I just wanted to share one thought that recur every time I read about GM's bailout.
Taxpayers lost. True. But the company wasn't bailed out. The shareholders lost everything! It was the UAW that was bailed out. Sure they lost perks, but absent bailout they would have lost everything.
6
The typical CEO can only claim a marginal part of the responsibility of the company’s success. Even Steve Jobs, Thomas Edison, Walt Disney and creative people like them today, know this. Surveys of entrepreneurs and chief executive support that conclusion. Other top performers - generals, sports figures, movie stars and moguls - recognize the limits of their contributions to their success on the battlefield, the playing field, and the screen.
Consider for yourself what else, then, might otherwise account for the huge difference in salary in the corner office and on the assembly line? Compare the auto manufacturing CEO with that of a worker.. Does one work that many longer hours? Does one have greater personal risk? Greater financial risk? Who gets the golden parachute? Are CEOs that many more times shrewder, smarter and more talented? Is it actually harder to recruit a successful CEO than competent and reliable workers?
Instead, are most high CEO salaries largely attributable to allies on the compensation committees of their companies? Is a key difference jobss that can be sent somewhere else, but for CEO's the sky's the limit? What company's ever outsourced its top management? When will the President see this and push auto manufacturers to benefit workers as hard as he pushes the Fed to benefit CEO and stockholders?
6
The Mexican autoworkers who install headlamps for 5.00 USD/hour are scratching their heads and thinking that 10.00 USD/hour sounds pretty good and they are still more competitive.
If the UAW continues to press for wage increases, they may lose everything.
5
As a GM skilled trades worker with 35 years of seniority, I have seen the good times and the bad at GM. The tiered wage system is simply wrong and needs to be gone. There needs to be a set amount of days worked both sides can agree on where you are no longer a "temporary" worker. GM has taken advantage of this concession that was given and it should end.
For what its worth, I think its a disgrace that the non-union plants are paying people $18 - $22 an hour. Those folks would all be wiser and (richer!) if they would join the UAW and get paid what they deserve instead of letting those companies send all their profit money back to Japan. You Non-union autoworkers deserve more $$ in your wallets, and less $$ in Mr Toyota's bank account.
3
Not exactly rocket science how the US auto industry got to this point. Decades ago, unions flexed their considerable muscle to force US automakers to pay salaries that were five times that of workers in other countries, such as Japan. It was great while it lasted, high pay, huge benefits, and strict union rules that prevented improving efficiency.
But the situation was completely unsustainable, doomed to fall apart once the Japanese overcame the one single advantage that US makers then enjoyed (ie perception of higher quality cars). Not surprisingly, that eventually happened; today Japanese cars are generally regarded to be of superior design and manufacturing quality. So now, US companies are forced to be competitive with the rest of the world on their manufacturing costs, or else go out of business.
In other words, by its very history of demanding and extorting salaries/benefits that were far higher than free-market rate, the unions ensured the eventual competitive demise of the golden goose, their US automaker employers. Sure, there have been some concessions made toward global market rates for labor, as those during the 2008 economic crisis. But as the article reveals, the union members are still in denial about global realities, viewing those concessions as temporary and needing to be restored, rather than the permanent reality required to compete in a global marketplace. This is a reality not changeable unless you implement a protectionist tariff that bans all imports.
5
“We have given away so many concessions over the last eight-plus years, and this company has been ridiculously profitable over that time,” said Chaz Akers, 24, an assembler at G.M.’s Detroit-Hamtramck plant, which is set to close in January ."
Mr. Akers was 14 yrs old when Wall St and the GOP crashed the economy and GM & Chrysler had to be bailed out by the taxpayers. Who is the "We" that he is talking about.
Look up Mr. Aker , the robots are coming for your job. Get the UAW to work with the car companies to save as many of them as economically feasible by agreeing that increased productivity = lower costs is needed. Otherwise there will be even fewer GM assembly jobs in the future.
Robots do not need vacations , healthcare , pensions or weekends off.
8
@Duncan Lennox "Mr. Akers was 14 yrs old when Wall St and the GOP crashed the economy and GM & Chrysler had to be bailed out by the taxpayers. Who is the "We" that he is talking about."
The "we" is what unions are all about.
Duh.
2
How much of the UAW’s confrontational style is rooted in sexism. I mean, a mostly male, white and blue collar at that, hasn’t had a job action in 12 years yet now, when they are on the skids, they take on a female CEO?
1
@From Where I Sit That's what you got out of this situation?
LOL.
1
Unfortunately once the negotiations are done and the parties sign off on a deal GM will proceed to find more and more robotics to take over from workers. The concept of job security is turning into a "once was" idea.
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GM management has historically had a highly adversarial relationship with its workers. They didn't fix dangerous mistakes their own engineers warned them about. They dragged their feet on safety, improving efficiency, and reducing polllution. It is completely understandable that the union has to use the strike to get them to pay attention. The management will go into full PR mode, and try to frame the situation as due to overpaid, uncooperative workers, even though they mostly kept their jobs after the bankruptcy.
5
They ARE overpaid. At $21-31/hr PLUS a bonus that was $11,000 last year, there’s no justification for any action other than being grateful such wages haven’t caused a shareholder revolt. I guarantee that if Carl Icann bout a stake, GM would look very different.
4
"...the company’s unionized workers bore a significant portion of the pain to bring the automaker back to financial health."
Yes, the same workers who drove the company into bankruptcy with their inflated wages and their Cadillac benefits.
And when the company almost died, they had to back off; but now that the company is better, well, it's time to suck it dry again.
3
@spindizzy
Translation: the same workers who were able to enjoy a middle-class lifestyle before the recession would like to be able to do so again now that the company is insanely profitable, thanks to the US taxpayers and the workers' generous concessions. Oh the humanity!!
7
Lawyers, accountants and middle managers have earned a middle class lifestyle. Assembly line workers, retail employees, warehouse security guards (and their supervisors like myself) haven’t. That’s how capitalism functions. Only those close to the capital see the benefits.
5
@From Where I Sit I take objection to the phrase "see the benefits". There is nothing in the definition of capitalism that says those close to the capital see all of the benefits. Capitalism is supposed to be so great because EVERYONE that works hard will see "the benefits".
Part of capitalism is, you get paid what you are worth on the market. If the UAW was able to command "inflated wages and their Cadillac benefits," as spindizzy calls it, then that's capitalism. There is nothing in the definition of capitalism that forbids unions. If they can command some of that again, that would be capitalism.
1
Evil white capitalist Henry Ford sometimes awakens in the middle of the night and shakes his head sadly. He is ashamed that he didn't do more for Detroit.
2
GM will close shop and move to Mexico. That's how they play the game. It's shameful. By the same token, the UAW needs to be overhauled and rid itself of the rough guy mentality. They need leaders with Yale and Harvard degrees. The unions have a chance to revive and they need to reform their leadership...they need leadership who can partner and collaborate, and who are willing to insist on quality. They need leadership who are also willing to rid the rank and file of unsatisfactory workers.
