By on October 8, 2010


I took some flack from TTAC’s Best and Brightest on Monday when I suggested that the UAW’s deal to give 40 percent of Orion Assemblys returning workers a 50 percent pay cut was “cowardly and despicable.” What I didn’t make clear enough was that I have no problem with the UAW working for a lower wage as long as the burden was spread evenly. Instead, the union has arbitrarily divided its existing workforce into the old guard “haves” and the relatively-recently-hired “have nots” as a ploy to make the union seem capable of profitably building subcompact cars in America. It’s bad enough to prop up the old guard by paying new hires less, but cramming down recalled Tier One workers is totally contrary to the very concept of a union. And I’m not the only one who finds the lack of solidarity and shared responsibility within the union troubling.

The Detroit News reports that dissident UAW workers of Orions Local 5960 are calling for a picket, arguing that

[UAW Boss] Bob King and Mike Dunn have forgotten who they work for

The only problem: the UAW signed a “no strike” clause with GM as part of last years bankruptcy-bailout, so instead of stopping work, the workers will simply rally in front of the UAW Solidarity House. But then, one can only do so much when ones union owns the company one works for. Hopefully this rally will help prove that the UAW has outlived its usefulness, and will drive either its reform or its dissolution. Until the UAW loses its motivation to screw its own workers and commits to shared responsibility among all of its members, it can only expect more turmoil like this going forward.

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56 Comments on “Orion Workers To Picket UAW Over “Innovative” Labor Deal...”


  • avatar
    Jeffer

    I’m no UAW fan, but this really stinks. I know many will say half a paycheque is better than none, but what of a single income family that recieves a 50% cut in income? Just not right, however you try to spin it.

    • 0 avatar
      Contrarian

      Well, if they get more on unemployment or welfare they can stay there. In the long run, there is no "fair" wage, only the wage someone is willing to pay you.

    • 0 avatar
      Silvy_nonsense

      In a two tier system, the lower wage applies to new hires, so existing employees aren’t getting their wages cut in half.

    • 0 avatar

      In a two tier system, the lower wage applies to new hires, so existing employees aren’t getting their wages cut in half.
      Orion being the single exception to this rule… which is why the workers are so pissed. Tier two caused enough tension when it applied to new hires only, but bringing back workers and then forcing them into the second tier is causing a revolt.
      As I’ve said before, this is not just about “justice” (because I agree that $14/hr jobs are better than no jobs at all), it’s about the workplace environment. Are workers who resent the next guy down the line for getting twice the pay for (in theory) one day more seniority really going to build a quality product? My gut says no.

    • 0 avatar
      Silvy_nonsense

      “but bringing back workers and then forcing them into the second tier…”

      In my blind rage at the concept of two-tier wage agreements, I missed the “returning workers” part. (You cleverly hid it by putting it right at the beginning of the story and marking it in red.)

      Needless to say, I take back my previous comment. This is a bad situation that can only lead to anger, resentment, low productivity, infighting and whole bunch of other things that do not support quality and efficiency.

    • 0 avatar
      benders

      The factory where I work did something similar and recalled workers and brought them in as new hires at the 2nd tier wages. The senior union leadership (USW) filed a grievance and won. So the company fired all the workers they just hired a few months earlier and sent the work to other plants.
      Needless to say the new hires were happier working for the company at a reduced wage than not working because of the union.

  • avatar
    Contrarian

    I believe, for the time being, they work for the American and Candian taxpayer. Or did I miss something? (Like an IPO)

  • avatar
    Silvy_nonsense

    Its a huge conflict for the UAW to have a major ownership stake in any company with which the UAW should have an adversarial relationship. Instead of workers vs. management, its essentially workers against themselves. Good luck making that work.

    I don’t really feel too bad for the lower wage tier workers because they are probably making about what they should. I am disgusted that their “brothers in solidarity”, the tier one workers, are still making a grossly inflated wage for doing the same work. What a slap in the face to the labor movement, fairness and common sense.

    The tier two workers would be wise to de-certify the UAW and align themselves with a union that isn’t so philosophically confused and morally bankrupt.

    • 0 avatar
      ClutchCarGo

      “Its a huge conflict for the UAW to have a major ownership stake in any company with which the UAW should have an adversarial relationship.”

