Soliders of Solidarity: The Truth About the UAW Jobs Bank

Greg Shotwell is my kinda guy. He’s a GM employee, United Auto Workers member and the founder of the Soldiers of Solidarity pressure group. I don’t agree with half of what he says, but man does he know how to say it. “When the tantrums are over, President Bush will appoint a ‘Car Czar’ to strong arm the ranks into a marching band for martyrdom-layoffs, plant closings, bank-ruptured dealers,” Shotwell writes in an advance copy of his next polemic, attained by TTAC. “It’s uncanny how heavy handed politicians are with irony. A Russian title for the federal agent assigned to dictate demands to the auto industry? What next? Hammers and sickles for hood ornaments? But don’t worry, Wagoner, Nardelli, and Mullaly won’t be hawking their options at the low end. They’ll fleece the cons and field dress the union. Before you know it, they’ll be bitching about taxes and regulations and clearing their nostrils with Ben Franklins.” Shotwell is just warming up his rhetorical Howitzer. And the jobs’ bank is in the crosshairs..

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UAW Boarding Party?
UAW Boarding Party?
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Heritage Foundation: UAW Workers DO Cost $70/hr.

Yes, yes, The Heritage Foundation. Right wing whack jobs. But TTAC is open to arguments from all ends of the political spectrum, from Prius-driving socialists to S65 AMG-driving free marketeers (I’m looking at you Shoes). As always, you’re free to make of this what you will. “The Detroit automakers explain in their SEC filings that their benefit expenses are for current workers, not former employees. This is because they follow generally accepted accounting principles in preparing these estimates. If the figures did include current retiree benefits, the average hourly amount would be much higher than they actually report. UAW employees earn far more than most Americans do.” So, now how much do they pay? “Chart 1 shows the average hourly compensation for UAW workers and the average compensation for all private sector workers. These figures are based upon calculations by the Detroit automakers themselves as published in SEC filings, their annual reports, and other materials. According to briefing materials prepared by General Motors, “The total of both cash compensation and benefits provided to GM hourly workers in 2006 amounted to approximately $73.26 per active hour worked.”

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Unraveling The UAW Job Bank

As we attempt to understand the UAW’s Job Bank program, and whether or not their reported suspension of that program is a meaningful concession, we’ve been looking for information on it. Unfortunately, as a somewhat outdated but highly informative report from Carlist explains, the details of the Job Bank are kept under wraps by the Union and automakers for “competitive reasons.” In fact, when asked why GM publicized its health benefit and pension obligations but not its Job Bank information, a GM spokesman said “that is public information that can be found in our financial statements, job banks isn’t.” In the absence of public information on the program, the original terms of the Job Bank agreement from 1987 (leaked to Carlist) are all we have to go on.

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UAW Suspends Jobs Bank, Approves VEBA Delay
UAW Suspends Jobs Bank, Approves VEBA Delay
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UAW: Job Bank "not Gone yet but It's Almost Gone"

We’ve been harping on the UAW for not making concessions either at this week’s congressional testimony or subsequent press conferences. After all, how is congress supposed to take your endorsement of a $25b bailout seriously when you are part of the problem and yet refuse to give up a single iota? Well, by passing the buck (for now), Congress has apparently convinced Detroit that it has to offer something, and the union boys are starting to understand that they have to be part of the solution. At least for PR purposes. The UAW’s controversial job bank program has been widely floated as a possible concession, and apparently Gettelfinger wants folks to know that GM isn’t paying his union brothers $77/hr to do nothing. “It’s not gone yet but it’s almost gone,” Gettelfinger tells the Detroit News. “We’re on the verge of eliminating that provision.” So, why does the DetN lede their story with “reports that the United Auto Workers union is in talks to dismantle the controversial jobs bank program are premature, according to people familiar with the situation”?

