The Brian Sullivan Blog
  • 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.

RandyG

There are two big issues in Detroit, capacity and costs. Ron Gettelfinger is the penultimate "union boss". He's either forgotten, or never studied the history of unions. Unions came about as a result of management that was abusing the workers. Now it's the opposite, unions abusing the companies. Detroit either has to get it's product quality up, costs down, and capacity in line with "todays" volume of car sales, OR, no matter how much money we pour into Detroit, they'll fail. All of them standing around thinking "the sun comes out tomorrow" is just wasting time. Bankruptcy is the only option for forcing, on all parties, immediate, substantial change. The taxpayer, if anything should be handling debtor-in-possession financing, after they've declared bankruptcy, and taking all of their "hard assets" as collateral. They're waiting for car sales to go back above the 10 million they'll probably see this year, and that's not going to happen anytime soon. It's time they recognized that if they can't find a way to at least survive, without cash infusions, in the current business climate, then they can't survive. Reality just sucks sometime, but you have to figure out how to make the necessary changes to survive. By giving them money, without them being in bankruptcy, you're not only NOT helping them, you're just making the problem worse.

December 12, 2008 at 4:20 pm

floyd

THE UAW IN IT'S INFINITE WISDOM, REFUSES TO GIVE CONCESSIONS, WTF, NO PRODUCTION STANDARDS, NO ROBOTS, CANNOT FIRE THE BUMS WHETHER THEY WORK OR NOT. THE UNION IS AND HAS BEEN THE PROBLEM. WOULD THE UNION FLY COMMERCIAL? WOULD THE UNION SELL IT'S ENORMOUS PROPERTY AT BLACK LAKE? GIVE UP THE PERKS OF WORKING FOR THE INTERNATIONAL? LIMOS,ETC.? WHY ARE THE UNION OFFICIALS NOT ON THE LINE? WHAT ARE THE UNION OFFICIALS' SALARY? HOW MUCH DOES A COMPANY HAVE TO SPEND TO PROVIDE THE DOCUMENTATION WEEKLY/MONTHLY/QUARTERLY, ETC. TO THE UNION? GET A GRIP. SHIT-CAN THE UNION ALL UNIONS TEACHERS UNION ALMOST AS BAD IF NOT WORSE THAN UAW. EXCLUSIVE, ELITIST SNOBS WHO ARE NOT INTERESTED IN A COMPANY BEING PROFITABLE, THE INVESTMENT REQUIRED TO CONDUCT, EXPAND, DO RESEARCH OR PROMOTE A BUSINESS, THE UNION'S MYOPIC VIEW IS ONLY WHAT THEY CAN GET FOR THEMSELVES.. PHUC EM

December 12, 2008 at 4:36 pm

Davo

We have only one weapon: Boycott! Every poll I see says the vast majority of Americans do not support this buy-off of the UAW. Talk to your friends, your relatives, set up a website, send emails, write letters to editors of newspapers, imagine and employ every medium you can conceive. Push the word: Do not buy Ford, GM or Chrysler; you are being screwed. And, in not buying from the Big 3, not only do we break the back of this larceny, we get a dependable, re-saleable car instead of a piece of UAW Sh-T!! BOYCOTT!!!

December 12, 2008 at 4:52 pm

floyd

THE UAW COULD RAISE DUES AND FUND THE EXCESS COSTS THEMSELVES. SAVE THE COMPANIES AND THE UNION WOULD APPEAR TO BE A GOOD ORGANIZATION. WHAT IS WRONG WITH THAT?

December 12, 2008 at 5:41 pm

Jeff

Judging by the responses to my post no one is familiar with the fact that we have contract negotiations. I don't walk into my plant managers office with a gun and a couple of "thugs" and tell'em how its gonna be. Guys this isn't the 1930's and organized crime is not part of the equation any longer. During these negotiations proposals are exchanged and we try to meet on common ground. When our contracts are negotiated I act as an agent for my co-workers. My job is to secure wage and benefit increases in line with inflation, which I have done despite the fact that our company has been in bankruptcy since 2001. Jeff C. thanks for your service, I am a third generation war veteran, I just didn't enjoy school, my father who works with me has three years of college thanks to the G.I. bill. I bought GM stock in July and I'm not as young as you think.