3
Let's take take a deep breath, and consider what the broader implications are about this unrest. It is not a tactical movement on the part of the Republicans to force labor to accept less money - it is a coordinated, national attack to remove the middle class from the American scene. CEO's for years have been whittling away at this class - they have moved their factories overseas, automated wherever possible, and chose non union workers over union workers at every opportunty - even when their own salaries and bonuses have reached stellar heights and their shareholders have made money hand over fist. There is nothing wrong with making money except now, as has been the case since Reagan was president, they are doing it on the backs of the middle class worker - ever diminishing the promises of a better life for the American worker. Believe it or not most Americans are not college graduates with 5 and 6 figure jobs; they punch a clock everyday, live on wages 1/4 of what college graduates do, work in manual labor positions most people would shrug, have little if any retirement plans, are slaves to the banks because they are FORCED to have credit just so they will pay high interests that benefits big banks and live day to day! In short, remove the Middle Class and your remove what is the heart and soul of America's values - a chance to work harder and see your children have a better life than you do!
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@EDC
What do you suspect will be the end game if the middle class is completely hollowed our? I plan to encourage my daughter- a brilliant ph.d to emigrate if it continues mech longer.
2
I’m a retired member if the teachers union- I was a building rep. If they need more people to walk the line, I will volunteer.
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Autoworkers are claiming that they made sacrifices and that they now want to get back what is owed to them. Is what Union Management, and GM Corporate for that matter, told autoworkers at the time of the "sacrifices"; did they say just bear with it, you'll be made whole in the future?
I hope not, and I rather doubt that there was a quid pro quo promise. The comment that moved me most came from the person who said that the plant only had work through January, and job security was a concern. I totally get that. But is a strike the solution to that problem?
1
If we’re lucky ten years from now those abandoned auto factories will be retooled to make bicycles.
1
Is this business news or an opinion piece....hard to tell.
Overdue rewards ? For what ? Doing their jobs?
Didn't we see this story before ? GM ignores foreign competition....union ignores lower wage structure outside of USA.....everybody gets paid too much and benefits are too high. Market collapses and layoffs occur. Company does prepackaged bankruptcy. Do we need to stick around to see the next installment of this saga ?
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@Unhappy JD, the ....we sacrificed line is countered in the article that states:
Workers hired before 2007 make about $31 an hour, and can retire with a lifelong pension.
The pre-2009 workers agreed to let their colleagues make Kentucky Toyota wages but did not take any significant cuts.
5
GM went bankrupt because of the UAW. The pensions and retired medical benefits as well as the work rules and minimum hiring obligations the UAW heaped on GM over the years through the use of the strike were the cause of the collapse. When GM was in bankruptcy it wasn't the workers who bore the brunt of the collapse, they for the most part kept their jobs. It was the GM bond holders who suffered the big losses. And by the way most bond holders are not "the wealthy", but rather retired working class folks who thought they had a somewhat safe source of retirement income. I notice that this article fails to mention the UAW official whose been accused of embezzling millions of dollars from the union, actually from the members since it's their dues money. I can't help wonder if this strike isn't intended to give the union some cover as I'm sure there are more hands in the union's cookie jar.
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@James While there has always been Union malfeasance the very idea that GM went bankrupt because of the UAW is utter nonsense. GM went bankrupt due to poor sales of their less than stellar auto lineup. THEY failed to compete with better made foreign cars. THEY failed to make sure their engines get better gas mileage. THEY pay their executives obscense compensation packages. The average worker in the United States and everywhere else on earth needs to stop being patsies for corporations. We the workers create the very value their business needs to succeed. Without workers what have you got exactly?
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With a significant amount of production being done outside the USA, what are the cost savings that GM realizes. What are the wages in Mexico for example. The article fails to provide this important information to see a clear picture of the situation
2
Google it GM assembly line workers are paid $21-31 (with a rising scale) an hour plus the employer cost of Social Security and Medicare plus the defined benefit pension that insulates employees from the realities of the market. The same job in Mexico pays a fixed $8. Period.
2
Toyota, Honda, BMW, Mercedes, Subaru, and Volkswagen all build cars for the US market in America and employee American workers.
There is no longer such a thing as "The Big 3" automakers. 49% of the vehicles produced in the US are built by transplants. Toyota produces more vehicles in the US than Chrysler (1.2 Million compared to 1.1 Million).
There are no longer "US" and "Foreign" auto manufacturers. There are simply unionized vs non-unionized companies.
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"In addition, G.M. uses temporary workers (about 7 percent of the staff) who earn about $15 an hour, and do not have vision or dental benefits. "
What is unclear, are the actual hours of the contingency "staff".
It is outrageous for a corporation to deliberately chizzel down the wages of any of its workers.
I did not buy a GM car. I was grateful that the car I did buy has never been a candidate for recall as I believe many GM cars have been over the past few years.
I bet mid management has been eliminated too.
Didn't President Obama arrange for a special loan of millions to GM to keep it alive during the Great Recession or what Dr. Paul Krugman determined was an economic Depression?
DId GM repay the loan?
GM, innovate, reward your employees as you have rewarded yourselves. Stop the practice of hiring people so they can feel negligible with unstable job schedules, minimized hours, hotelling them at their job!
Be American, ask not what your country can do for YOU and did, but ask what you can do for your country's people - who are members of your grouped employees!
6
Your brothers and sisters under UAW Local 1981 -- the National Writers Union -- stands together with you! Our tiny office in Atlanta will be publishing and republishing stories all week about art, labor, and organizing in support. You are not alone, and we are union friends until we are union dead.
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I support the UAW. They gave concessions to save a company. Pay it back and lower the investor returns to normal interest rates.
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Some of the biggest investors in GM stock who benefit hugely from strong results are the workers at GM and the UAW pension plans.
3
While I agree with their views, Problem is GM took the money invested heavy in China, and closing plants here. Move to Mexico. Now Saying they going to import the cars from china, My opinion, they want to get rid of the american plants and this is going to lead to more closings as soon as the china made cars increase here. Other problem they have not made a car besides the camaro and corvette and the Pickup that caught buyers eyes, those 3 only ones i see lately.
2
The days when you could only bought a ford, Chevrolet or Chrysler are long gone.
If GM does not shrink their plant capacity and control their costs during today's "good times", GM will sink deeper during the next recession.
Don't conclude that the corporation does not care about it's employees. It's like having a limb amputated to prevent death. It is not fun and has long lasting negative effects, but beats the alternative when the patient dies.
5
When the US bailed out GM, the details were orchestrated by the Federal government. Those with premium stock lost almost everything, those employees that were already there lost very little if anything, and the new employees were hired at a fraction of the older employee salaries. All of this was designed by the Fed, not the UAW or GM.
