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What is Happening
to the UAW?
(United Automobile Workers)
How important is the Automotive Industry?
Vehicle manufacturers (OEM) directly employed 313,000 people
Includes manufacturing, research and development, headquarters, and all other operational
activities
• 686,000 people were employed in the automotive parts sector.
Includes a percentage employment from rubber, plastics, batteries, and other non-automotive sectors
• 737,000 people were employed in the dealer network selling and servicing new vehicles
• 1,736,000 people were employed in the entire industry
The study shows that these 1.7 million direct jobs contribute to an estimated:
• 8 million total private sector jobs
• more than $500 billion in annual compensation and
• more than $70 billion in personal tax revenues.
© Center for Automotive Research 2010
Source: http://www.cargroup.org/?module=Publications&event=View&pubID=16
Breakout of the employment and economic impacts by OEM,
supplier, and dealer sector
• Direct, intermediate, and spin-off employment from OEM activities estimated at 3.1 million
• Total compensation of over $200 billion
• Estimated personal tax payments of nearly $30 billion
• Total employment generated by parts manufacturing is estimated to be 3.3 million
• Total compensation of over $200 billion
• Estimated personal tax payments of $30 billion
• Total employment generated by the dealership network is estimated to be 1.5 million
• Total compensation of $90 billion
• Estimated personal tax payments of roughly $10 billion
© Center for Automotive Research 2010
Source: http://www.cargroup.org/?module=Publications&event=View&pubID=16
• Over 1.7 million people are employed by the auto industry. In
addition, the industry is a huge consumer of goods and services
from many other sectors and contributes to a net employment
impact in the U.S. economy of nearly 8 million jobs.
Approximately 4.5 percent of all U.S. jobs are supported by the
strong presence of the auto industry in the U.S. economy.
People in these jobs collectively earn over $500 billion annually
in compensation and generate more than $70 billion in tax
revenues.
See more at:
http://www.cargroup.org/?module=Publications&event=View&pubID=16#sthash.U1SkRWei.dpuf
Current Automotive Employment Statistics
The automotive industry includes industries associated with the production, wholesaling, retailing, and
maintenance of motor vehicles. This industry is not formally defined in the North American Industry Classification
System (NAICS), but the Bureau of Labor Statistics is referring to a group of detailed industries as the "automotive
industry" for purposes of analysis. This list is not exhaustive, but includes industries that can be directly impacted
by changes in U.S. production and sales of motor vehicles
Source: http://www.bls.gov/iag/tgs/iagauto.htm
The Bankruptcy
• In September 2008, the Big Three asked for $50 billion to pay for health care expenses and avoid
bankruptcy and ensuing layoffs, and Congress worked out a $25 billion loan. By December,
President Bush had agreed to an emergency bailout of $17.4 billion to be distributed by the next
administration in January and February. In early 2009, the prospect of avoiding bankruptcy by
General Motors and Chrysler continued to wane as new financial information about the scale of
the 2008 losses came in. Ultimately, poor management and business practices forced Chrysler
and General Motors into bankruptcy. Chrysler filed for chapter 11 bankruptcy protection on May
1, 2009 followed by General Motors a month later.
• In 2008, a series of damaging blows drove the Big Three to the verge of bankruptcy. The Big Three
had in recent years manufactured SUVs and large pick-ups, which were much more profitable
than smaller, fuel-efficient cars. Manufacturers made 15% to 20% profit margin on an SUV,
compared to 3% or less on a car. When gasoline prices rose above $4 per gallon in 2008,
Americans stopped buying the big vehicles and Big Three sales and profitability plummeted.
• Many Facilities closed their doors for good.
Source: https://en.wikipedia.org/wiki/Automotive_industry_crisis_of_2008%E2%80%9310
Monthly Sales from 2013
Employment Changes after Bail Out
• Many facilities closed their doors
• Reduction of shifts at many facilities
• Mass indefinite layoffs
Changes for those brought back after turnaround
• The two Tier System- Traditional VS. In-Progression Employees
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Different wage cap
Different benefits
No transfer rights for in-progression
General Motors Subsystems Manufacturing LLC is a wholly owned subsidiary
of General Motors (previously a third party company LINC)
Many employees even though previously employed did not meet the 40/60
ratio of tier on to tier two employees and lost previous rate of pay and
benefits
No pensions for in-progression employees
Loss of seniority during lay-off (example 2008 hires are adjusted to 2010)
But loss of seniority only affected some of the employees. A small group kept
their 2008 seniority (make any sense? I think not!)
Is the UAW Losing Power?
Decline of the UAW
• UAW members produced only 54 percent of the cars and trucks made in the United States last
year(2013). That compares with 85 percent of cars and trucks built in the U.S. in 1999.
• Even the 1999 representation number is down from the UAW’s glory days. In 1965, about 95
percent of vehicles produced in the U.S. were made by UAW-represented workers, Art Wheaton, a
workplace and industry education expert at Cornell University.
• UAW has agreed to more-significant differences in wages for new hires at the Detroit companies in
recent contract negotiations, moving it farther away from its vow that workers will be treated equally.
These two- tier wage systems have helped create new jobs, but mean that newer workers earn
substantially less than their veteran counterparts.
Source: http://www.forbes.com/sites/michelinemaynard/2014/02/20/the-uaw-is-losing-its-gripon-auto-industry-labor/
Decline in Income & Union Membership
http://www.workforcefreedom.com/blog/union-membership-continues-decline
http://americanmajority.org/majority-2/over-the-last-four-years-the-middle-class-has-been-indecline/
Union Membership decline in Michigan
Right Work States: The attempt to Kill Unions
Slow Death of the Middle Class
• The automotive industry is a huge part of the middle class.
• If we cant afford to purchase the vehicles we build who will?
• With the reduced wages and no pension How will we ever retire?
2015 New Contract Highlights
• Two tier wage increase to match Traditional Wages
• In Progression employees moved to traditional health care plan
• $8000 Signing Bonus
• Two tier Transfer rights
• Still no pension
• Temporary employee pay scale spanning 84 months
What Will We Lose?
• Although highlights are release after contract negations they never
release lowlights or the changes in the contract on things that we
have lost.
• The only way to know is to read the entire 440 page document only
able to be view online
• Most locations have only a week to vote on the ratification of the
new agreement
• Is that enough time to make an informed decision?
General Motors Subsystems Manufacturing
LLC
• Although Subsystem employees pay union dues they are not covered
by the national UAW-GM agreement
• The have limited rights
• They had a make shift contract set in place that with wording that has
way to much room for interpretation
• There contract is not done in the same year as the UAW-GM
agreement
• Is there any hope for Subsystem workers?
Do we have a future with GM?
• The new contract has set up in-progression employees to mirror
traditional employees
• Are subsystems the new GM?
• Will all New Hires be in constant temporary status? (with a pay scale
spanning 7+ years is sure seems that way)
• Will there be a future or security for new people hiring into GM?
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