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We Have Met The Enemy And He Is Alabama

This week’s round of congressional testimony has forced our elected officials take sides on the auto industry, a topic that typically doesn’t often factor too heavily into national level grandstanding politicking. Detroit News Scribe Bryce G. Hoffman figures that the divisive issue of aid to automakers is creating a house divided… along the old Mason-Dixon line. The split is based on another legislative battle that hasn’t visited the corridors of power as often in recent years: anti-union “at will” employment laws. These laws are popular in many southern states which have used the lack of labor organization to attract transplant auto factories which have bring hundreds of jobs– and an ambivalence to Detroit’s self-made hell– to their sunny shores. And like much of Detroit’s newspapers’ coverage, Hoffman is taking his lead from UAW boss Ron Gettelfinger who blasted Alabama’s congressional delegation at a recent press conference. “Alabama paid $175,000 per employee to create those jobs there,” he said. “It just seems odd to us that we can help the financial institutions in this country — that we can offer incentives to our competitors to come here and compete against us — but at the same time we’re willing to walk away from an industry that is the backbone of our economy.”

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WSJ Jenkins: The Volt Sucks, CAFE Must Die and Obama's a Fraud

Holman W. Jenkins Jr. is not a happy camper. The Wall Street Journal columnist begins his broadside by taking on the Hail Mary-shaped plug-in hybrid gas – electric Chevrolet Volt. Jenkins reckons it’s what the Brits call a “non-starter.” “Even as GM teeters toward bankruptcy and wheedles for billions in public aid, its forthcoming plug-in hybrid continues to absorb a big chunk of the company’s product development budget. This is a car that, by GM’s own admission, won’t make money. It’s a car that can’t possibly provide a buyer with value commensurate with the resources and labor needed to build it. It’s a car that will be unsalable without multiple handouts from government.” While Jenkins’ anti-Volt tirade isn’t especially accurate (you could even call it inaccurate), at least his rhetoric is a moving target, as he changes targets.

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UAW Boss Big Ron Gettelfinger to D2.8: NSF Off
“Even as Detroit’s Big Three teeter on collapse,” The Detroit News concedes. “United Auto Workers President Ron Gettelfinger said S…
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Ford Workers: Hell No, We Won't Go
Ford Workers: Hell No, We Won't Go
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UAW Boss Ron Gettelfinger: I Spit on Your Buyouts!
UAW Boss Ron Gettelfinger: I Spit on Your Buyouts!
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GM Bans Unscheduled Overtime at 'Bu, Cobalt Plants
GM Bans Unscheduled Overtime at 'Bu, Cobalt Plants
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Chrysler Friday Unpleasantness II: Shift Cut at Windsor Minivan Factory
Chrysler Friday Unpleasantness II: Shift Cut at Windsor Minivan Factory
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GM's Friday Unpleasantness: $1.6b Into VEBA and $140k Per Worker to Close Moraine SUV Plant
GM's Friday Unpleasantness: $1.6b Into VEBA and $140k per Worker to Close Moraine SUV Plant
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Labor Laughs at GM – Chrysler Merger

Automotive News [sub] reports that United Auto Workers (UAW) chief Ron Gettelfinger is against the nevergonnahappen GM-Chrysler merger. Sort of. “I personally would not want to see anything that would result in a consolidation if that would mean the elimination of additional jobs,” Gettelfinger said. “But until we get into actual discussions, we can’t just speculate on what is going to happen. We have to know the situation, and then we can deal with it.” New CAW President Ken Lawenza is holding off on making any “if”-dependent statements on the matter until getting more details from GM and ChryCo. “We have already tried to contact the companies. We’re waiting for calls back,” Lewenza tells Reuters. Ken could be waiting for a while though, because the two firms probably haven’t even worked out the deal’s details yet. If there is a deal. Which there probably isn’t. Reaction on the other side of the pond is equally supportive…