The profits sighted in this article are the result of closing facilities and off-shoring work. They are the result of the very things the UAW wants to stop. The pensions of those workers that were in place in 2007 were untouched; it was the retirement benefits and to a lesser degree the salaries that almost bankrupted GM in the first place.
If we are to be a part of a global economy, where work can and will be done anywhere, it's not possible to 'go back' to the 20th century entitlements that the UAW secured in the 70s and 80s. What is the solution? I'm not sure, but feel the UAW is slicing it's nose to spite it's face. PS The UAW headquarters is new and very impressive; guess the union bosses don't have to sacrifice.
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@Ma
The $22 mil salary of their ceo plays no part in that I’m guessing...? Feel like it’s more of a corporate greed issue.
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If GM held back every penny of Mary Barra’s compensation this year, each employee would gross $448. CEO pay isn’t the problem.
1
@MaIm visiting here in the Netherlands and- while things are getting more expensive due to greedy speculators, the country is still head and shoulders more prosperous and better run than the US. It’s tempting not to go home.
3
Yea! Autoworkers and their UAW union who are standing up for the Common Good of economic security and shared prosperity!
Organised labor has got to do more strikes and actions that engage and enrage people. It is time to tamp down the importance of stock holders and price, and look at who does the work to build the company.
Our economy has done very well when it included working people in its concerns in the 20th Century. Since 1970, the U.S. has kicked working people to the curb, and our economy has slowed and income inequality soared. The UAW workers have the right idea - shared prosperity. Next they should reverse the decades of lab.or law repeal. It's very democratic.
7
A major reason for stagnant wages in this country is the decline of unions, which in turn is partly the result of a decades-long strategy by the right to strengthen the corporate plutocracy and destroy workers' rights altogether. CEOs do not need to be compensated at a level that is 200 times the the salaries earned by workers. Henry Ford understood that the workers in his factories had to be able to afford the cars they made. Workers in this country have been squeezed to the bone, but for a long time their discontent has been successfully channeled toward anger about cultural issues or immigrants. I'm glad to see they may be finally waking up to the real problem - not government, but our particularly rapacious form of capitalism.
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Please let us know how much more money you are willing to pay to buy a GM vehicle?
Ah, just like the good ole days. I remember the steel workers and teamsters. And the longshormen. When they went out, the country knew it because no one crossed the line. Doesn't matter what side you're on. Seeing strikers makes me think that things are getting better. The reality is that the uaw is a mere shadow of itself. These strikes don't have the financial war chests of the past. It's going to be over soon.
6
Have you ever watched an assembly line? Do you know how difficult it is to do a repetitive task, 40 x an hour, 8 hours a day - safely, with the expectation of zero mistakes. It's not easy - it takes a special person to do that work. Maintenance crews assigned to the line have to know what they're doing and fix things quick, because every minute is a loss of 40 vehicles produced.
Everyone worker deserves a fair wage and benefits. Rather than denigrate unions, they should be supported. Labor was under attack long before the days of Reagan, though he accelerated dismantling labor with a vengeance. Since then, wages and benefits have stagnated or declined for the majority. CEOs, on the other hand, have seen their compensation explode. And investors get stock buy backs and a break on their taxes.
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Wages reflect the value of your labor as determined by your employer. Unions simply engage in legalized extortion. If I walked into my boss’ office and said I wouldn’t return to work tomorrow unless he gave me a raise, he’d punch me in the mouth and throw me out of the office. But if I join a conspiracy, an employer is supposed to capitulate?
It is astounding that we bailed this company out and rather than be grateful, they exhibit an ugly, profound greed. This greed, as well as the greed of other corporations and this administration, will ruin us. I stand with the workers and may I note that the banks are again headed for trouble due to trump rolling back regulations on them. As he claims 'he doesn't like it', he has undone the very steps that repaired the 2008 Bush/Cheney debacle. Workers! Please understand! He is not on your side and best of luck!
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GM just had a major brake recall. Maybe they should do their job before asking for a raise. I know that just doing my job is never enough for a modest raise.
2
@Mary Ellen Freed
Is it not? Not even year end raises? Not cost-of-living allowances? You should always make the same amount you were hired for regardless of how long you've been there?
If 'just doing your job' is made more productive, should you not share in that productivity?
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@Mary Ellen Freed
The auto workers building the cars who are asking for a raiser are not responsible for design defects that cause brake recalls.
Also you should google "crab mentality". Just because you don't get raises does not mean other people should limit themselves to your accomplishments or job quality.
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@Mary Ellen Freed You seem to be blaming the line workers. They may be the problem but poor design of the parts in question can also cause problems,and that is not the line workers fault as they can only install what they are given.
6
When will these workers learn that they are only the "help" to enrich the stock holders and upper management? They will be replaced immediately when automation advances to take over their jobs. And so goes the Low Road American Free Enterprise system...
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I am not a defender of corporate strategies in management of their personnel numbers or a defender of workers beliefs.
So, I have worked in private industry many years. Over those years I never expected or anticipated a "job for life", or an extravagant pension, or my sons/daughters having guaranteed employment at a particular workplace with the same company.
That is one issue, the belief of lifetime employment and many need to understand that concept left the station long ago.
And yes, there are corporate excesses when it comes to the disparity of the "in the trenches" worker vs the ivory tower of executives. And those differences are stark-many executives enjoy a defined pension where the worker is stuck with a 401K that is subject to volatile market forces. There are many more.
That is a significant issue.
However, a BOD is responsible to the investors. And if shifting production, the tiered system (which the union accepted) of wages and salaries, the pension plans are tailored to maximize returns to the investors, that is business.
Lastly, in reading some accounts it appears there are some trumpisms present-the promise of bringing jobs or creating jobs.
Trump does not sit on these corporate boards and is not in the position of dictating to those boards.
Lastly, I hope the workers gain some relief, but, business being business, they may have bitten off more than they can chew.
7
But there is no reason why the company can’t share with their workers, except greed. With a CEO who makes 22 Million Dollars annually, the company needs to share the wealth with their family of workers who supported them when the chips were down. Without unions, business left to their own devices will cut safety measures, employee children, fire at will, leave workers stranded without decent wages, health insurance, and benefits that provide security when they fall ill. Our President is proof of that, running our country like his own personal private enterprise - rolling back anything that might costs companies money, providing huge tax cuts that should create more jobs (yet most are just pocketing the gains). He has gone so far as to cut protections for clean water! Who does that? I thought even rich people wanted clean water. He doesn’t seem to understand that groundwater is important. I guess he thinks he can just buy more water.
16
If I were GM leadership, I'd shutdown more plants and move production. The NLRA needs to go away to make America Great (or competitive). The UAW is why these workers are in this position -- not GM. GM cannot compete long-term in this space and the UAW leaning on them. UAW is worthless. They are only concerned about collecting dues and running up bar tabs, hotel bills and collecting airline points. Only .1% of GMs workforce understands what needs to be done and how to do it. The only thing this strike is doing is confirming to GM leadership that they need to consolidate operations/plants and move production.
