Chrysler – UAW Pact In Trouble?
When the United Auto Workers (UAW) concluded their strike against GM in two days, plenty of people reckoned the industrial action was designed to put the fear of God into union members, rather than wrest new concessions from GM. If so, it worked a treat; 66 percent of the UAW rank and file approved the new contract the following week. When the UAW strike against Chrysler lasted six hours, the strikelet scared no one. In fact, Bloomberg reports that the head of the UAW's negotiating committee at Chrysler will tell his union brothers and sisters to reject the accord. Doh! He forgot the job guarantees! "Virtually no Chrysler plant received commitments beyond the scope of their current product," Bill Parker revealed. "The plant- by-plant threats we've experienced in the past will continue." Parker's also says the settlement fails to match the GM accord's assurances that Chrysler's current temporary workers will move into full-time jobs. So why is the UAW lead negotiator disavowing his own agreement? You guessed it: union politics. Parker is part of an anti-Gettelfinger faction called "New Directions." This could get interesting…
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Union politics is by its very nature is cut throat and nasty. Make no mistake Getlefinger didn't get there from being stupid.Right about now he has damage control working full time. Having said that,product allocation/job security is the ONLY way the GM accord was passed.If the Chrysler rank and file don't like what they see it could get interesting. With all of the hoopala about VEBA we tend to forget the other huge concessions.Two tiered wages and undefined pensions for new hires.Little wonder share price is rising. The older employees know that they are an endangered spieces.Yes indeed job security is a huge issue. On another note, up here north of the 49th wer'e starting to get a little concerned.We have another 11 months of our contract and with the Canadian dollar at par or higher than USD it could get ugly.
This contract will almost certainly be ratified. The fact that there is some internal struggle in the UAW is hardly surprising.
A side point in the Ontario News today is that Magna has annouced that the CAW can oganize there Parts Factories, the CAW will not have the "Strike" vote or no work to rule either, all disputes will be settled by arbitration! Stay tuned!
Getting agreement in the union context is like a few thousand family members dividing up inheritance from a childless uncle. When people set to divide up ill gotten gains, everything gets nasty fast. Now, if anyone in the group actually was known to create value, then the others would have to respect that. Even pirates had an easier time than unions and politicians when it comes to this sort of thing.