Sign of the Times? UAW Votes Itself Out of a Job
The Star reports that Magna International is closing its New York state New Process Gear plant after 52 percent of the plant’s union workers rejected a 20 percent wage reduction. The haircut would have pegged hourly salary at $16, and stipulated that the factory had to break even by July 1 (good luck with that). “The plant, which employs about 1,400 people, makes transfer cases to switch power from two- to four-wheel drive vehicles.” Make that made. Magna’s statement after the jump [thanks to cnyguy and Geo. Levecque for the links].
New Process Gear (NPG), a manufacturing division of Magna International Inc.’s Powertrain operating unit, announced today that the modified, tentative collective bargaining agreement put forth by UAW local leadership and NPG management has been voted down by employees of Local UAW 624.
The modified, tentative agreement was a second attempt to restore viability to the plant and provide a potential future for employees. As a result of the vote, NPG will initiate a closure plan for the site and begin transfer of operations.
“This was an extraordinary attempt by the UAW and the NPG management team to craft what could have been a truly competitive agreement,” said Tom Rucker, NPG’s general manager. “I am extremely disappointed that this agreement, which could have given NPG a real opportunity to survive, was voted down.”
@50merc: The NPG plant is in New York, so I’m sure the UAW is the exclusive bargaining agent for the plant’s workers, and all the workers have to be UAW members (well, at least have to pay the dues). The union contract is all or nothing, in several ways. If New York became a so-called “right to work” state, here’s what could have happened: New York is a right-to-work state, however collective bargaining still trumps all. In the early 1990's I worked at the Magna plant as an outside contractor. The union control is incredible- I waited an hour for an union electrician to reset a circuit breaker. I was going to reset it myself and was told I would be escorted to the gate if I did. So we all sat around and drank coffee waiting...
Wow the closing of one plant evokes a flurry of comments ranging from Union work rules to outright class warfare. Guys.. Chill out... They are all either greedy morons (UAW and Mgmt) or we have enough transfer cases to last for a long long time and they had no hope of ever turning a profit. I just checked... Plenty of transfer cases for sale... Many places even offer free shipping... Don't fall for the class warfare BS... Life is what happens when your making plans. - John Lennon