The Brian Sullivan Blog
« Michigan: Cut Corporate Taxes Now
Madoff & Dreier: The Uppercut & Bodyblow to Wall Street »

  • December 12, 2008 10:19 AM EST by Brian Sullivan

    Presser Reaction: UAW Keeps Talking About Wages, Not Talking About Legacy Costs

    Listening to UAW President Ron Gettelfinger's press conference regarding auto rescue bill failure... 

    It's what he is not saying that speaks volumes.   In continuing to hammer the concept that the wages of UAW workers are similar to those of the U.S.-based foreign manufacturers, he is saying nothing about the real problem: the legacy costs of pensions, benefits and health care.

    As the New York Times reported this week, the actual hourly pay - what the workers make in a paycheck - is not that much different between union and non-union.   But because the meaning of "wage" and "compensation" can often be used interchangeably, Gettelfinger is using the "wage" argument to prove a point on hourly pay but not mentioning the difference in total "compensation."  

    The biggest problem - an additional $13 per hour per worker in legacy costs - was not mentioned at all by Gettelfinger.    He said nothing about working to reduce the crippling benefits.    It is clear those benefits are sacrosant to the UAW.

    While we wait for more news out of the White House - they are hinting about using TARP funds to replace the $4 billion not passed in the Senate - the UAW must eventually address the issue of pension and benefit costs instead of just talking about hourly "wages."   Trying to dance around the difference in language between "wage" and "compensation" serves no one well, especially his union membership.

RSS Subscribe to Comments

Bert

Gettlefinger's press conference this morning just demonstrates why even many of us in the car business keep saying "NO BAILOUT!" There simply is no putting all sides together to save the car companies unless they are compeled to do so in bankruptcy.

December 12, 2008 at 11:10 am

dustin

just saw you guest who supplies the auto makers. He needs to understand there is risk in business. It sounds like he made a bad decision on a company to take over and now wants government help. He would survive. Bankruptcy is an option and should happen. This would clean all the fluff. How many cars did GM sell and how many did TOYOTA sell? What were the profits of each? That is the question to ask. When the answer is given the next question is why did TOYOTA have a profit and GM a huge loss? From what I understand they sold roughly the same amount of vehicles?

December 12, 2008 at 11:09 am

NIck

I'll be damned if I'll make payments on a "big 3" vehicle while ALSO giving them my TAX money.

December 12, 2008 at 10:59 am

Stanhope

Gettlefinger continues to throw red herrings on the table, while not talking about the issue of actual concessions at this time. If they had agreed to just about anything in reduced benefits we would have a deal. They won't, preferring to make this a showdown. I guess they feel very confident with the Democrat's gains this year. We'll see.

December 12, 2008 at 10:42 am

dustin

Brian- You do a great job. This is simply a union bailout. This country is in bad shape when a "thug" Ron Gettelfinger can go on tv and call out Senators representing the voters of this country. When the press asks soft questions instead of holding his feet to the fire. We are headed in a very bad direction. This will keep me from ever buying a car from GM, FORD or CHRYSLER. I cannot believe what I just witnessed on television.

December 12, 2008 at 10:37 am

about this blog

  • Brian Sullivan joined FOX Business Network (FBN) in April 2008 as an anchor. He co-anchors the 10am-12pm ET hours of the FOX Business block. Prior to joining FBN, Sullivan served as an anchor for Bloomberg Television where he hosted the programs Morning Call and In Focus.

browse posts

most popular posts