This is how I view the Chrysler concessions (not to say, armed robbery):
As a Chrysler retiree, I look first at the VEBA. I recall that we retirees were assured in 2007 that it would last 80 years. Now we lose all dental and vision coverage as of July 1, 2009, and an independent expert says in the Free Press that the VEBA, our entire health coverage, will last only 6 years.
We are to be reassured by the fact that the VEBA will own 55% of the equity in Chrysler, an “equity” which Daimler has already written down to zero on its own books. Madoff would be proud.
It is an awesome thing to watch a Democratic Party president enforce such terms on us, while having unconditionally bailed out undeserving banks with $100 billion dollars.
My heart goes out to the active workers who already work at punishing speeds. Their relief time will be cut back. After two hours of work they will get 13 minutes break instead of 16; after another 1.5 hours another 13 minutes rather than 16. Their attendance procedure will be more strict. Their work methods and organization will have to match Toyota's. Their seniority right to bid on individual jobs is canceled, replaced by only the right to change work teams. The dates of two of their vacation weeks will be dictated by the company. No overtime premiums will be paid until the 41st hour worked in a week – in other words, 12 hour days at straight time will soon prevail, especially for trades.
Not to mention the wage freeze through 2015 and the loss of all supplemental pay such as COLA, Christmas bonuses and productivity bonuses – all of which were themselves substitutes for what used to be, in the dim distant past, yearly 3 per cent base pay raises.
The two-tier wage structure is frozen regarding wages and widened regarding hiring. All workers hired through September 2015 will start at $14 and remain there at least until 2015. The company is also freed to use TPTs as they wish.
Workers under 20 years' seniority receive lesser and lesser steps of SUB pay. Options are reduced regarding right to decline distant job offers.
The company achieves its long-sought goal of completely collapsing skilled trades classifications into Electrical and Mechanical only.
Perhaps the item I most hate is that our right to decide on our own contracts is canceled until September 2015. The 2011 contract will be decided by top-level negotiations and then if necessary by binding arbitration – where the arbitrator is already directed to take into account the labor costs of the non-union transplant car companies.
This is a slave labor contract. As the Canadian Chrysler workers said, the active workers must vote with “a cannon to our heads” thanks to government, banks, and corporate collusion, and thanks to a UAW leadership which leads us ever farther from the militant attitudes of those who successfully built our union. And our union was built in far more difficult days and circumstances.
Solidarity,
Larry Christensen
UAW Local 140, retired.
I feel it is proper for the UAW to step down for the time being. Chrysler has not produced a quality vehicle for who knows how long. I own 1 and have no confidence to buy another. I have used my discount for family and seen their problems. 3 to be exact. That's not including the many many others on the road I pass and hear squealing or making other abnormal noises. American automakers have let the industry they created, fall to waste. It is time for change in every aspect of our way of life. And before anyone gets to upset about this comment, I want AMERICA to SUCCEED! I am a 28yr old, born and raised AMERICAN who's disappointed in what I see. When I see Toyota and others boasting high ranks, I say, "What the @$&#!" This is America!! Where is the very foundation the UAW was created on? How did our fathers and grandfathers work so hard to get where they got and then let us ruin it?! When I look through the BAP, I see lazy ass workers who think they deserve to have a kushy job just because they know somebody. I see people who claim to have job related injuries and can't do more then push in a tiny rubber plug for $30 per hour. I see these same people run faster then anyone else to the gate at quitin' time! I see these same people go off to break 5, 10, even 15 minutes early. If that's not company money at waste, well I don't know how anyone can blame CEO's for overpaid bonuses. We all have a place in this blame game and nobody is innocent. After working in BODY, TRIM, and CHASSIS on many different teams, knowing many jobs, I feel that my 14.82 per hour is well worth the salvation of the AMERICAN AUTO INDUSTRY! If I worked at any non union company, (which is most all of them) when I stop working, I stop getting paid period. My grandfather knew how things worked back in the day and he'd be furious with how much you all expect in exchange for lesser quality car and a crappy market to sell in. I hope we can get it together before you have to settle for a job at Wal-Mart selling products Made In China for your $8.00 per hr. $14.82 sounds pretty good to me.
