UAW To Own Chrysler
According to Automotive News [sub], the United Auto Workers (UAW) agreement with Chrysler/Fiat would deliver unto the union a 55 percent share of the reborn Italian – American automaker. As in the proposed (but doomed) GM bondholder offer, ChryCo union workers will forego a multi-billion dollar payment into their Voluntary Employment Beneficiary Association (VEBA) health care fund in exchange for the equity stake. In Chrysler’s case, $6 billion buys them controlling interest in Chrysler. That’s all kind of nuts on all kinds of levels. And as we’re in tail wagging the dog territory . . .
“The UAW agreed to allow Chrysler to hire as many so-called Tier 2 workers as the company can until 2015, the source said. Those workers start at $14 an hour (versus $28 an hour for veteran workers) and receive fewer benefits. The number had been capped at 20 percent of the work force. Under the existing contract, plants can have many more classifications . . . Other concessions include a reduction of job classifications. Chrysler plants will operate with just two classifications of production workers and two classifications of skilled trades.
So what was bad for the union is now good for the union, as the union controls the union’s pay and conditions. Welcome to the world according to American Leyland.
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BDB......"But I don't think of you" The reality is that the UAW, among others, are responsible for the disaster that the US car industry is in. Their pay and benefits made the US auto industry uncompetitive...period. They also had dozens of strikes over the past 30 or so years(I say 30 years because the cat has been out of the bag on the quality of the American auto since then). Did they once strike to demand that the management build better cars? I actually don't know but I doubt it. A quality product is the closest thing to a cradle to grave guarantee that exists. OBVIOUSLY. Last point: Over the past 10-15 years the UAW has seen falling membership, pay and benefits. If they cant do their specialty well, how well are they going to run something that they have very little expertise in? This said, how could someone believe that the UAW is qualified to run a successful car company?
I guess high salaries, free health care, long golden retirement packages, and outrageous benefits including car discounts for all those years was not enough. If you only looked at their side you'd think that they were unpaid volunteers or something.