GM leadership is infinitely ahead of the UAW in all categories and I hope they don't give into their demands.
4
@GM Then don't ever talk about patriotism or nationalism because if you don't care about the wages of American workers and instead care about the wealth of corporate executives and moving jobs overseas, you do not care one single iota about America.
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@EDC
What i care about is being able to buy a well designed and well built car for the best price possible. If that can be done in the USA, great. If it needs to be done overseas, that's how things are.
@michaelscody So go right on ahead and take jobs overseas and leave Americans wondering how to pay their bills.
2
Why is GMAC not mentioned in this article?
@Jerome Krase Do you mean the former General Motors Acceptance Corporation, GMAC? If so, that entity was divested during the bankruptcy and is now known as Ally Bank.
6
Long term "Temp" workers that have no avenue to become regular workers in a timely manner should be illegal. There should be a time limit put on it, as many many companies abuse this, keeping people hired under the guise of "temp" for years and years, robbing the worker of pay and benefits.
25
@Lisa Spinelli That "temp" worker knew the issues when applying for the job and it is in the hands of that worker to seek permanent, well, long term, employment.
There are many more reasons for temporary workers, along with overtime vs more employees, defined benefit vs defined contribution etc, etc.
3
@Dan well said. the last time I checked, this was still a free country. Working as a temp is serfdom. One CAN move around.
4
@Dan
Skip the hogwash. The only reason for temp workers is to escape benefits and comparable salaries for workers. If temp time was limited, the company would get rid 9f one temp and hire another. It’s all a game to short the workers.
7
Would be nice if you included the earnings breakout by country. GMs China operations - which do not export products to the US - are very profitable. Its Mexican operations are also critical for vehicles that compete on costs.
The US operations are the least profitable.
This article has its merits identifying the feelings of the local workforce. But those feelings are counterproductive in a lot of ways. You don't hit their cashflow $100m a day and then expect them to have money to pay you.
This strike was called prematurely by UAW leadership in need of a distraction from the criminal investigation into their operations.
Pushed too far, GMs response will be to pay fewer workers more, and then roboticize their operations to a greater degree.
Want to know hat that looks like. Google the BMW X2 production facility and watch the 30 minute video on how they build cars. 20 minutes goes by before you see a person.
12
All the car manufacturers have been automating the manufacturing process for decades. How they think they can sell cars and trucks to robots is beyond me.
5
What is the TOTAL compensation for workers in different categories and skill sets, and how does it compare with non-UAW workers in manufacturing?
By the same token, how does the TOTAL compensation for GM executives compare with those from Toyota and Honda?
One can bet that that the GM executives continue to be paid comparatively outrageous compensation. These were the same overpaid talent in the past who were responsible for GM declaring bankruptcy.
I suspect that for specific skill sets, the UAW workers in GM (including Ford and Chrysler) are paid far more in total compensation than those from Toyota and Honda.
Lower the prices of new cars by lowering the wages of the GM executives and the workers, and bring back production to the US from Mexico.
6
I worked temp for GM many years ago in the office. They were just starting the temp to perm thing. At that point it was a way to try out a worker and spare the hire/fire expense. If you did well; showed up every day, kept your nose clean and were good at what you did, you got an offer pretty quickly; I rec'd one within a few weeks. But since I knew I was temp I never stopped my job search and declined GM's offer when it came; I rec a better offer from another company.
Over the years the temp thing evolved into a way to dodge benefits and skip paying unemployment and taxes. The benefits of a specialized workforce without the responsibilities
We've gone about as far as we can with this gig economy; leaders are getting rich but some workers can barely keep a roof over their head. That's why we're starting to see a change, it has to start shifting back the other way.
I'm part of the old, retired group now, I earned several pensions along the way. But I worry about my kids, both 50, and neither has a pension. Both have a degree. Social security and a 401(k) won't sustain them. Where people end up is not always a result of laziness or lack of effort.
We seriously need to rethink worker rights. Not everyone is going to be CEO of a corporation; there are still many jobs that our economy and our lives depend on that just don't pay enough to live and build a future on. We need to change that.
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@Ann
So I hope you are voting Dem and specifically for Bernie.
1
To some extent I think GM welcomes this strike.
Right now GM has a huge amount of inventory. Now they get a chance to sell-down the vehicles that they have on hand without adding to it and without laying people off whom they would need to pay.
13
At the end of the day, the real sticking point isn’t the wages. I’d bet GM would increase the wages tomorrow if they could freeze the current pensions and move everyone to a 401k. If the seasoned workers would agree to hold their pensions now and get paid what they earned up until this point (as if they retired today) in retirement and joined their junior brethren in the non-guaranteed 401k, the burden on GM would lighten and free up that salary money. I don’t have a pension,only my government worker friends have pensions. No one I know in private industry has a pension because it’s too expensive. Unionization has a cost associated with it, and GM was able to thrive after the bailout from these cost-cutting measures, and the 401k was key, I would imagine.
9
Everything to improve workers lives is expensive, only profit for shareholders and golden packages for higher-ups are not.
12
Or the management could do the right thing and take a small cut in their inflated pay and fund the worker's demands.
5
@FFS
If Bernie becomes POTUS and the Dems get universal healthcare passed then GM and other industries will be able to compete with all other developed nations that have had this benefit for decades.
Universal healthcare is like Quality , in the long term it pays rather than costs. Only the USA doesn`t understand this.
1
Too little, too late. The unions will never be strong enough to protect workers' rights again, as American culture has switched to '#MeFirst' and a rejection of a common interest for workers.
5
Let's use this opportunity to highlight how underpaid, underappreciated and insecure most of us workers are. Three cheers to the UAW for going on strike. I hope it opens a national dialogue on job security, adequate benefits without absurd co-pays, working conditions, working hours, classification, health and safety, and seniority.
We need more democracy in the workplace, and we need it yesterday. Thank you, UAW, for standing up for all of us. Solidarity!
-- Loyal member of AEA and SAG-AFTRA, AFL/CIO
32
A new contract means a raise. Maybe more benefits & holidays.
Be cautious not to overreach in the name of 'you owe us'. The cost of employing you might lead to more automation. Robots don't have contracts.
10
@Donna
I understand how you feel, but caution you not to repeat the morbid joke from WWII. A group of prisoners is facing a firing squad. One of the prisoners starts to yell, "You murderous, evil--" when his comrade jabs him with an elbow and whispers, "Don't make trouble!"
These are tough times for American workers and I think most of us have our backs to the wall. Might as well fight.
12
And they don't buy GM products.
@Bohemian Sarah "These are tough times for American workers and I think most of us have our backs to the wall. Might as well fight."
