The Truth About Cars » Unions

Trade War Watch 12: “Nationalist assault on a foreign corporation, an economic war”

Bertel Schmitt — Sat, 06 Feb 2010 13:05:24 +0000

Recently, there have been voices that mentioned that the attacks on Toyota could be politically motivated. Let’s face it: Toyota has problems. So have other auto makers. There are marked differences in reaction to and treatment of these problems. One of the tenets of warfare is that you never attack the innocent. You wait until your [...]

Editorial: Is Hyundai The New GM?

Edward Niedermeyer — Wed, 21 Jan 2009 23:33:56 +0000

2008 was supposed to be a banner year for Hyundai. The company predicted a huge sales jump and promised a new flagship. And then 2008 actually happened. Sales were, well, you can guess that one. From a sales and PR point-of-view, the new, V8-powered Genesis was well received. From a sales perspective, not to much. Still, as one Hyundai Marketing VP put it, "if [consumers] aren't forced to reconsider us, they won't." To paraphrase Elvis, perhaps we ought to give Hyundai a little more time. Meanwhile, the comparison between Hyundai and a young Toyota seem to have faded from view. In fact, you could make the case that Hyundai is more GM than Toyota. Well, if not you, me.

Editorial: The Truth About The UAW’s Legacy Costs

Andrew Dederer — Sat, 27 Dec 2008 13:46:50 +0000

One of the uncomfortable facts about the automobile industry: its pay rates have been exceptionally high almost from day one. That said, just how much of a factor worker wages (and the cost differences that go with them) have to do with Motown's meltdown is debatable. One thing's for sure: the United Auto Workers (UAW) refusal to re-negotiate their current contract-- repeated within two hours of the President's cramdown conditional bailout bonanza-- puts it squarely in the firing line for both sides of the "debate." When trying to understand their seemingly suicidal recalcitrance, history is our guide.

Editorial: Bankruptcy Watch 189: Poll Position

Edward Niedermeyer — Fri, 14 Nov 2008 22:09:42 +0000

In December of last year, a certain Peter Hart wrote an opinion column for Fairness And Accuracy In Reporting (FAIR). Hart decried the prevalence of polling in political coverage. Not only did he cast aspersions on the accuracy and reliability of polls, he identified them as a sinister threat to no less than "American Democracy." "The more fundamental problem for the press — and for American democracy —" wrote Hart, "is that the media's overreliance on polls encourages a kind of political conversation that prioritizes strategic consideration and tactics over substance." He didn't know how right he was. Today, Peter Hart Associates released the results of a poll of their own, gauging support for an auto industry bailout. Read the results in the Detroit News and you might be surprised. Read the poll itself and the Hart Associates client list, and that surprise should evaporate faster than Mr Hart's ideals regarding polls and their cynical abusers.

Buzz Hargrove: Still Full of Piss and Vinegar (Part 2)

Samir Syed — Thu, 31 Jul 2008 12:06:00 +0000

Buzz Hargrove doesn't mince his words. As demonstrated in Part 1 of this interview, the outgoing Canadian Auto Workers leader is fully aware of the Detroit domestics' dire financial peril. What's more, Buzz understands the balance between his members' welfare and the health of the automotive industry. Or lack thereof. "My first responsibility is to look after the interests of my members," Buzz admits. "But I tell my boys to look after the industry too. At every meeting." So, how's that going?

Buzz Hargrove: Still Full of Piss and Vinegar (Part 1)

Samir Syed — Wed, 30 Jul 2008 15:14:57 +0000

Buzz Hargrove describes himself as "full of piss and vinegar." Well exactly. The combative Canadian has been instrumental in his country's union movement since 1964, when he represented a couple of thousand employees in Chrysler's Windsor plant. Now, having announced his 2009 departure from the Canadian Auto Workers' (CAW) presidency, Hargrove's enthusiasm for the labour movement remains undimmed. "I still love it," he says. "If I were 55, not 65, I'd be doing this for another 10 years." That said, Hargrove doesn't think Ford, GM or Chrysler will last that long.

Detroit Deathwatch: Outrunning the Bear

Robert Farago — Sat, 03 Nov 2007 14:20:15 +0000

In the battle for the American automotive market, Detroit’s fighting for its life, rather than supremacy. The truth is that the so-called domestic automakers are under siege; their non-union competition forced them inside the castle walls a long time ago. And while Toyota, Honda and Nissan are busy unleashing new and improved vehicles to vie for U.S. customers’ patronage, Ford, GM and Chrysler are busy retrenching, regrouping and re-arming, dreaming of both past and future glory. And when they’re not doing that, they’re tearing each other to pieces.

Strike Two! Is The UAW About to Strike Out?

