New York: Magna auto parts workers reject cutbacks in face of shutdown threat

[dcsmart]

By William Moore
7 April 2009

In January, the company had proposed drastic cuts in wages and had made continued operation of the plant conditional on a “return to profitability” by July. The terms were draconian. If the plant was judged profitable, wages would remain at the current $20.16 per hour, already down from more than $29 an hour only two years ago. Wages would be cut to $16 per hour if the plant came close to the break-even point. Finally, if the goal was missed by a wide mark, the plant would be closed. All of this was, of course, at the discretion of the management.

On February 3, the workers rejected the company’s proposal by an overwhelming 76 percent. The January proposal would have replaced an existing contract that wasn’t even a year old.

Following the rejection of the company’s offer, the union local’s leadership begged management for an opportunity to negotiate some adjustments that might persuade workers to accept the agreement. The resulting proposal presented only minor changes from the original. Effectively, the union bureaucracy was hoping to demoralize the membership by convincing them that there was no alternative to accepting the company’s take-away demands. It didn’t work.

The second round vote concluded on March 17 with a majority of the workers once again voting against the givebacks. This time, the revised offer was rejected by 52 percent. The rejection by the members of the union bureaucrats’ “deal” reflects both a deep distrust of the company and a lack of faith that the union would do anything to protect them. Those voting “no” are quoted as saying that they were not voting against their jobs, but that the company was asking for too many concessions. Workers also said they had lost all trust in the management after it failed to meet one promise after another.
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Shortly after the vote, New York Democratic Senator Charles Schumer approached the owners of the DeWitt plant with the possibility of receiving part of $5 billion in federal funds assistance for auto parts suppliers. The intervention of Steven Rattner, the Obama administration’s leading advisor to the Treasury regarding the auto industry and veteran of the previous devastation of steel industry jobs, was offered to Magna. However, the next day the company rejected the federal money. The Ithaca Journal reported, “The Canadian company says money isn’t the only issue and flexibility in work rules and other operational changes it has sought wouldn’t keep the plant competitive.” In other words, only the complete subjugation of the workforce would be satisfactory.
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FULL ARTICLE
http://www.wsws.org/articles/2009/apr2009/magn-a07.shtml

[Ikonoklast]

1. I wonder if they ever offered the workforce more money

when the company was flush with profits from high productivity?


Bet they didn't.