True , but do not fight to preserve "Buggy Whip or Coal mining " jobs. Fight/help companies to become more productive=lower costs so that some jobs are saved instead of all of them lost.
The robots are coming regardless.
As an adjunct professor who has been a 'temporary worker' for over ten years with no benefits, no healthcare, no SS and no job security at the local state college. I applaud the GM workers for standing up for their rights. I hope this turn towards forcing corporations to stop hoarding profits and earnings at the top and assure that workers receive pay parity and benefits grows stronger everyday for all exploited and abused workers.
55
@LisaG Professor, I'm sure you understand the business practice of temporary employees, the use of overtime vs more headcount, pension benefit packages?
Lastly, unless you are being paid "under the table" you and your employer are contributing to social security in your behalf in the payroll taxes.
2
@Dan. First of all, I'm sure you understand that the definition of 'temporary' is not a worker who has been employed consistently for over ten years. That's a long term employee. The business model you are referring to is nothing more than a vile exploitation and an unethical abuse of dedicated workers. We are contract workers. No overtime, no job security, no benefits and NO SS. I know what's in my meager pay check. Our alt SS is nothing more than a holding tank for our hard earned money with exorbidant admin fees and little to no interest. Basically, while the pension makes money off of us, we will for all intent and purpose, receive nothing more than the exact amount we were forced to contribute....that is zero ROI. I'm sure you understand.
11
@LisaG You do realize that in staying for such a long period of time is not the fault of the employer.
Second thought, why have you stayed so long knowing the conditions of employment.
Again, not the fault of the employer, or the company contracted with.
You see, many are quick to fault the employer, or the company contracted with rather than look in the mirror to see who is really at fault.
In your initial comment you did not mention "contract hire", thus, the confusion about payroll taxes.
2
A generation ago, a strike at GM would have been a big deal. 40 years ago, they had 511,000 hourly workers. A strike would idle a substantial portion of the workforce and plunge the economy into recession. Today, however, they only have 46,000 hourlies on strike, and half of them are in one state, Michigan. There are no GM plants on the East Coast, or West Coast. People on the coasts buy Honda, Toyota, Kia, BMW, Mercedes etc. I’m sure you could make a humorous documentary called the Last Buick in San Francisco. By the time this strike is over, Cadillac and Chevy will join Packard and Studebaker in the history books.
8
In the 70’s I bought US made cars to support our economy. The cars were poorly designed and sloppily assembled. The Lordstown GM plant notorious for its shoddy work.
Reluctantly, I switched to buying Toyota’s. It has been a revelation, All have been durable, reliable cars.
Meanwhile, US Manufacturers continue to have massive recalls for basic auto functions that were perfected decades ago, such as brakes, cooling systems, failing paint, rust, etc.
Market forces are slowly killing GM, if the worker were wise, they would press for better designed products and build them well.
9
@Bongo Toyota, Honda, BMW, Mercedes, Subaru, and Volkswagen all build cars for the US market in America and employee American workers.
There is no longer such a thing as "The Big 3" automakers. 49% of the vehicles produced in the US are built by transplants. Toyota produces more vehicles in the US than Chrysler (1.2 Million compared to 1.1 Million).
2
@Bongo, some of those 1970s lemons were foreign. Ever own a Volkswagen Rabbit?
2
We idolize sports stars signing million-dollar contracts. We google Hollywood actors salary and are amazed. When we hear about union workers who make a decent paycheck we think they are overpaid. Salaried workers benefits are directly linked to benefits fought for by the unions. Salaried workers at my last employer denigrated union workers until the company came after their jobs.
34
There's no reason to be on strike EVER in this country over pay.
Those who think they're worth more than GM is paying them should seek employment elsewhere. If they can find another company willing to pay them more for their skills, go for it. If not, then they should conclude that they're already being paid what their skills are worth (their "market value" as employees) and should be happy about it. Or, they can seek further education/skills and make themselves more valuable to the marketplace, which in turn, should yield more pay.
19
@ABC123 And,............. GM can close their doors forever. Everyone has "options." Collective bargaining is the best thing that ever happened in America.
13
@ABC123 Reality Check dont be fooled by little money Gm paid to workers are ones who made gm great. It was the unions who Made in USA little tags on everything great threw out world. All about human rights an quality
7
@ABC123
The U.S.A. is heading more and more into an unbalanced two class society. Capitalism in its pure form is predatory. As the 0.1% of society horde more and more of the total wealth, conflict is inevitable. The French royalty learned this lesson via the guillotine during the French Revolution.
Pure capitalism needs to be moderated and blended into an economic form which provides for the common good of the entire country. We don't need democratic socialism, we need a new democratic capitalism.
10
50,000 people on strike? Your photos only show a handful at a time. Where are they? In front of the TV? If I was on strike, I'd be manning the picket lines at least a full day's work time.
It seems that those older, wealthy workers who have been there since before 2007 (higher wages and pensions) owe something to the newer workers. I thought we did not discriminate based upon age in USA?
5
Why? They didn't hire new workers. They do not employ them. Why should they own anything to them. If there is discrimination it is the company's policy not policy of older workers.
4
The market for passenger cars with internal combustion engines, supported by cheap dealer finance, is fast disappearing. There is no plausible future for the Big Three or their US work forces, as legacy commitments crowd out investment in the vehicles of the future. This strike will finish GM off, and there won't be a second bailout. Union supporters are time-warped in the 1950s, fighting the battles of a long-disappeared world.
11
GM profits are not excessive judging by the stocks performance over the past 10 years. The owners of the company are not getting rich owning GM stock.
14
@Robert John what do you consider "rich"? And is that the only reason to have a company? The workers, along with the management make the company profitable. They should be paid good wages just like management.
11
Both sides are very much at fault here: union workers who forget the gift Obama gave them, and Barra, who should be analyzed in MBA leadership courses as one of the worst CEOs to lead a legendary auto company. Her record as ops leader during a period when GM cars were the most defective and dangerous is bad enough. GM still turns out the worst cars.
5
@Liz DiMarco Weinmann it wasn't a "gift", it was a loan that was paid back in full, thanks to the workers giving back benefits and taking less money.
20
The bailout of GM ultimately cost the taxpayers $13.4 billion. The US government did not make a profit it suffered a loss, contrary to your statement. Also, the shareholders of GM got wiped out but the Union pensions were protected. Yes, it was a gift.
6
Donald Trump has never in his life had to work for a job. Period. Mary Barra has and she understands the life of an hourly worker because her father was one. This strike is not about some simple binary win/lose situation.
10
Both side should be careful here.
Mgt. should be fair and give the workers a fair share of the profits while maintaining a healthy outlook for their company.
The workers should expect to get a fair share of these profits but don't get greedy and put the company in an untenable situation that will bring the Spector of bankruptcy and/or liquidation on the table.