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Toyota's Texas Job Bank Open Until April 2009. Or Longer.
Toyota's Texas Job Bank Open Until April 2009. Or Longer.
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Mitsubishi – UAW Contract Signed
Mitsubishi-UAW Contract Signed
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GM Bans GM Stock Purchases by Employee 401(k) Plans
GM Bans Stock Purchases by Employee 401(k) Plans
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UAW Pisses Away $23m on Golf Course, Retreat
“Black Lake” is a United Auto Workers (UAW) owned retreat near Onaway. The Detroit Free Press‘ Tim Higgins describes the golfing part of th…
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Canadian Feds Reheat Yesterday's Pork
An old buddy of mine, who became an organizer for Liberal Party of Canada, once told me “nothings smells like elections more than asphalt.” The p…
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Pensions GM Dumped On Delphi Now In Peril
The Detroit Free Press reports that GM retirees could face pension interruptions thanks to the General's dumping of obligations to bankrupt supplier Delphi.…
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Nissan Offers Buyouts, Fends Off UAW
Transplant firms pride themselves on running NA operations differently than the D2.8, but the body-on-frame tailspin has no interest in pride or strategy. Au…
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Ask the Best and Brightest: What Should Samir Ask Buzz?
Basil "Buzz" Hargrove has been active in the Canadian Auto Workers (CAW) since its inception in 1984, including sixteen years as President. To put that in pe…
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GM Pays Oshawa Workers Even After Plant Closes
After accusations of " betrayal," blockades by the Canadian Autoworkers union, threats of lawsuits against the union and sops tossed to the union, GM is movi…
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Bye Bye Buzz
Canadian Auto Workers (CAW) union president Basil a.k.a. Buzz Hargrove is stepping down early. Although Buzz was expected to retire when he reached the manda…
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GM TO Raid VEBA For Cash?
We all know that GM is burning through cash faster than a well-oiled cash burning machine, but nobody seems to know where the next GM greenback fix is going…
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Which Auto Team to Cheer? Home or Visitors? How About Both!
Far be it from me to overuse a metaphor, but you know things are bad for the home team when the head cheerleader starts following the other team's plays. Rig…
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CAW's Basil "Buzz" Hargrove Gets Canadian Gong
Amidst all the buzz surrounding controversial abortion activist Dr. Henry Morgantaler's elevation to the Order of Canada, you may have missed the fact that t…
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Supplier Fallout Continues: Polywheels Is Toast
Ontario's struggling manufacturing sector took another blow yesterday. CNews reports that Oakville, Ont-based automotive supplier Polywheels has shut down in…
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National Labor Committee Alleges Toyota Supplier Sweatshops
First of all, the National Labor Committee says that less than 15 percent of its money comes from labor unions. So this is not a United Auto Workers' front o…
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Oshawa Blockade Ends
The Canadian Autoworkers Union (CAW) ended its two-week blockade of GM's Oshawa truck factory this morning, in compliance with a court injunction. The Detroi…
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GM Wins Friends and Influences People: Sues CAW for $1.5m
Last time we checked in on the Oshawa closure debacle, a GM spokesperson was calling the CAW blockade "understandable." After nearly a week of being barred f…
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UAW Boss To Save The World, America, Detroit
The Detroit News is running a guest commentary today by UAW President Ron Gettelfinger that's as humble as it is helpful. Which is to say not at all. It tur…
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GM: CAW Protest "understandable"
Canadian Auto Workers (CAW) union officials are meeting with "top GM officials" about closing the Oshawa, Ontario truck plant. After CEO Rick Wagoner's annou…
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Mexican Ford Fiesta Workers Get $2.25 an Hour
NAFTA eh? Turns out that America's trade policy with its southern neighbor didn't quite work out as planned. ""The pressure has not been to raise the Mexican…
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Oshawa Workers Blockade GM Offices
One knee-jerk reaction begets another. As reported yesterday, the Canadian Auto Workers (CAW) wasn't over the moon over the announced closure of GM's Oshawa…
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CAW Betrayed by GM, but Who's Really to Blame?
As you can imagine, GM's decision to close their Oshawa truck assembly plant in Ontario, Canada doesn't set well with the Canadian Auto Workers (CAW). "It's…
