UAW Pressuring Detroit 3 For More Benefits
May 18, 2010 by Tyler Lipa
The United Auto Workers has finally decided it is time again to put pressure on the Detroit 3. With Ford and now GM seeing quarterly profits, UAW president Bob King is seeking to once again reclaim his workers’ once rich benefits.
During the auto crisis, workers gave up benefits ranging from $7,000 to $30,000 a year. Ford being the only automaker not to take government loans and the first to see profits, has already begun to reinstitute benefits as well as profit-sharing checks of about $450 due to their $2.7 Billion profit last quarter.
Many sources say the UAW’s King is flexing his muscle to gain support within the union. Still, these demands come at a delicate time for automakers. Automakers are once again raising the volume of their criticism of the UAW as they call the union a hindrance to the rejuvenation of the American auto market.
The UAW has also reopened negotiations with GM and Chrysler over a trust fund charged with paying retiree health benefits. Currently, the UAW main bargaining power for the trust fund is its 17.5% ownership share of GM and a majority ownership interest of 68% in Chrysler. The UAW is also pressuring Ford to increase benefits, but they cannot apply as much pressure as the UAW is not a primary shareholder because Ford is the only remaining publicly held auto manufacturer.
Source: The New York Times