3
Seems like 1950's thinking. This is an age were technology is elliminating jobs in our world by the 1,000's ever day. This strike seems to me like throwing gas on a fire. Just some more of that "all you gotta do is" thinking. We are not talking about formally educated teachers or minimum wage hotel workers in this situation. I would have to think very hard before rollimg the dice with my job in a strike in today's world. This will only speed up the elimination of more auto plants in strike prone areas.
9
if the options are do nothing and GM eventually automates your job or moves it to Mexico, or do something that might help gain some protections for you and others for a while before GM automates or moves your job to Mexico, it seems like a pretty clear indicator to do something.
5
@John as long as we allow these companies to move overseas, their management should have to move too, along with corporate HQ. THIS country has a higher standard of living and requires more of it's corporations, and workers need to earn more too. It's dues to pay to live in such a great country, and if you don't want to pay those dues, move to Mexico to where your factories are. Taxes are lower there too, I understand.
6
@JP our government allows these big corporations to move their work to foreign countries so we can control them easier.Its the government officials in these foreign lands not the workers getting the big money
Isn`t GM the first multinational corporation that has Women as both the CEO and CFO?
GM workers should understand they already got theirs. In 2008 Obama wiped out the bond holders and gave union employees everything. Someone should explain that to them.
23
He didn't give Union workers anything. He helped shareholders, while the workers took the cut.
3
@yulia Unlike many of us, the workers at GM got to keep their jobs.
2
@Sarah99
At what cost? I’m not sure they got much in return since G.M. made 35 billion over three years in North America alone. What’s wrong with making 25 billion and passing the rest to the people that actually do the work? Instead of resenting them for keeping their jobs, acknowledge that they were a huge part of the company’s ability to rebound and profit. They deserve to at least go back to pre-recession pay and benefits.
4
A common thread in some of these comments is a bunch of people buying the nonsense logic of rich people. The unions are always unreasonable with their salary demands, yet somehow CEO pay keeps rising and the rich keep pulling further and further away.
31
Will the union still support trump for 2020 election , he hasn't kept his promises.
7
The government bailed GM out and unlike the finance industry we never got our money back. I want GM to pay us taxpayers back first. Without us these union persons would have no jobs at all.
10
The strike is about raising the wages of the the more recent hires to be in line with higher paid workers and to keep more plants in the US. This seems like a reasonable request. It amazes me how many people think that workers are being lazy or selfish to want a living wage. Even making $15 to $18/hour as workers in nonunion plants make is not enough to support a family. The success of the 1936-37 strike helped to create the middle class. Those involved made sacrifices for the rest of us. It is even more of a hardship today to decide to strike. Perhaps 50,000 UAW workers can accomplish more than to help our overall economy than our elected officials can. Critics of unions, please remember you are always hearing a lot of anti-union sentiment in the media and try to think critically about what is being said.
22
@Catherine Smith yes everyone should get a living wage however if you are unable to deliver the value that the market place is offering at the same or lower price - get yourself some skills or find a training program. It’s noting to do with union or no union.
1
But if everybody will get education, then the salaries of these jobs will go done, you will have low wages for skill and unskilled workers. It is just not sustainable situation. Every job should have livable wages. It is cost of labor. Nobody can survive by selling products (in this case labor) less than the cost of production of this product ( in this case, living wages)
1
@yulia posted "But if everybody will get education, then the salaries of these jobs will go done, you will have low wages for skill and unskilled workers."
The idea is to outcompete other nations by investing in education so as to have only what are now called high skilled jobs but in the future even these will be on a lower rung.
The USA ranks 18th to 22nd in STEM education and with Betsey DeVos (the Republicans) in charge this poor showing will go down further. The robots are coming so you better learn how to build even better versions of them as they will be doing the work especially in auto assembly.
2
It's interesting that GM is a corporation that has taken great advantage of the trade agreements which have allowed them to movetheir operations anywhere in the world to escape paying their workers wages and benefits they had bargained in good faith with GM who should have also bargained in goo faith. Sadly while corporations have the right to take their operations anywhere in the world unions stop at the borders of this country. Wouldn't a trade deal that gives unions access to facilities off shore so that workers in other countries could become members of one union instad of having a separate union in every country?
5
@Mike You forget that other countries have labor laws of their own, not American labor laws.
4
@Concerned They also have corporate laws that allow US Corporations to exploit their workers and destroy their environment. Unions crossing borders have happened in the past mainly in Canada but international labor groups could act as gian tunions if there was any serious consideration of this. Of course they won't as an empowered work force has never been good for the corporatiuons but are always good for the workers.
1
We should stop making cars in the US. These workers are on the cusp of being antiquated as AI and robotics will replace there jobs. The self entitlement is embarrassing not to mention dangerous. I would bet each one goes to work to make money and not make cars. This is the core issue and why the US is not competitive - people are not vested and don’t want to work but want a good life. Wake up the world is passing us by and all you can think about is being a victim. Beyond sad.
12
@George k, so what you're saying is that workers should focus on producing cars and that they shouldn't want to be able to provide for themselves and their families? Would producing cars be a kind of hobby, then? When would they find time to have a real job that would give them enough money to live?
5
Only people who are independently wealthy go to work for any other reason than to make money. The test: would you continue to work if your company were to stop paying you?
Union members have advantages over traditional employees and in today’s job market they need them, however there is a thin line between fair and greedy. I don’t know what the lone is in GM’s case, but one must be careful or they could see all manufacturing disappear.
I have read that non-union foreign automakers building cars in the US pay about $50/hour for this type of work whereas GM is paying $63/hour. This is a real problem and will be tough to get around. If true and car buying experiences a significant slowdown the writing is on the wall for GM and it’s unionized employees.
1
@Jim exactly! Get some skills and move with globalization or become irrelevant. What are the 000’s of trucker drivers going to do when self driving trucks are perfected in 5 years? Make cars of course.
4
Internal combustion auto industry is experiencing a worldwide slump. Car companies in Germany, Japan and India are ailing. Electric cars, affordable taxi services like Uber and gentrification of downtowns reducing suburban commuter time are among the causes. Cars are no longer the status symbols.
The final blow, autonomous cars, is just around the corner making car ownership less desirable.
GM workers should be happy that they have a job. The memory of the last government bailout may have faded now but GM stands a chance to become “Gone Motors” with a prolonged strike.
12
@Appu Nair You're joking right? America cannot be a vibrant, forward-thinking nation in which everyone shares a stake when the working ethos is, "You should just be happy you have a job." How demoralizing. I applaud workers who get up each morning and take pride in what they do and expect to be rewarded for their contribution with a fair piece of the American pie. I can't imagine looking so down upon those who build the car I drive.
14
@DL
Sorry to say that this strike can wipe out the entire GM enterprise. Sure, all the top professionals will lose their jobs. So will the factory workers.
The professionals will pack up and leave. Will the workers be able to do so? The strike is bad.