      IMHO, the UAW having an adversarial relationship with mgmt was a large part of the downfall of the US auto industry. Only when labor and mgmt realize that neither will thrive without the other can an operation succeed. I had hoped that the ownership stake by the UAW would lead to more intelligent dealings w/mgmt. Unfortunately, it looks like the UAW leadership and rank and file are not communicating with each other any better than the UAW did with mgmt in the past.

    • 0 avatar
      Silvy_nonsense

      “the UAW having an adversarial relationship with mgmt was a large part of the downfall of the US auto industry”
      I agree, but only in part. Consider that the Japanese and the Germans are just as unionized and the German unions are insanely militant, yet those countries auto industries didn’t fall apart. I’m not arguing that the UAW and its members are blameless, but cost of production attributable to labor is only one part of the failure.
      You can’t blame the workers or their labor organization for poor engineering, poor marketing, executive decisions that did not support the desires of the marketplace or the realities of a competitive environment, poor financial decisions and a myriad of other components of running an auto manufacturer that are not in any way controlled or influenced by the front line production workers.

    • 0 avatar
      mikey

      When I started at GM in 1972 us hourly workers were considered a lower form of life. At that time we were not considered part of the “GM family”. In fairness GM has taken steps to change all that. Old habits die hard though.

      36 years later at the age of 54, I’m sitting at a desk with my own PC and an outside phone. That about as good as it gets for an hourly worker. At the end of some verbal  
      fistacuffs with a 25 year old superviser.he looked me right in the eye and said “we don’t pay you to think,do you understand that” “Yes sir” said I.

      So, not much has changed really.

  • avatar
    philadlj

    From what I understand, tier two needs a union union.

  • avatar
    Steinweg

    How’s a young worker supposed to save anything or get a foothold in the middle class if the baby boomers in the UAW, having benefited undeservedly for decades, are going to continue being such greedy pigs?

    • 0 avatar
      psarhjinian

      This happens everywhere.  I left my last two jobs because of, oh, let’s call it the “grey ceiling” of Baby Boomers who cannot and will not retire.  It used to be mildly annoying, but since so many Boomers just got their retirement nest egg gutted it’s much, much worse.
       
      For me, this was easy to fix: I have a transportable and marketable skillset.  For someone with a more specialized skillset, or who is suited to line-work, this is much more problematic.
       
      Ignoring the “They should be lucky to get anything” argument, recall that a lot of growth, both economically and socially, has been enabled by paying “the unwashed masses” a good wage.  Not everyone can retrain or find a new job, and cramping their earnings potential creates a feedback loop: less wages > less spending power > more credit+cheaper prices > more production offshored > less wages, etc, etc.
       
      It’s a hollowing-out of the economy, and it’s not sustainable in the long-term.

    • 0 avatar
      Toad

      Actually, paying unsustainably high wages is not sustainable; that is part of the reason GM went bankrupt.  For better or worse, wages worldwide are becoming a commodity, and paying assembly workers what amounted to six figure incomes (and full retirement after 30 years) does not allow firms to be competitive.  When postwar America was the only industrial game in town, it was possible, but not now.  Virtually anybody anywhere can now build cars, and they are.
       
      Wishing we could return to our industrial heyday of the 1950′s will not make it happen.  The rest of the world wants to move from huts to houses, bicycles to cars, and are not going to stay where they are so we can remain on top of the heap.  If they can build things better or cheaper they will, and (like it or not) we had better get used to the competition.

    • 0 avatar
      psarhjinian

      Actually, paying unsustainably high wages is not sustainable; that is part of the reason GM went bankrupt.

      Yes, but a much larger reason is that GM had to put three times as much money on the hood of every car they sold.  Wagoner used to spin the cost argument, and it’s still wrong.

      For better or worse, wages worldwide are becoming a commodity, and paying assembly workers what amounted to six figure incomes (and full retirement after 30 years) does not allow firms to be competitive.

      You know what?  I have real trouble with the idea of trying to be competitive on the backs of normal people.  Why is it acceptable that we should be competing with low-wage countries with problematic quality of life rankings.  Even if those nations do, eventually, move up a little, globalism will simply see those jobs move again, as they’re starting to now, albeit in a trickle, in China and India.  It’s a race to the bottom that everyone will lose.