I feel it is proper for the UAW to step down for the time being. Chrysler has not produced a quality vehicle for who knows how long. I own 1 and have no confidence to buy another. I have used my discount for family and seen their problems. 3 to be exact. That's not including the many many others on the road I pass and hear squealing or making other abnormal noises. American automakers have let the industry they created, fall to waste. It is time for change in every aspect of our way of life. And before anyone gets to upset about this comment, I want AMERICA to SUCCEED! I am a 28yr old, born and raised AMERICAN who's disappointed in what I see. When I see Toyota and others boasting high ranks, I say, "What the @$&#!" This is America!! Where is the very foundation the UAW was created on? How did our fathers and grandfathers work so hard to get where they got and then let us ruin it?! When I look through the BAP, I see lazy ass workers who think they deserve to have a kushy job just because they know somebody. I see people who claim to have job related injuries and can't do more then push in a tiny rubber plug for $30 per hour. I see these same people run faster then anyone else to the gate at quitin' time! I see these same people go off to break 5, 10, even 15 minutes early. If that's not company money at waste, well I don't know how anyone can blame CEO's for overpaid bonuses. We all have a place in this blame game and nobody is innocent. After working in BODY, TRIM, and CHASSIS on many different teams, knowing many jobs, I feel that my 14.82 per hour is well worth the salvation of the AMERICAN AUTO INDUSTRY! If I worked at any non union company, (which is most all of them) when I stop working, I stop getting paid period. My grandfather knew how things worked back in the day and he'd be furious with how much you all expect in exchange for lesser quality car and a crappy market to sell in. I hope we can get it together before you have to settle for a job at Wal-Mart selling products Made In China for your $8.00 per hr. $14.82 sounds pretty good to me.
So suddenly your value is now less since since its apparently the "workers fault" that a recession hit and vehicle sales went down? Also id still like to see corporate accountability. Workers lose their bonuses despite performance and COLA. I can guarantee you that the corporate offices will see bonuses for "trimming costs"
OH! you think its proper huh? So sorry you seem to have such a bad opinion of our company, our product and our workforce. If you dont like it so much why dont you LEAVE!!!! so im sorry that you had a problem with your vehicle. Are you telling me that you believe there are never problems with any of the cars built in non union shops? I for one have owned four dodge trucks and have never had anything but minor issues. Im sick and tired of you people coming on here and bashing the good hard working people at belivedere assembly. You seen a few lazy asses in the plant? well so have I. does that make all 2200 people there a bunch of lazy asses?? I know that when i go to work every day i work my butt off on the assembly line along with nearly everybody else i see. what gives you the right to come on here and bash me and my brothers and sisters just because you seen some people that cant handle the job. you dont know me. i dont appreciate people like you running me and my coworkers into the ground because you are spiteful about not getting the same opportunites that we did when we hired in and because you see a few people around that cant or wont do their job. im sure you could go to any factory union or not and find plenty of lazy asses that will try to get away with whatever they can. As far as im concerned your opinion doesnt matter. You are not a true union brother or sister or you wouldnt find it necessary to bash everyone that works here. either get over it and shut your mouth or leave.
Its a sensitive subject, and everyone is going to have there views on it. For me, the UAW stopped being the UAW of old as soon as they allowed two tier system into there fold.
To me it goes against everything the UAW constitution and the beliefs of the union. Now, you are going to have for the next 6 years, people working side by side with one making a little over double the person next to them is. On top of that, there benefits are not even the same.
I find it kinda amusing that the benefits and luxury's that today's UAW worker enjoyed was forged on the backs of there predisecors, with some giving there live to protect the rights of those around them. Then to see those rights voted away to anyone new joining the UAW, just so you can keep your current wage, is frankly sad. It should be one for all, and all for one. The division and separation of your Brothers and Sisters within the workforce is going to kill the Union.
There is a stance that could be made. The economic effect that would trickle down from suppliers to dealerships to local business would be astronomical. I think alot of people fail to understand the scope of the American automotive network and the amount of jobs it really secures outside just the big 3. At least in my views, the UAW officials at the highest offices have been bought out and are throwing everything under the bus. And the file and rank are allowing it to happen.
OH! you think its proper huh? So sorry you seem to have such a bad opinion of our company, our product and our workforce. If you dont like it so much why dont you LEAVE!!!! so im sorry that you had a problem with your vehicle. Are you telling me that you believe there are never problems with any of the cars built in non union shops? I for one have owned four dodge trucks and have never had anything but minor issues. Im sick and tired of you people coming on here and bashing the good hard working people at belivedere assembly. You seen a few lazy asses in the plant? well so have I. does that make all 2200 people there a bunch of lazy asses?? I know that when i go to work every day i work my butt off on the assembly line along with nearly everybody else i see. what gives you the right to come on here and bash me and my brothers and sisters just because you seen some people that cant handle the job. you dont know me. i dont appreciate people like you running me and my coworkers into the ground because you are spiteful about not getting the same opportunites that we did when we hired in and because you see a few people around that cant or wont do their job. im sure you could go to any factory union or not and find plenty of lazy asses that will try to get away with whatever they can. As far as im concerned your opinion doesnt matter. You are not a true union brother or sister or you wouldnt find it necessary to bash everyone that works here. either get over it and shut your mouth or leave.
