Breaking down the GM Strike: who got what
The GM strike lasted less than 40 hours, not even two full days. For UAW president Ron Gettelfinger, however, it was just enough time to secure for his members the concessions he wanted. So which side blinked after 40 hours of staring the other down? It's tough to tell, but the UAW's main sticking point was job security, and it was looking for a guarantee that production for new models wouldn't be moved outside the United States. This is the issue that initiated the strike, and it appears that GM did change its mind and offer the UAW some type of broad job guarantee for the duration of this 4-year contract. Here's how the whole deal breaks down as we see it.UAW got:
- An independent retiree health care trust that will be funded with enough money from GM to remain solvent for 80 years
- Undisclosed job guarantees that we expect includes a promise of investment in particular U.S. plants in preparation for production of new models
- GM will hire up to 5,000 temporary workers as full-time employees
- Signing bonuses of an undisclosed amount for all UAW members who sign the contract
- Wage increases of 3% in first year, 4% in second and 3% in third
GM got:
- $50 billion in health care liability off its back after a large one-time payout into independent retiree health care trust
- Two-tier wage structure, as those 5,000 new hires who were previously temp will be brought in at their current wage of $18/hour, rather than the $28/hour current full-timers earn
- Undisclosed revisions in the Jobs Bank program that continues to pay laid-off employees
- Reduction in labor cost to produce vehicles, though might not be realized right away
[Source: Automotive News, sub. req'd]
Get a WordPress.com Blog
Reader Comments (Page 1 of 3)
compy386 11:40AM (9/26/2007)
Someone can correct me if I'm wrong, but I believe automotive news is wrong on the wage increases. My understanding was that there were no wage increase. Those percentages are one time bonus payments in each year after the first.
Reply
Menice 11:47AM (9/26/2007)
*Signing bonuses of an undisclosed amount for all UAW members who sign the contract .
huh? for agreeing to work? wth? please tell me this is like $5.00 or $10.00.
Reply
SPG 7:26PM (9/26/2007)
It's three dollars and a cheese sandwich.
But there's a catch.
If you want mayo it costs you three dollars.
Alex 11:57AM (9/26/2007)
"An independent retiree health care trust that will be funded with enough money from GM to remain solvent for 80 years"
Help me out, does this mean that GM will never have to put in for retiree health again and its on the UAW to keep it straight?
If that's the case i'm willing to bet that the UAW will f#ck it up real quick and then go running back to GM demanding that they put more money in.
Reply
Pete 8:19PM (10/09/2007)
Oh, the UAW will totally fug up the health care fund.
Jeff 12:23PM (9/26/2007)
My guess is they will screw it up in the next 10 years and then blame the children hating, war supporting, anti worker conservitaves for the problem and then go running to the government to bail them out.
The government (you and me) will bail them out after they bring out commercials of teary eyed sick old people who worked hard all their lives and were left high and dry by big business and now the Union is forced to go to the government for help. blah blah blah.
All this will result in is a massive taxpayer bail out sometime over the next 10-15 years.
Tim UF 12:11PM (9/26/2007)
28 an hour is still a lot more than an average line worker should be making...
Reply
Seminole 12:33PM (9/26/2007)
This is the only time I will ever agree with someone from UF.
Javi0084 12:47PM (9/26/2007)
True. My girlfriend's mom works for a Chrysler plant and is a UAW member. She makes almost as much as me but she doesn't have a HS diploma and I have a college degree. The cost of living is a lot cheaper were she is. Sad.
That One Person 4:51PM (9/26/2007)
Wasnt it published on here not too long ago that the average Toyota line worker at a Kentucky plant makes $30 an hour?
MiniMe 12:12PM (9/26/2007)
What I'm wondering is how that professor came up with a $150,000 a year compensation for the GM and Ford assembly line workers?
I think it's clearly stated $28/hour, which is roughly $56,000 a year. Plus overtime they may get $70,000. Where on Earth $150,000 came from?
Reply
jamey 12:17PM (9/26/2007)
I believe the $150,000 included health and dental care and various other forms of non direct payment, but I could be wrong( it has happened once before) Either way $56,000 does seem like awfully good pay for a line worker.
Seminole 12:35PM (9/26/2007)
The professor added in the value of their health care programs. Even if it is only $56,000 that is still almost $10,000 above the average American HOUSEHOLD income. For no college degree, and sometimes not even a high school diploma, that isn't bad at all.
Paul 12:37PM (9/26/2007)
Sounds to me that the $28/hr was starting wage. Then the pay scale increases with seniority. Walking in off the street and making 58K, sounds like a bit much to me too. $37K sounds much more reasonable.
Snowdog 12:36PM (9/26/2007)
I would imagine these are entry rates, that rise with years of experience/training etc..
kballs 1:42PM (9/26/2007)
All your companies' products and services need to stay competitive with the non-domestics so you all need to get pay cuts and pay for your own health insurance, union contracts or not... even if your CEOs didn't pass the savings on to the customers, I think it's important they get to make more money because they aren't absurdly rich enough to have an incentive to stay and run the companies. I also think you all make more than me and I'm jealous so you should get pay cuts. We should all get paid less. Our company investors have a divine right to make a profit, and us workers are fat and wealthy with all our new cars and stuff. Heck, we could buy used cars, then the automakers wouldn't need to pay anybody to build new cars, then they wouldn't be burdened by any labor or medical costs at all!
kballs 1:52PM (9/26/2007)
Oh wait! What was I thinking?! Even if they fired all their factory workers and engineers and marketing, HR, and accounting departments, they'd still retain HALF of their labor costs because they'd still need to pay a handful of expensive CEOs... and they wouldn't have a product to sell... I guess the CEOs and upper management are actually the labor cost anchors then, not the UAW.
Justin 12:26PM (9/26/2007)
I'm pretty sure the breakdown actually looks like this:
GM: A royal ass rogering
UAW: A happy ending
Those wage increases are ridiculous. GM should have fired them all and hired the tons of other people more than happy to do the job for less money.
Reply
epilonious 12:53PM (9/26/2007)
I'm sort of saddened now that UAW is legitimized as a "plant worker health care hedge fund".
They also might keep increasing union dues to offset the price of increasing healthcare, or switch insurances and monkey around with copays for cheapness.
It could be wonderful, but I can't help seeing ways that it will end up being Bad(tm).
Reply
Alex 1:23PM (9/26/2007)
Increasing dues probably won't happen. at least not too much. as much as they'll need to cover their collective asses, they know that if they start gouging the rank and file, the rank and file will end up demanding that the union be disolved. not that i would complain about that...