Filed under: Hirings/Firings/Layoffs, Chrysler, LLC., UAW/Unions
Surprise: UAW would be against merger
In an announcement that should be anything but shocking to anyone who even remotely follows the auto industry, United Auto Workers head Ron Gettelfinger says he and the UAW would be against any merger between automakers that would reduce either company's workforce. Considering that the Union's main job as of late has been safeguarding the jobs of its members, we would expect nothing less than an all-out war between Gettelfinger and the automakers involved, if such a merger were to take place, as much of the potential money savings would undoubtedly be in duplicate workforce reductions. In any case, Gettelfinger says that the UAW has not officially been contacted by either party regarding anything of the sort, lending further credence to the notion that any talks that are currently taking place are very much in the early stages.[Source: The Detroit Free Press]
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Reader Comments (Page 1 of 2)
Paul 9:39AM (10/15/2008)
The UAW is in a tough position here:
1) Support the merger and lose some union jobs
2) Don't support it and risk a lot more jobs if a company fails
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Rocketboy 10:53AM (10/15/2008)
And when has #2 been a concern for the Unions? They are always looking out for #1...
Fernando 2:12PM (10/15/2008)
I think they're screwed either way. If they don't support the merger, at least one company (Chrysler) will go belly up, and GM isn't far behind it.
John P. 9:41AM (10/15/2008)
If the union is so worried about keeping jobs, why don't they go into the car business (or buy Chrysler) and try building/selling cars people want to buy? There ya go, problem solved! LOL
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Gabagool 9:45AM (10/15/2008)
I think it would make sense for them to buy 10%-12% in Chrysler in order to stabilize the company.
geo.stewart 10:50AM (10/15/2008)
1) that would make sense. when does the union do things that make sense big picture
2) then they wouldnt be able to blame others for their problems and push others to carry their load.
3) The union thrives on an us-them mentality and makes their money off the workers and the mgmt.
why consult when you know what they are going to say?
fewer workers equals less money and less leverage.
rndmnme 9:44AM (10/15/2008)
What happens with the big three go under UAW? You lose.
The UAW should start realizing that when companies go bankrupt, people are going to lose their jobs. Just because the UAW thinks they are entitled to a job, doesn't mean they get one.
As Taylor (http://money.cnn.com/2008/10/14/news/companies/gmwoes_taylor.fortune/index.htm?postversion=2008101509) points out, if GM declares bankruptcy, not only will they have the 800lb gorilla in the room to negotiate lower wages, but Ford and Chrysler will probably quickly follow.
Gettlefinger should realize that the only way he can stem UAW losses is to approach the big three before the big three approach him. The longer things go down the tubes, the worse it will be for the UAW.
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Polly Prissy Pants 12:39PM (10/15/2008)
"The UAW should start realizing that when companies go bankrupt, people are going to lose their jobs."
Oh, the members fully realize that, they're just counting on that job being someone elses down the line.
Bob 9:48AM (10/15/2008)
While I am not anti union, especially in these time of gross excesses by Big Business and Government. Such a position while politic is unrealistic. Our auto makers have the wrong product mix, that coupled with the certainty of a long Resession ( maybe depression) make it certain they MUST cut workers and facilities or they will go bankrupt and all will lose their jobs
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MONTE 9:56AM (10/15/2008)
Unions are for protecting workers from bad companies and policies, not for ensuring that someone will forever have a $30/hr job that involves putting screws into a dashboard. I believe that the UAW needs to take more than 50% blame for the U.S. auto industry being in the tank because they have such ridiculous contracts for doing a no skill job.
Power company linemen that put their lives on the line everyday climbing poles need unions for safety, but the same can't be said for UAW workers. It isn't a skill to work on an assembly line because you do the same thing hundreds of times per day and your brain never has to even wake up to get that accomplished. Maybe this economy crunch will finally get the UAW abolished and the U.S. can get back to making good and not have to spend billions on pensions and healthcare for people that do a job requiring no more skill than a fast food cook.
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Rod Rogers 3:51PM (12/12/2008)
Being a former union member, I can't help but see how the unions have all its members buffalo'ed. If you think for one minute that unions are for its working members, YOU ARE WRONG! They are for themselves and no one else. They always do the wrong thing, like protect lousy workers and discriminate against the better workers and use your dues for their resorts and pleasure palaces. Unions do have a good use, but the union officials, just like alot of other organizations, are corrupted and do not have your best interests at heart, except for gathering the free money they get from your monthly dues. Another thing, blaming just the Republicans for the mess you're in is pretty one-sided. If you recall, the Democrats have been making the rules for the last 2+ years. Both parties are to blame, but you all keep voting the same idiots back in. Barack Obama! What a joke! Obama is like your lying union officials, nothing they say you can believe.
Jo 10:14AM (10/15/2008)
The way I see it: the unions are The main reason the American automakers are in this mess to begin with - the bloated costs of building a car in a UAW plant means the automaker has to cut corners in the product to be competitive on price, and the UAW's attitude over the last 50 years has been nothing more than the thug mentality of "do what I say, or else!"
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Biff Baxter - All Domestican 10:15AM (10/15/2008)
SURPRISE SURPRISE SURPRISE!!!
And the United Buggy-Whip Workers Union was against the horseless carriage, as well.
Is there any bureaucracy of the face of this planet more irrelevant than the UAW?
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gslippy 10:50AM (10/15/2008)
I'll give you one suggestion for a higher level of irrelevancy - the teachers' unions.
Johnsd2 10:44AM (10/15/2008)
Loss of union jobs+ Loss of money to unions= The union will have to cut back there "workers". Do the math!
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TyWright 12:58PM (10/15/2008)
Unions suck. Go away unions.
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Aki 1:35PM (10/15/2008)
It's sad--and even twisted--how the auto union just can't get themselves to think outside of their own selfish, short-sighted ambitions.
Merger or no merge, the big 2.5 are hurting. Badly. Gettelfinger can't expect to stomp his foot down and think that the UAW will stay afloat. Either he's just playing union politics to appease other union heads, or he's so self-absorbed into trying to leech as much money out of automakers that he doesn't care if those same automakers go down.
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mr.ed 2:22PM (10/15/2008)
The real inefficiency is in the multiple layers of management, many more than offshore competitors. Decisions take so long the resulting product is obsolete when announced. Union and non union overhead is so high, old tooling runs ancient designs, such as the Chevy V8 while more modern product is available elsewhere.
And what does Chrysler have that anybody wants, that's available elsewhere already?
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Stratojet 4:27PM (10/15/2008)
The UAW will have to give back what they have stolen from the Big Three's shareholders over the last 71 years. In 1937, Thomas Murphy mediated an agreement to stop a Strike against GM. Doing so gave the monoploy to the UAW and the rest is history.
- I think that the UAW will be have their back to the wall before any actions is taken , including filing under Chapter 11.
- The US government will help and will not let bankruptcy happen for obvious reasons. People withdraw their money out of the Banks and mutual funds like there is no tomorrow since Lehman went under. Whatever Alex Taylor III from fortune says, why on earth would you buy a car from Detroit if all the big Three go under?
- With the help coming, hopefully from a Democrat government, many concessions wil be asked. This is called equality of sacrifice. Any sacrifice is better than a Wall-Mart job nowadays.
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stevefazek 6:52PM (10/16/2008)
While i think unions are very very important.
The UAW has a great history of killing any industry it touches.
They dont just unionize autoworkers.
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