According to their website, the UAW represents skilled trades and production workers at General Motors, Ford, and Daimler-Chrysler.
In addition, the UAW represents several thousand salaried employees — including engineers, designers, and draftsmen — at Daimler Chrysler, Ford, and General Motors. Workers at new United Motor Manufacturing Inc. (NUMMI), a GM-Toyota joint venture; and Mitsubishi Motor Manufacturing of America Inc. (MMMA) also belong to the UAW.
The UAW, through negotiations, has reluctantly followed the transplants by agreeing to lower wages in the automotive industry, but so far, only in supplier plants. In all reality, they have no choice. Once the downward spiral starts, everyone is pulled into the breaking of the U. S. automotive industry wage structure by the transplant management, facilitated by the anti-union stance of the transplant workers, which opened the US wage-loss
...gates considerably wider than those of other old-line, union-contracted, automotive-producing countries. In UAW’s perspective, globalization has caused this impact on worldwide labor rates, both for those who sweat and those who use keyboards.
Non-union people will take the brunt, as wages and benefits for both workers and retirees are diluted to meet the twin challenges of globalization and management decisions. Using the CPI, real wages for automotive production workers in the United States have fallen since 1970. Recently, New York Times (Peters, 28 March 2006) reported that labor unions have approached the auto parts supplier Delphi to propose giving its factory workers $50,000 in exchange for a 40 percent reduction in pay, according to union officials. The plan also calls for General Motors, which spun off Delphi in 1999, to subsidize part of the plan's cost, but it could not be determined ho
much G. M. would contribute. If G. M. agrees to help finance the plan - something it has not done at this point - it would be an unusual act of cooperation in a bankruptcy proceeding.
It would also be the latest effort by G. M. to ease its former subsidiary's financial burden as it tries to reorganize. Delphi offered this alternative a few days after the company and the UAW reached an agreement on buyout offers to 13,000 UAW members out of 24,000 at the parts maker. Under this suggested plan, Delphi has proposed lowering pay for factory workers initially by $5.50 an hour, to $22 an hour in early July. The rates would later drop to $16.50 an hour in September 2007. Unless Delphi and its other unions agree, the company has signified plans to ask a federal bankruptcy judge for permission to cancel its labor contracts and impose lower wages and benefits.
Such a move would increase the likelihood of a strike by Delphi workers and create more problems for General Motors, Delphi's largest customer. Any strike at Delphi could quickly cripple G. M.’s vehicle production.
References
- Peters, J.W. (2006, March 28). Delphi Is Said to Offer Unions a One-Time Sweetener, New York Times. Late Edition (East Coast). New York, N. Y.: p. C. 3. Acquired online 12 April 2006 at http://www.nytimes.com/
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