Like a ghost at the feast, electric vehicles loom over all the decisions of major auto makers. And they all seem to be adopting a similar strategy (quite coincidentally, I'm sure). The strategy appears to be to release new models with much fanfare to draw would be clients into the showrooms only then to be told of supply difficulties and how would it be to buy this similar internal combustion engine model this time around instead.
Actual EV production lags behind the PR-fest. The Chevy Bolt, for instance, sells less than a tenth the volume of the Tesla Model 3. The Bolt scarcely qualifies as a mass production car, most of the electrics come from LG in Korea and there's consequently little or no profit earned.
The plant this report concentrates on has been promised the production of a new electric pickup, but the development plan seems rather relaxed targeting model year 2022. Will it again be basically doing final assembly of a model intended mainly as showroom decoration?
6
With the German automakers announcing that the era of the internal combustion engine is over and Mercedes announcing that it’s new 4 cylinder is that the last one it will implement, the stage is set for a titanic change in the auto industry. The automakers and suppliers along with labor have to adapt. Compounded by the cyclical buying pattern and increased longevity of electric cars this strike calls for innovative thinking on both sides of the dispute. Not to forget that China is the largest car market in the world. Compensation includes not only wages but health care benefits that continue to rise in cost. Government policy clarity would help a lot. The current administration does not favor a shift to electric cars vis it’s stubborn support for oil, coal and natural gas. Nor does it care much to assume additional health care costs. Volkswagen’s new electric car is produced in factories powered by wind and solar and German health care costs are about half those in the US. US automakers and their shareholders should be calling for the structural changes needed to remain competitive. In return they could commit to only US factories for US sold cars and provide security for their workers with good wages. I am sure many would call this socialism rather than long term realism about the global market.
12
Reading the details...11K average profit sharing, excess capacity of 1million cars, new hires starting at lesser wage, but within 8 years getting to $29, no pension but a 401K. This is not a situation where UAW workers have been severely punished. It does reflect the reality of the automotive industry. The union wants more jobs, but with excess capacity already that seems a stretch. Profit sharing means take home pay is higher than $17-$29. How many workers would seek pay like this and benefits? Traditional pensions with healthcare benefits like the one the UAW had for years were far too expensive to fund from profits and cut seriously into the competitive position of the US auto industry. The UAW acknowledged this years ago, and it was rationale for the change. And If I am not mistaken, have taken on the pensions costs. This is not clear cut abuse. No company exists simply to provide jobs and pay workers. It is a competitive economic reality, which by the way governs prices which benefits consumers who buy cars. So, let union and GM work it out.
21
@HPower $31 billion in profit. Keeping "temp" workers at "temp" wages for over two years. Plants being closed. GM can do better by its workers.
38
Obama gave them everything in 2009....if they had been a bond holder they would have been destroyed. The union bosses want to mask their personal greed and hope members think they are worth their egregious compensation.
5
@Rowdy Burns : but but Obama, but but Hillary, but but Kennedy, but but Truman, but but Roosevelt.
3
a breakdown of where 35 billion dollars in profit goes would be useful. How much of that goes to inflated executive salaries?
26
@David B.
13.5 %
1
@David B.
Wouldn’t profit be after CEO and executive pay?
1
Labor costs are long term whereas corporate profits are ephemeral. Without government intervention, GM would be gone as would all the jobs. The entire article and the demands of unions are not for long term solvency but instead the short sighted demand for immutable compensation and retirement benefits which will hasten the demise of these companies. In the 1950's, the average lifespan of an S&P 500 company was 60 years. Today, it's 20.
9
Consumers also need to stop supporting companies that don't support workers. Consumers have a lot of responsibility and power in this equation.
21
There are far better examples of companies that 'don't support workers '
1
@Jennifer
Here are places I don’t shop...Amazon, Walmart, big banks, Uber, Airbnb, MacDonalds or other fast food unless desperate ( Subway is okay ), Target, Starbucks. I’m sure Ive forgotten a bunch.
1
A strike is a lose-lose proposition. Whatever the settlement may be, it is also a sign the economy cycle has run its course. GM may be hugely profitable now, the down cycle has begun a while ago. Now, labor thinks it should get a cut of past profit. The stalemate could only hasten the end. Not a good sign. And there is no way Trump could tweet his way out of it
3
I love the unions: teachers, MTA, police, UAW to name a few. They are there here to protect and fight for the interests of their members but at what cost?
Education system is a disaster and you cannot fire a very bad, incompetent teacher unless he committed a crime, thanks to the union. MTA? Don’t get me started. The only reason the public transportation system in NY is a disaster is because of the union. Period. UWA, yes every one mentions the bailout, but one of the reason GM almost went bankrupt was because of its high labor cost, totally uncompetitive with Japanese or European companies.
Defined benefits plans? That would be great for everyone in the work force to have. No question asked. But they are very expensive and you cannot cut them when the company is not doing well.
17
@Val did you miss the part where GM has made 35 billion just in the past 3 years? Benefits aren't what caused the problem mismanagement was.
48
@Jennifer
but that's only 11.5 billion a year !!
2
@Jennifer Mismanagement and inefficiencies were certainly part of the problem, but the profits quoted in this article are the result of closing plants and letting workers go. You're comment implies they are true profits because people are buying more GM cars; not true.
2
We need to stand with the workers. For far too long huge companies like GM have been union busting. This has clearly eroded the middle class as collective bargaining has become harder and harder to achieve. GM is a classic example of s company that owes its existence to tax payers and the union workers who pitched in during hard times. For my part, I will not own a GM car until it does the right thing by its workers.
62
@Mike L Do not blindly support the UAW. For years they have extorted not only high wages, but unsustainable pension and benefits. Remember too, that most have no college and many did not graduate High School. Not saying you need a degree to work the line, but that job doesn't justify a salary within some percentage of CEO pay. The UAW is run by mobsters who've enriched themselves for decades.
2
It is called union for reason, God Bless Them. Collective Bargaining gave us a strong middle class in years past. Stronger unions more pay fewer unions less pay. People are always amazed at the pay of person on the assembly line but never begrudge The CEO making 300 times as much as the persons building the cars. Right to work states has killed the union movement. Sure it is great for attracting manufacturers but at what cost? Lower Wages.
92
@Steven McCain benefits are factored into that pay. When we factor benefits in with the pay of course it's going to seem like a lot.
2
@Jennifer CEO pay in America is out of control. What kind of benefits do you need if you are making so much more than the hourly workers?
30
This company should have died years ago, but through government handouts it survived.
I still remember their claims of hardships back in the days if Roger Smith. Remember how they always put the blame of their anemic numbers on pension obligations and thus made their cars expensive, etc.
I have never ever heard anyone say that GM makes a great car but too bad it’s more expensive than a Honda. Toyota, etc., else’s they’d buy one!
17
@HistoryRhymes - My first car was a '57 Chevy convertible (w/ a huuuge back seat. Woo woo!!). Turns out the back seat was the best thing about it. My last GM product was a '68 Pontiac - another piece of, uh, scrap metal. Haven't owned any GM junk since.
