jpd80 Posted August 30, 2011 Share Posted August 30, 2011 (edited) UAW's King: Wage increases on the table for Tier II workers Bryce G. Hoffman/ The Detroit News Detroit— United Auto Workers President Bob King said Monday that the union is asking Detroit's Big Three for wage increases for second-tier workers as part of its ongoing negotiations toward a new national labor agreement. "We're very concerned about that entry-level member having a middle-class standard of living, which I would argue they don't at the current rates," he told reporters after a speech at the Detroit Economic Club. "I would say that's our highest priority." The two-tier wage system was a key element of the last national contract between the UAW and Ford Motor Co., General Motors Co. and Chrysler Group LLC. That agreement was ratified in 2007 and expires Sept. 14. It allowed the automakers to pay second-tier employees, who are all recent hires, about half what veteran hourly workers make. It also limits their benefits. King did not specify whether the union's proposal to raise second-tier pay would apply only to those already on the job or to future hires as well. He would not say how the companies reacted to the union's proposal, but said he is "upbeat" about the progress at the bargaining table. John Fleming, Ford's vice president of global manufacturing and labor affairs, also expressed optimism. "It's early days. (But) the atmosphere is very good," Fleming said. "It doesn't mean there aren't plenty of issues to be resolved." Some labor analysts believe King is aiming for an early agreement with the Detroit automakers and their 113,000 UAW workers as a way of showing the American people — and foreign manufacturers — that the UAW has evolved and is embracing a more cooperative approach to labor relations. "That's pretty hard to do, to get it done early," King said, adding he is working "every day" to organize one of the transplants. "I'm very optimistic," he said. "Our No. 1 priority and responsibility in these negotiations is to get the best contract possible for our membership. I believe doing that will also support our organizing efforts." During his speech, the UAW leader said the U.S. auto industry is an example of how "creative problem solving" can generate more profits and jobs. "Look at the amazing success that we've had," he said, referring to the industry's recovery. "We quit vilifying each other." The union leader has said he wants a contract that allows workers to share in the companies' success without adding significantly to their fixed costs and making them uncompetitive with foreign automakers operating in the United States. He says the key is some form of profit-sharing mechanism. "Our companies face a lot of competition," King said. "We just want to make sure that we come out of this negotiation over the next four years structuring our companies to succeed. If you add fixed costs, they won't be able to do that." Protecting jobs and creating new ones are his top priorities, King said. "We want these companies to come back. We want them to open up new facilities and put new shifts," he said. "We're about creating more jobs, more investment, more product here in the United States of America." The best way to make sure they do that, he said, is to keep them competitive. Workers at Ford factories around the country have begun taking strike votes, authorizing the UAW leadership to call a walkout if talks fail to achieve an agreement. King stressed that is a formality and said he would view a strike as a failure. "I just feel like we can do better," he said. The union cannot strike GM or Chrysler under the terms of those companies' 2009 bailout by the federal government. If the UAW reaches an impasse with either, it must go into arbitration. King said he hopes to avoid that, too, and said Ford would not be disadvantaged by its unique position. King devoted most of his formal speech to arguing for higher taxes on corporations and wealthy individuals. "We're not broke," he said of the U.S. government. "Our basic problem is that we have an extremely unfair tax system." From The Detroit News: http://detnews.com/article/20110830/AUTO01/108300366/UAW's-King--Wage-increases-on-the-table-for-Tier-II-workers#ixzz1WVgB4bkk So it looks like topping upt the two tier rate is high on the agenda for the UAW, obviously they want their main US auto companies to survive and prosper so i wonder what areas the UAW is willing to give up as well as fight for increases.... It's a delicate balance, both Ford and GM have a powerful bargaining chip, they can shift production North or South of US borders, . I'm hoping that an amicable agreement can be achieved that doesn't require either side sacrificing too much, steady as she goes... Edited August 30, 2011 by jpd80 Quote Link to comment Share on other sites More sharing options...
rkisler Posted August 30, 2011 Share Posted August 30, 2011 So it looks like topping upt the two tier rate is high on the agenda for the UAW, obviously they want their main US auto companies to survive and prosper so i wonder what areas the UAW is willing to give up as well as fight for increases.... It's a delicate balance, both Ford and GM have a powerful bargaining chip, they can shift production North or South of US borders, . I'm hoping that an amicable agreement can be achieved that doesn't require either side sacrificing too much, steady as she goes... This is all very simple. Average hourly wages at Ford are still higher than GM and Chrysler. And those wages are still not in line with those of the transplants in "right to work" states which makes Ford, in total, not competitive. VW's wages in the new plant in Chattanooga, TN are the lowest, but they have just hired. This is all within the UAW's power. They simply need to present Ford with a proposal to balance the new worker and older worker wages. Which means if they want higher wages for the newer workers, they should propose cuts to the older workers to balance, along with overall cuts to meet the competitve environment. That would make the UAW more competitive and would promote esprit de corps because you would no longer have two workers performing essentially the same job for different wages. Solved. 1 Quote Link to comment Share on other sites More sharing options...
