#Uaw

At a meeting of the Automotive Press Association at the old-money, establishment Detroit Athletic Club in downtown Detroit, a stone’s throw from GM’s headquarters, UAW President Bob King warned Detroit auto journalists not to listen to “extremists in the Republican Party,” just like people in Germany and Italy should not have fallen for Hitler and Mussolini.

Does the UAW owe taxpayers a thank you? Chrysler’s attempts at thanking the taxpayers in the midst of bailout-mania seemed to draw more ire than respect, so it’s understandable why the UAW has not made any effort to thank taxpayers for the auto bailout, without which the union surely would not have survived long. But now that UAW local 1268 has made a somewhat belated, but nonetheless earnest gesture of thanks, the national UAW’s silence on the matter suddenly seems a bit deafening.

And no, it’s not an April Fools day story! Bloomberg reports

The United Auto Workers membership rose 6 percent to 376,612 last year, the first gain in six years as U.S. automakers began hiring amid a recovery in sales.

The UAW’s membership increased by 21,421 members from 355,191 in 2009, according to a union filing today with the U.S. Department of Labor.

UAW President Bob King has wasted no time in declaring this a sign of recovery in what you might call the UAW’s “core business”:

This increase is a reflection of new organizing by the UAW, the recovery of the domestic auto industry and UAW members who won a first contract during the year. We hope to continue this growth in 2011 and beyond, as we fight to win a more fair and democratic process for workers to organize.

Of course, King’s attempt to link this minor improvement in his union’s membership to the recovery of the domestic auto industry is the real April Fools joke here…

As galling as the auto bailout was for many Americans, the hidden “stealth bailouts” that occurred during the government-led industry reorganization are often even more galling. Today the final chapter of one of those “stealth bailouts” has taken place, as GM has sold its stake in its spun-off supplier Delphi for $3.8b, booking a $1.6b gain on the deal. So, how is GM divorcing its former in-house supplier a stealth bailout? Back in the dark Summer of 2009, the government organized a GM-led rescue of Delphi, which had been languishing in bankruptcy since 2005 (after GM. By buying a chunk of Delphi for $2.5b of the government’s money and selling it back for a profit, GM’s helped itself to a little extra bump of public money. Oh, and did we mention that GM dropped all kind of pensions in Delphi’s lap when it spun the supplier, including workers who had never been employed by Delphi.

But that’s not the worst part: any guesses as to why GM’s stake in Delphi is suddenly worth so much more? A recovering industry, perhaps? Wrong. Shortly after GM bought back its stake in Delphi, the supplier dumped $6.5b worth of pensions onto the government’s Pension Benefit Guarantee Company, causing huge benefit cuts and hidden government costs. What did the PBGC’s stake, given as “partial compensation” for that pension dump, yield it? A cool $594m. Meanwhile, thanks to the government ‘s arguments, GM still had to top-up UAW retiree pensions, leaving non-union retirees and members of other unions out in the cold [read all about it in a just-released GAO report in PDF here]. A shell game inside of a political payoff inside of another shell game, in other words. There’s nothing to not love here…

The WSJ gets a little closer to the truth about the UAW’s incredible disappearing transplant organizing campaign, reporting

On Tuesday, UAW leaders meeting here described plans to reach out to foreign unions and consumers in what would be their first major campaign since failed efforts in the last decade at Nissan Motor Co. and auto-parts supplier Denso Corp. They hope to be more successful by reaching out to foreign unions at the auto makers’ overseas plants and bringing pressure from prayer vigils, fasts or protests at dealerships.

A person familiar with the matter said the union is now planning to target one foreign auto maker and has narrowed its list to three or four companies. Inside the union, much of the talk centers on targeting the now-struggling Japanese auto maker Toyota or Korea’s Hyundai, this person said.

The UAW has set aside tens of millions of dollars from its strike fund to bankroll its campaign. International actions are to be coordinated with foreign unions and run by some three dozen student interns recruited globally, UAW officials said. When the interns return to their home countries after learning about the UAW efforts in the U.S., they’ll be expected to organize protests against the auto maker, UAW officials said.

OK, so it’s a little bit strange that the UAW is entrusting a campaign that UAW President Bob King calls “the single most important thing we can do for our members ” to a bunch of interns. Still, with “tens of millions of dollars” allocated towards the campaign, some automaker somewhere will be feeling the union’s hot breath on its neck in due course. So, which automaker will the UAW target? Which automaker should they target? And with the UAW apparently refusing to fight the two-tier wage structure, will any transplant or foreign workforce want to join up?

Though things have been quiet enough to make us wonder whether or not the UAW’s effort to organize America’s transplant auto factories is still on or not, the UAW’s Bob King confirms to Automotive News [sub] that the war is still on. King insists that forthcoming contract negotiations with the Detroit Three aren’t a distraction from the transplant organizing campaign, saying

Everything is moving forward.

But King isn’t ready to disclose any results from the organizing campaign, refusing to share any of the automaker responses to his organizing principles. We’re guessing that’s because they sent roughly the same response as Honda. Meanwhile, King still says the UAW will assimilate “at least one” transplant, but still refuses to identify the maker. Our guess is that King will organize a “Mission Accomplished” moment at NUMMI, the sewer into which all of the UAW’s contradictions flow. Though best known as a Toyota plant (in large part due to the UAW’s misleading protests against the Japanese automaker there), NUMMI has always been a union shop, and its new owner, Tesla, hardly qualifies as a “transplant.” In fact, such a move would come up short of even replacing the union jobs that were lost at NUMMI when GM pulled out of the joint venture during bankruptcy. If NUMMI is to be the UAW’s “victory” it will prove simply that the incredible shrinking union considers barely treading water a “victory.” Surprised?

