Strike Two! Is The UAW About to Strike Out?

strike two is the uaw about to strike out

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?

When Detroit was king of the American automotive hill, The Big Three were loathe to shut down an assembly line. Factories were churning out cars 24 hours a day; they were making billions by feeding the American public mediocre products based on other mediocre products. So the automakers gave the union pretty much whatever they wanted, just as long as they helped keep the money train on the track and on time.

Then them damned furriners showed up and spoiled the party. Fast forward forty years and everything is turned upside down. The Big Three Minus Twenty Percent are losing money on almost every car they produce in North America. Their "foreign" competitors have invaded their home turf. With the weak dollar, more automakers are threatening to set up operations stateside.

On the union side, UAW membership is the lowest its been in decades, as factories shut down and workers take buyouts. Apparently no one bothered to tell the UAW they no longer have the upper hand. At the UAW's bargaining convention in March, Gettelfinger said they'd fight in whatever way necessary in order to defend their members' pay and benefits, even "if need be, on the picket line."

Perhaps he should have taken Teddy Roosevelt's advice about soft talk and big sticks. After issuing nuclear option threats, Big Ron had no alternative but to call a strike at some time during the negotiations. He had to put his members' money where his mouth was.

So Gettelfinger decided he'd take on GM and call a strike. Industry analysts were all abuzz, speculating how long it would last. The more jaded amongst them wondered how long before GM followed protocol and caved to whatever demands the UAW was making. Two days later it was over.

UAW leadership claims the strikelet broke the logjam with GM and forced their employer to settle on terms favorable to the membership. In reality, shutting down production for two days did GM more good than harm. GM entered September with a 67-day supply of vehicles, most of them 2007 models. The strike gave them most of what they wanted– a two-tier wage system and a health care VEBA. AND it saved them two day's union pay and cleared a bit of inventory. When seen in this perspective, this UAW strike was, at best, a mosquito bite on an elephant's ass.

The six-hour coffee break at Chrysler was even more meaningless. Chrysler had a 72-day supply of vehicles going into September. Six hours didn't even give time for the impact wrenches on the assembly lines to cool down. The details of the agreement aren't available yet, but there's no way the UAW's token tantrum got Cerberus to change their mind on anything.

Ford's next. They had a 68-day supply of vehicles going into September. No question: they're in the worst financial shape of The Big 2.8. The Blue Oval Boyz will be demanding the most back from the union. How will the union respond? Based on performances so far, they'll probably have the workers bow their heads for a moment of silence on the assembly lines, and then capitulate on all fronts (as long as they get some more billions into the plunder-ready health care VEBA).

The Freep's Walsh sings Gettelfinger's praise. He claims Big Ron "is on the verge of doing something … historic, forging the most important UAW contracts since the GM sit-down strikes of 1936 – 37." David Cole from the Center for Automotive Research agrees: "When all this is over we'll look at Ron Gettelfinger and say this is an amazing guy to have pulled all this off."

The only thing Gettelfinger pulled is the wool over his members' eyes. The entire strike scenario was just a way to get them to buy into a contract that gave up a lot more than it gained. By having them walk a picket line, even for a few hours, he convinced them they had a part in making management cry "uncle." They'd look pretty foolish to reject a contract they went on strike to get.

And it worked. Sixty-six percent of GM's UAW workers ratified their new contract. Gettelfinger called the approval a "triumph." He crowed: "we helped protect middle-class manufacturing jobs in communities throughout the United States." Of course, in protecting them, he put their retirees' health care benefits at risk, lowered the wages for many of them and got unenforceable promises of future jobs. That doesn't sound much like a positive strike outcome to me, in either the short or the long-term.

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  • Lokkii Lokkii on Oct 14, 2007

    The days when the GM represented the fate of American industry, and the UAW represented the fate of the American Worker have vanished. The economy has restructured itself, and I believe that the UAW is finally beginning to recognize that fact. I think that the fate of Chrysler has showed them that the collapse of GM and Ford really are possibilities and not just scare talk by management. Now you can't wean the babies off the teat too fast but the weaning is happening. Gettelfinger did what he had to do in terms of showbusiness for the troops, but I do believe that there is an intent shown by his actions to make sure that th e Golden Goose doesn't starve. Management is finally starting to do its part too. My wife's BMW is in the shop for a new nose (don't ask) and we have a Pontiac G-6 as a loaner for a month or so. The only thing (price considered) that the Pontiac needs to improve on is the rough-as-a-cob engine. Otherwise, a decent enough designed car that (at 2600 miles) seems well bolted together. My wife still has fears about how it would be at 50,000 miles, but that can't be forecast now. So perhaps - finally after 40 years, both GM management and the Union getting the message. The only question is - Is it too late. Do they have the 5 years it's going to take to turn my wife (and all the other soccor moms and guys) around?

  • Swedcars Swedcars on Dec 13, 2007

    I would never buy a vehicle made by the UAW. I will never buy a vehicle that was made by a company that has to deal with a workforce that includes lazy people who don't care, but can't be fired. I will stick with my Lexus and shop at Marc's and Wal-Mart....until they are forced to go union. PRO-USA = ANTI-UNION

  • EAM3 Learned to drive in my parents' 1981 Maxima. Lovely car that seemed to do everything right. I can still hear the "Please turn off the lights" voice in my head since everyone wanted a demo of the newfangled talking car. A friend of the family had a manual transmission one and that thing was fun!
  • FreedMike That wagon is yummy.
  • Syke Thanks, somehow I missed that.
  • 285exp I am quite sure that it is a complete coincidence that they have announced a $7k price increase the same week that the current administration has passed legislation extending the $7k tax credit that was set to expire. Yep, not at all related.
  • Syke Is it possible to switch the pure EV drive on and off? Given the wonderful throttle response of an EV, I could see the desirability of this for a serious off-roader. Run straight ICE to get to your off-roading site, switch over the EV drive during the off-road section, then back to ICE for the road trip back home.
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