. I spent my 10 years paying union dues to your socail club sop I know of what I speak. I am sure a 20% reduction in labor costs would be a great help to the big 2.8 survival.
The phrase is “toeing the line”…
I think it is time to birth a UAW Death Watch. They don’t get it either! It’s not (wholly) the economy. Sure Toyota’s sales cratered, too, BUT they still are on track to make more than $5B in profits this year!
Dear Rick,
The reason you are in this is that the companies your union brothers and sisters work for have been losing market share for years if not decades. The current economic climate is simply speeding things up… a bunch. Which is worse, taking some pay cuts or taking some pink slips? Legacy costs and salaries are killing the Big 3.
What would you have the UAW workers do? How much more should they give up? Of course there are many opportunities for making the numbers come out as wanted when computing indirect costs, but I saw a comparison today somewhere purporting to show that Honda workers at the Greensburg plant will make more than new UAW hires. It wasn’t and isn’t the price of the Cobalt or Aveo that keeps them from selling, and the 25 hours or so of labor that goes into one of these things is insignificant in how they stack up against the Civic/Fit.
I’m looking for what’s breaking loose now to knock some sympathy into those who resent unions. There have been about 90k job cuts in the Tech sector alone since July, and Citi is wacking 10k or so soon. Putting up with fast food wages and conditions will give lots of people a view of life they didn’t think they’d see.
Between Red Ink Rick and Ronnie G, I’ll never look at a GM product again.
I’m no fan of the UAW but there are far more significant drags on the US economy than the salary and benefits of unionized auto workers. Apparently it’s a crime, to some, for industrial workers who actually make stuff to earn a comfortable living.
At least the UAW workers make stuff.
By way of comparison, in 2005 there were ~1.6 million executive agency federal employees with another 2.4 million pensioners. The average salary for all civilian non-postal Federal employees in 2006 was $66,371. That’s salary folks, not including a benefit package that is much more generous than anything available in the private sector. Almost 20%, of Federal civilian employees make over $77,500 a year in salary. That’s 288,000 people sucking hard at the Federal teat, about twice the number of UAW members working for the domestic auto companies. At least the UAW members do stuff for their wages. Their wages are paid out of the voluntary purchase of products they make. The Federal employees on the other hand, don’t seem to do much of anything productive, and they are paid by taxes coerced from the general public.
That guy is nuts!
I understand the whole purpose of unions. (lived in West Virginia for a while)
But this guy does not realize how ticked off the tax payer is.
Let the not so big 2.8 go chap. 11. (It is not as bad as it sounds, I draw a paycheck from a company for about 3 months under chap 11). It will be a real wake up call to those clowns. (both mgmt, and unions)
A new hire may not be paid as much but my understanding is that the old timers are still on the high pay.
It is not just wages costs that are killing GM it is the jobs bank it is the inflexible work rules that make it impossible to run an efficient factory.
It is the fact that GMs market share has been going down for how long and the Union has fought any down sizing. In the last twenty years technology has meant that you do not need as many people to put together a car can GM get ride of the people that they do not need any more.
I do not begrudge the union having high wages. What I do begrudge the unions is demanding high wages, iron clad job security and wanting to run the factory.
“…and that getting the automakers back on their feet means figuring out a way to turn around the slumping economy.
and…
‘The focus has to be on the economy as a whole as opposed to a UAW contract,’
and…
”We’re here not because of what the auto industry has done,” Ronny G said. “We’re here because of what has happened to the economy.”
Just like management, it’s everybody else’s fault and they had nothing to do with it. Ron, IT’S THE PRODUCT. GET IT YET? Put the blame where it belongs. If you don’t want to accept any part of the responsibility, make sure that people know that you had nothing to do with the cheapening of the design and of the product.
What a tool.
I think somebody should tell Ron with the way the economy is going there’d be a long line of people willing to work for 1/2 the pay that his union members are getting. I like the attitude of entitlement that these guys display, they actually think the world owes them something. I also like how they think they deserve white collar pay for a blue collar job that requires NO edjucation.
Lock these guys out of the plant, bring in the Pinkertons to enforce the lock out, and hire scab labor to replace them. ;)
http://en.wikipedia.org/wiki/Homestead_strike
Time to give Gettelfinger THE FINGER!!!
Just say no to the bailout!
Free-market principles should allow the Big 3 to either sink or swim with their bad decisions. No more nanny-state type bailouts.
The only way Detroit will get better is if they go into bankruptcy. This is the shock treatment the Upper Management and the Unions need to get their act together. Otherwise you will only delay the inevitable while rewarding bad behavior (decisions) in the process.
Not only NO, but HELL NO to the bailout!!!!
Attitudes like those on display by Mr Gettelfinger guarantee death for all the big 3 by the end of next year – even if they get an initial bailout.
In fact, the Gettelfinger attitude may stiffen Republican spines to the point of blocking any bailout leading to death by christmas.
While it can be argued that the UAW gave back some significant concessions, they waited until it was too late to make a differrance.
Nobody wants to lower their standard of living, and everyone,(not in a service job) can lose out to foreign low wages. Even design and engineering can be out-sourced ie. Saturn Aura, to Korea and Buick to China.
So what “globilization” is all about is dragging the middle class NA worker down to global standards. So called race to the bottom, and this is not just an auto industry issue.
This link is interesting re. Ron G.
http://www.bloggingstocks.com/2008/11/16/uaw-says-detroit-collapse-is-not-its-fault/
Bozoer Rebbe :
“Apparently it’s a crime, to some, for industrial workers who actually make stuff to earn a comfortable living.”
As an engineer stuck between the “not my concern” hot air at the top of the ladder and the “not my job” cesspool at the bottom; allow me to say this… “F-U and your comfortable living!”
I planned, went and now am paying for 75k (16k left to pay) worth of education only to see my paychecks get hacked and slashed through this bullcrap. I’m basically working poor and one paycheck away from loosing what little I have. Where’s my comfortable living guarantee?
Put your unionized pound of flesh on the table with the rest of us.
A quick check at the UAW home page, revealed to me that my last 2 Toyota Tacoma’s have been endorsed by their “Buy Domestic” campaign. It seems they are at least hedging their bets as to the Detroit 3’s survival. In Canada less than 40% of the CAW has anything to do with auto work, the union is busy moving on to their next wave of “Due’s payers” and industries that are about to have the life choked out of them. Up here they elected a guy named “Buzz” to run the union, no kidding.
Hey, UAW….
You’ve made a crapload of money for being unskilled and under-worked (not referring to tradesmen).
It’s time to be grateful for it all and concede to the fact that you were way over compensated.
Do you think welfare is better than fair pay? Are you so proud that you would rather take everyone down with you than accept the truth?
Yeah, it sucks to work in a hot plant, repeating mindless tasks…That is why sane people attempt to better themselves so they can get out of there. I’m sure its not easy when you’ve been conditioned by ridiculous wages and benefits unlike anything the majority of American’s get for the work done…but concede already!
Take your insane buyout money and move out of the way for Americans that would be grateful to do your job for half the pay.
And as far as management bonuses…Management obviously holds the same mentality as the Union.
No loans without new managment and reasonable UAW contracts!