Frank Williams — Thu, 11 Oct 2007 13:25:59 +0000

In this morning's Detroit Free Press, Tom Walsh declares that United Auto Workers (UAW) president Ron Gettelfinger had to "flex worker's muscles" by staging a six-hour strikelet against Chrysler. Gettelfinger "felt compelled to deploy the biggest weapon in his arsenal, the strike" to get agreements from GM and Chrysler. Granted, a strike is any unions' ultimate bargaining tool. But get real. I've had doctor's appointments that lasted longer than the Chrysler "strike." Exactly what did the UAW accomplish yesterday-- besides costing its members six hours' pay?

The UAW Goes Back to Work: Even the Winner Loses

Frank Williams — Wed, 26 Sep 2007 12:57:06 +0000

The strike is over. The United Autoworkers Union (UAW) has announced they've reached an agreement with General Motors which will lead to a new contract for their members. Everyone's gone back to work. Everyone is happy, and all's right with the world-- at least until the full impact of the agreement hits the workers. At that point, they might realize that they gave up two days' pay and got practically nothing in return. Let's see how it adds up.

UAW: Do or Die at DENSO?

Frank Williams — Mon, 10 Sep 2007 15:42:17 +0000

Desperate times call for desperate measures. Facing falling membership, the United Auto Workers (UAW) is rapidly expanding into non-automotive industries like education and health care. Meanwhile, the UAW continues its full-court press against Toyota and Honda's American factories. So far, the union's attempts to transplant unionism into the transplants' plants have been an abject failure. But try they must. And now there's a new object of their affections: Japanese parts maker Denso.

The UAW’s Mad, Mad World

Frank Williams — Tue, 28 Aug 2007 19:45:26 +0000

Since the late 30's, the UAW and America's home-grown automakers have been locked in a balance of terror. The arrangement has kept the peace- at a price. Which was pretty much anything the UAW wanted. No-cost life-long health care? A "jobs bank" for superfluous workers? Sure! The Mutually Assured Destruction principle worked as long as the automakers could afford it. But now they can't, and the question is no longer who will blink first, but how much the UAW is willing to surrender to survive.

Chrysler Suicide Watch 20: Cerberus Bares Its Teeth

Frank Williams — Thu, 09 Aug 2007 16:14:15 +0000

When Daimler ~~gave~~ sold Chrysler to Cerberus, it seemed as if things were looking up for the beleaguered automaker. With a return to American ownership, they no longer had internal factions gunning for each other. Cerberus spoke highly about Chrysler's leadership; they would take a "hands off" approach to running their automotive acquisition. They offered union leaders assurance: we're in it for the long run. No need to worry about "strip and flip." And then Cerberus announced that Robert Nardelli would take over the reins. Ladies and gentlemen, the three-headed dog is finally baring its teeth.

UAW Negotiations: The Blame Game

Frank Williams — Mon, 06 Aug 2007 17:06:17 +0000

The contract negotiations between the Detroit automakers and The United Autoworkers Union (UAW) continue apace. The employers are adamant: they need union concessions to survive. BIG concessions. Citing a $25/hour labor cost differential between their operations and those of the transplants, The Big 2.8 claim their salvation depends on ~~taking food from union workers' table~~ negotiating large pay and benefit cuts. But would such concession from the carmakers' "partners" actually bail them out of hot water?

UAW – Big 2.8 Negotiations Set to Start: Veni, Vidi, VEBA

Frank Williams — Thu, 19 Jul 2007 16:15:05 +0000

When it comes to the United Auto Workers (UAW) contract negotiations with The Big 2.8, employee and retiree health care is the 1000lbs. monkey on the automakers' backs. General Motors' health care obligations total $46b, Ford clocks in at $23b and Chrysler's looking at an $18b tab. And consider this: GM's 432k retirees pay roughly $750 per year out of their own pockets for medical care, while their former employer shells out $3.3b on their medical benefits. That's a Hell of a lot of bananas.

NUMMI RIP? Toyota Considers Dumping UAW Plant

Frank Williams — Tue, 03 Jul 2007 16:05:16 +0000

According to the now-infamous Georgetown, Kentucky memo, ToMoCo’s brass are concerned that their workers’ wages are growing faster than the company's profits. To rectify this situation, Toyota’s newest plants will pay workers based on local manufacturing wages-- not United Auto Workers (UAW) scale. Naturally, the UAW is using this as flamebait to organize Toyota’s stateside operations, starting with Georgetown. Toyota’s launched its next salvo in this ongoing war of wages: they’re contemplating pulling Tacoma production from NUMMI.