akirby Posted August 30, 2011 Share Posted August 30, 2011 Since when does "entry level" = "middle class" ?? Quote Link to comment Share on other sites More sharing options...
snooter Posted August 30, 2011 Share Posted August 30, 2011 he can ask..but i hope like hell mulaly says hell no..they are already over paid for what they do...lotta people outa work..union better think about that..i do fully support the union in bargaining for a safe work place and decent benefits...but no way is some idiot worth upwards of $30 an hour putting a lug nut in a tire while assemblying a vehicle...and we wonder why many are balking at paying over $40k for a damn truck...keep it up union..price yourself right outta the market...chi-coms will be glad to have it and far far cheaper cost to boot 2 Quote Link to comment Share on other sites More sharing options...
aneekr Posted August 30, 2011 Share Posted August 30, 2011 Since when does "entry level" = "middle class" ?? Since Mr. King achieved the presidential post at his organization and needed a "problem" to solve. Quote Link to comment Share on other sites More sharing options...
Noah Harbinger Posted August 30, 2011 Share Posted August 30, 2011 Kids these days... they just don't know how to selectively quote sources. 1 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted August 30, 2011 Author Share Posted August 30, 2011 Ford had a $20 billion turn around last year in very indifferent times, $6 billion profit and $14 billion paid off debts. King will point to this improvement in efficiency when bargaining, last year's financial improvement came on the back of the existing agreement with very little input from Tier 2 wages. King does have some ammunition to show that Ford can still be quite profitable with single tier wages so having a two tier wage system that's a litle less brutal to new starters is quite possible. Ford is no longer in financial chaos and have seen significant improvements due to the changes carried out in the past five years, it may be time to fine tune fixed costs like wages by introducing more profit sharing bonuses than set wage increases and what not.... Quote Link to comment Share on other sites More sharing options...
akirby Posted August 30, 2011 Share Posted August 30, 2011 Ford had a $20 billion turn around last year in very indifferent times, $6 billion profit and $14 billion paid off debts. King will point to this improvement in efficiency when bargaining, last year's financial improvement came on the back of the existing agreement with very little input from Tier 2 wages. King does have some ammunition to show that Ford can still be quite profitable with single tier wages so having a two tier wage system that's a litle less brutal to new starters is quite possible. Ford is no longer in financial chaos and have seen significant improvements due to the changes carried out in the past five years, it may be time to fine tune fixed costs like wages by introducing more profit sharing bonuses than set wage increases and what not.... But if the extra compensation is based on record profits then make it a profit sharing bonus so that it's not permanent and the company isn't stuck paying it if profits suddenly go South. Quote Link to comment Share on other sites More sharing options...
dante hicks Posted August 30, 2011 Share Posted August 30, 2011 Since when does "entry level" = "middle class" ?? In the auto industry, when hasn't it? Quote Link to comment Share on other sites More sharing options...
jpd80 Posted August 30, 2011 Author Share Posted August 30, 2011 But if the extra compensation is based on record profits then make it a profit sharing bonus so that it's not permanent and the company isn't stuck paying it if profits suddenly go South. I agree. In the past, a lot of costs associated with auto manufacturing were considered fixed when they're actually not. Mulally helped to change that mind set by showing that right sizing production to true market demand allows manufacturers like Ford to have lean, productive plants and work forces. Those improvements in efficiency help the cause of profit sharing by linking those types of bonuses to success of a product in the market instead of the old fixed bonus paradigm that used to be played out when Ford had 40,000 more employees... Quote Link to comment Share on other sites More sharing options...
wildosvt Posted August 31, 2011 Share Posted August 31, 2011 I agree. In the past, a lot of costs associated with auto manufacturing were considered fixed when they're actually not. BINGO!!!!!!!!!!!!!!!!!!!!!!!!! Someone gets it! I even quoted my source properly for Noah. :shades: Quote Link to comment Share on other sites More sharing options...
