Do Or Die: UAW's Hail Mary Pass Through The South

Bertel Schmitt
by Bertel Schmitt

A good month after our trek to the South where we checked on the (un-) willingness of transplant workers to join the UAW, the hard-hitting team at the Reuters Detroit bureau did the same. In a special report, Reuters comes to the same conclusion as we did: It won’t be easy. Bernie Woodall and Ben Klayman of Reuters did more thorough digging. And they unearthed the secret strategy of the UAW: With the help of the German metalworkers union, they want to talk themselves into Volkswagen and Daimler:

“By appealing to German unions for help and by calling on the companies to do the right thing, King hopes to get VW and Daimler to surrender without a fight and let the union make its case directly to workers.”

If that strategy won’t work, and it is highly unlikely that it will, it could be the end of the UAW:

“It’s a battle the UAW cannot afford to lose. By failing to organize factories run by foreign automakers, the union has been a spectator to the only growth in the U.S. auto industry in the last 30 years. That failure to win new members has compounded a crunch on the UAW’s finances, forcing it to sell assets and dip into its strike fund to pay for its activities.”

The UAW will have a hard time convincing workers. Where the UAW reigns, it’s a killing field for jobs:

“Since 2001, the Detroit Three have slashed over 200,000 jobs, eliminating more than 60 percent of their hourly work force. In the same period, Japanese, South Korean and German automakers have opened eight assembly plants in the United States, creating almost 20,000 factory jobs.”

Money-wise, it does not make a lot of sense to join:

“Newly hired workers earn $14.50 an hour at VW in Chattanooga. That is just below the $14.78 that a new hire would make at a unionized GM plant in Spring Hill, Tennessee. Adjusted for monthly dues at Spring Hill, the VW worker is behind by only about $15 per month.”

Hopes that the German unions will do the heavy lifting for the UAW likely are misplaced. “We will support the UAW, but we will not do the UAW’s work,” said Peter Donath, an IG Metall official. The German unions are interested in themselves. Of course, German makers with troubles in the U.S. could be discouraged to move more work to a unionized plant in the U.S. Wait, what’s wrong with that picture?

Please read the detailed report at Reuters. It will be an eye-opener.

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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  • 4solidarity 4solidarity on Jan 08, 2012

    Les wrote: "Unfortunately the way the law works, as I understand it, they don’t. They have the right to join the already-established industry-wide union or go scab, if neither of those options is palatable to them they can’t form their own union or explore any other possible alternatives." RE: Actually the National Labor Relations Act guarantees the U.S. transplant workers with the right to form "any" type of labor organization. They can be an independent union, and don't have to affiliate with any existing international union. The point is that these U.S. workers have never earned the title of "scabs." And they should have a free, uncoerced choice of banding together with their fellow workers in forming their union. Ralph Lyke Upstate New York

    • Les Les on Jan 08, 2012

      Who said anything about international unions? You really believe the transplants can form their own union completely independent of the UAW and it'll just be sunshine and puppies for everybody?

  • 4solidarity 4solidarity on Jan 08, 2012

    Thornmark wrote: "Facts speak for themselves. Productivity is a measure of investment and output. No one doubts that the UAW works against gains in productivity." RE: On the contrary, UAW workers have always stressed increased productivity in order to bargain for higher pay, benefits and working conditions. Ralph Lyke Upstate New York

  • Wolfwagen Is it me or have auto shows just turned to meh? To me, there isn't much excitement anymore. it's like we have hit a second malaise era. Every new vehicle is some cookie-cutter CUV. No cutting-edge designs. No talk of any great powertrains, or technological achievements. It's sort of expected with the push to EVs but there is no news on that front either. No new battery tech, no new charging tech. Nothing.
  • CanadaCraig You can just imagine how quickly the tires are going to wear out on a 5,800 lbs AWD 2024 Dodge Charger.
  • Luke42 I tried FSD for a month in December 2022 on my Model Y and wasn’t impressed.The building-blocks were amazing but sum of the all of those amazing parts was about as useful as Honda Sensing in terms of reducing the driver’s workload.I have a list of fixes I need to see in Autopilot before I blow another $200 renting FSD. But I will try it for free for a month.I would love it if FSD v12 lived up to the hype and my mind were changed. But I have no reason to believe I might be wrong at this point, based on the reviews I’ve read so far. [shrug]. I’m sure I’ll have more to say about it once I get to test it.
  • FormerFF We bought three new and one used car last year, so we won't be visiting any showrooms this year unless a meteor hits one of them. Sorry to hear that Mini has terminated the manual transmission, a Mini could be a fun car to drive with a stick.It appears that 2025 is going to see a significant decrease in the number of models that can be had with a stick. The used car we bought is a Mk 7 GTI with a six speed manual, and my younger daughter and I are enjoying it quite a lot. We'll be hanging on to it for many years.
  • Oberkanone Where is the value here? Magna is assembling the vehicles. The IP is not novel. Just buy the IP at bankruptcy stage for next to nothing.
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