Brief profile of the charmed American autoworker

February 18, 2009 · Posted in Featured, Financial Crisis, Government, Political Issues, Politics, Social Issues, Things to think about, Thoughts on the economy, Topic Blogs · Comment 

Workers TakeoverProducing and assembling cars in this country can be a very lucrative profession.  Many insiders have blamed the union system for the fallout of the Domestic auto-industry.  The economic fallout is beginning to hit autoworkers, but it won’t affect them like it hits those in other industries.    The UAW has set up a golden platter of benefits and protections for the members of its union.  I’m glad we have these men and women in the factories to make our cars.  It’s a physical job…but these aren’t neurosurgeons.

Here are some tasty morsels to chomp on next time you hear another news story about the auto crisis:

1)  Unionized members make an average of $24-30 an hour (you do the math).   Not too shabby.

2)  In GM’s case: The combined “legacy” benefits (pensions, insurance, retiree benefits, etc) equates to nearly $70 an hour.  Not an actual rate, but an overall analyst driven calculation of what “total”  labor and current retiree benefits is costing GM.  Workers are not getting paid $70 an hour as some stories suggest.

3)  In the early 1980’s, the UAW created a program called “job banking” which pays at least 90% of a laid off autoworkers salary until the union can find them a new position elsewhere.   The job banking practice was implemented as a way for autoworkers to “absorb the punch” when automated, robotic technology was introduced on the assembly line.   The terms and conditions vary by automaker, because each labor contract is different.  GM factory workers who get laid off start out at “sub pay,” in which they receive unemployment benefits, and GM pays the difference, up to most of their salary, for 48 weeks.  After that, laid-off employees go into the jobs bank, which averages almost $62,000 a year — plus benefits, without reporting to work.  In the meantime, the company tries to find them jobs elsewhere.  That sucks!

4)  In 2005, nearly 12,000 autoworkers were drawing a full salary without ever setting foot in an auto plant.  Most simply had to show up at a local union hall and hang out.

5)  Over the last 15 years, nearly 83,000 autoworkers have lost their manufacturing job, however, 91,000 new positions were created in other states.

6)  Delphi, the parts wing of GM, declared Chapter 11 bankruptcy in 1999 because UAW would not agree to a wage cut.

Interesting information and compelling reasons why these men and women so cherish their jobs.   With the onset of the government bailout, many of these perks are changing or going away.   Late last year, the GM job bank program was suspended (actually the UAW allowed it to be suspended, hmm) due in part to the auto crisis.  The union provides a very secure blanket of protection over its workers and gives them tremendous incentive not to leave.  In the same light, the UAW is doing a horrible disservice for this population of workers.  This is all they have ever known considering most autoworkers never leave the industry and retire with healthy pensions.  Sadly, this causes a career black hole that provides an illusion that every other American worker has these same benefits and freedom of labor expression.  Autoworkers will become lost in a corporate world that does not look out for them.  They have skills on the assembly line- but where will those skills be transferred?  Many of them will find good work in certain trades or other manufacturing capacities, but nothing with the same “bling bling” of the auto assembly line.  With the reality of the disappearing job bank system- this will be a shocker for many leaving the union.  To a degree, the auto worker has become easy pickings for ridicule and scorn.   The general public has become aware of how well they are paid and the security of employment they are offered – and to a degree – are jealous.

Despite a loss in members, the UAW is still a $2 billion dollar organization with approx. 550, 000 due paying members.  They have some nice assets too.

The Black Lake Country Club and Reuther Center is a $33 million dollar golf course and retreat owned and operated by the UAW.   The course itself is $6 million dollars.   The UAW is losing money on this forested beauty every year as more members leave the union.   I truly hope our bailout funds keep this course afloat, being a golfer, I’d love to play it someday… but not for $33 million bucks.

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Pretty isn’t it?  I heard they’re hiring part time caddies with benefits and life time pension.

I should have been an autoworker.

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