      The solution should be trying to find a way to drag those low-cost areas up, not to drag ourselves down to meet them.

      Does this mean we should resort to protectionism?  I didn’t used to think so, but on purely humanitarian or environmental grounds I’m not so sure anymore.

    • 0 avatar
      Silvy_nonsense

      “Yes, but a much larger reason is that GM had to put three times as much money on the hood of every car they sold.”
      Right, because GM had workers that it had to pay regardless of whether they worked or not (job bank), so it was to their advantage to keep them working producing cars, even if GM was producing in excess of demand, which leads to incentives to move the excess metal off the lots. Normally a company would close or idle a factory in attempt to normalize supply and demand, but GM agreed to labor contracts that took away that option. Those incentives were directly related to GM’s inability to control labor costs.

    • 0 avatar
      Toad

      GM had to put three times as much money on the hood of every car they sold. Do you think that GM did this because they were bored?  They lowered the price to a level that people would actually pay.  Pricing is not arbitrary for most mass market products, cars included.
       
      I have real trouble with the idea of trying to be competitive on the backs of normal people. I have real trouble with not winning the lottery, or being 6’4″.  Reality can be troubling, but it is reality nonetheless.
       
      By the way, what about the “normal people” outside of western Europe or northern North America?  Are they supposed to stay poor so we can stay rich?  Were Americans in the 1700′s supposed to remain farmers so the English crown could stay in emeralds?  Were the slaves in America supposed to stay in chains so their masters could stay in their mansions?  Were the textile mills supposed to stay in New England instead of moving to the south?
       
      My point is that disruptive economic change has always happened, but now it is happening on a faster and bigger scale.  We cannot wall ourselves off from it, and we are dependent on it (Caterpillar exports, iPad imports, etc).   Pretending that you can stop the world from changing and freeze the status quo in time is a populist fantasy.

  • avatar
    Sinistermisterman

    “Solidarity House”
    I just spat my tea across my keyboard.

  • avatar
    Sundowner

    we could argue semantics all day, The reality is that working at 1/2 pay is better than sitting on a curb with no pay. This plant could have been opened down south for even less money, and I don’t mean Texas.

  • avatar
    philadlj

    If I were part of that rally, I’d blast Metallica’s “Orion” on repeat for the duration.

  • avatar
    mikey

    I’ve been following this story very closely. It boils down to the rank and file taking on the UAW. Yes contrarian your right, however, correct me if I’m wrong the UAW, owns 17% through VEBA, I think us Canucks own 12% with the US Treasury owning 62%.

     Was it two months ago Bob King was telling all that would listen “we are moving the UAW in a different direction”? Nobody would have guessed a reversal eh? In fairness ,it was Gettlefinger 
    that made the deal. The rank and file will still blame King.

    Make no mistake, this is very scary stuff for thousands of us retirees. Are these second tier guys paying union dues? Hmmmm I guess that give them a vote.

     I got this vision of a ratification meeting in five years. The UAW/CAW leadership standing up and telling the crowd, “brothers and sisters, the company is offering the 2nd tier employees a 20% across the board increase”…… to thunderous applause. “All we need to do is cut the {now minority} 1st tier people people back a bit. “The company will have to scale back pension a small amount” not so much applause this time. “After all the old fu—ers are sitting at home making more money than you are. More applause lead by the wannabe union types planted in the crowd.

     All in favour raise your hand…….I know how I would vote, I can hear it now “f–k the old —–

    • 0 avatar
      EEGeek

      Sad to say, but if I were a retired auto worker I’d be working on my smile as I say “welcome to Wal-mart”, or scoping out the best spots to pick up roadside cans.  Just like the Social Security promises made by vote-buying pols over the last several decades, the promised pension benefits are likely not sustainable even if the government maintains an ownership position.
      IMO, any CEO not moving to convert defined benefit pension plans to defined contribution plans should be strung up by the shareholders.  Long term commitments like that are a fiduciary that no corporation, no matter how big, can justify.  The same could be said for direct government employees as well.

    • 0 avatar
      mikey

      @EE Geek ….A common mistake made by the educated and those higher on the socio economic scale is assuming that all working people are stupid.

