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NEWS & LETTERS, OCTOBER 2003

UAW caves in to Big 3

Detroit--The Big Three auto companies--GM, Ford and DaimlerChrysler--won every one of their major demands against the United Auto Workers union in the recently negotiated four-year contract, including agreements to close plants, shifting some health care costs to the workers, and giving management greater flexibility over the control of the workers to increase productivity, in other words, speedup.

Brainwashing for the concessionary contracts began at last year’s constitutional and negotiating convention when Wall Street analysts were invited to talk about international competition in the auto market. They were back with UAW leaders in August, in the midst of the negotiations. So it is no surprise the WALL STREET JOURNAL praised the “great foresight” and “labor statesmanship” of UAW President Ron Gettelfinger.

While the UAW had insisted it would give no concessions in health care, it agreed to have workers pay $5 for each doctor’s office visit, and $10, up from $5, for each prescription that is not a generic drug, plus the difference between the generic and brand name drug. That can amount to thousands of dollars when doctors insist on brand name drugs, which many do.

The plant-closing agreement will affect l5-20,000 workers who will be thrown out of work and have difficulty finding another job in this depressed economy. Over the last four-year contract, 50,000 union jobs disappeared. Another 50,000 altogether are projected to be eliminated this time. These workers would not agree that the union and management recognize they are in the same boat. Workers facing layoffs know they are in a different boat altogether and that they are going down in it.

Workers at Delphi and Vestron, the parts suppliers spun off from GM and Ford, will be voting on a contract without knowing what is in it. It calls for the UAW to negotiate details within 90 days; they are expected to set wages below the GM and Ford model, and agree to a two-tier wage structure for new hires.

In still another concession, the union is joining management in agreeing to provisions designed to reduce absenteeism. Work on the line is grueling and dehumanizing. Workers are often so drained of energy that they are forced to take an occasional day off work to try to regain their strength. But this contract reduces the days a worker can be absent without being fired and further increases work pressures.

Perhaps the most ominous threat to the workers on the line is the “greater flexibility" concession. Workers know that past “greater flexibility” concessions have always meant a harder life on the production line: forced overtime, loss of seniority rights, abolition of classifications limiting management power, and technology that incessantly reduces the work force.

As a retired auto worker said, “You don’t know all of the fish hooks in a contract until you work under it. That’s when you find out how much you’ve lost.”

--Andy Phillips

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