By Jerry White
29 April 2009
In the agreement worked out at Chrysler, the Obama administration has elevated the United Auto Workers to the position of chief cost cutter, tasking the UAW with the job of slashing jobs, reducing wages and benefits and imposing more brutal conditions of exploitation on the workers it claims to represent. The Chrysler agreement will serve as the model for a similar betrayal of General Motors workers.
The White House will give the UAW majority control of Chrysler, with 55 percent of the company’s stock, and a 39 percent ownership stake in GM, making it the second biggest GM shareholder. The federal government will own more than half of GM stock...
The UAW, which is being advised by the Wall Street investment firm Lazard, will gain seats on the auto companies’ boards of directors and will play a major role in restructuring and downsizing the firms, from product selection and ensuring “competitive labor rates” at key suppliers, to reviewing the company’s global production plans.
Once thousands of jobs are cut and the workers are stripped of what remains of the gains won in past struggles, the share value of Chrysler and GM will rise, guaranteeing vast profits for Wall Street and its junior partner, the UAW.
The UAW is seeking to ram through the new contract with Chrysler in a ratification vote today—less than 24 hours after workers were given the UAW’s list of contract “highlights.”...
Everything workers have traditionally associated with a trade union—the right to strike, higher wages and benefits than non-union workers, shop floor protections, a chance to retire with a secure pension and health care benefits—has been jettisoned.
There will no longer be even the pretense of collective bargaining and contract guarantees. Instead, according to the contract summary, wage and benefit rates “will be based on Chrysler maintaining an all-in hourly labor cost comparable to its US competitors, including transplant automotive manufacturers.”
In other words, UAW workers will be paid the same or less than non-union workers at the Japanese-owned factories in Mississippi, Alabama and other southern states—with one difference: They will still have to pay dues to the UAW.
Under the terms of the agreement, time-and-a-half pay for working more than eight hours or on weekends will be eliminated, with overtime calculated instead on a weekly basis, i.e., for hours worked over 40...
Perhaps the most brutal treatment is being meted out to retirees and their families. As part of the deal with the Obama administration, the UAW agreed to accept half of the $10 billion owed to its already underfunded Chrysler retiree health care trust (known as a Voluntary Employee Beneficiary Association, or VEBA) in Chrysler stock, instead of cash. Previously, the UAW—which will oversee the provision of medical coverage to some 125,000 retirees and their dependents beginning January 1, 2010—said there would be no changes in benefits until 2012. It has now agreed to immediate “benefit adjustments.” These include sharply higher drug co-pays and the elimination of vision and dental care. While the UAW claims that pension benefits for senior workers and retirees have been protected, it is widely reported that Chrysler intends to dump its pension obligations onto the government’s already underfunded Pension Benefit Guaranty Corporation. This would entail severe cuts in pension benefits...
On Monday, GM issued a new job-cutting announcement, making it clear that the Obama administration and the UAW are conspiring to eliminate tens of thousands of additional jobs. GM will cut another 23,000 hourly jobs—one third of its blue collar workforce—and close up to 18 of its 47 US manufacturing facilities. In addition, it will eliminate the Pontiac brand and cut almost half of its dealerships, a move that will destroy tens of thousands of dealership jobs...
While the big investors, the auto bosses and the UAW will secure their interests, GM workers, like their counterparts at Chrysler, face disaster...
http://www.wsws.org/articles/2009/apr2009/chry-a29.shtml