And The Union Makes Us Strong: UAW Demands Lower Wages

Bertel Schmitt
by Bertel Schmitt

So there’s this huge metal stamping plant in Indianapolis. The current owner wants the workers to accept huge pay cuts so that the plant can be sold off to another buyer. The plant is a UAW shop. What does the UAW do? Paint picket signs? Threaten strike? Chant “solidarity forever?” Threaten to bust the rotten deal if the working stiff has to pay for it? Not this time. The plant in question is a GM plant. Through their union’s health fund, the UAW owns a good chunk of GM, and every owner of GM wants that stamping plant deal to close ASAP. There is an IPO in the works.

Three years ago, GM put the Indianapolis plant on its 2011 closing list if no buyer was found. This spring, Norman emerged as a buyer and made lower wages a condition of the sale.

In summer, Local 23 members had voted against bargaining with Norman. “But the UAW head office in Detroit opened talks on its own with General Motors and the Chicago-area buyer,” reports the Indianapolis Star. According to the paper, union leaders in Detroit negotiated pay cuts of almost 50 percent.

Longtime Michigan union dissident Gregg Shotwell writes in his online newsletter, Live Bait & Ammo that this might be just the beginning: “As soon as the domino falls in Indianapolis, Bob King’s henchman will be knocking on other local union doors and demanding wage cuts.”

UAW Local 23 members will vote Monday on a new labor contract that would drop wages if JD Norman Industries buys the huge plant. The contract would be with Norman Industries, not GM. If the deal doesn’t close, GM will close the plant.

Maybe that’s the solution: Non-union plants should invite the UAW and give them shares. The high production costs will be gone immediately.


Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Buickman Buickman on Aug 15, 2010

    Solidaity Forever might be the greatest song of all time. 'cept today it's "The Union did us wrong"!!! time for a new union... "Soldiers of Solidarity" I am proud to be part of what is to come my brothers and sisters. I am with you! Solidarity is more than a slogan or a song. it represents the literal blood, sweat, and tears of individuals and families who suffered, endured, and toiled to make middle class America what i...t is, or should I say…has been. the Union makes us strong today is an unfortunately bullshit phrase sung by disillusioned quasi-patriotic satiated fools who fail to realize and capitalize on the hard won gains and unity of their forefathers.today it is well past time to form a new representative group for the workers, as the UAW has become corrupt and inept except to serve as a company operation without concern for workers well being. Now is the time to cast aside the company cooperative that disguises itself as a union. Reuther himself would denounce the obvious duplicity and conflict inherent in a union so corrupt that it has failed to recognize itself for the illegal, immoral entity it has become.Solidarity Forever still means something to me. when you’re ready to form a new union, I’m ready to assist in organizing. let’s make old Walter proud of us. he did it…so can we. Soldiers of Solidarity replaces UAW (United Against Workers). we have nothing to lose. Mondragon cooperative builds Buicks in Flint….hey can’t fault a guy for dreaming can you? it’s all your fault Laney and Lare.

  • Buickman Buickman on Aug 15, 2010

    workers unite. God is with you and so am I.

  • Superduty Superduty on Aug 15, 2010

    When I read stories like this and think about some of the rumors I have heard in the plant(I work at a large assembly plant for one of the big 2.8) it motivates me to save as much of my pay as I possibly can. I have over 15 years in with my employer, but sometimes I wonder if I will be making less with them in the end than I was at the begining. I have a four year degree, but chose to work on the assembly line like many others at my plant. The pay and benefits are very good and I actually enjoy the work. My co-workers and myself are not greedily demanding ever increasing perks. I think most of us would just like to keep the pay and benefits we agreed to work for when we started (that includes cost of living increases that enables our wages to keep up with inflation). I realize that it is sort of a catch 22 situation. Mexico, India, China,etc... labor cost are a small fraction of what American labor cost are. There are many things to consider besides labor when deliberating where to produce a vehicle. However I for one have no desire to compete with these countries on labor cost. There is no way anyone in the United States could live on wages comparable to Asia, Mexico... I made the choice to work where I do istead of putting my degree to work, but now that I am getting older (45) I think it would be just plain immorall for the company with or without the unions complicity to say surprise! we are cutting your wages in half. That is what I am preparing for though. Hopefully I will make it to retirement with the compensation agreed to both contractually and implied. I know many people think so what if auto workers wages are halfed and they lose their benefits, its a free market, but dont fool yourseles. Today its the unskilled factory worker, but next year or sometime in the not too distant future it could be anyone. After all there are plenty of universities and tech schools in China and India churning out doctors, scientist, and other professions who would be all too happy to work for a lot less than most Americans

  • Tced2 Tced2 on Aug 15, 2010

    Apparently it's "settled". It has been reported that the workers will not vote on the contract.

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