December 12, 2008 at 6:10 pm

mabbott

Heard one Democrat today on FoxNews in a discussion about the taxpayer's being ignorant in their refusal to support the bailout. He stated the cause of the financial crisis was that "consumers over leveraged". Therefore it was his assumption that the consumer should gladly bail out the auto industry and support the bailout. Also heard Gettlefinger say he represented all American workers and not just the auto industry. Let me tell you something, Mr. GiveyoutheFinger, most average workers don't need you or your union. If the automobile industry needs you, it is a bad sign that so many of the auto workers can't communicate with their employers but have to pay your wages to speak up for them. Look at Illinois. Corruption everywhere. The taxpayer is providing the democrats the funding to "pay back" the UAW for votes. The Republicans tried, but corruption is so bad at all levels of government. The bailouts are simply taxation without representation. I will never support any GM, Ford, or Chrysler product and will encourage everyone to make this same pledge. It is disgusting to get a paycheck and realize that my money is going to support the Union. My employer can't provide UAW comparable benefits but looks like the federal government has stepped and become the middle man to take my tax money and funnel it to the auto industry. Bah Humbug to Bush and Paulson.

December 12, 2008 at 7:08 pm

bruce

I once saw a bumper sticker proclaiming, "WORK LESS, WORK UNION". I suggest Senator Corker have one sent to the UAW president(colored pink of course)so he can proudly slap it on the fender of the last car built in Detroit. This won't be long in coming, given the condition the Domestic Auto Industry is in. I have some news for the sanctimonius self-righteous Detroiters I saw on TV this morning-we (the car buying public) are on to you. You've foisted just about all the oversized, overweight schlock jobs you can. Enjoy this X-Mass, because by this time next year, you'll probably all be unemployed. Detroit will become Michigan's version of Illinois East St Louis. GOOD RIDDENCE!

December 12, 2008 at 7:13 pm

Stu

Every Senator and Congressman remember one thing you are an elected individual to support the interests of who elected you, NOT the UAW. Ron G. of the UAW is a crook that continues to line the pockets of all the Union members, as well as his own, and he will continue to get elected by the members. Guess what Politicians we will no longer support you if you climb in bed with the UAW.

December 12, 2008 at 7:23 pm

Rick

Gettelfinger is exactly what is WRONG with America today. We must as citizens unite against this socialist movement which seeks to undermine our way of life.

December 12, 2008 at 7:58 pm

Roger

I can't tell you how disgusted I was after hearing Ron Gettlefinger's union tirade. The UAW has sucked the life out of the American auto industry and now are trying to do the same to us taxpayers. I say let em hang and go into bankruptcy. I'd rather take our medicine now, as far as repercussions, and we'll all just adjust to whatever, rather than have them treat us (the American people) the same way they have treated the automotive companies over the years. Besides, I think all their talk is sounding brass and their predictions of doom and gloom are completely overstated, in order to make their argument. Another thing, I probably wouldn't buy a car from a bankrupt car maker. I'd buy a Toyota or Honda instead and maybe all the good GM, Ford, or Chrysler, workers who lost their jobs in the bankruptcies, could find work at one of those plants, as everyone will simply be buying their vehicles instead. So again, just how many jobs are really going to be lost?

December 12, 2008 at 9:46 pm

B Scott

I can,t believe the mentality of those constantly bashing The Big Three,they have been totally brainwashed, The Big Three makes great vehicles, I speak from 40plus years of experience.If these people succeed in destroying one of the few American industries left, I can assure you, in the not too distant future, these very same people will be cruising to their "tent cities" on skateboards, (Japanese made of course).

