Reports from the Economic Front

a blog by Marty Hart-Landsberg

The Chrysler Bailout And The UAW

The media is making a determined effort to present the Chrysler bailout as a real boon for UAW members even if it means playing fast and lose with the facts.

For example, we are told that the UAW will own 55% of the new Fiat-Chrysler company stock, suggesting that the workers will really be running the company.  The truth is that this stock will be held by an independent retiree health fund—not the union.  The UAW will have only one of nine seats on the board of directors.

For a reality check, let’s look at things from a worker perspective.

First, thanks to Doug Henwood (editor of Left Business Observer) you can read what Chrysler workers received from the UAW leadership.  The leadership is clearly trying to put the best face on a bad deal.

Then, you can read an assessment of the contract by a retired UAW member.  Some highlights:

  • Retirees will lose all dental and vision coverage as of July 1, and perhaps all health coverage in six years
  • There will be a wage freeze until 2015.  All new workers hired until that date will be paid $14 an hour (with no raises possible until 2015)
  • Work breaks will be reduced from 16 minutes to 13 minutes
  • Workers will not be allowed to vote on future contracts until 2015—that should tell you everything you need to know

IMPORTANT BLOG INFORMATION—if you want, you can now receive new posts directly in your email inbox; See the subscribe link at the right.  And it is now possible to post comments on this and other (past and future) entries.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: