Concessions Give Unions Double Dose Of Heartburn

Checking it Out

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Apr 3, 2003
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Sunday, June 20, 2004


Concessions give unions double dose of heartburn


By Daniel Howes / The Detroit News


The economy is booming, jobs are being created and industrial unions are careening from one crisis to another.

There’s a message here, and it isn’t encouraging.

Steelworkers at Timken Co. in Canton, Ohio, are digesting the news that a century-old bearing plant will close because operating costs are too high and the work can be done as well — and less expensively — in Timken’s other (nonunion) U.S. plants.

United Auto Workers members at the old Rouge Steel in Dearborn survived bankruptcy and now work for Russian bosses after choking down a concessionary contract just to survive.

Two of the world’s largest auto suppliers — Delphi Corp. and Visteon Corp. — wrested agreements from the UAW that will allow them to pay new hires substantially lower wages than current employees. Those are the so-called “two-tier wages†that union die-hards said they would never tolerate in their plants.

Union brothers at an Electrolux AB appliance plant in Greenville, desperate to save their jobs, agreed to pay and benefit cuts only to see their masters back in Sweden decide to close the plant and transfer the work to Mexico.

So perhaps a little cynicism is understandable for 300 UAW members at a Federal-Mogul Corp. plant in Greenville. They rejected a contract last weekend that cuts average wages 6.35 percent over four years, only to ratify it Saturday when it became clear the plant would close.

Does it always have to come to this?

Too often, it does. No one — union or nonunion — wants to take pay cuts or decreases in pension and health care benefits. Yet even some of the most hardened unionists realize they face a fundamental choice: Adapt to the global economy or die.

“What choice do we have?†UAW President Ron Gettelfinger said when I asked him about his pragmatic approach to bargaining.

Increasingly, the answer is, “Not much.†Rouge Steel was bankrupt, and but for OAO Severstal and UAW Local 600, it would be gone. Federal-Mogul is bankrupt, too, and workers at its Greenville plant are paid more, on average, than employees at its 46 other factories in the United States.

These companies aren’t pressuring their employees for givebacks because they’re “greedy.†They’re asking for relief because they’re trying to survive, figuring slightly smaller paychecks and higher prescription drug co-pays are a fair trade for keeping jobs where they are.

Bankrupt United Airlines’ bid for federal loan guarantees was rejected last week. The CEO of Delta Air Lines says it, too, may soon file Chapter 11. And it will be a hot summer at Northwest Airlines, which is seeking contract concessions from its pilots, mechanics and flight attendants who should understand that the specter of bankruptcy shadows their employer, too.

Should that happen, many of them — especially the pilots — can kiss their pensions goodbye.

This is the world as it is, not as those chanting “no concessions†want it to be. To show their solidarity, they could pay full coach fare for a Northwest flight to Boston instead of shopping the Internet for the best price. Or they could decline the $5,000 incentive offered by General Motors when they buy that new SUV.

But almost no one will because they don’t have to.

Daniel Howes’ column appears Sundays, Wednesdays and Fridays
 
How predictable Kevin. lol figured you would be reading the-mechanic.com lol

Submitted to Detroit News but not published 03/07/2004


[Susan notes: This letter by a recently retired auto worker gets to the core of the problem--in our society and in our schools--the grinding poverty created by heartless corporations.]

Submitted to Detroit News but not published
03/07/2004


To the editor


I am one of those old UAW workers who has protested Daniel Howes [paper's business writer]push for more competition between workers. Yesterday Howes suggests that older folks

have no stake in the competitiveness that Howes promotes! Is it the Detroit News or Daniel Howes saying to those of us who believe in solidarity and the values of equality and democracy that we are too old or too controversial to join the human future debate on your pages?



I doubt if Howes learned this disrespect for his elders’ experience at home. I feel like I should come to Detroit and give Daniel a good spanking.

But I’m settling for this letter.



Some months ago Mr. Howes suggested I am a Communist but I am not a Communist. I am not a Capitalist either. I believe that neither of those two systems holds much of a future for ordinary Americans or other groups of working people anywhere in the world. In fact, they look compatible to me.



Chinese Communists and American Capitalists partner up to screw Chinese workers out of their human rights and American workers out of their jobs. We mourn the loss of 58,000 of our sons and friends and 2.5 million dead Vietnamese and we wonder if they died so Ford and the Communists could have a Saigon assembly plant? Just what are the points of contention between the elite, dictatorial Capitalists and Communists?



