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What the AP Left Out about the UAW

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The AP has an article reporting that Ron Gettelfinger, head of the UAW, says the union will not make any more concessions to keep the Big Three in business. I guess the editor cut a big chunk–because the article obviously falls short of explaining why the UAW is taking this stand. Here’s what the AP left in:

”The focus has to be on the economy as a whole as opposed to a UAW contract,” Gettelfinger told reporters on a conference call, noting the labor costs now make up 8 percent to 10 percent of the cost of a vehicle.

”We have made dramatic, dramatic changes and the UAW was applauded for that,” he said.

Instead, Gettelfinger blamed the problems the auto industry is suffering from on things beyond its control — the housing slump, the credit crunch that has made financing a vehicle tough and the 1.2 million jobs that have been lost in the past year.

”We’re here not because of what the auto industry has done,” he said. ”We’re here because of what has happened to the economy.”

And here’s what the AP didn’t report (I’m sure it was just an oversight, really).

In its contract last year, the UAW made painful concessions, adopting a two-tier wage structure, such that new employees make just $12 to $15 an hour. The move is projected to bring the American manufacturers in line with their Japanese rivals’ non-union labor costs in the near future.

In addition, the union has taken responsibility for providing retiree healthcare, thereby eliminating one of the last remaining competitive disadvantages for the American manufacturers’ unionized workforce as compared to their Japanese rivals.

With these agreements, the UAW has managed to save jobs, while still providing the superior labor force that leads most segments (big PDF, see page 10-11) in terms of the most efficient plants measured in hours per vehicle.

The UAW’s workers have made deep concessions to ensure American-owned auto industry remains competitive with its foreign competitors. Now that the American-owned manufacturers have eliminated some of the structural disadvantages that gave foreign competitors a market advantage, it would be a terrible waste for its country not to do what’s necessary to sustain American manufacturing though this tough financial period.

There. Now it tells a more complete story.

The “Blue Ribbon” MI Compromise

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So there I was, settling into my first pilgrimage glass of wine, when all of a sudden I see that the same folks who were in charge of planning a MI Mulligan had proposed their own compromise to seat MI’s delegation in Denver. So much for relaxing my way into vacation.

Here’s the operative part of the proposal. 

As a result, we recommend that the Michigan Democratic Party request the DNC to seat Michigan’s delegates, and that the pledged delegates be apportioned 69 to Senator Clinton and 59 to Senator Obama. That approach splits the difference between the 73/55 position of the Clinton campaign and the 64/64 position of the Obama campaign, based on our belief that both sides have fair arguments about the Michigan primary.

While we expect that neither candidate will explicitly embrace this approach, we believe that the DNC should adopt it and both candidates should accept it because it is fair and because it would resolve an impasse that with each passing day hurts our chances of carrying Michigan and winning the Presidency. We also believe that the DNC must exercise the leadership to resolve this impasse and not allow it to fester any longer. We urge you to seek the approval of the Executive Committee of the Michigan Democratic Party for this proposal and forward it promptly to the DNC for their consideration.

We also want to express our opposition to the challenge filed by DNC Member Joel Ferguson with the DNC Rules and Bylaws Committee regarding Michigan’s delegates to the Democratic National Convention. Mr. Fergusons’s proposed remedy – seating Michigan’s so-called super-delegates with a full vote, and seating Michigan’s pledged delegates with a half vote – is unacceptable to us on two grounds. First, we cannot agree to a remedy that allows for super-delegates who didn’t run for the position to have a full vote, while pledged delegates selected by the voters have only half a vote. Second, we see no justification for seating Michigan’s delegates with anything less than full voting rights. If Michigan is punished for fighting the DNC’s decision to grant New Hampshire a waiver, it will hurt the Party’s chances of carrying Michigan in November. We will communicate these views to the Rules and Bylaws Committee and request that you ask the Executive Committee of the Michigan Democratic Party to take a similar position.

Sincerely,

Senator Carl Levin
Representative Carolyn Cheeks Kilpatrick
UAW President Ron Gettelfinger
DNC Member Debbie Dingell

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