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Automotive News & Views United Automobile Workers of America (UAW)
16701 messages, Last post on Nov 20, 2009 at 3:39 AM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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We've pulled the scab (no pun intended) off the wound here. The news report I heard on Fox news said it was expected that a settlement would be reached w/in a few days. Do you think anybody in the negotiating room was blindsided by this?? This will prove to be nothing. I'll bet w/in a week they are back to work and this blog will be "read only" again. |
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>"UAW President Ronald Gettelfinger also said American Axle wants to cut workers' wages in half, from about $28 an hour to as little as $14 an hour." >"The total cost of wages and benefits is more than $70 an hour, Dauch says, while competitors such as Dana Corp. are paying $20 to $30 an hour in total wages and benefits." "American Axle did post a profit of $37 million last year, but the earnings were an anemic 1 percent of sales." >"What was once the model (GM) spin-off is now the highest-cost supplier in North America," Sean McAlinden, chief economist at the Center for Automotive Research in Ann Arbor said Wednesday. "It's sad to see. It's not a good signal for Michigan once again." >DETROIT -- American Axle & Manufacturing Inc., long considered the most successful of former General Motors Corp. parts operations, now is mired in an ugly labor dispute while the market for its products is shrinking." Is it any wonder that the jobs are leaving the country? $28 per hour is over $58K a year wages, plus OT and bennefits. $70 per hour, including wages and bennefits, is roughly $145.600 annually that a self employed worker would have to earn to have near equivalent health coverage and retirement income. Actually he would have to earn a bit more than that because he would not have as good of rates on the health insurance. Might not even be able to get it, if he has pre existing problems. Those having to purchase health insurance and build private retirement income know this very well. Imagine working for ourselves and walking into a "Machine Shop" that offered no health care or bennefits, but needed help. How successful would we be, if we said, "I will work for you for $70 per hour and re negotiate more pay every year or so"! In a shrinking industry, due to the competition having lower labor cost among other things, the UAW needs to understand, the 1% earnings of American Axle places them on the ragged edge of going under. The UAW workers need to get on their knees every day and thank God Almighty that they are still working. Then they need to elect a real leader with some degree of understanding of economics. If they don't do just that, American Axle will surely close it's doors. GM, in order to survive, will be forced to go elsewhere for those equivalent or better parts. Or they are going to have to close their doors. Those, out of work, UAW workers will then be able to go to that "Machine Shop" and negotiate. We are now living in a competitive world. The Big 3 and Detroit no longer have a captive audience as in the past. They need to wake up. UAW workers have had a good run for many years. Just as many companies have had to down size to survive, and find more economical ways to survive, so may their workers. Just doesn't make sense to kill the goose that is laying the golden eggs! While it is possible that American Axle is trying to cut "ALL" workers pay in half, it is doubtful. Flame resistant suit is in place!  Kip |
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Replying to: kipk (Feb 29, 2008 5:34 am) Does anyone know about the executives at American Axle? Pay? Benefits? Number of them? Pay cuts they've taken--Halvsies?
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Replying to: imidazol97 (Feb 29, 2008 6:50 am) Salary.com |
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Replying to: kipk (Feb 29, 2008 5:34 am) But, of course, the CEO has NO COMPETITION, so he can name his own price. I'll bet he also has the unmitigated BALLS to tell his employees that he has to pay for his own healthcare, so they should pony up some for theirs. |
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The 3650 striking workers, IF they gave up the $40 in benefits to bring them down to $30/hr compensation would save $292 million (yes, I know, I have no life, the laundry is piling up downstairs, blah, blah)  Now, if the TOP 5 EXECS took the same 57.1% (?? 4/7 ths??) compensation cut that alone would be about $30 million (imagine that, the cost savings from just 5 EXECS is 11% of 3650 WORKERS). I find it hard to believe that ANY company would ask for a 57% compensation cut and have their employees roll over and say Oh,OK boss, gee thanks. I'm NOT saying that there isn't room for negotiating some more profitability to allow for more competitiveness, and I assume you start by saying all new hires get a lower wage tier, if pensions are involved, a VEBA, and so forth. But to demand that people who have been living at a certain standard take THAT BIG of a compensation cut is ludicrous. |
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Replying to: cooterbfd (Feb 29, 2008 8:56 am) Which reminds me... Car Stock Exchange kicks off tomorrow for real (for real prizes that is).
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Replying to: steve_ (Feb 29, 2008 10:51 am) To put another way: If his plan were enacted today, by my math by the end of the year the companies profit would go up another $292 million. This would probably blow away any forecast Wall St has, possibly causing my stock to skyrocket. This would cause his option to be worth more than it is now, meaning his compensation would go even higher than $35 million.
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Replying to: cooterbfd (Feb 29, 2008 11:00 am) 
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Replying to: cooterbfd (Feb 29, 2008 8:56 am)
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