December 12, 2008 at 9:52 pm

Adrian

For Jeff... If you want socialism, it's a very easy and simple solution for you, buy a one way ticket to North Koreea. There you will be "equal" to an engineer, doctor, so on. Hell you maybe earning even 1/2 cent more per year then them!!! You think you are entitled ??? How about all of us who really worked our but through universities, when you and your buddies didn't care ???? What are we entitled to??? For you to put your hand in our pockets??? THAT is called STEALING!!!

December 12, 2008 at 10:16 pm

Scott

Currently own a Dodge financed by Ford Motor Credit. 9 months to go. Will buy Japanese if this crap goes through. And I do mean until the day I die.

December 13, 2008 at 6:03 am

Brian

He's a "Union Thug". Dress him up in a pretty suit, sit him at the table with the CEO's in front of the panel, give him a high-priced gig with the union; he's still a thug. He happens to be the highest-ranking thug, but a thug nonethelesss Sadly, if the UAW takes a hit b/c of all of this (crossing my fingers), he WON'T. I'm sure he's well-compensated. Unions are extortionists. We don't have 9-year olds in coal mines any more. Are there SOME situations in which a union can be good; I'm sure. However, if a particular industry has jobs that are so 'bad', they need union rep, people shouldn't TAKE the jobs. If nobody will do the jobs, they'll improve b/c companies need employees. It's called 'the free market'. I'm tired of all of this, but happy that the public is speaking out as it seems at least of few of those who represent us are pushing for union concessions. P.S. If Senator Dodd wants to "fire CEO's" b/c of their failures (a step I agree with), he going to fire HIMSELF for presiding over the Banking and Finance Committee during one our largest failures in history ?

December 13, 2008 at 7:07 am

Michael Everett

Gettlefinger is a professional joke. He and Waggoner are in bed with each other and have been for years. The UAW owns the Democratic Party so the can play these game with BO comming into the White House in January 09. Let GM go bankrupt and then lets see what kind of wages and benefits the UAW get from the bankrupcy court. 75% of a growing company which GM would be by going into Chapter 11 is better than having 100% of nothing. Unfortunately the UAW should never be confused by the facts.

December 13, 2008 at 8:01 am

Waynedawg

How do you rid the legacy costs? What kind of person would stop paying a retiree there pension?

December 13, 2008 at 9:51 am

Sick of it all

Boycott all UAW products if this bail out goes through

December 13, 2008 at 10:44 am

Sick of it all

The American Dream is not about "handouts". Some of us that continue to see our hard earned money go to entitlement programs and the 46 million that don't pay taxes are sick and tired of it. So, then comes along the constant bailout/handouts for PRIVATE company's that are for whatever reason no longer solvent. I have to say that your ordinary TAX PAYOR had nothing to do with the failing economy. We are all struggling and hoping that we don't loose our own jobs. Just because you work at a BIG UNION company does not mean that we have to bail you out. Is the country then going to be required to bail out every business in the US that is going under. While we are at it, lets let all these people not paying their mortgages have their homes for free. You know I don't remember the bailouts for KMART or Winn Dixie or all the other companies that have had financial difficulty in the past.That's because they restructured under bankruptcy. We all know why the UAW does not want a bankruptcy...they loose their lucrative benefits/salary, that they have worked so hard for over the years, just like the "jobs Bank"....I would think a job would be more importaint regardless of making a little less money and I am suprised that you don't care enough about your company to want it to succeed the best way it can. Stop being so selfish! If their is a bailout without the Much needed UAW concessions, Don't think that the 60% of Americans who are against the bailout will want to ever buy one of your cars.

December 13, 2008 at 11:07 am

Pete

Unions will always have a place where workers are subjected to unacceptable working conditions and wages well below prevailing in this country. i was talking with a lady at an event last night that worked in a Detroit auto assembly line a few years ago. Among other stories, she had seen a worker clime into a new car and sleep for the entire shift. Unions are political, and will never have interest in the success of a company or participate in efficiency, safety, or other company programs that are not immediately beneficial in the eyes of their members.