"This company should have died years ago…" if it wasn't for our best-in-the-world Corporate Safety Net.
1
it got time workers get paid for the energy they put in, not the so called responsibility of the ceo the one that just changes jobs if something goes wrong.. this trickle down economy lie, an economy doesnt work like that, if the ceos dont share their wealth by caring for the employees first then the employees have to demand it and take it back, a company only works well and produces its stuff because of the employees and the employees after work spending their hard earned money.
28
Several years ago the state workers in CT agreed to no raises for 3 years because the state was in financial crises. Union members are team players, but you do need to agree that there is a team. A team and not just exploitation of workers. The union supported the GM through the crisis and now management is treating them unfairly in order to benefit from their work. Yes, they should go on strike.
103
That “team” is nothing more than a conspiracy to commit extortion.
3
@sjs,
Using Connecticut state employees as an example of union and management working together is a poor example. Connecticut state workers who have collective bargaining over wages and benefits, have bankrupted the state. The unfunded pension and healthcare liabilities can never be paid. State employee unions control state government. Even as the state is broke a new union contract that goes out thru 2027 allows OT in pension calculations.
5
@sjsMary Barra May be an “ excellent manager” but to me she is just one more example of the robber baron class. Most of us are turning into serfs. It’s all quite medieval and, unless corrected. will not turn out well. People reach a breaking point.
4
Ford debt rates at junk levels and they are cutting vehicle production . GM was saved by bankruptcy, Ford is now suffering for it didn’t file bankruptcy. There should be an easy agreement reached however if the economy slows down modifications may have to be made.
3
Let’s see, after the strike is settled, will the price to purchase motor vehicles go up? Even without a strike the price goes up appreciably every year. Does the average GM permanent worker make $90,000.00 yearly? Up, up and away, sad to say, the inflationary word of the day is: strike.
1
The median wage at GM is $70K; GM eliminated over 7K employees in that measurement because they were paid too little to help narrow the difference between the median and the CEO pay. GM paid the CEO to 281% of the median wage, or $280 million cash paid to the CEO, every year for the last 3 years. The wage inequality at GM is enough to think about doing some wage leveling.
GM can't justify the millions paid to the fat cats while they leave the average worker living off of fumes.
112
@Laurie I believe a more accurate number would be 4014%. Either way it is astounding.
12
@ Laurie...that CEO wage is well w/in the median. If it's too much, it's too much for all. Mary Barra is an excellent CEO.
3
@CitizenX it is too much. 70K is a good wage but the discrepancy is astounding. The workers need to be careful because when more millions than a family can spread over at least 5 generations are threatened they might take their "investment" elsewhere.
4
You have to wonder if this is too little, too late. General Motors is has shut a plant in Australia, sold its operations in Europe, Russia & Africa, will close four plants in the US and one in Canada this year at a cost of almost 6,000 jobs. The most important question to ask is how did we get here? At the 1993 NAFTA signing ceremony, President Clinton said the treaty would create a million jobs in the first five years and would be great for American workers. Clinton was absolutely wrong on all his rosy predictions. First, it caused the loss of some 700,000 jobs as companies moved their production to Mexico, where labor was cheaper. Second, NAFTA strengthened the ability of U.S. employers to force workers to accept lower wages and benefits. Third, and ultimately most importantly, NAFTA created a template for the rules of the emerging global economy, in which all the benefits would flow to corporations and all the costs to workers. NAFTA is an unfair treaty. It's been a disaster for the American working class. But would re-negotiating it change things? Probably not. Car ownership patterns are changing, and most analysts believe demand has peaked. Younger people are far less likely to see car ownership as necessary. Electric vehicles are the future. But electric cars have fewer moving parts than internal combustion engines & require fewer workers. Germany expects to lose 160,000 jobs due to electrified vehicles. This is a slow-moving tragedy that will only get worse.
52
Excellent outline of the issues and history. This is the essence of Andrew Yang's argument and worth being part of the discussion, even if his proposed "solution" is a non-starter.
8
@Martin I see very few politicians let alone union leaders who fully understand what's happening right before their eyes. Industry 4.0 and the future of work will change everything.
Auto manufacture is already highly automated, with robots doing a significant amount of the work. A new generation of electric and autonomous vehicles will mean the design of new, completely integrated systems, covering every process along the supply chain. Highly skilled workers will still be needed for assembly and machine maintenance, but a lot of auxiliary jobs will be cut. The auto plants of the future will employ far fewer workers than they do today. With the challenges presented above unions need to prepare for the new world of work. But they don't appear to be ready. When closures are unavoidable, we will need new industries that will fill the void. Re-training will be essential. This work will have to be done in cooperation with companies and local and national governments. If it isn't then you will have hundreds of thousands of Americans without employable skills. Sort of like what we have right now. To fix this problem we will have to work together on large scale industrial redeployment projects. But will we? I doubt it. That would require long-range planning. That would require both parties working together. That doesn't seem likely anytime soon. Prediction. Ten years from now our leaders will NOT have addressed this problem. By then it will be a crisis and unfortunately too late.
8
This is a huge change... Striking GM. In decades passed, UAW would strike GM and then use the concessions they got to exact the same from the remaining auto companies.
In the 60s and 70s, strikes seemed to be chronic, there wasn't a month where some union somewhere wasn't striking and receiving wage gains and benefits...
I believe now, that the unions had a lot to do with the steady inflation we experienced back then and that it could come back if unions begin to flex their muscles once again.
This of course, would solve the seemingly intractable dilemma of "too low inflation" and the risk of global deflation.
5
@Vanderpool - Yeah, we sure don't want them working people "receiving wage gains and benefits"! I mean, that might reduce my passively-earned dividends and create inflation that would make my caviar more expensive!
MAGA!
@Vanderpool "...that the unions had a lot to do with the steady inflation..."
Yes, they did have something to do with inflation. They also got the 40 hour week (for EVERYONE), health insurance, pensions, safety improvements, all of which benefitted the entire working class. Without the unions, we would all be working for slave wages and have nothing to say about our working conditions or any of the other benefits that companies now regularly provide. Maybe you have noticed that, with the decline in unions membership, the average wage has remained stuck for the last 40+ years. Not just a coincidence.
1
Really? They thought GM ownership would do the right thing?
Not a chance. They always meant to keep all the profits for themselves. It is never enough.
I hope the UAW brings their stock down to 0.
64
@Plennie Wingo
If GM stock goes to zero, then what does that mean for the 50,000 employees looking for wage increases?
14
@Vanderpool - the employees that own GM stock would also be concerned.
4
@Floyd My point exactly. These are cooperative collaborations where working toward shared goals can benefit everyone. Unions and management. Hard headed negotiations can be healthy and maybe we need more of this... In todays jargon,... Unions and management are now called "Frenemies"