UAW’s Gettelfinger: A Rock and a Hard Place

UAW’s Gettelfinger: A Rock and a Hard Place

Talk about being stuck between a rock and a hard place.

UAW President Ron Gettelfinger opened Tuesday’s convention of 1,500 union delegates in downtown Detroit with a fiery speech about protecting worker interests amidst pressure by Detroit automakers for concession. The convention marks the start of negotiations between the UAW and Detroit automakers for a new contract to replace the one that expires in September.

“Our union does not want to strike,” Gettelfinger told delegates, “but when employers act as if collective bargaining is a one-way street and not a two-way street, we will do what we have to do.

“Collective bargaining is not collective begging,” he added, drawing cheers from delegates. “Where we have demonstrated cooperation, it would be a grave mistake to equate our action to capitulation.”

Despite the tough talk, Gettelfinger is a smart man. He recognizes General Motors, Ford and Chrysler are in a tough spot, having lost money as well as sales and market share to Asian automakers and are encountering soaring health care costs and unfunded pension liabilities.

Still, Gettelfinger has to put on a show for his union members, many of whom are pressuring him to take a hard line in not granting more concessions to the automakers.

Gettelfinger also recognizes he has to protect UAW membership, which has fallen 17 percent from 2000 to 2005 to 557,099 members. To protect UAW membership, Gettelfinger has to preserve jobs.

In addition to health care and retiree costs, the UAW faces increasing pressure to expand two-tiered pay structures, agreed to with bankrupt supplier Delphi Corp., and with Chrysler at its Belvidere, Ill., plant. It’s another rock-and-a-hard-place situation for the union. If they don’t agree to two-tier pay, they lose the opportunity for new jobs and new members. If they do, equality for all members is out the window.

The UAW released to its delegates a 103-page proposed resolution document. Bottom line: "UAW members will resist efforts by employers to escape their health care and pension obligations by transferring risk to individual workers."

The union said it would vigorously oppose efforts to install more health savings accounts and individual 401k accounts in place of defined benefits.

Gettelfinger emphasized the need for continued political action by UAW members and families, and pointed out that factors outside the bargaining process can have a dramatic impact on working people. He renewed the UAW’s call for “single-payer, universal, comprehensive national health care that covers every man, woman and child in America.”

He also called for a new approach to trade agreements, citing America’s $132 billion automotive trade deficit. “It’s time to stop the outsourcing of American jobs and with that the race to the bottom for the lowest wages.

“UAW members at Delphi, Dana and other firms are facing difficult challenges due to flawed U.S. bankruptcy laws,” said Gettelfinger. The UAW is working with other unions to protect wages, health care and pensions, but legislative reform is also needed.

“While it may seem unbelievable that our laws allow companies to award bonuses to top executives while cutting the wages and benefits of workers,” he said, “this underscores that it is time to reform U.S. bankruptcy laws to ensure that workers are not discarded while executives are rewarded.

“We will enter auto negotiations and all negotiations united and determined to win the best possible contract for our membership,” he said. “The problems we encounter are big, but the commitment and determination of our membership is bigger.”

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.