CNN Money jumps on the "Blame the Unions" bandwagon

[MrScorpio]

In this article on CNN Money about "What's really killing Detroit", they did a pretty good job in depicting the self inflicted wounds of the Big Three automakers, such as lousy quality, lack of small cars, lack of hybrids, too many SUVs and fat executive paychecks.

But when they got around to blaming the workers, that's when they jumped the gun.

What's really killing Detroit

Union workers

After brief strikes in 2007, the UAW made serious cost-saving concessions that will automakers in the future.
Gripe: Union workers get paid too much
Fact: Pay isn't the problem, it's benefits. But the UAW has made significant concessions.

GM, Ford and Chrysler all hire union workers to work in their U.S. factories. But their Asian competitors have based most of their U.S. factories in Southern "right-to-work" states where companies don't have to hire union staff. Combine that with an overall younger workforce with fewer retirees, and Asian automakers have big cost advantages in the U.S.

But even the Detroit automakers themselves don't claim to pay more than Asian automakers working in the U.S. GM estimates its hourly pay for an assembly line worker is about the same as that of someone working for an Asian manufacturer here.

The differences come from retirement and healthcare benefits. Detroit automakers pay a lot more per worker-hour because they have more retirees to whom they extend full health-care benefits.

What's to come: The UAW recently made significant concessions that should save GM, Ford and Chrysler a lot of money in the long run.

The union allowed Detroit automakers to pay newly hired workers less per hour than previously hired employees. It also agreed to a take over the cost of retiree health care provided the automakers paid lump sums into an investment fund to cover the costs.

http://money.cnn.com/galleries/2008/autos/0811/gallery.autos_crisis_causes/5.html

If anything this is a smear against workers who fought for those hard earned concessions from the automakers, as in those retirement and health care packages. Those wages helped US autoworkers advance into the middle class.

There was no mention of the fact the US is the only Western industrialized nation without a national health care system. The way that this fact is used in the US is that the corporations use it as a wedge issue against their own workers. Here, it's used again, with the compliance of the media.

Obviously, the cost of paying retiree's pensions should be part of the cost of business.

Frankly, I call bullshit on on CNN.

The Big Three's problems are self-inflicted and for the last twenty-five years, their abandonment of the rust-belt states have spelled doom for our economies.

The workers never controlled the means of production and to blame them for earning decent wages and packages so that they can raise their children in good homes in the richest, most powerful nation on the planet is nothing more than intellectual cowardice.

[rurallib]

1. Gee, a news organization continues a 70 year streak

of news organizations slanting against unions.

[amborin]

2. total asses, along with Shelby of Alabama

just part and sympomatic of the anti-union sentiment in the US that is largely started and nurtured by corporations, who of course, hate unions

[OPERATIONMINDCRIME]

3. They're Right Though. The UAW Absolutely Holds Some Blame.

If they held the management and business plan as being primarily responsible and did a good job of addressing that, then what is the problem with also acknowledging the UAW's role? The UAW ABSOLUTELY shares some of the blame in this and it is in my opinion the mark of a fool to claim otherwise. What is important is that they are not blamed exclusively or with more fervor than the management and business plan. But the UAW is definitely worthy of criticism and blame as well.

[godai]

8. CNN: Laid off UAW workers continue to get 96% of their salary.

This has been going on for years and really irks me. You can't run a successful company with those kinds of rules. GM has been described as a health care and retirement company that happens to make cars. That party is about to end.

[question everything]

16. Same here. How can they demand money from us

while 1.2 million already lost their jobs this year with barely unemployment compensation for six months, and no access to health care?

[Metta]

4. Andrea Mitchell, too. She looked upset as Debbie Stabenow debunked it.

Too freaking bad.

[crazylikafox]

18. They shouldn't allow Andrea to do economic reporting unless they have a big disclaimer running

on the bottom of the screen:

Andrea Mitchell is Mrs. Alan Greenspan, the man whose policies caused the current economic crises

[Metta]

20. Got that right.

:toast:

[question everything]

5. Last year during the stike, I posted a comment on DU

about union demands for a job security. Both of us, professionals with several advanced degrees, have gone through many periods of unemployment and under employment. Thus I, and I think most Americans, do not have much sympathy for any group demanding job security when so many of us have lost our jobs in the past, including the 1.2 million who lost their jobs this year.

