UAW to Grant More Concessions, End Jobs Bank
Big news in the fight to save the US Auto Industry: UAW Agrees to Concessions
The AP reports that The United Auto Workers said Wednesday it is willing to change its contracts with U.S. automakers and accept delayed payments of billions of dollars to a union-run health care trust to do its part to help the struggling companies secure $34 billion in government loans.
According to the report, UAW President Ron Gettelfinger said the union will suspend the jobs bank, in which laid-off workers are paid up to 95 percent of their salaries while not working, but he did not give specifics or a timetable of when the program will end.
“We’re going to sit down and work out the mechanics,” Gettelfinger said at a news conference after meeting with local union officials. “We’re a little unclear on some of the issues.”
Members of Congress criticized the automakers last month for paying workers who are not on the job. About 3,500 auto workers across the three companies are currently in jobs bank programs.
One local union member who was in the meeting said the changes to the jobs bank would nearly eliminate the program. The member asked not to be identified because the details had not been made public.
Such concessions are difficult for any union, but especially so for the UAW. Granting such considerations shows just what bad shape our domestic auto industry is really in. The moves made this week may be just the wake up call that was needed to save thousands of jobs and the industry.
2 Comments on “ UAW to Grant More Concessions, End Jobs Bank ”
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It should be noted that the automobile industry in the U.S. is not just in Detroit. Most Hondas and Toyotas are made in this country and are doing just fine. Without a union, they can make $2000 on each car they manufacture instead of losing $2000 on each car as they do in Michigan. Propping up Detroit with our money is only a stop gap. The only blunder that the management at GM, Ford and Chrysler has done is let their Labor Relations HR people give away the store.
Posted on 5. December 2008 at 11:50
Ron,
I am not sure about that only blunder statement. I might argue with you about failing to develop a hybrid strategy, the SUV – Truck emphasis, failing to control expenses, and a few other things. Having said that, it is hard to disagree with your point on Toyota/Honda/Nissan/Hyundai/Daimler/BMW and others.
However, those companies are much newer in the the US than our own legacy companies, and they don’t have the long term “bad” commitments that GM/Fored et al are now disadvantaged with. That is really the crux of the crisis. I think that Honda and Toyota are also at a competitive advantage with some of their suppliers, and receive some support from their own governments, if you still view them as “Japanese” companies. (or wherever)
Posted on 5. December 2008 at 12:05