What does it mean when Howes says over and over again that workers must compete against and cheat each other in the Capitalist game of profit

maximization through dog eat dog, massive unemployment and war after war after war?



Solidarity values rooted in the lives of working people offer the real alternative to Capitalism and Communism. Most American workers, family

farmers and small business people do not have Capitalism’s selfish values.



They have instead, a sharing history. They depend on each other and help each other as best they can. It is an unpopular view amongst most of us that we should gain at someone else’s expense.



Most people, in their daily lives, try to change the tiny corners of their worlds where they have some control, to places of friendship and love. This is easy to see within their families and communities. Most people would like to see our country and world provide everyone with a decent life and a happy future for the kids. But this is not happening. The opposite is happening. Millions of Americans are being relegated to a permanent underclass.



Today, the Catholic Campaign for Human Development points out that more than 35 million Americans live in poverty. Has Capitalism provided much of a life for them? Will Howes continue to cheerlead the UAW’s Crony Capitalists

as they cut wages further below the poverty level and increase the numbers of American and world poor?



The truth is, there is no bottom to the poverty being created by heartless corporations. Not here. Not in China. Not at the Cuautitlan or Saigon Ford assembly plants.



Communism has proven it doesn’t work unless you’re good at hockey. Capitalism holds a dim future for most of us. We need a third option: a new and, revolutionary paradigm in which a democratic, solidarity movement comes to the fore by the direct action of a real working democracy. This third option, which is never considered in your paper, but should be, can change our country and world to places where small business folks, farmers, workers, teachers, secretaries and soldiers see a bright future for all the world’s children.



It is time to talk about a second American Revolution for real democracy and solidarity.



— Tom Laney, Old Guy, UAW Local 879
 
Too often, it does. No one — union or nonunion — wants to take pay cuts or decreases in pension and health care benefits. Yet even some of the most hardened unionists realize they face a fundamental choice: Adapt to the global economy or die.

Rusty, The TWU has chosen to look at allowing AA to keep work inhouse in turn allow a larger percentage of members to e a better standard of living whileAmfa decided to go for the short term gains and outsource more work in turn allow more AMT's to work below the average wage in the industry.

I believe the TWU negotiators made a wise decission. The average wage for an AMT now is 25 dollars an hour. Even though we make above this we have a better retirement fund than most. Will this last? I believe we have better odds than Amfa represented airlines.
 
Checking it Out said:
Too often, it does. No one — union or nonunion — wants to take pay cuts or decreases in pension and health care benefits. Yet even some of the most hardened unionists realize they face a fundamental choice: Adapt to the global economy or die.

Rusty, The TWU has chosen to look at allowing AA to keep work inhouse in turn allow a larger percentage of members to e a better standard of living whileAmfa decided to go for the short term gains and outsource more work in turn allow more AMT's to work below the average wage in the industry.

I believe the TWU negotiators made a wise decission. The average wage for an AMT now is 25 dollars an hour. Even though we make above this we have a better retirement fund than most. Will this last? I believe we have better odds than Amfa represented airlines.
And so, the IAM gave what, three or four trips to the concession table and AA bought them out of Bankruptcy.

Given your TWU philosophy, we have been in a slumping global ecenomy for twenty years, because every negotiations in that time frame, the TWU has given a concession in one form or the other.

That philosophy will lead to a min. wage, part time job, without benefits. But hey, that is better than no job at all "Brother".

Send Jim Little to talk with Arpey next week. Offer 90% part-time employment, no benefits, and no work rule restrictions, 100% seven day coverage at all Maintenance Bases, and ask Arpey how many jobs he thinks this would create at AA? As absurd as that sounds, if all you want is low unemployment, and work in-house, then go offer the rest of farm, instead of slowly killing a profession.

I say this because your overseas competition in the "global economy" are working in those conditions and eating fish heads and rice for dinner every night.

Dude, I thought the gAyFL-CIO was going to get restrictions on overseas outsourcing so we wouldn't have to compete against the global economy. Are you saying that was all another big LIE?

Please tell us who you support for Local TWU Office and if they hold the same views you have, because the membership needs to know this information before casting ballots.
 
Checking it Out said:
Too often, it does. No one — union or nonunion — wants to take pay cuts or decreases in pension and health care benefits. Yet even some of the most hardened unionists realize they face a fundamental choice: Adapt to the global economy or die.

