UAW members want blood – and the union is responsible

Since the 2007 recession the United Auto Workers (UAW) has treated the car companies as the enemy.  

Now, the UAW is undergoing tense negotiations with Fiat Chrysler.  On September 16^th, the two sides reached a deal that “would have provided all workers with a $3,000 signing bonus. Wages for entry-level workers… would have increased…to a range of $17 to $24. Those at $24 an hour…would reach $25.35 …” according to USAToday.

Unfortunately about 65 percent of UAW members voted against that contract, sending the UAW back to the drawing board and threatening a strike.  The UAW had been working with Fiat Chrysler and presented the deal because they thought it was good for their members. The problem is that the UAW has done such a good job of making car companies, like Fiat Chrysler, the enemy that the majority of union members feel the UAW didn’t fight hard enough.

They have made the automakers seem like bullies and the union the victim of its intimidation. In reality, the auto bailout means the companies still do not have the money to pay every worker the same $25/ hr. The UAW persists in acting as a victim with its President Dennis Williams saying, “No more concessions. We are tired of it. Enough is enough.”

The auto bailout imposed a two-tiered wage system, with senior workers getting significantly more pay. This two-level pay scale is not popular with UAW members and was a big sticking point in the rejection of the Fiat contract.

The two-tiered system was necessary as part of a cost-saving restructuring that brought the U.S. auto industry back from the brink. Auto companies no longer offered the lavish salaries and benefits the union negotiated from them before. But unfortunately Williams pits the workers against the company exclaiming, “It’s our time now.” With such divisive language no wonder the UAW members see themselves as fighting their employer.

After the union members rejected the Fiat contract, both sides needed to reach a new agreement by Wednesday October 7^th at 11:59pm. On Friday October 9, 2015, the UAW released the details of the new contract.

The new contract introduced increased signing bonuses and included higher wages for all UAW members.  However, the two-tier wage system would endure. UAW members would continue to not pay premiums for their healthcare. Lower tier workers would benefit from better dental and vision care.  Fiat Chrysler would put $1.7 billion into pensions and spend $5.3 billion on their U.S manufacturing sites to quell rumors of outsourcing to Mexico.

Now, UAW leaders and Fiat Chrysler hold their breath to see if the union members will vote “yes” on October 20^th and 21^st in order to avoid a strike.

If the UAW fails to convince its members to approve the latest contract then this country could be looking at a major strike that could bring the auto industry in the United States to a halt or even worse, permanent end.   

Union members want the blood the UAW promised them, but the auto companies are stone dry.