December 13, 2008 at 8:12 pm

Bill m

Public Enemy #1: UAW Its funny how the cards have changed against UAW and how much people hate them. Why not take the 10-15% pay cut now and have a job.

December 13, 2008 at 11:59 pm

Sherman Daniels

I've been rethinking the bailout/loan from my (realistic?) elementary perspective. It seems logical to choke the UAW while choking the American Taxpayer too. The question is "how much?". The auto-workers now earn (earn? or have a right to receive?)approximately 9-10 times the wages that the Tax Payer earns (or receives). If the UAW is choked and forced to receive a wage equal to twice the amount that the taxpayer receives, then this should be semi-acceptable to the tax payer. (NOT ACCEPTABLE to the UAW, but nothing is, except MORE MONEY). This arrangement might allow the Big three to survive, ALONG WITH THE AMERICAN TAXPAYER. It may look like it's more important for the Big 3/UAW to survive than it is for the taxpayer survive, but this must be an octical palusion or mirage produced whenever UAW President, The Reverend Ron Gettlefinger describes the problem. Ron preaches a form of equality involving a level playing field with Big3 management, etc. The trouble is he practices a "pay or strike" form of semi-extortion against the Big3. This method makes him seem more equal to The Reverend Al Capone than anyone else. The American Taxpayer has a voice in what happens, and it's time for the American Taxpayer to say what he/she wants in this Socialistic / Capitalistic argument and to say it very loud and very clear. If the Tax payer does not speak up, then the pill may be very, very hard to swallow. honestly, S. Daniels WV

December 14, 2008 at 3:54 pm

DAWAYNE

BOYCOTT IT IS OUR ONLY WEAPON LEFT. THE GOVERNMENT WILL NOT DO ANYTHING TO REALLY REFORM THE BIG THREE AND THEY WILL COST US BILLIONS IF NOT TRILLIONS. SO !!!!!!BOYCOTT THEM!!!!!!!!!!!!! ONLY THE ONES THAT EXCEPT GOVERNEMNT MONEY. GM AND CHRYSLER. FORD IS NOT ASKING FOR A LOAN, WHY THEY SAW THIS COMING AND SOLD MANY OF THERE HOLDING AND CUST BACK TO TRY TO WEATHER THIS STORM!!!!!!!!!!!!!!!BOYCOTT!!!!!!!!!!!!!!!!!!!!!!!

December 15, 2008 at 9:50 am

Engineer

Well! A lot of folks love the UAW! Simple fact is that the UAW has demanded and received the promise of benefits that cannot be paid by GM, Chrysler and Ford even though Ford only lost about $120M last quarter and stands to benefit if Chrysler goes down. Buying foreign is not going to help. The UAW will not yield so GM and Chrysler will end up bankrupt. Then they will get very little which is why they are fighting that path. I want them to survive! I get the idea some folks talking about the problem have never even bought a Ford or GM or Chrysler product. Their perception is that the cars are poor. Not true. But, the prices have gotten out of control driven by high cost of benefits. Question: Who pays for health care and retirement for foreign companies or do they buy their own? If the latter is true, one way to level the playing field would be to force foreign to pay which would result in them moving production off shore. So in the end game, regretfully, the excessive benefits of UAW have to go one way or another. (Or, stop asking for tax payer money.)

December 15, 2008 at 11:13 am

Ann Jones

I am surprised that no one has questioned why there is no talk on Capital Hill about asking the banks who took bailout money to make commitments to the automakers that they will ease credit restrictions and start lending to consumers so they can buy Big 3 cars. It doesn't matter how much money the government throws at the Big 3, if the banks are not willing to give car loans, no one can buy anyway.

December 15, 2008 at 12:10 pm

john

All the reporting on this subject is useless. Politics of fear and corruption win. Bailout will coincide on Tuesday with rate cut in efforts to deflect huge losses from goldman Sachs. This plan is to help wall street and we all know where pandering to wall street takes us. Same old crap.

December 15, 2008 at 3:38 pm

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.

most popular posts