Tuesday, February 17, 2009
Bailout concessions may mean death of UAW(good riddance)
The bailout concessions sought by the "big three" may mean the death of the UAW. Reportedly, a tentative agreement has been reached to bring UAW union's wages and benefits in line with the transplants. Based on the UAW's history of delaying tactics, we will have to wait to see if this is true. The UAW has been trying to delay having any serious wage or benefit concessions take place until two or three years down the road. If that is what the current agreement is about, it is a sham. In two or three years, the auto market and economy will have recovered enough for the UAW to claim the concessions are unnecessary for Detroit's survival. If the UAW has agreed to accept wages, benefits and work rules similar to the transplant auto manufacturers, this will be a deathblow to them. Their death will not be quick or pretty, but it will be inevitable. After the reality sets in on the membership that they are paying union dues for the same wages, benefits and work rules the nonunion transplant workers are getting, they will revolt. The probability of "card check" passing and providing the UAW with an easier opportunity to organize the transplants and their suppliers won't be enough help to keep the UAW alive for long. Those nonunion workers are not going to want to pay union dues for a wage package similar to what they currently have.