UAW Ready to Pretend to Make Concessions. Or Not.

Right. Let’s have it. I’m going to ask a simple question, and I’m honest-to-God ready, willing and able to hear some new information. What concessions has the United Auto Workers (UAW) ever made to the American automakers? Forget the much-ballyhooed “two tier” wage system. All that means is that new hires don’t get paid as much as the old hires. As there are no new hires, and the theoretical new hires aren’t “conceding” anything they already had, and I’ll bet the UAW’s not cutting their union dues to compensate for the reduced wage structure, I reckon that simply doesn’t qualify. Layoff? Layoffs aren’t concessions– especially when UAW members are paid 85 percent of their salary for not working. Buyouts? Not a concession. The only genuine concession I can think of: the new-for-’07 health co-pay, which stands at $252 in annual premiums for family coverage and another $500 in total annual deductibles. AND there’s a company (not union) fund to cover workers who can’t afford it. The idea that the UAW will concede anything without compensation raises all the usual questions about leopards and spots. But if you’d like to see how the game is played, make the jump for the Detroit News’ properganda [sic].

“The Bush administration’s restructuring targets include reducing debt by two-thirds via a debt for equity exchange, requiring the UAW to accept half of the health care trust fund payments payable to the union from the automakers in 2010 in stock rather than cash, and new factory work rules and wages that are competitive with foreign automakers by the end of 2009.”

Well, one out of three might happen: stock into the eminently lootable Health Care VEBA superfund instead of cash. But probably not, as GM retirees aren’t as stupid as the UAW bosses and GM would like them to be. They’ve already made noises that they don’t want no stinkin’ shares in General Motors. But I reckon Big Ron Gettelfinger could shove that one down their collective throats (so to speak).

But never mind that. If I wasn’t writing this blog, this Robert Snell insight would be my Quote of the Day: “Talks with the UAW could be tricky, and any concessions GM gets will be sought by rivals Ford Motor Co. and Chrysler.”

Although the scribe does get to the meat of the matter: “UAW President Ron Gettelfinger has vowed to work with the Obama administration to remove terms of the loan deal that require GM and Chrysler to drastically cut wages and benefits.”

So the UAW is going to make concession that President Obama will then dismiss? I don’t think so.