"GM Had a Gun to the CAW's Head – and Missed"
Best. Headline. Ever. But then Canada’s Globe and Mail threw out their word mincing machine sometime around the turn of the last century. The paper shows its stones by revealing that the new deal between Generous Motors and the Canadian Auto Workers isn’t what you’d call onerous. Not by a long chalk.
The extra holidays remain intact in the new, cheaper version of GM Canada’s deal with the CAW, negotiated over the weekend. So does the child care subsidy (up to $2,400 per kid per year) and the car purchase discount (up to $2,600), which GM Canada – despite being on the brink of crisis – generously extended last spring to some 30,000 retired workers. Of course, current GM workers who think their jobs might vanish will want to hold off on buying that new GMC Sierra, to take advantage of the $35,000 vehicle voucher they would receive as part of their $100,000 restructuring allowance.
Then there’s the pension plan, GM’s Achilles heel. The pensioners won’t get any increase between now and at least 2012. But the old “30-and-out” system stays; production workers with three decades of service can retire well before 65 and draw $3,500 a month, or more if they’re skilled tradesmen. And the shrinking contingent of employees still won’t have to contribute a dollar to the fund.
Scribe Derek DeCloet pauses just long enough to lose his “I’m being ironic” emoticon.
That’s not to say GM workers didn’t give up a lot last weekend. They did. They’ll get five fewer scheduled paid absence days, nicknamed “spa days.” (“It’s an unfortunate acronym,” confesses Jim Stanford, the CAW’s chief economist.) A worker with 10 years of service at GM will have to make do with four weeks of holidays, down from six weeks just a couple of years ago. They’ll lose an annual bonus, their wages are frozen until 2012, and they’ll have to stump up $360 a year in new health care premiums. Retirees will pay more for their health benefits.
Bottom line? “The new deal is expected to shave the total cost by about $7 an hour, or an estimated 10 per cent.” Just enough to liberate CA$4b from Canadian taxpayers for GM subsidies—I mean “loans”? We shall see.
More by Robert Farago
Comments
Join the conversation
i dont get how the xAWs have such bargaining power... cant anyone do these lame brain jobs? including things that dont have brains like robots?
I'm located in Michigan.I am retiring,with 36.3 years of seniority.I work at the GM Flint Truck assembly plant. It's easy to bash the little guys,we workers know all about it.We feel bad for those who did not have the same benefits as we had.The operative word is had. Here's the High Points, at least what I know: Our local Union, Local 598 recently passed a new contract after a threat was made by Management:No concessions, no future work.Our local union gave GM 99% of everything they wanted.We did so in October 2007 at the national level, and now in March '09 at the local level. Please keep in mind that our once strong union negotiated benefits and wages that pressured other employers to raise their workers' standard of living. All told, here's what the "National Agreement" and our Local gave up:Vacations are now mandatory.An employee cannot work the whole year and get paid the following year those untaken hours.During Change-overs, usually around July 4th,no sub pay will be available.Vacation will usually consist of 2 weeks off,with unemployment compensation, subtracting the 4th (holiday)pay from it. It is my understanding that SUB pay is going away, I may be wrong on this. Vacations will be granted by seniority...2 people may go on vacation at once per department,subject to 'modification'. Leaves of absence will be examined to determine if they should be counted against an employee's absence record.A new absentee procedure allows 5 days/year for sickness and/or personal business.After 5 days,absences will stay on an employee's "Absence Record" for 18 months, with increasing penalties extending that time limit and ultimately leading to Dismissal. Once in the "Absentee Program" employees will be sent before a panel of two Management people, and a Union person.The panel will decide by simple majority vote,if the employee is in violation of the Absentee Program. Jobs bank is eliminated.New hires after 10/24/07 will recieve 1/2 the hourly wage as earlier hires.Also new hires after that date will not qualify for a pension...401k's only.New hires benefits will require a co-pay. Overtime pay will be given only after an employee has worked 40 hours in a week,my plant is going to 4 - 10 hour days. *Retirees on the Salary side of Delphi have lost in court,all health care benefits.15,000 people.* Now that Delphi has re-occupied their former GM-owned factories with "Much Less than half the hourly wages" of GM older employees....GM is starting to buy back certain facilities...Saginaw Steering Gear is one.Delphi has been in Bankruptcy for 4 years. Retirees (April 1st, 2009) now will get a "Gross" of approximately $3150.00/Month, USD. Those monies are subject to Federal Taxes,maybe City? Retirees must pay, to start, $23.00/Month for health care "Co-pays".The Union(hourly) Pension fund in the USA is incredibly underfunded....which means if it goes broke, or GM goes bankrupt,the Federal Pension Guarantee Fund will pay 65% of retirees pensions. Workers who are less than 67 1/2 years old are penalized a percentage for early retirement. In 2009,Workers whose age + service time (30 years, or more)equals 85 'points' get an (up to) $25,000.00 New GM Auto Voucher, which federal taxes will be paid on.State sales taxes(6% in Michigan),license,document fees,advertisement fees,and miscellaneous fees will be paid at time of purchase. Workers who are not 55 years old take an additional hit of 10% reduction in money. Also, a $20,000.00 incentive will be given to retiring employees, I believe these incentives are the same for both Skilled Trades and Production workers....I may be mistaken.Federal income taxes in the amount of 25% will be withheld as well as applicable State, and Local taxes. Us workers were extremely lucky, I'll admit it.We had a strong union that enabled us to make a living wage, and put food on the table, and covered most of our health care costs.Those days appear to be over.The UAW under the terms of the Federal loans must reach parity with the Foreign Auto Companies operating in the USA.This is an insult, but we must do it. Our Chairman of the Shop Committee, who negotiated this new Local contract,announced after it's passage that he was all done;he's retiring 4/01/09.He's held the job since 1988. We worked long hours, in incredible heat,dust,fumes,noise...tore up our bodies with repetitive motion injuries,spent more time at work than with our families,endured the taunts of other workers who didn't have it as well. I'd like to see other workers get the same or better Wages,Benefits,and Pensions that we got. I'd like to see Unions in General get stronger,and grow dramatically in numbers, all over the world.I know if I didn't have a union, I would never have been able to retire, and that I'm fortunate. I'm very happy,and lucky;to be retiring.I don't think I could work much longer under the new conditions.