DearbornDerek Posted August 31, 2011 Share Posted August 31, 2011 .but no way is some idiot worth upwards of $30 an hour putting a lug nut in a tire while assemblying a vehicle. Really??? So I'm an idiot??? You can have your opinion of the UAW, but if you can't be civil about the people who bust their ass building YOUR Ford vehicles then don't post anything. ...And here we go again..... 2 Quote Link to comment Share on other sites More sharing options...
grbeck Posted August 31, 2011 Share Posted August 31, 2011 Ford had a $20 billion turn around last year in very indifferent times, $6 billion profit and $14 billion paid off debts. King will point to this improvement in efficiency when bargaining, last year's financial improvement came on the back of the existing agreement with very little input from Tier 2 wages. King does have some ammunition to show that Ford can still be quite profitable with single tier wages so having a two tier wage system that's a litle less brutal to new starters is quite possible. Ford is no longer in financial chaos and have seen significant improvements due to the changes carried out in the past five years, it may be time to fine tune fixed costs like wages by introducing more profit sharing bonuses than set wage increases and what not.... True, but Ford is far from out of the woods yet, and the economy looks awfully fragile. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted August 31, 2011 Author Share Posted August 31, 2011 (edited) True, but Ford is far from out of the woods yet, and the economy looks awfully fragile. I don't think so, the bulk of the work saving the company has already been done over the past five years, what Ford is doing now is fine tuning profitability, the economy was in worse shape last year so even if the Economy is fragile, Ford are more capable of surviving lower SAAR levels than GM. Ford proved that last year and even now, GM is struggling with sales as it slows Silverado production. Ford does not like the UAW pattern bargaining against GM and Chrysler but is quick to throw up wage differences, I think cool heads and a consistent plan needs to be developed where Ford and the UAW are happy with conditions, there's no point reaching an agreement only to keep coming back wanting more like Ford did a couple of times in the recent past. Strike a deal and stick to it. Edited August 31, 2011 by jpd80 Quote Link to comment Share on other sites More sharing options...
Deanh Posted August 31, 2011 Share Posted August 31, 2011 Really??? So I'm an idiot??? You can have your opinion of the UAW, but if you can't be civil about the people who bust their ass building YOUR Ford vehicles then don't post anything. ...And here we go again..... dont hold Snooter against us derek, I for one am glad to see you back.... 1 Quote Link to comment Share on other sites More sharing options...
Moosetang Posted August 31, 2011 Share Posted August 31, 2011 (edited) dont hold Snooter against us derek, I for one am glad to see you back.... Ditto. I want the guys putting the wheels on my car to be well paid and happy in their job, snooter's welcome to drive the car built by the guy too worried about finding money to buy food for his Family to do the job right. Edited August 31, 2011 by Moosetang 1 Quote Link to comment Share on other sites More sharing options...
David The Bruce Posted September 1, 2011 Share Posted September 1, 2011 Ditto. I want the guys putting the wheels on my car to be well paid and happy in their job, snooter's welcome to drive the car built by the guy too worried about finding money to buy food for his Family to do the job right. That's not a valid argument. I could say I want the kid at the timmies drive though window paid enough so he won't be tempted to spit in my coffe or piss on my tims bits too. You set a wage for a job, you advertise the opening, you train the employee you decide to hire. If he/she screws up the job constantly they are put on some kind of HR plan which may lead to getting let go. If I keep getting crappy employees for what I'm paying/offering then I need to rethink the pay being offered. 1 Quote Link to comment Share on other sites More sharing options...
Noah Harbinger Posted September 1, 2011 Share Posted September 1, 2011 he can ask..but i hope like hell mulaly says hell no..they are already over paid for what they do...lotta people outa work..union better think about that..i do fully support the union in bargaining for a safe work place and decent benefits...but no way is some idiot worth upwards of $30 an hour putting a lug nut in a tire while assemblying a vehicle...and we wonder why many are balking at paying over $40k for a damn truck...keep it up union..price yourself right outta the market...chi-coms will be glad to have it and far far cheaper cost to boot So your goal is for America to be more like, as you say, "chicom"? I would rather America be a place where all workers earn enough to live comfortably, have time to enjoy life and their families, have a safety net if they're injured or severely sickened, and be secure when they retire. And for all the unions can be faulted for (I'm not always this gushing), they've done more to make that a possibility for most Americans than any other political group. 1 Quote Link to comment Share on other sites More sharing options...
DearbornDerek Posted September 1, 2011 Share Posted September 1, 2011 dont hold Snooter against us derek, I for one am glad to see you back.... I don't. I never use the minority to judge the majority... :beerchug: Like I have said before, it gets old having to defend my life every 3-4 years.... Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 1, 2011 Share Posted September 1, 2011 (edited) I don't. I never use the minority to judge the majority... :beerchug: Like I have said before, it gets old having to defend my life every 3-4 years.... understand...in your corner, hope it works out as an amicable compromise...screw the postering, not sure that helps, especially if to insiders its considered "taken for granted and normal".. Edited September 1, 2011 by Deanh Quote Link to comment Share on other sites More sharing options...
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