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GM Buyouts, Pt. 2: New UAW Contract Saves $2.1b P.a.
Last February, GM offered buyouts to all 74k of its remaining US hourly workers. We now know Some 19k GM union members are so out of here. J.P. Morgan analys…
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GM Buyouts, Pt. 1: 19k Flee Sinking Ship
GM has been trying to realize savings from its two-tier wage agreement with the UAW by offering veteran hourly workers (who are locked in at old wages) cash…
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Ford Snubs UAW, Will Build New Fiesta in Mexico. Eventually.
Ford is bringing the Fiesta back to the US of A (AP via Yahoo!). Lke the Fusion, this American car will be Hecho en Mexico. Looks like UAW President Big Ron…
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American Axle CEO Wins
American Axle CEO Dick Dauch hung tough against the United Auto Workers (UAW) for 87 days. As the smoke clears, it's clear Dick Dastardly came out on top. Th…
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Ford Slashes Jobs, Volvo Turns On Consultants and Suppliers
In the wake of last week's revelation that FoMoCo ain't out of the woods yet, the blue oval is in full-on cost-cutting mode. Detroit News reports that Ford V…
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American Axle Workers Vote "Yes" on New Contract
American Axle's unionized workforce are set to ratify their new "would you rather face the firing squad or be hanged?" contract. The Detroit Free Press repor…
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Diary of a Chrysler Parts Supplier
The following was posted anonymously on a UAW website. The facts of the matter have not been substantiated. I'm re-publishing it for two reasons. First, no o…
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GM Adds an Extra $18m for AA Contract Vote
GM ponies-up $218m to settle American Axle strike
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UAW Reaches Tentative Agreement With American Axle
Three months later and enough bluster to buffet a Cape Cod winter resident for a decade, and the United Auto Workers (UAW) have reached a tentative agreement…
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CAW Reaches Tentative Deal With GM/Chrysler
CTVNews reports that the Canadian Auto Workers (CAW) has reached deals with both GM and Chrysler for its Ontario members. The agreements mirror those that t…
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GM Plays Hardball With the UAW; Pyrrhic Victory?
On April 17, United Auto Workers (UAW) union members at GM's Delta Township plant walked out in a dispute over their local contract (two-tier terms and condi…
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Gettelfinger: UAW "Insulted" by AA/GM Offer
The Associate Press reports that UAW leader Gettelfinger was "insulted" to learn that American Axle's plant closure plans include the shut-down of the Chee…
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GM Offers $200m Bribes to End American Axle Strike
It should come as a shock to no one that the AP is reporting (via Yahoo! News ) that GM has agreed to kick-in up to $200m to end the strike at American Axle…
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CAW Turns Its Guns on Struggling GM, Defenseless Chrysler
The Canadian Auto Workers (CAW) have ratified a generous deal with Ford– frozen wages, no two-tier tears at bedtime– by a reported 67 percent mar…
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Strike Two! GM Workers Shut Down Malibu Plant
GM dodged the bullet when the American Axle strike threatened to shut down the Malibu plant in Kansas City. ( Found some! ) But the automaker's luck just ran…
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UAW Wins CT Casino Vote; IUOE No
The UAW fails to organize more workers at the Foxwood Casino.
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UAW Strikes Almost Maybe Just About Over Ish
The strike at Alliance Interiors, where they make carpets for GM's Lambda CUV triplets, is over after 16 days. The Detroit Free Press reports the new contrac…
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UAW American Axle Strike Backfires, Big Style
The UAW strike at American Axle fails to send GM to the rescue
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GM Cuts Truck Production, Big Style
The Detroit News reports that GM will be cutting one shift from its Flint, Pontiac, Oshawa, Ontario, and Janesville, WI factories by July 14. The slashing e…
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GM UAW Striker: "None of Us Know Why We're Here"
Detroit News writer Sharon Terlep sees a UAW conspiracy against GM for American Axle
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American Axle Takes $27m Loss, Blames Strike
The strike an American Axle grinds on
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Analysts: Michigan Unlikely To Get New VW Plant
VW's new U.S. plant headed for Alabama or Tennessee
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UAW's Gettelfinger on ToMoCo: "I Live in a Dream World"
United Auto Workers prez Ron Gettelfinger says the UAW is organizing Toyota. Right.
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