Tagged: UAW

Later this month, contact talks are set to begin between the United Auto Workers’ union and Ford, General Motors and Chrysler.

There’s a temptation to feel nostalgic about that. This has been a time-honored tradition in Detroit since the 1940s. Every three years, negotiations began, and the union selected a strike target.

That target could have been any one of what were then referred to as the Big Three. Negotiations followed a system called “pattern bargaining,” which meant the union and the selected company would battle things out to a settlement.

Sometimes a deal could be reached without a strike; sometimes not. Once a deal was reached, the other two automakers would settle with the union on essentially the same terms.

During the glorious fat years of postwar prosperity, the bargaining scenario also followed a predictable pattern.  When negotiations began, the company would offer the union the equivalent of a crust of bread. The union would demand the moon, plus a kitchen sink with gold-plated handles. Eventually, with or without a strike, they’d reach a deal where the union got the moon, but had to settle for a sink with plain old chromium handles.

Walter Reuther would then promise to get the gold-plated ones in the next contract, and he usually would. But everything is different now. Chrysler and GM went through a near-death experience two years ago. As part of the price for the federal government’s saving them, the UAW had to agree not to strike either company.

The only thing they can do in the case of a grievance is ask for binding arbitration. The union could theoretically strike Ford, but now that all automakers aren’t on an equal playing field that’s unlikely.

But the UAW does face two immense new challenges.

Seventy years ago, Ford Motor Company recognized the UAW.  Ford was the last major automaker to recognize the union, and that decision marked the starting point of the union’s “Golden Age.”

In this interview, Michigan Radio's Jenn White talks with Jack Lessenberry, Michigan Radio’s political analyst about unions past and present. And what lessons can be learned from those "golden years."

In 1941, the UAW signed contracts with General Motors and Chrysler, but Henry Ford remained opposed to unionization. After several days of strikes Ford gave in and soon after the first contracts took effect.

The United Auto Workers union is gaining members again after years of declines, the Associated Press reports. From the AP:

In a filing with the U.S. Department of Labor, the union said Thursday that it had 376,612 members in 2010, up 6 percent from 355,191 in 2009. That's the first time since 2004 that the union has gained members.

UAW President Bob King said the growth was due to more hiring in the auto industry as it recovered from the recession. The union also has had some success organizing workers outside the auto industry, such as graduate students and casino dealers.

The peak of membership was in 1979 with 1.5 million union members.

You may not have noticed, but the United Auto Workers union has been holding its bargaining convention in Detroit this week.

Every four years, union leaders get together to plan and map out their strategy for negotiating a new contract with the automakers. Once, this convention was an enormous deal, intensely covered by both local and national labor media.

The big question every time was - which company would be the strike target?

Years ago, the union came up with the concept of “pattern bargaining.”  One company - Ford, General Motors, or Chrysler, would be selected as the target. Union officials would then try and hammer out a contact with that automaker first.

Sometimes they’d have to go on strike to achieve that; sometimes not. Meanwhile, the workers at the other companies would keep working under the old labor agreements.

Once the new contract was finally hammered out, the unions would then go to the other two automakers and say -- “okay; this is what we negotiated with them; this is what you need to agree to as well.  No fooling around; take it or leave it; sign or we walk.”

That’s how it’s been done for many, many years. In the past, there were sometimes historic strikes which led to historic settlements that gradually won the workers everything from paid vacations to profit sharing to dental care, on top of high wages.

But as all the world knows, excesses and globalization caught up with the auto companies. General Motors and Chrysler nearly went out of business less than two years ago. They survived in part because the union was willing to make major concessions.

New hires, for example, now make half of what a longtime autoworker  does -- $14 an hour, or $29,000 a year. The union decided that and other sacrifices were  necessary to keep their employers alive.

Well, the world is different now. Ford and General Motors are now making profits in the billions. Chrysler is believed close to profitability, and at any rate, has a new owner with deep pockets.

UAW leaders say battle could lie ahead in contract negotiations

After giving into concessions during the auto industry's restructuring, union leaders are saying they want some things restored. From the Detroit Free Press:

As the UAW prepares to head into labor talks this summer with the newly profitable Detroit automakers, several top union leaders say a showdown is brewing over this year's contract -- especially at Ford, which has made $9.3 billion over the past two years.

"If they don't restore everything (we) gave up, the membership is going to knock it down," said Bill Johnson, plant chairman for UAW Local 900, which represents workers at the Focus plant in Wayne. "The bonuses that were just announced are just ridiculous."

Snyder to go over local government revenue sharing plan this morning

Governor Rick Snyder will go over his plan for revenue sharing with local governments at a 9:30 a.m. press conference in Grand Rapids.

His budget calls for a $100 million cut in revenue sharing with local governments, and, according to the Detroit News "would make local governments compete for the remaining $200 million, based on their adoption of "best practices" Snyder sets out today."

The Governor is expected to go over plans for local school districts as well today. From the Detroit News:

For school districts, Snyder's budget proposed a cut of about $300 per-pupil on top of an already announced $170 per-pupil cut.

Snyder told school districts in his budget message that for fiscal year 2013 he would set aside $300 million and make it "available to eligible school districts whose employees' share of health insurance costs is comparable to that of state employees."

Details on how that works are also to be announced today.

Michigan men's teams out of the tournament, women play on

The University of Michigan men's basketball team lost a close one to defending national champion Duke yesterday. Tim Hardaway Jr. pulled the team close when he hit three baskets down the stretch. Michigan was 2 points away from overtime when Darius Morris' floating jump shot in the lane missed, hitting the back of the rim. Morris said he thought the shot was going in - from the Detroit Free Press:

"I thought it was down," Morris said in the locker room, breathing heavy, trying to compose himself after postgame tears. "I thought we were going to overtime."

The University of Michigan was the last Michigan men's basketball team standing in NCAA tournament, Oakland University and Michigan State University lost close games in the opening rounds.

In the women's NCAA tournament, Michigan State University advanced by beating Northern Iowa yesterday, they'll play Green Bay tomorrow night.

Governor Rick Snyder says he respects the views of people protesting against his budget proposals. Many people have crowded the Capitol lawn this week to stand against Snyder’s plan to tax pensions. The governor says he understands their frustration, but he says a tax on pensions – done the right way – is only fair.

The fight over workers’ rights in Wisconsin and Ohio has become familiar fodder for news stories in recent days. But labor leaders in this state say Republicans in Michigan are just as hostile to unions.

UAW President Bob King says you need look no further than Governor Rick Snyder’s budget proposal to see an attack on workers, seniors and the poor.

King says Snyder’s proposal to eliminate an income tax credit for the working poor, to cut the child care subsidy for low-income families, and to tax pensions are key examples.

"This governor has talked nicely, but these actions suggest he’s same agenda with every other Republican across this country," King said at a press conference today.

King says Snyder has also made some anti-union moves.

He says the Snyder administration is undermining bargaining rights for home health and day care workers. And Snyder supports legislation that would allow emergency financial managers to set aside union contracts, and suspend collective bargaining in troubled cities and school districts.