      Trust me sir, you will never see me working at Wall Mart,or ditch picking.

    • 0 avatar
      gslippy

      What is a ‘working’ person?  Don’t non-union white-collar people work?
       
      Is Bob King a ‘working’ person?

    • 0 avatar
      joeaverage

      My wife and I were having a dark joking conversation about being 80 years old and needing to work b/c SS and our pensions have no spending power. Plenty o fmoney -just no spending power b/c of a falling dollar and inflation. It’ll be alot of fun trying to keep up with the changing technology at that age.

  • avatar

    Hey Ed, guess what.  I’ve decided you are gonna work for $7.40 an hour because I don’t think what you do is worth anything more than that.  Also, it’s in my judgment, like everyone else here, that you should be happy at this pay because, jeez, it’s better to have a job that doesn’t pay enough to support yourself than it is to not have a job.  Oh, and you can’t draw food stamps, no medicaid for you and your children, nothing because those cost money.
    Why don’t some of you try working in a factory for a few years?  You all would cry like babies.  Those workers are producing a product with a high value to it.  I guarantee none of you produce anything worth what those people sacrifice their bodies for.

    • 0 avatar
      jkross22

      Bryan, This is going to sound cold, but it’s not intended that way.  If I was paid $7.40/hr to work a job that was killing me, I’d do whatever it would take to find another job.  At some point, most of us have likely been in jobs that we hated and either literally or figuratively were strangling the life out of us.  That’s the motivation to do something else.
       
      No, it’s not easy and it may take a long time, but if you’re that unhappy, then it’s up to you to change your circumstances.  Ask for help by getting a loan for training or schooling…

    • 0 avatar

      Save the lecture. I was in a union once, as a caregiver for developmentally disabled elderly victims of institutional and family abuse. Long hours of providing hygiene, food, medication and entertainment for people who rely on you for literally everything but can’t always make it easy on you due to being nonverbal and having picked up “behaviors” that I won’t even begin to describe. Guess what I was paid? $8.50/hr. For work that was dangerous, dirty and physically, psychologically and emotionally draining. And it’s not like it was a job that had no value (everyone wants to think their loved ones are well cared-for) or could be just moved overseas either.
      My point is that everyone has to work hard in this day and age, regardless of whether your job is off-shore-able or unionized or not. Hell, I wouldn’t want to see my hourly pay breakdown as an independent contractor for TTACs owner. Plus, I’m not in a position to even expect social security to have my back by the time I retire. There aren’t a lot of cushy jobs left, so it’s hustle-hustle all the time for everyone. Even second-tier UAW workers have it pretty good as far as I’m concerned.

    • 0 avatar
      Silvy_nonsense

      I’m not a fan of the crying and whining. We in the U.S. are damn lucky to have been one of the first countries to industrialize and reap the benefits of getting there first. We are also damn lucky that political ideology kept India, China and Russia out of the game for so long  (its amazing how long it lasted). Now that is over and things will never be like they were.
      Betting your income on any form of repetitive, physical labor just isn’t a smart decision. You’re easily replaced. The smart money is on jobs that take years of learning and/or training, involve creativity and using your mind and can’t be mastered in a few weeks by any random person with little or no formal education who just walked into the city from a rural farm looking for work.

  • avatar
    92golf

    Perhaps Im confused but something doesn’t add up here.

    So, current Tier One workers will continue to receive their previously bargained for higher wages and currently employed Tier Two workers will continue to receive approximately 60% of the Tier One wage as outlined in the agreement the UAW has with GM.

    When I first read this I thought that all employees in the plant had been pushed down to the Tier One wage. Now I think it sounds as though only recalled employees are being pushed down to the Tier One wage.

    What I don’t get is why there are Tier Two workers in the plant if there were Tier One workers on layoff?
    Wouldn’t the Tier Two workers have lower seniority than the Tier One workers?

    For the record, I think having two pay scales that creates this whole Tier One and Two scenario is a recipe for strife, labor and otherwise.
    I am also completely against the recalled Tier One workers being paid at the Tier Two rate.

    I understand that these folks are still employed and likely better off than they would be otherwise. I also understand that if they don’t like it they are free to take their labor elsewhere if they can.