Agreed plus if people did their research they would see the JD power and associates graph on recalls\defects and that Ford, Chrysler, and several GMs are on par with average or way below the average with many foreigns with staggering numbers
Sorry AJ if I offend thee. My purpose was not to offend, but to voice an opinion of an AMERICAN worker. I do not wish to make enemies here, but to give and get opinions from others. Thank you for yours. Again, I am for AMERICA 100%! I do my best day in and day out too, to help create the best possible vehicle I can. Thank YOU for doing the same. You are correct when saying that not everyone is a lazyass. I am sorry to all who have read my previous post and felt the same as you. Many people do infact work their butts off day in and day out and BAP. I am a former ETE who is not bitter about what happend to the ETE program. I understood then and now that it may or may not be perminent. I chose on my own to answer the phone and come back to BAP when they called me. I am thankful for making $14.82/hr. and know that it's very hard right now to do better elsewhere. I do hear many people at BAP who are UNION, some for 10 or 15yrs, say they wouldn't do these jobs for even $24/hr. With my previous job history and pay, I know that those who think the can get better pay are in for a big suprise when then take that buy-out. I wish yall the best. As far as the empty slots to fill, there are plenty of people willing to take a job for $14/hr. No offense, but union labor is really expensive, hourly and in the long run. Temps or whatever you want to call them, are much more economical. Remember, I pay dues too, and if you don't like what's happening ... you can also leave. I like what I do at BAP and only want the best for MY AMERICA. I'd gladly buy a Chevy or Ford to do my part in saving AMERICA. Currently, with the parts and quality I see at BAP, I can't bring my self to buy what I build. And no complaints about pay, but at $14/hr, I can't afford a HEMI or any of the other gas guzzlers Chrysler insists on building. If I am fortunate enough to be apart of the Fiat alliance and BAP starts building fuel efficient cars, I will certainly consider one.
If I am not welcome to "blog" here as you are, please contact the site admin and request I be removed. Sorry if my opinion hurts others feelings. I'm not the only one. Rebuild, and let's go AMERICA!!!!!!!!!!!!!!!!!!
I find it amazing to see the conflict between our UAW members....thats exactly what the they want...Division of its employees. I drive 2 chrysler vehicles and its sad to me to see the UAW keep giving back to the company what took the employees who bust their butts to get. Do you think that when the company gets back on track to profitability they will give the employees back what they gave up to help the company...absolutely not!!!! sorry but the UAW is not what it once was nor will it ever be what it once was....
I find it amazing to see the conflict between our UAW members....thats exactly what the they want...Division of its employees. I drive 2 chrysler vehicles and its sad to me to see the UAW keep giving back to the company what took the employees who bust their butts to get. Do you think that when the company gets back on track to profitability they will give the employees back what they gave up to help the company...absolutely not!!!! sorry but the UAW is not what it once was nor will it ever be what it once was....
Now that UAW has 55% and is now management. How is that going to work and it going to work for them or ME?
I find it amazing to see the conflict between our UAW members....thats exactly what the they want...Division of its employees. I drive 2 chrysler vehicles and its sad to me to see the UAW keep giving back to the company what took the employees who bust their butts to get. Do you think that when the company gets back on track to profitability they will give the employees back what they gave up to help the company...absolutely not!!!! sorry but the UAW is not what it once was nor will it ever be what it once was....
Now that UAW has 55% and is now management. How is that going to work and it going to work for them or ME?
The 55% is supposed to be primarily for the Veba so they can sell the stock off to pay for the retirees health
Kinda hard too when they have 55% and Daimler rated its 20% at zero
NEW YORK (CNNMoney.com) -- Chrysler LLC's struggle to avoid bankruptcy appeared to suffer a blow when talks between lenders and the Treasury Department aimed at cutting the automaker's debt broke down, according to published reports early Thursday.
As a result, the New York Times and Wall Street Journal, both citing people familiar with the discussions, said Chrysler was expected to file for Chapter 11 protection later in the day.