Delphic Dilemma: The United Auto Workers Opt for a Two-Tier Future

Frank Williams — Wed, 27 Jun 2007 16:16:07 +0000

Late last week, the United Auto Workers union (UAW) and Delphi signed a tentative contract. Even though the two sides spent 21 months wrangling over the deal, Delphi's remaining UAW workers have only a few days to ratify the agreement. To make sure they do, the UAW has dispatched "national leaders" to perform the requisite "sales job" on Delphi's denizens. Once again, as always, the union expects their membership to do as they're told. Only this time it may not work.

The United Auto Workers, Ford, GM and Chryslerberus Ante Up

Frank Williams — Tue, 26 Jun 2007 16:30:25 +0000

The poker game known as the United Auto Workers' (UAW) contract negotiations officially begins on July 23rd. To hear the main participants, the cards have already been dealt. Ford and GM claim they're bust, or about to go bust. They say there's only way they can get back in the game: the UAW has to share some of the chips they ~~stole~~ won from their tablemates. The UAW is saying yeah right sure. Shut up and play. And Chryslerberus just sits at the table, wearing dark shades, saying nothing.

Oh What a Feeling! The UAW Targets Toyota

Frank Williams — Wed, 04 Apr 2007 15:29:31 +0000

Never mind all that “buy American” and “Asian cars are the enemy” rhetoric. The United Auto Workers (UAW) would love to get their hands on the transplants’ southern redoubts. With their numbers dwindling due to Detroit’s plant closures and buyouts, the UAW realizes they have to go trolling in the transplants’ ponds to stay alive. Last Saturday, they tested the waters with a small group of Toyota workers at the brand’s Georgetown, Kentucky plant. The UAW is smacking their lips at the prospect of dining on catfish sushi.

The United Auto Workers: Conventional Wisdom

Frank Williams — Thu, 29 Mar 2007 16:52:09 +0000

While the United Auto Workers (UAW) were busy plotting their future, The Detroit News ran a Cyber Survey. “Have UAW members given up enough or should auto makers expect more concessions?” As of the time I’m putting electrons to pixels, only 26 percent of the respondents agreed with the ungrammatical assertion “there’s been enough concessions.” The other 74 percent voted that the “UAW needs to make more concessions.” It’s not too promising when the home town crowd starts turning against you. But does it really matter?

Toyota’s Troubles: Money, Metal and Memogate

Frank Williams — Fri, 09 Feb 2007 11:24:42 +0000

For decades, Toyota has balanced superb management, impeccable quality, exemplary financial discipline and flawless product planning. As other manufacturers chased market trends and neglected core models, Toyota made incremental improvements to existing models and introduced new models slowly and carefully. Their perseverance has paid off; they’ve elbowed Ford aside and are nipping at GM’s heels. But as Toyota prepares to replace The General as the world’s largest automaker, they’re finding out that getting to the top is one thing; staying there is something else altogether.

UAW ‘07 Contract Negotiations: No Surrender!

Robert Farago — Fri, 19 Jan 2007 16:58:01 +0000

I may be the only American automotive journalist who thinks the United Auto Workers (UAW) won't make any significant concessions in their new contracts with The Big Two Point Five. Window dressing? Absolutely. I fully expect to read breathless accounts of breakthough announcements-- and discover familiar pay postponements, paper shuffling and prevarication. Genuine, honest-to-God, we’ll reduce the amount of money we’re draining from your coffers concessions? Never. And then I read Sharon Terlep’s piece in the Detroit News-- “UAW: Expect Sacrifice”-- and changed my mind. For five minutes.

The UAW: Cut and Run?

Frank Williams — Tue, 19 Dec 2006 12:24:01 +0000

I wouldn’t join any union that would have me as a member. And yet the United Autoworker’s Union (UAW) wants me. Yep, UAW Local 1981 represents freelance writers. The pen-pushing Local is part of a growing trend within the UAW. As more and more of their members accept buyouts and early retirements, as the UAW [secretly] realizes that they’ve milked their Detroit cash cow to the point of death, the union is pulling a Studebaker. They’re diversifying out of their core business before their core business goes tango uniform.

State of the Union

Frank Williams — Fri, 25 Aug 2006 16:37:13 +0000

For over 60 years, The United Autoworkers Union (UAW) has sold itself as the protector of America’s working class. According to their web site, “We’ve used our bargaining power to demand – and win – a role for union members to ensure that consumers receive the highest possible quality cars and trucks.” Regardless of your view of the quality of UAW-built vehicles, the union’s gained tremendous power on the factory floor, secured a group of benefits that are the envy of workers everywhere and amassed a mountain of money. So, now that GM and Ford are in trouble, will the UAW give anything back? Here’s what the union has to lose…