Rusty, The TWU has chosen to look at allowing AA to keep work inhouse in turn allow a larger percentage of members to e a better standard of living whileAmfa decided to go for the short term gains and outsource more work in turn allow more AMT's to work below the average wage in the industry.

I believe the TWU negotiators made a wise decission. The average wage for an AMT now is 25 dollars an hour. Even though we make above this we have a better retirement fund than most. Will this last? I believe we have better odds than Amfa represented airlines.

Sound Familiar? Let's see that IAM gave concessions for jobs at TWA. AA bought them out of Bankruptcy. Then the IAM gave concessions for jobs at UAL. And now UAL fights to survive.

IAM Leader Explanations about concessions for jobs in the scan below.

NOW LOOK WHERE THEY ARE...

Tell us again CIO how the history of this stratgey makes sense and is good leadership for the union worker? You always harp on AMFA's history, can you show me ONE historical instance where concessions for jobs has saved a failing airline?

peterpaul__bs_01.jpg
 
Thanks for posting that article CIO! It shows that we definitely need to get rid of the INDUSTRIAL UNIONS like the TWU. I don't see the PLUMBERS,CARPENTERS,WELDERS,ELECTRICIANS,AUTO MECHANICS,and others IN THE CRAFT UNIONS having to take the CONCESSIONS that we have had to endure at the hands of the TWU!
 
Received: 06/20/04 20:56:04 EDT
Name: Scott
E-Mail:
Employer: AA
Location: ORD
Message:
It seems to me that us at AA would be better off without a union, we would get the same representation as we do now and we don't have to pay union dues!!!
 
Checking it Out said:
Too often, it does. No one — union or nonunion — wants to take pay cuts or decreases in pension and health care benefits. Yet even some of the most hardened unionists realize they face a fundamental choice: Adapt to the global economy or die.

Rusty, The TWU has chosen to look at allowing AA to keep work inhouse in turn allow a larger percentage of members to e a better standard of living whileAmfa decided to go for the short term gains and outsource more work in turn allow more AMT's to work below the average wage in the industry.

I believe the TWU negotiators made a wise decission. The average wage for an AMT now is 25 dollars an hour. Even though we make above this we have a better retirement fund than most. Will this last? I believe we have better odds than Amfa represented airlines.
Your claim cio is that no union wants to take pay cuts and decreases in benefits, except the twu. For 20+ years they have done just that, and this was well before 911 or the collapse of the American economy due to outsourcing. "Your just lucky to have a job", and that's the mantra of the twu since I have been in this farce of a union. While the company and the twu line their pockets. We'll git 'em next time!

The twu took outsourcing to a new level with the srp/osm scam. The twu decided to lower our profession even more and just let the company outsource in house. No other airline has it, just aa. What a slap in the face. You continue to lie and state that AMFA farms out more work than anyone. AMFA has tried to stop the hemoraging by placing a cap on farm outs started by the iam and the ibt. Yet, you still won't acknowlege that the industrail unions are at fault for the trend, its always just AMFA's fault.

Does that average wage of $25@hr include the osm's cio? No way. If you figure them in the average drops to about $15@hr. The lowest in the industry. The twu negotiators made a wise decision my ass. Maybe you mean the twu International? It hasn't given up a dime. In fact they got pay raises. No shared sacrifice for little and the gang.

Better odds of losing even more pay, beneifits, and jobs (yes, we have thousands on the street at aa) if the twu is not gone by 2009. I can't take another sellout twu contract.

NO VOTE? NO PEACE!!!!
 
Decision 2004 said:
Sound Familiar? Let's see that IAM gave concessions for jobs at TWA. AA bought them out of Bankruptcy. Then the IAM gave concessions for jobs at UAL. And now UAL fights to survive.
Lets not forget the TWUs campain to save Pan Am through concessions. We see what a good job they did over there!

Lets also not forget the job they have done for fuelers over at Ogden who at one time, back when they were Teamsters, made good money. I know Ogden, the only fuel supplier at the airport needed to lower wages to stay "competative" too. Who were they competing against?

Lets also not forget that our Junior Fleet service workers got a raise because their TWU contractual rate was below minimum wage!

The TWU sure does some job! Isnt it amazing how the TWU keeps sounding more and more like management and less and less like unionists?