top
US
US
Indybay
Indybay
Indybay
Regions
Indybay Regions North Coast Central Valley North Bay East Bay South Bay San Francisco Peninsula Santa Cruz IMC - Independent Media Center for the Monterey Bay Area North Coast Central Valley North Bay East Bay South Bay San Francisco Peninsula Santa Cruz IMC - Independent Media Center for the Monterey Bay Area California United States International Americas Haiti Iraq Palestine Afghanistan
Topics
Newswire
Features
From the Open-Publishing Calendar
From the Open-Publishing Newswire
Indybay Feature

Details of General Motors contract underscore UAW betrayal

by wsws (reposted)
Thursday, September 27, 2007 :Additional details have emerged on the tentative agreement signed between the United Auto Workers and General Motors that shed additional light on the scope of the betrayal carried out by the auto workers union. The UAW reached the deal Wednesday morning and ordered an end to the strike by 73,000 GM workers—just two days after it began.
The front page headlines of several newspapers celebrated the historic rollback of auto workers’ conditions contained in the GM-UAW agreement. “GM Labor Deal Ushers In New Era for Auto Industry,” wrote the Wall Street Journal; “GM-Union Deal Could End Business As Usual In Detroit,” declared the New York Times; “A New US Auto Industry Emerges,” proclaimed the Detroit Free Press.

The Journal described the transformative significance of the contract as follows: “For much of the past half century, Detroit’s Big Three auto makers had collaborated with the UAW to create an industrial aristocracy of blue-collar workers whose pay and benefits set the standard for the American middle class. If the proposed contract announced yesterday is ratified by union members—and is subsequently replicated at Ford Motor Co. and Chrysler LLC—that era in American industrial history may be over.”

The lynchpin of the agreement is a proposal to free GM of its obligation to pay health care benefits to its nearly 400,000 retirees and their dependents by setting up a multi-billion-dollar union-controlled trust fund—known as a Voluntary Employees’ Beneficiary Association, or VEBA—that will pay out benefits. In addition, the agreement establishes a two-tier wage system—the first ever in a national UAW contract—that will drastically reduce wages and benefits for the next generation of auto workers.

Read More
§General Motors worker: "The UAW doesn't lose, but the workers do"
by wsws (reposted)
Thursday, September 27, 2007 :Some media reports on Thursday expressed apprehension that as details of the UAW-General Motors contract become better known, momentum will grow among GM workers to reject the sell-out. This fear was doubtless a factor in the decline in GM share values on Wall Street on Thursday, after a sharp rise following the suppression of the strike on Wednesday.

The World Socialist Web Site spoke with a long-time GM worker who expressed opposition to the contract. Lyle, a worker at the Saginaw Metal Casting plant, said, “I wouldn’t vote for this. Maybe the union thought that by striking for two days we would go for this contract. The guys are very dissatisfied. I can’t see the membership ratifying this.

“I’ve read the Wall Street Journal and they’re gloating over the agreement. They took away our cost-of-living allowance and all we’re going to get are lump-sum payments. We fought hard for COLA to help against inflation and the union just dropped it. Now rising costs are going to continue to gnaw away at our hourly wages.

“GM will no longer be obligated to pay retiree health benefits when they set up this VEBA fund. Look at the history of these trusts—they’ve failed. Does the UAW think it can invest the money better than GM, with all their financial consultants? In ten years’ time the trust will be screwed up and we’ll be losing our benefits.

“Gettelfinger said the job security in the contract was the main achievement. If that was the main thing, then we’re in bad shape. For the last thirty years the union has talked about job security guarantees. At the same time the UAW membership has fallen from 1.5 million to 500,000. Two-thirds of us are gone. Is that job security?

Read More
Add Your Comments
We are 100% volunteer and depend on your participation to sustain our efforts!

Donate

$115.00 donated
in the past month

Get Involved

If you'd like to help with maintaining or developing the website, contact us.

Publish

Publish your stories and upcoming events on Indybay.

IMC Network