Soliders of Solidarity: The Truth About the UAW Jobs Bank

Robert Farago
by Robert Farago

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..


“The Center for Human Resources [CHR] is a non profit, tax exempt corporation funded by General Motors. [Ford and Chrysler have similar s-corporations that pay off UAW office rats.] Approximately thirty percent of appointed UAW-GM staff salaries, benefits, and expenses are reimbursed to the UAW International by the CHR. On May 18, 2001 the Detroit Free Press published an investigative article about joint funds: ‘A Shroud of Secrecy Surrounds Joint Funds.’

“UAW-GM told the Internal Revenue Service that $85.6 million of the $186.9 million it spent in 1999, or 46 percent, was for ‘management,’ or ‘overhead, expenses.’ Which sounds excessive, but ‘Union officials say there are adequate checks and balances within the centers: No money can be spent without the approval of both union and corporation.’

Management and overhead exceeds 40% because they place two people, one union and one management, on every job. And they like to party. ‘Joint-funds business also takes hundreds of UAW officials to the Riviera Resort and Racquet Club in Palm Springs, Calif. Hotel officials say UAW members and auto company representatives fill the 475-bed hotel every January, and at least one week a month through March.’

The reason that Gettelfinger can dismantle the Job Bank without the approval of the members is because joint funds was never ratified by the members. Joint funds is “a contract within the contract” between the companies and the UAW Staff.

In 2006 the president of UAW Local 2151 was approached by the plant manager and the personnel director. Management wanted to put all the local union appointees into the Job Bank. Since they would be paid out of a different set of books, it would make the plant’s bottom line look better. To his credit, the Local Union President, Robb Betts, refused. He didn’t think it sounded ethical. At which point he was informed that ‘everybody else is doing it.’ Robb said, ‘That doesn’t make it right.’

If we are going to eliminate Job Bank, we should concede all the joint funds and dissolve the CHR and its counterparts at Ford and Chrysler. The entire jointness apparatus with its thousands of appointees should be dissolved. UAW staffers can be funneled down the Job Bank Drain with the rest of the rank & file.”

Robert Farago
Robert Farago

More by Robert Farago

Comments
Join the conversation
2 of 8 comments
  • VLAD VLAD on Dec 11, 2008

    He makes the best argument yet for not giving them a dime. Not one workers job will be saved, taxpayer money will just go to the organized crime like management - UAW structure.

  • Tesla deathwatcher Tesla deathwatcher on Dec 12, 2008

    One news report said Gettelfinger flew to both hearings on commercial airlines. It didn't say what class, first or coach.

  • Probert They already have hybrids, but these won't ever be them as they are built on the modular E-GMP skateboard.
  • Justin You guys still looking for that sportbak? I just saw one on the Facebook marketplace in Arizona
  • 28-Cars-Later I cannot remember what happens now, but there are whiteblocks in this period which develop a "tick" like sound which indicates they are toast (maybe head gasket?). Ten or so years ago I looked at an '03 or '04 S60 (I forget why) and I brought my Volvo indy along to tell me if it was worth my time - it ticked and that's when I learned this. This XC90 is probably worth about $300 as it sits, not kidding, and it will cost you conservatively $2500 for an engine swap (all the ones I see on car-part.com have north of 130K miles starting at $1,100 and that's not including freight to a shop, shop labor, other internals to do such as timing belt while engine out etc).
  • 28-Cars-Later Ford reported it lost $132,000 for each of its 10,000 electric vehicles sold in the first quarter of 2024, according to CNN. The sales were down 20 percent from the first quarter of 2023 and would “drag down earnings for the company overall.”The losses include “hundreds of millions being spent on research and development of the next generation of EVs for Ford. Those investments are years away from paying off.” [if they ever are recouped] Ford is the only major carmaker breaking out EV numbers by themselves. But other marques likely suffer similar losses. https://www.zerohedge.com/political/fords-120000-loss-vehicle-shows-california-ev-goals-are-impossible Given these facts, how did Tesla ever produce anything in volume let alone profit?
  • AZFelix Let's forego all of this dilly-dallying with autonomous cars and cut right to the chase and the only real solution.
Next