Further, many of us have longed stopped purchasing cars from Detroit - unless we are enamored with the big SUVs and the Hammers - finding perfectly good cars made in... Alabama or Kentucky.

I once asked on DU about working conditions in Toyota or Honda and the few that replied said that the workers there are well compensated.

Yesterday I asked here about health benefits for retirees and was told that it is given for the ones younger than 65 who cannot qualify for Medicare. Here is a bit of news... I know of several people in their early 60s and late 50s who are hanging up to their jobs because they and their families need the health insurance.

Add to this what I heard, also on CNN, about the "job banks" where auto workers get paid while not working and it is really hard to generate much sympathy for them.

The only reason why I half heartedly support some help is because at this time, in this economy, the demise of this industry and satellites, and with 3 million people losing their jobs could send all of us to a Depression. Of course, earlier this year I supported help for homeowners for a similar reason..

Of course, some say that we'd be better off sending each employee a check for $10,000 instead of trying to bail them out.

[Better Believe It]

9. You're Blaming Auto Workers For Your Woes?

" Both of us, professionals with several advanced degrees, have gone through many periods of unemployment and under employment. Thus I, and I think most Americans, do not have much sympathy for any group demanding job security when so many of us have lost our jobs in the past"

The difference is:

1. Sounds like you did a terrible job of selecting employers. Why didn't you have any labor protections where you both worked? You need to be more careful in the future.

2. I'm sure auto workers haven't made nearly as much money as you with all of your degrees. Is that right?

3. If you both didn't have employment contracts where you worked, whose fault is that? I bet if you worked for a major employer your CEO and other top management had an employment contracts dictating their salary, benefits, pension, etc.,

4. The auto workers have an employment contract with the automakers. Why did you both ever agree to work for anyone who would not negotiate with you regarding your terms of employment? That's not very smart. Didn't you even demand or bargain for an employment contract at your previous places of work?

[question everything]

15. You really should get out of your narrow vision of the American workforce

Unless you are an executive there is no such thing as an employment contract. When the economy is down the company let go of people.

What do UAW make? $40 an hour? No we have never made more than them.

And most workplace are not union organized. At least, not white collar workers. We are not interchangeable - a welder is a welder is a welder. Or a machinist. We are selected, one at a time, to think. To start a specific project, or to solve a problem, to study the state of the art, to interact with other professionals, as well as regulatory agencies and to come with something new.

Why, do you think, only 8% (or is it 18%?) of the workforce is unionized? Because we moved from a manufacturing based economy where many did the same work and could be unionized to a service one where each job is unique. At least, the professional ones.

Yes, we did have production facilities, but they were not unionized. They were good professionals who were paid well and took pride of their work.

Frankly, I would be embarrassed to sit at a "job bank" pulling money and benefits while doing nothing, when the whole world around me collapses.

I guess this is my lower middle class upbringing. I get paid for what I am worth for a good work and not go begging and demanding while others are suffering.

[Better Believe It]

19. You Really Don't Know Much About Your "trade" Or Labor Unions

"Unless you are an executive there is no such thing as an employment contract."

That's not true. Over 15 million people have employment contracts who are not business executives. Most, but not all, are members of labor organizations

"When the economy is down the company let go of people."

Employers lay-off people who don't have employment contracts even when business is good. If they can get more work in less time out of fewer people who lack employment contracts why shouldn't they do that? They are under no legal obligation to be fair or nice. Frankly, most don't give a damn about their employees. They don't have to care about you. You're an "at-will" employee without any employment contract stipulating your rights and employment conditions. So why should they give a rats ass?

"What do UAW make? $40 an hour? No we have never made more than them."

Since you don't have a clue on what unionized auto workers make let me tell you. A recently hired auto worker makes $13.00 a hour with no pension plan and other benefits obtained by older workers. An old auto worker with 20 and more years of loyal service makes about $25.00 an hour which is $52,000 a year. If you don't make that much with all of your degrees you need an employment contract.

"And most workplace are not union organized. At least, not white collar workers. We are not interchangeable - a welder is a welder is a welder. Or a machinist. We are selected, one at a time, to think. To start a specific project, or to solve a problem, to study the state of the art, to interact with other professionals, as well as regulatory agencies and to come with something new."

