GM Taunts CAW with U.S. Transplants’ Compensation

30 Responses to “ GM Taunts CAW with U.S. Transplants’ Compensation ”

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• Rix :
  April 18th, 2008 at 8:37 am
  
  

  Remember Eastern airlines? Buzz is taking a ride on the Eastern shuttle. In 1985, Eastern Airlines was the largest in the free world. Seven years later, it was gone. in 2005 GM was the largest in the world. Seven years later…?

  “Under Lorenzo’s tenure, Eastern was crippled by severe labor unrest. Asked to accept deep cuts in pay and benefits, Eastern’s mechanics and ramp service employees, represented by the IAM (International Assn. of Machinists and Aerospace Workers), walked out on March 4, 1989. A sympathy strike called by the pilots represented by ALPA (Air Line Pilots Assn.) and flight attendants represented by TWU (Transport Workers Union) effectively shut down the airline’s domestic operations. Non-contract employees, including airport gate and ticket counter agents and reservation sales agents, did not honor the strike. Due to the strike, flights were canceled, resulting in the loss of millions of dollars in revenue.

  “As a result of the strike, weakened airline structure, inability to compete after deregulation and other financial problems, Eastern filed for bankruptcy protection on March 9, 1989. This gave Lorenzo breathing room, and allowed him to continue operating the airline with strikebreakers. When control of the airline was taken away from Lorenzo by the courts and given to Marty Shugrue, it continued operations in an attempt to correct its cash flow, but to no avail. With the airline collapsing from debt, it ran out of money to operate on January 18th, 1991 following the run-up to the Gulf War. Over 18,000 employees lost their jobs and pensions in one day, not including the thousands laid off or furloughed prior to the collapse.

  An asset liquidation sale was commenced later that year and provided Eastern’s creditors with a remarkably good payout.”

• menno :
  April 18th, 2008 at 8:39 am
  
  

  The reversal in the value of the US dollar vs. “everything else on planet earth” (including the Loonie/Canadian dollar) doesn’t help the CAW cause, either.

  The biggest winners in the original auto pact of 1965 (essentially opening up free new car trade between the US and Canada) had been Canada; more Canadian cars were exported to the US than were imported, and Ontario was the biggest and nearly only winner. Ontario “won” a lot of factories that it would never have obtained had it had a closed market. AMC’s Bramalea plant opened in 1986 (now manufacturing Chrysler 300, Dodge Challenger, Dodge Charger, etc.), Honda’s plant in Ontario, Toyota’s plants including one in Cambridge and another new one just west of there (can’t recall the town), the CAMI factory (Suzuki/GM) in Ingersoll….

  Now the shoe may well be on the other foot.

• bluecon :
  April 18th, 2008 at 8:45 am
  
  

  The shoe is on the other foot. Buzz just refuses to accept the reality that with the auto companies on the verge of bankruptcy they cannot continue to provide the union members high wages and a gold plated benefit package. He is stuck in the past and going to fight the old union battles no matter what the cost. The damage is already done and the repurcussions will be felt long after Buzz is retired on his lucrative pension.

• daro31 :
  April 18th, 2008 at 8:49 am
  
  

  Way back in about 1994, an American refrigeration manufacturing Company I worked for here in Canada got a 2 tier wage package into their plant in Tecumseh Michigan. Similar circumstances to automotive industry, large Japanese manufacture opened a modern plant with low wages in the American South and flooded the market with low cost product. As quality manager I often had to go to the Tecumseh MI plant and talk to operators on the line. If you asked the wrong guy a question, one working at the lower tier, you always got the same answer, ask that guy, they don’t pay me to think. Next contract here in Canada the company attempted to get in the 2 tier system. The exisiting employees who were all had about 20-25 years seniority, would never see their wages drop, but new hires would come in at about $12 and hour instead of $18. It was a CAW plant and their stand was not to allow 2 tier wages. They told the employees to vote against it and the Union would back them. National reps even showed up at the voting to ensure the people felt supported. Well they voted against 2 tier, the plant closed, our work went back to Michigan and now it is 14 years later and if you look up Tecumseh Michigan on the web, you will see that the 2 tier system did not save the US plant workers either.

• lprocter1982 :
  April 18th, 2008 at 9:24 am
  
  

  Menno,

  The other Toyota plant is in Woodstock.

• KatiePuckrik :
  April 18th, 2008 at 9:27 am
  
  

  Someone ought to remind Mr Hargrove of rule number 1 of negiotiating:

  “Negiotiating only works when you have something to bargain with……”

• bluecon :
  April 18th, 2008 at 9:51 am
  
  

  That is not quite true Katie.
  Buzz has the choice to negotiate, he just chooses to negotiate only on his terms. What he lacks is the leverage to force the Big 2.8 to bend to his demands. Buzz will destroy the whole industry before he will give up on his oldtime union beliefs. What he is really looking for is a Senate seat in Canada, which is why he has aligned himself with the Liberals and stabbed the old NDP union party in the back. The man is really despicable.

• ihatetrees :
  April 18th, 2008 at 10:32 am
  
  

  Rix:
  Remember Eastern airlines?

  While the airline to auto comparison isn’t perfect, there are striking similarities.

  Back in the 80’s, it used to be brutally expensive to fly from smaller cities in the US. And airline employees were very well compensated when benefits were included. (I don’t think airline employees’ free travel benefit (on their own airline) was taxable income - sort of like UAW discounts on cars today).

  But the internet’s ability to compare, deregulation of routes, & brutal price competition destroyed the likes of Pan Am and Eastern.

• Mj0lnir :
  April 18th, 2008 at 11:05 am
  
  

  bluecon :
  April 18th, 2008 at 8:45 am

  Buzz just refuses to accept the reality that with the auto companies on the verge of bankruptcy they cannot continue to provide the union members high wages and a gold plated benefit package.

  Are you volunteering to bell the cat by standing out front of the Ren Cen holding a sign saying the same thing?

  I’m not at all sympathetic to the unions, but Rick Wagoner Jr. banked a LOT of money last year.

• Sanman111 :
  April 18th, 2008 at 11:37 am
  
  

  If the Big 3 were smart, they’d wait until a particularly bad sales month and attack the UAW as well. All a strike would do is allow sale to catch up with production at this point. THough I have to say, I’m not sure the money they save would be put to good use anyway.

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