(the "new" GM) Labor Notes: GM Seeks to Cut Wages in Half at Indianapolis Factory

[amborin]

GM Seeks to Cut Wages in Half at Indianapolis Factory

Jane Slaughter | July 27, 2010

GM stamping plant workers in Indianapolis have told the company they won’t cut their wages in half, even when threatened with a shutdown. A prospective buyer of the 650-worker factory has indicated he wants United Auto Workers members to drop from $29 an hour to $14.65.
“If they were to succeed in cutting our wages here,” said shop chair Greg Clark, “they could easily just bring stamping work here, whipsaw us against the other facilities, and before you know it, the whole stamping division would be under siege.” Other GM stamping plants are in Parma, Ohio; Marion, Indiana; and Flint, Michigan.

Although UAW Local 23 members voted 384-22 in May against opening the contract, the UAW International is strongly backing the cuts, indicating that it may go around the local to talk to prospective buyer JD Norman Industries of Illinois. But Clark says, “If you need a wage cut before you even begin, this is not the business you need to be in. Maybe you should try something else.”
Many of the Indianapolis workers are “GM gypsies” who have been forced to transfer from plant to plant during their careers. Clark, for example, is on his fifth factory and third plant closing. The union contract gives workers the right to “follow their work,” so if the plant closes next year as threatened, workers could likely find GM jobs in other towns.

The mood is uncertain as workers wait to see what the UAW International will do. Machine repairman Kenneth Craig said some high-seniority workers want to see the plant bought if they could retire and then return to work at half pay. “They don’t care what it will do to the rest of the union,” Craig said. Clark, who says he thinks members voted for him as shop chair 10 months ago because “they were tired of being pushed around,” said, “You do have some individuals who think it’s just about self. It’s bigger than that.”

meantime:


REVOTE IN SAGINAW

Meanwhile, 2,200 GM parts workers in Saginaw, Michigan, revoted on steep concessions June 29 and this time said yes. As in Indianapolis, they also had been pressured by International and local UAW officials who said the wage cuts would help GM sell the plant.

Production workers in Saginaw, most with less than four years’ seniority, were already working at second-tier wages of $14.50 to $18.50 an hour. They were offered voluntary “buydowns”: a worker making $18.50 will get a lump sum of $30,000 if he agrees to work for $14.50, or $40,000 if he goes down to a starting wage of $12. Wages will be frozen for five years, except for small raises for the $12 workers in years four and five.....

snip

http://www.labornotes.org/2010/07/gm-seeks-cut-wages-half-indianapolis-factory


let's hope the Indianapolis Local union can fight this successfully; the UAW International is being pressured by the Obama administration to drastically curtail the UAW's remaining (nearly non-existent) clout.....the gov't takeover was all about busting the UAW

[aquart]

1. Which naturally applies to all management salaries as well?

[Oregone]

2. Given the opportunity, Id consider taking the $30K and pay cut

There, that money can buy a decent piece of property, potentially mortgage free. You eliminate the 30 year cost of borrowing. When you cut out that large of a cost of living, you can accelerate wealth accumulation and quit giving your money to banks.

I don't know...Id have to really look at both scenarios...but eliminating a mortgage would be huge.

[amborin]

3. yes,

but one of the other scenarios is that, if they did this in significant numbers, it supports GM's agenda to drive down hard-wrought union wages and therewith eviscerate the UAW; this eventually drives down all workers' wages, even further.....i can see that, as with all previous buyouts, it's tempting on an individual level; collectively, it's a disaster

[Oregone]

6. Well, aside from hurting incoming workers, it could really be a positive symbiotic relationship

I know it sounds totally off the wall...and Im definitely not advocating the regression of wages...but rather, action that may balance out to a higher standard of living over a certain period of time (which in this case, may include a wage cut). Look, if you could have a home outright (and a used car), you save a ton on interest. All that saved on interest could go to goods you don't have to put on a credit card (and pay interest on). Even making less, you could put far more in the bank and CDs (gaining interest). If your employer is willing to put up money that can change your life immediately, it can greatly provide security. The end result is economic freedom, pure and simple. And once they get there, maybe its "worth" taking home a bit extra at the end of the day.

The freeze in wages is for 5 years. Who knows what the future brings. But security today is priceless.

[JVS]

4. Typically, lump sums are always the best things to take from companies, because they'll fuck you.

Take the $30K and start looking for new jobs.

[provis99]

9. no family can survive in Indianapolis on $30k per year.

That town is expensive.

[Octafish]

5. The ''Miracle'' of Chapter 11

And the Oligarchs rejoiced, while robots replaced whatever small people were left alive.

[onethatcares]

7. next time the wage cut goes to 7.35 hr. part time

there's enough folks that will work for that will be the reasoning. Company will make out like bandits, UAW officials will wear 3000.00 suits and tell the members they did the best they could in this economy..

The rest of the United States of America cheers the last union being busted. Then they start to wonder why they can't get more than 6.45 an hour to push paper and type stuff.

Ten years later, labor in the states is reduced to feeding itself out of landfills.

[Karmadillo]

8. Another achievement we can roll out for 2012. Go Team!

nt

[Omaha Steve]

10. GM dumped Delphi, bankrupt and much of it went to Mexico

Look up also Atlas Axle. But GM is competing with several non-union car makers in the US, Mexico, etc. A race to the bottom is right. With many American's cheering btw.