Article from WeChat public account: travel a passenger (ID: carcaijing) , author: Peng Zaiheng, from FIG title: Oriental IC
If the market conflict is like a tide, it will be a huge wave after another.
On October 25, the 40-day GM strike finally ended. In this strike, GM lost nearly $2 billion and workers lost $1 billion. However, the UAW seemed to be inexhaustible. In the blink of an eye, Ford sat on the negotiating table with the UAW. It is understood that if the relevant agreement negotiated with Ford is approved, Fiat Chrysler Group (Fiat Chrysler) will be the next target of UAW .
For these automakers, if the negotiating agreement is rejected, then the GM strike under the leadership of the UAW may be staged again on them. GM’s huge losses in this strike have been vividly seen. It is clear that other manufacturers are not willing to take this risk. According to relevant sources, Ford has reached a “no strike” agreement with UAW.
GM, Ford and Chrysler are world-renowned big car manufacturers, known as the “Detroit Big Three”, representing the nation’s automotive industry. Forced the Big Three to play the “American automobile industry” in the palm of the hand. Where is UAW sacred?
“Savior” UAW
UAW, the full name of the American Automobile Workers’ Federation, is an American trade union organization representing the US (including Puerto Rico) and Canadian workers. Founded in the 1930s and headquartered in Detroit, Michigan, it is part of the Industrial Organization Conference (CIO).
From the very beginning, UAW was recognized as “the most combative union in the world”. It is one of the largest and most diverse trade unions in North America. Its members are almost all over the economic field. Workplaces range from multinational corporations, small manufacturers, state and local governments to universities, hospitals, and private non-profit organizations. The 360-degree coverage area is enough to see its strength.
The development of UAW can be divided into several different stages.
The nature of UAW during the Second World War has changed dramatically with the development of the war: on the one hand, in order to win the war, it has passed the guarantee of “no strike”; on the other hand, after the organization of the automobile industry, it has realized other industries. The union and social status are greatly recognized.
After the war, UAW continued to increase wages and benefits through collective bargaining in exchange for a package of plans to further expand its power. The 1950s was the peak of UAW, and the membership grew rapidly. Its membership reached 1.5 million. The workers who joined the club put a part of their salary (about 5 %) Submitted as a membership fee.
After the 1970s, due to globalization and the economic crisis, the scale of UAW dropped sharply and its status was threatened.
After entering the 21st century, UAW is known for helping the auto industry to recover, and has been criticized for its generous package in the past. To a certain extent, it has led to the crisis of the auto industry from 2008 to 2010, UAW. The existence of it is increasingly being questioned by people.
Despite the doubts, UAW’s past contributions cannot be erased. The existence of the early UAW is of epoch-making significance. It plays a good image of “savior” and “protective umbrella”. The basic role is to protect the rights of workers and to be known for the high wages and pensions of auto workers. UAW launched the famous “Flint sit-in strike” at GM’s two factories in Flint, and then forced General Motors through the Battle of the Bulls and the Battle of the Flyover. Bowing with Ford and signing a series of welfare systems for workers is an important link between workers and car companies.
After that, UAW has almost the upper hand in many games with American auto giants and has been in a leading position in the struggle for economic and social justice. Since the 1950s, UAW has been actively involved in all civil rights legislation, including the Civil Rights Act of 1964, the Voting Rights Act of 1965 and the Fair Housing Act, and the Civil Rights Recovery Act of 1988.
In addition to this, UAW is in a number of laws (eg Medical Insurance and Medicaid, Occupational Safety and Health Act, Employees) The retirement law and the Family and Sick Leave Act also played a crucial role in the development process.
Under the leadership of UAW, Detroit was once the “city of cars” in the United States, and its status is like that of today’s Silicon Valley. To date, UAW still claims to have more than 391,000 active members and more than 580,000 retired members in more than 600 local unions, and has stated 1,150 contracts with approximately 1,600 employers.
“Time Bomb” UAW
The past cannot be chased, and the glory of UAW has passed away. Although it is undeniable that it has contributed, it cannot ignore the fact that it has changed its taste.
Today, UAW has gradually evolved into a powerful force that undermines the market economy. It has become a powerful organization that provides workers with iron rice bowls, becoming a Extreme means of gaining interest. Between the car and the workers, the UAW is like a time bomb that can be detonated at any time, and there is a huge threat. The UAW organizes strikes again and again, forcing companies to make concessions, allowing workers to get higher benefits and wages, thus making car companies face difficult situations. An expert in the study of trade unions in the United States once pointed out that “the main function of trade unions is to draw wages out of a freely competitive market and make them unconstrained by competitive markets.”
In 2007, GM employees led by UAW went on strike, and several production lines were forced to close / network
The 2007 UAW-led auto worker strike and the financial crisis that began to emerge on August 9 of the same year were the last straw to crush the American auto giant. It was also the strike of auto workers this year that completely exposed the greedy nature that UAW can only share with others.
On April 30, 2009, Chrysler Motors announced its application for bankruptcy protection, which was eventually merged into Fiat-Chrysler by the Italian Fiat Auto Group. On June 1, 2009, General Motors filed for bankruptcy protection and organized restructuring. The US and Canadian governments took over and announced that they would lay off another 10,000 people. In the previous year, GM’s liabilities to all employees amounted to $61.4 billion, accounting for 32.2% of its total liabilities. Among them, the in-service staff liabilities are 7.3 billion US dollars, the pension liabilities are 25.2 billion US dollars, and the retirement benefit liabilities are 8.9 billion US dollars.
Another Ford in the Big Three, although not applying for bankruptcy protection, was also badly hurt. In February 2008, Ford laid off 9,000 people through early retirement, plus layoffs in 2006 and 2007. The number of Ford presidents reached 33,600. Of course, Ford eventually paid $15.3 billion. In addition, Ford also sold Volvo, Jaguar, Land Rover and other automotive business assets and debt, leaving only Ford and Lincoln.
In November 2008, Detroit automakers traveled to Washington to request CongressGiving assistance; five years later, Detroit declared bankruptcy, and the high cost allowed the auto factory to withdraw in batches. At that time, the entire city had only more than $18 billion in long-term debt and billions of dollars in short-term debt, and the population was reduced from 2 million in the peak period to 700,000.
This is a past event that made American automakers reluctant to look back, and UAW has become a target of public criticism.
Reviewing the past, UAW has experienced the best times of the American automotive industry, and also personally ruined the glory of the American automotive market. Iron Man Musk said frankly, “They led to the bankruptcy of GM and Kleist, and UAW destroyed the once brilliant US auto manufacturing industry.”
“Reviewer” UAW
History is always strikingly similar, and the essence of human beings is the repeater. Johnston once said, “The biggest guide to success is to learn from your own mistakes,” but UAW doesn’t seem to have this plan.
UAW continues to organize workers’ protests through extreme violence, such as strikes and parades, in order to achieve more benefits.
According to the US Automotive Research Center (CAR), the strike that just ended on October 25th caused GM to issue about 4.5 per week. The loss of billions of dollars, while the cost of strikes for UAW is as high as $12 million per week. In general, the compensation paid to workers every week is getting lower and lower, and has caused losses of 857 million US dollars so far. Support for government social insurance schemes (unemployment insurance, medical insurance, Medicaid and workers compensation insurance) tax reduction of $108 million to state and federal The personal income tax paid by the state treasury decreased by $114 million. General Motors, GM’s suppliers, federal, state and local governments, and many other companies are continuing to lose money due to strikes.