Big strike at GM

[iron81]

Iversonian, no I wasn't leveling. Is it really that hard to believe there is a union supporter around here?

Ike, the primary reason for declining unionization rates is the decline in manufacturing. Much of the remainder is due to anti-union labor law changes like right-to-work and corporate resistance to unions. You've heard the stories about Wal-Mart closing stores that went union? The reason why right-to-work is bad is that it makes it much easier for the corporations to exert pressure on their workers to not join unions: its going to look very suspicious and probably result in a grievance if a closed shop union loses a member, but not so much in an open shop.

AJackson, I agree that high wages are useless if they put the company out of business. Unions are aware of this as well and that's why they're giving wage and health care concessions in the GM strike in exchange for job security promises. To be honest, I see business as a means to an end: to provide the means for people to make a life for themselves through wages. Unions help steer money from the upper-class investors toward middle class assembly workers and I think that's a good thing.

Mosdef, Midge is right about the terms of the contract. GM entered into successive collective bargaining contracts over the years promising UAW workers health care after they retired in exchange for their labor today. GM puts money aside to ensure that this benefit will be funded. So basically, GM is paying today for their current employees future medical problems, as they agreed to.

All, the strike is over. Some highlights from the Detroit Free Press:

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In addition to the (union taking over GMs health care plan), people familiar with the tentative deal say it includes:

• No base-wage increases, though workers will get a $3,000 signing bonus and an annual lump-sum payment of 3% or 4% in the other three years of the contract.

• New hires into non-assembly jobs will earn less than current workers. Those workers are expected to earn an average of $27 per hour in wages and benefits, compared with the current average of $73 per hour. People now in those noncore jobs will be offered buyouts and early-retirement offers similar to those offered to workers last year.

• Future cost-of-living increases will be diverted to pay for the health care of active and retired workers.

• The jobs bank, the controversial program that allows workers who have lost their jobs to keep getting paid, remains but the rules will change. The area in which workers would have to move to an open position or face losing their incomes is to be expanded.

It also is believed that at least 4,000 temporary workers will be made permanent GM employees.

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