The reports said several hedge funds and other lenders rejected Treasury's sweetened offer of $2.25 billion for forgiving $6.9 billion of Chrysler's debt.
Both reports indicated the Obama administration hopes that the bankruptcy would be swift, and would result in a restructured company controlled by Italian carmaker Fiat SpA and the United Auto Workers union.
Earlier, a vote of union members and comments by President Obama pointed to the prospect that the troubled company could meet a Thursday night deadline to secure an additional $6 billion in federal help and a chance of survival that seemed questionable only a week ago
Late Wednesday, the union announced that its membership at Chrysler had overwhelmingly ratified a concession contract reached between the company and union leadership on Sunday night.
"This has been a challenging time filled with anxiety and uncertainty for our membership," said UAW President Ron Gettelfinger. "Our members have responded by accepting an agreement that is painful for our active and retired workers, but which helps preserve U.S. manufacturing jobs and gives Chrysler a chance to survive."
Members voting in union halls at meetings on Wednesday voted in favor of the pact by majorities of between 80% and 94%, depending upon their job classification.
Under the deal approved Wednesday, the union would end up controlling 55% of Chrysler's privately held stock. That stock, which the union is accepting rather than $7 billion in cash it was owed by Chrysler, will be used to cover the future health care costs of 65,000 retired UAW members and their families.
Just hours before the vote was announced, President Obama, speaking at a prime-time news conference, said he was more hopeful than he was a month ago that a deal could be made between Chrysler and Italian automaker Fiat.
"What we've seen is the unions have made enormous sacrifices, on top of sacrifices they've previously made," Obama said. "You've now seen the major debt holders come up with a set of potential concessions they can live with. All that promises the possibility that you can get a Fiat-Chrysler merger."
Last month, a Treasury Department task force determined that Chrysler was not viable as a stand-alone company. The panel outlined a series of steps the company would have to make to get the $6 billion it said it needed to continue.
In addition to a deal with Fiat, Chrysler was required to win concessions from the unions and get banks and others who had lent the company $7 billion to greatly reduce the debt load.
Expectations had grown that a Chrysler bankruptcy and eventual liquidation would close the business. But Obama said Wednesday the company is likely to survive, no matter how the process plays out in coming days.
"The fact that the major debt holders appear ready to make concessions means that even if they ended up having to go through some sort of bankruptcy it would be a very quick type of bankruptcy and they could continue operating and emerge on the other side in a much stronger position," Obama said.
Still the president acknowledged that any possible deals with creditors and Fiat were not yet final. Talks might continue right up until midnight Thursday, according to an Obama administration official speaking ahead of the press conference.
Fiat could finalize a deal with Chrysler even if the company is in bankruptcy, according to various reports, and may be close to doing so.
On Tuesday, major banks that are among those that have lent Chrysler $7 billion were said to have agreed, to significantly reduce that debt, according to Treasury Department sources.
The UAW has not released details of its new labor pact with Chrysler. But the union's decision to accept privately held stock in Chrysler for the union-controlled trust fund to cover retiree health care was a key concession.
Chrysler has just under 39,000 U.S. employees, 60% below the number of American workers it had at the beginning of the decade. It also has about 9,400 workers in Canada, where 87% of the Canadian Auto Workers union members ratified a separate labor deal over the weekend.
0:00 /1:52Chrysler's 11th hour
According to a report in the Washington Post, Chrysler Chief Executive Bob Nardelli would be replaced by Fiat management as part of a bankruptcy plan being finalized by Treasury.
The Obama administration, along with the Canadian government, would provide an additional $4 billion in financing while Chrysler is in bankruptcy, the Post reported. The United States would provide another $5 billion in support following a bankruptcy reorganization.
Under this plan, the United Auto Workers union's retiree health plan would get a 55% stake in the company, Fiat 35%, the U.S. government 8% and the Canadian government 2%, according to the Post.
Chrysler creditors would get $2 billion and no equity stake while Cerberus Capital Management, which now owns most of Chrysler, would get nothing, the report said.
General Motors (GM, Fortune 500), which has also received federal help to avoid collapse, has until the end of May to reach deals with its creditors and unions. It proposed a plan Monday that would give its creditors a 10% stake in that company, while giving the government and the union up to an 89% stake.
CNNMoney.com senior writer Jennifer Liberto contributed to this story. To top of page
First Published: April 30, 2009: 3:30 AM ET
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