On Friday, Ford will show something it didn’t have for a long time: Money, and lots of it. The Freep thinks that Ford will report a profit for 2010 of about $8 billion excluding onetime charges. That would be the biggest annual profit Ford saw in a decade.

Whoa! Is there a doctor in the house? We seem to have a bit of a situation here. UAW’s President Bob King threatened that the union will label anti-union companies as human-rights abusers.

The UAW today released its complete “Principles For Fair Union Elections” [ full PDF here], the document that it wants every transplant auto manufacturer in America to sign ahead of its organizing campaign which kicks off later this month. With so-called “card check” legislation dead in congress, the UAW hopes to shame foreign automakers who manufacture vehicles in America to guarantee certain concessions to the union that, having helped kill off its Detroit “partners,” now owns large stakes in the bailed-out successors to GM and Chrysler.

In the past the UAW has failed to organize a number of transplant factories, including Nissan’s Tennessee plants and Toyota’s Kentucky factory, and the introduction of these principles ahead of the next organization attempt signal’s the UAW’s perspective that “manipulation” by management prevented UAW organization in transplant factories. If bosses from Nissan, Toyota, Subaru, Honda, Volkswagen, BMW and Mercedes don’t sign onto these principles, they will be on the menu for the UAW’s new campaign… but are the principles worth agreeing to? Let’s take a look…

As Bob King and the United Auto Workers gear up for their January organizing campaign aimed at converting transplant automakers to the union way, the UAW is picking up support from outside the automotive industry. Automotive News [sub] reports that Jesse Jackson’s Rainbow PUSH Coalition has expressed its interest in organizing the non-union auto assembly plants, and that the Detroit bureau of the NAACP has pledged assistance as well, offering to request assistance from its national leadership. Even the Ohio-based Farm Labor Organizing Committee, which organizes migrant farm workers, has said it would join the fight if King asks. And though AN’s writeup uses the imagery of conflict to describe King’s “soldiers,” King insists that its strategy is not confrontational. As far as the President of the UAW is concerned,

Transplant workers in the South will want to be part of this “winning team,” King said.

Ever since being hand-picked to succeed Ron Gettlefinger as President of the UAW, Bob King has made it clear that his focus would be on organizing transplant factories, the US-based assembly plants operated by foreign automakers. And why not? Having been given ownership stakes in GM and Chrysler during their bailout, the UAW can’t even protect the wages of its existing members, let alone lobby for higher wages. As a result, this year has been marked by UAW protests against Toyota (for pulling out of a joint venture that GM had already abandoned and getting caught in a media circus), and Hyundai (for getting caught up in a convoluted Korean union spat), and threats of organization campaigns against Toyota, Honda, Nissan, Hyundai, Kia and Volkswagen. Now, King tells Automotive News [sub] that it’s time for the transplants to batten down the hatches: UAW organizers are coming to town…

Unable to provide meaningful representation to its dwindling membership, the United Auto Workers is continuing its post-bailout strategy of poking its nose into everyone else’s business with a protest planned for today at the Hyundai America Technical Center in Ann Arbor, MI. While its own workers face the aftermath of a bailout that saw tens of US plants shut down, the UAW opines on the Korean situation in a release which notes:

Frustrated by their temporary status, auto workers at a Hyundai Motor Co.mpany plant in Ulsan, South Korea, declared a strike on Nov. 15, and one desperate worker set himself on fire in protest of the company’s refusal to offer secure jobs. About 500 workers have since led an occupation of various plants in the Hyundai compound… To anyone interested in workplace fairness, the resolution of the Ulsan Hyundai workers’ strike is critical. It could either speed up progress toward ensuring global living wages, or provide a green light on the race to the bottom the auto industry began years ago – — with Toyota and Hyundai getting a head start.

One must, however, point out that the UAW has made its fair share of contributions to recent declines in auto worker wages. After all, it forced nearly half of GM’s Orion Assembly plant workforce to take a 40 percent wage cut in order to build a politically-popular fuel-efficient subcompact (the next-gen Aveo) in the US. Not only did this represent an unconscionable screwing of its own union “brothers” but it also directly hurts the Korean workers the UAW now so self-righteously defends by by stealing jobs using the very same “race to the bottom” that it decries. Besides, the labor situation in Korea is a bit more complex than the UAW’s Manichean moralizing makes it out to be…

GM’s stock may be hovering near its IPO price of $3/share, but the UAW doesn’t need much more growth to cash out with every penny it wanted from GM. The UAW’s VEBA account has banked $3.4b in stock sales so far, and Forbes reports

The VEBA will break even on its investment if it can sell the remaining 206 million shares at an average price of $36.96.

Taxpayers, meanwhile, need GM’s stock to top at least $52/share in order to break even on the bailout that it funded. Because it’s just not a bailout unless the least deserving benefit the most. Meanwhile, with its accounts once again flush with cash, the UAW is turning South in hopes of accomplishing what it has never accomplished before: unionizing at ransplant auto factory in a right-to-work, Southern state.

Let me say this as clear as I can, I do not think there will be any concessions in 2011. People want to reward our members and it will be a key component of the 2011 bargaining. When the industry comes back, just like we’re sharing in the downside we’re going to share in the upside. That’s a key foundation of what we’re doing in 2011.

UAW President Bob King gives his best “we will fight them on the beaches” impression, telling Reuters that his union has sacrificed enough, thanks. And though the people who want to reward UAW members are notably absent from public debate, that assertion wasn’t nearly as double-take-worthy as King’s opinion that

There’s no competitive gap between Ford, GM and Chrysler right now

Huh?