The UAW Might Strike GM Over Healthcare Costs

[Marc]

UAW: GM Pressure Could Trigger Strike

The UAW isn't rushing to meet GM's deadline for healthcare cost cuts by the end of the month - and in fact, some UAW officials are saying that if GM presses too hard the union could call a strike. Reuters reports that UAW execs consider a deal on health costs "impossible" by the end of the month, as GM has said it wants and as CEO Rick Wagoner suggested GM might impose on the union by month's end. The world's largest automaker says it's facing a financial crisis without a compromise with the UAW under the current contract, which is in force through 2007. The automaker says healthcare costs could end up at more than $6 billion for the year. Reuters quotes Eldon Renaud, UAW local president of the Bowling Green, Ky., outpost, as warning GM of the consequences of pushing too hard: "I know they have to understand the consequences of trying to take unilateral action," he told the news agency. "We are not going to stand by it."


www.thecarconnection.com/Industry/Daily_Edition/Daily_Edition_Jun_16_2005.S173.A8771.html


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GM!!! BRING BACK OLDS!!!

[BNICOV]

If the UAW wants to strike, they'd better be careful. GM's financial situation is quite precarious now. Not to mention the fact that GM's market share has been in decline for many years, they could very well end up declaring bankruptcy and the union would get screwed royally. Not too much from the General excites me right now, Caddie has the STS and DTS as well as the truck lines but from Pontiac, Buick and Chev.......I dunno. Wagonner could pull the plug and the retirees could lose a significant portion of their pensions so the union had better make some concessions, I don't mean giving up the healthcare but having the employees pay for a portion isn't too bad for the coverage that they get (in Canada that type of coverage would cost about $600-700/month/employee's family). If they cant't make money on producing cars, WHY BOTHER???

[oldsauroraman1]

Fine. Let them strike. Then they can do the Ronald Reagan thing and replace them all. THEN they will appreciate their job and work for sensible wages - not the excessive ones they get now.

[Aurora40]

Well, Ronald Reagan fired workers who were not allowed to strike. UAW workers are allowed, and are protected from losing their job when they do so.

[oldsauroraman1]

Yup you are right 40. But in this case these people are only "shooting themselves in the foot." They have milked the auto industry into a position where it has lost its ability to compete on a world wide basis.

[auroralover]

The UAW and its members need to wake up. Companies simply cannot afford to subsidize health care at 100%. The company I work for has opened up contracts before they expired and renegotiated health care costs. Everybody, union and non union employees in my company now pay a portion of health care, $25/week.
I wasn't happy at first, but it is REALITY.

[Aurora40]

OldsAuroraMan, I totally agree. The unions cripple the auto industry, then let up just enough to let them limp along. When GM was in its hey-day they could still be successful while supporting a leach. But now in the lean years, the leach is risking their life. Unfortunately it is next to impossible for them to shake the leach off. Laws don't allow it, thanks to lots of Union lobbying. In reality, GM's best chance for survival is probably to close down their US operations completely and move to another country. Hopefully it won't come to that (or to them shuttering their doors).

[oldsauroraman1]

You are absolutely correct 40! As Ronald Reagan said during his Presidential bid in 1980: "Greed is killing America." Still right.

[Letitroll98]

Yes, but also remember that management agreed to all of these contracts. It takes two to tango and the apathetic management at GM is very reminicent of the management of the steel industry in the 60's. They also caved in to labor demands, were guilty of poor product development, and looked to diversify to generate profits instead of reinvesting in their core industry. (I know, not exactly the same, just similar situations) The plants closed and the workers all lost their jobs, many were close friends of mine. In fact, many of the membership could see all this coming, but their voices were silenced by labor union management whose private agenda was to ensure their own positions of power by continually increasing the percieved value of the labor contract. I would believe labor union management is more the culprit in GM's problems than the actual line workers who often don't have much of a real say in the contact negociations.

[Aurora40]

letitroll98 said:

Yes, but also remember that management agreed to all of these contracts. It takes two to tango and the apathetic management at GM is very reminicent of the management of the steel industry in the 60's. They also caved in to labor demands, were guilty of poor product development, and looked to diversify to generate profits instead of reinvesting in their core industry. (I know, not exactly the same, just similar situations) The plants closed and the workers all lost their jobs, many were close friends of mine. In fact, many of the membership could see all this coming, but their voices were silenced by labor union management whose private agenda was to ensure their own positions of power by continually increasing the percieved value of the labor contract. I would believe labor union management is more the culprit in GM's problems than the actual line workers who often don't have much of a real say in the contact negociations.

Yes, definitely. It often seems the union management is not representing the union members. I recall a year or so back that the union was pushing for the big three to pay for abortions as part of their healthcare plan. It was very hush-hush, and when regular joe union members found out about it, they were furious.

Hopefully the steel industry's decline will not be re-run with GM playing the part of steel companies...

[Letitroll98]

Yeah, to all these union execs, it's nothing but a...

Cash Cow

[oldsauroraman1]

This will ultimately end up in a Cowtastrophe in the udder end.