It's true that a declining percentage of employees don't have employment contracts because they are not organized. However, many professional employees do in fact belong to labor organizations such as the Office & Professional Employees Association, the Airline Pilots Association, the National Education Association, Federation of Professional Athletes, the International Federation of Professional and Technical Engineers, the Professional Aviation Safety Specialists, the Writers Guild of America, the Screen Actors Guild and many other organizations.

"Why, do you think, only 8% (or is it 18%?) of the workforce is unionized? Because we moved from a manufacturing based economy where many did the same work and could be unionized to a service one where each job is unique. At least, the professional ones."

That's only part of the explanation. The major reasons why 92% of employees are not unionized is massive and effective employer opposition and federal anti-labor laws that favor the employers and condone employer resistance including the firing and other discriminatory acts against employees who wish to be represented by a labor organization.

"Frankly, I would be embarrassed to sit at a "job bank" pulling money and benefits while doing nothing, when the whole world around me collapses."

Have you ever collected unemployment compensation "for not working" and do you think people should receive social security and pensions "while doing nothing"? The amount of compensation some auto workers received from their employers while being laid-off is peanuts compared to the pay, golden parachutes and other perks received by CEO's. And they were not paid for doing good work and they certainly were not worth those vast sums of money.

"I get paid for what I am worth for a good work ...."

Really? And tell me how much pay and benefits do you think you are worth for doing a good job. .... and do you think you should have a real voice at work and power in such matters?

[question everything]

21. Again, you really don't know much about millions of workers

Every time when we lost our jobs was because the company business dried up and whole departments were let go. Even before the ax came, we would be sitting trying to be busy but without orders to fill and to manufacture.

In other cases, we worked in a small family owned companies and when a major buyer canceled and order, or a family member got seriously sick, it affected the whole operations.

Of course, you will try to tell me that I should have found a job with a corporation of 500 employees but, again, you live in your own world where a welder is a welder is a welder. I had to find an employer who would be interested in my specific skills and expertise and employers like that do not have unions.

Especially in a small family owned company with less than 20 employees, each has a unique role where union would be useless. And, small business is what has been making the innovations of science and technology in the past 30 years. Small business is where the jobs have been in the past 30 years - at least since Reagan.

Small business want to succeed with their innovation and ideas, and they hire people who would progress their ideas. They are not going to fire them to save money or to hire cheaper labor since they know they would not find them.

But hey, when your only frame of reference is welder and machinist and hotel worker and restaurant worker - you are going to be very disappointed in your life.

And, if Congress will offer a bailout to Detroit, you can be sure that union will have to pay a major price. Because members of Congress will have hard time explaining to their out of work constituents why some employees' jobs deserved to be saved.

[enlightenment]

6. Big surprise. CNN Money should be renamed

"CNN spends an hour giving advice to the Investor Class and telling the rest of America that they need to save, not spend, their measly little paychecks"

or, more simply

"CNN Money - don't bother watching unless you have disposable income"



That program can raise my blood pressure faster than Fox noise.

[madrchsod]

7. ya that 15 dollars an hour for new hires is killing the industry

fuck cnn and anyone else that thinks what the union has given up in the last few years is`t enough. every retire from those plants should keep their pensions and medical...assembly work at those plants busted up a lot of people.

people won`t be happy till every union in this country is gone and we will work for the south east asian countries and corporations..

[gravity]

10. The UAW deserves some blame

The wages and benefits demanded are way above what the market support, and the big 3 can't pass the costs onto consumers when there is competition from overseas.

[Ezlivin]

11. How could GM be successful in the sixties with the employee benefits?

It seems as if GM was successful despite paying high salaries and generous benefits in the sixties.

Or did UAW not secure benefits until later?

[gravity]

13. GM passed the costs onto consumers

Now that there is competition from all over the world, they don't have that luxury anymore.

[Terran]

14. They weren't paying medical to loads of retirees

in the 1960's. I would assume that's why they managed to make this work back then but not so much now.

[FrenchieCat]

12. I noticed that.

Blame the Unions for Management's decisions. Great! :(

[LiberalFighter]

17. Identify the writer of the story. They need to be given the credit so they can be bashed too.

Peter Valdes-Dapena is the writer.