Concessions--And now What?

[Omaha Steve]

http://workinglife.org/blogs/view_post.php?content_id=10663

by Jonathan Tasini
Thursday 04 of December, 2008

Not a happy day for auto workers--and, frankly, for workers everywhere. The UAW, as most of you know by now, has agreed to new concessions to try to save the auto companies. From The Wall Street Journal:

Two weeks after insisting his union had already done enough to help the car makers, UAW President Ron Gettelfinger said the union would allow the companies to delay billions of dollars in payments into funds that will cover health-care costs for retired workers. The union also will suspend a "jobs bank" program under which workers continue to collect most of their wages after they are laid off.

"We're willing to take an extra step here," Mr. Gettelfinger said at a news conference after meeting with UAW leadership in Detroit.

And The New York Times, which ran this story in its print edition as the lead front-page story (somehow, I will miss the day when we don't get newspapers thrown on the doorstep--reading on-line just doesn't convey the same feeling...but I digress...):

The United Automobile Workers union said Wednesday that it would make major concessions in its contracts with the three Detroit auto companies to help them lobby Congress for $34 billion in federal aid.

The surprising move by the U.A.W. could be a critical factor in the automakers’ bid not only to get government assistance, but also to become competitive with the cost structure of nonunion plants operated by foreign automakers in the United States.

At a news conference in Detroit, the U.A.W.’s president, Ron Gettelfinger, said that his members were willing to sacrifice job security provisions and financing for retiree health care to keep the two most troubled car companies of the Big Three, General Motors and Chrysler, out of bankruptcy.

“Concessions, I used to cringe at that word,” Mr. Gettelfinger said. “But now, why hide it? That’s what we did.”

So, now what? Here are a few thoughts:


Think about this: it took decades to build a basic living standard that turned crappy industrial jobs into jobs that provided some measure of security--and in just a few years it has unraveled.

The danger here is a larger one than just the painful future facing UAW members. I am clear that the concessions agreed to by the UAW is all about saving an industry that (a) was, and is, run by incompetent managers and (b) is suffering from a much broader collapse of the global economy. Even domestic auto sales in Italy are down 30 percent so this isn't simply about the American-based auto industry.

This IS NOT about conceding the idea that autoworkers live some "gold-plated" lifestyle. If we don't make that clear, then, the path to Wal-Mart jobs is pretty obvious. Every company will now use the rap "well, even auto workers are agreeing to cut their wages and benefits"...and we can't let them do that.

FULL story at link.

[Romulox]

That coward Harry Reid is making noises that he won't even bring this up for a vote. nt

[Romulox]

1. dupe

[ScreamingMeemie]

2. Now what is that they saw this coming for years and now they're

trying to stop a bloody stump from bleeding out. Even here at DU, threads about this dropped like rocks as little as 3 months ago. Now what is a bit late. :(

[B Calm]

3. They go to Washington wanting 35 billion so they can eliminate union jobs!

Some fucking plan!