    I think though, that whoever negotiated this situation on behalf of the UAW must have been in la-la land when they sat down at the negotiating table.

    • 0 avatar
      bumpy ii

      IIRC, everyone at Orion was sent home while the plant was retooled. When the workers are recalled, the first 60% (presumably based on seniority) get to be in Tier 1, while the bottom 40% get to be Tier 2 (who were the equivalent of Tier 1 before the layoff).

    • 0 avatar
      92golf

      OK, that helps.

      -thanks

    • 0 avatar
      Omnifan

      I think the logic of the deal is this:  60% of recalled workers are in Tier I, everyone else in Tier II.  However, the union is expecting 300+ workers to take a “sweetened” retirement incentive (taken from retirement funds) thus eliminating some of the competition for Tier I.  Further, everyone has bumping rights at other GM plants, so if they land in Tier II they have the right to bump into Tier I somewhere else at GM.  The union is fully expecting that all of the formerly laid off Orion employees will either retire, land in the 60% Tier I pool, or land at some other GM plant at Tier I wages.  New hires will then solely form the Tier II pool at $14/hour.

      Once again, the high seniority “I got mine, the hell with the rest of you” crowd wins.  Solidarity forever indeed.

  • avatar
    gslippy

    When cannibals finally finish eating, there’s only 1 person left.  So it is – or will soon be – with the UAW.
     
    The manufacturers seem to be in the driver’s seat again, while the UAW chews itself apart over an ever-dwindling number of jobs.

  • avatar
    forraymond

    Let’s say every one who works in the RENCEN takes a 50% cut in pay. How many would think about picketing or worse.
     
    The company is in trouble.  Every worker, union and non union, should take part in making the company profitable.  That means cutting outrageous salaries of all the vice-presidents, presidents and all their staffs.
     
    What they have done with these 50% pay cuts for the lowest paid GM employees is eliminate a large number of potential customers (the workers cannot afford the cars they build).
     
    Where did common sense go?  Why doesn’t the Company and the Union sit down and make a contract that makes sense and is fair?  Does fair even exist anymore?

    What percentage of Americans can afford to buy or qualify to finance a new car today? What was that percentage 10 years ago? 20? 30?

    America is going to hell in a hand basket due to supply side economics. Demand is what drives an economy – stupid people, get back to reality

  • avatar
    AaronH

    They could act like real men and go find something else to do if they don’t like it…like the non-union people do…But all they can do is “act” like men. Unbelievable…They do not even understand that their low wage is because they are keeping retirees in TV, Beer, and Viagra….LOL!

  • avatar
    CJinSD

    This story makes me feel warm and fuzzy.

  • avatar
    MikeAR

    Unions have been a disaster for GM through the years and there is no doubt that they are overpaid for what they do. But, in the case of GM, the truly overpaid ones are upper management, the Wagoners, Hendersons and the like. Maybe the union guys didn’t do a very good job but management was truly awful and suffered no consequences for it. There are no good guys in the GM story.

  • avatar
    mikey

    @MikeAR No doubt it. I’ve ran into a few real as-h–s, some of them punched the clock every day. Some of them wore a white shirt and drove a company car. But a good percentage of us, hourly and salary did a good job. For the most part they were pretty good guys,and girls. 

    Your right, the big decisions were made way past our level. We, at the low and the lowest levels were held accountable. We paid the price for the eneptitude of the most senior management. By the sounds of things we are not done paying yet.

  • avatar
    oboylepr

    The UAW have betrayed a fundamental principal in trade unionism and that is equality amongst it’s members. We are all aware of the exceptional reasons why this came to be and there are good arguments for and against a 2 tier wage structure but I would hate like hell to have to work in this plant. The no strike clause may keep everyone on the line but I would imagine there will be (is) a very strained atmosphere on the line among the workers and it will be pure hell for first line supervisors. This could translate into quality issues for the products that will be made or worse. It must have seemed a great way to reduce costs but the potential for industrial peace and harmony is low. The nearest police station might be well advised to go on a recruiting drive for more officers. I doubt it will be worth it in the long run because time and time again it has been proved that wages were NOT the reason that D3 cars are/were uncompetative.

  • avatar

    “Shed Tiers for Solidarity”

    “Blame Banks, not Ranks”

    Remember Indy.

