In order to build the Chevrolet Sonic subcompact in America, the UAW agreed to a deal in which Tier One workers earning $28/hr could be forced to take a 50% paycut to keep the Sonic profitable for GM. Because the union membership never voted on the deal and can not strike against it, the agreement has rubbed salt in the wounds opened by the two-tier wage system. Some 40 percent of Tier One workers at the Orion Township plant where the Sonic will be built were supposed to be bumped to Tier Two, but thanks to strong truck sales, the Freep reports that all of the workers facing a cramdown have been able to transfer out of Orion and keep their Tier One status.
nearly 470 of Orion’s 1,100 first-tier workers have accepted GM’s offer to transfer to Flint, which is adding a third shift by the third quarter to help build heavy-duty pickups, the person familiar with the planning said. Another 71 have elected to stay at other factories where they’ve worked while Orion was idled to retool.
That means the rest of the first-tier workers at Orion will be able to return to the factory at their original pay.
And the good news keeps on coming: the NLRB appears to have rejected the complaints filed against the UAW by its members, and GM’s profit-sharing bonuses are said to be the biggest in the company’s history. In a few months, the UAW appears to have beaten back one of its biggest challenges since the bailout. Of course, if HD Pickup demand declines, the workers who transferred to Flint will be looking for work again, and they may be forced to accept wage cuts to go back to Orion. Meanwhile, the two-tier system will likely continue to create tensions on shop floors around the country. For now though, it seems the crisis has passed… just in time for a new negotiating session.
If we in the auto/blogging,industry have learned anything in the last few years its that “long term predictions” are,and continue to be, an iffy science. Just ask Robert Farago.
Agreed, two tiered/two class employees, are a recipe for disent. However ,as I understand it,the reality on the shop floor does not the same as the perception of that of an outside observer. For the most part those on the lower tier are dammed happy to have a job, any f–ken job.
As I see it the CAW/UAW need to promote the thought of “second tier status” as not being a life sentence. There is way out.
So we know and have seen first tier,going to second tier,and now returning to first tier. In contract talks,a provision that allows those hired at second tier, a route to make it to first tier,should be a priority. Doing so,should squelch any fires of disent.
hear the cries for a tier drop as the soul of solidarity has been sold.
How is the Sonic going to be profitable for GM if everyone at Orion is now pulling in Tier 1 wages?
As long as truck sales remain strong and the dollar doesn’t keep free falling and gas prices keep going up, Tier 1 at Orion will be financially possible.
That being said, if oil prices march above $4.00/usGal this coming summer like analysts have been predicting the last 2 months, expect a lot of V8+ and some V6 sales dropping off in favor of 4-bangers that sip fuel. That would effectively kill off Tier 1 wages across GM and because of the VEBA agreement in-place, no collective bargaining could take place and everyone will be relegated to Tier 2 status at Orion for sure.
Basically, the fluff of sales is just that. Fluff. True longevity at GM for Tier 1 workers would mean gas prices need to start heading lower, not higher, and stay low, back to $20/bl. The fastest way to make sure that happens and keep American jobs intact is to march down to Mexico and just take over that country: they have our autoplants and oil and no UAW/CAW presence down there! (strong sarcasm here)
Though, if GM fails again, all of this would be moot.
will be curious to see how well or how ‘tarnished” the product launch goes @ the Orion plant on this one….Spin doctors-UNITE!