    “You close one plant and we’ll close the rest of them” Walter Reuther.

    on the flip side, do your job. no more having your friend punch you out, nor worrying about stupid job classifications.

    why can’t we be friends?

  • avatar
    scottcom36

    Good job, Ed clarifying your position.
     
    Maybe the workers should go on strike against the unions.

  • avatar

    Ed Niedermeyer: When you said “Even second-tier UAW workers have it pretty good as far as I’m concerned.” you put this whole page in the proper perspective. Thank you.

    Unions, especially the UAW have long outlived the reason they were welcome in the first place. A classic example of “give’em an inch….” The sooner they fold, the better. I know several people who are or have been UAW members over the last 35 or 40 years and when I hear them talk about their jobs they sound like a bunch of spoiled, lazy brats. They’re never happy! Either the company is screwing them, or the union is. Never seems to be a happy middle ground. They don’t seem to realise how lucky they are. Many of them, in a non-union job, wouldn’t last a week. The only self motivation a lot of these guys display in a day is the dash to the parking lot at shift’s end.

    If an honest day’s work for an honest day’s (reasonable) pay isn’t good enough for you, get out of the way! There are unemployment lines everywhere full of people who would take your job at just about any pay. And you wouldn’t hear a compaint from any of them. Ever!

    Like the line in an old ’60s song: “…… that was yesterday, and yesterday’s gone.” 

    • 0 avatar
      joeaverage

      Thanks but I’d MUCH rather be a “free agent”. At my last job I could see that for a $3K bump in pay my stress level was going to double and my expected work hours would go from 42-45 to 50-55 per week with occasional 60 hour week. I also saw Detroit’s coming speed bump thanks to the Death Watch series. The company I worked for was very connected to the fortunes of Detroit. So I got out. Took me a year to find something I was satisfied with but I was able to work at the old job until the day I started the new job.
      If these UAW guys/gals aren’t happy start taking some night classes and get ready to bail to some other line of work with some other employer. Do this while you still have a job. While you still have a job pay off debts and get your ducks lined up. Buy a reliable car if necessary, get your house ready to sell, get an education, etc. I’d rather move across the country than kill myself for some job I hated.
      Take some vacation days and interview for other jobs if necessary. Don’t tell a soul at your current employer what you are doing in case you need to stay there another year or two. Why poison your future with them in case you need to stay there?
      Don’t understand why anyone would stay anywhere where they were miserable. I changed jobs, worked my way through college and after several false starts and military service I landed something I can happily live with until retirement someday.

  • avatar
    441Zuke

    since when is 17.50 a bad wage? when is subsidized healthcare terrible. work at walmart for a couple of year feel your soul shrink.  USA as whole manufacturing is and will change either what we build will be more expensive (look at how harley davidosn has rejuvenated it’s business- less volume more expensive bikes) or it will be a by more for less like Hyundai – more car less money. I can think of a manufacturer who was able to pull off the later of those 2 without failing. If American car industry is to suceed it will be by building up not down and by effectively controlling it’s resource cost ie labor and parts

  • avatar
    shaker

    Since when is $14/hr considered a “good wage”? That’s just a hair under 30k/yr. Maybe a single guy could get by on that, but add a wife and a kid or two, and you’re talking about mommy working, too.
    At least the day-care centers are benefiting from this scenario.

    • 0 avatar
      joeaverage

      We bought a new $20K car and a starter house on two $7.50 per hour jobs AND we were paying childcare of about $80 per week. I was also going to college part time. Was it easy? No but we did it and no student loans. Depends on where you live. Never missed a payment and we paid that damn car off 6 months early. Still driving it at 206K miles. Still like it very much 11 years later. We both have college degrees and much better employment these days.
      Now a person can’t have $75 TV subscriptions or $205 per month cellphone plans on $7.50 per hour. Overheard a fellow at my son’s soccer game on Saturday talking about how good a deal $205 is.

  • avatar
    brush

    So the issue boils down to everybody is equal, but some are more equal than others?
    The moral descision would have been a 20% cut across the board, including management. Or did I miss this? I assume the result that was to be achieved was that the total cost of producing the cars was reduced to acceptable levels. The People’s Car Company (Address: Animal Farm, Prop: G. Orwell)


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