Detroit's Tough Times Call For Tough Decisions

Anthony Fontanelle
March 17, 2008

Workers in Motor City weigh buyouts knowing that that their future pay will likely be much lesser. Tough times like this need tough decisions. And Detroit autoworkers have to make tough decisions as soon as possible.

UAW President Ron Gettelfinger was earlier quoted as saying the weak economy could make buyouts at General Motors Corp. a tough sell. Moreover, union officials who represent Ford Motor Co. workers want to know whether enough of Ford's 54,000 UAW members will accept the buyouts before Tuesday's deadline.

Workers at the Dearborn-based automaker are getting the full-court press. The scenario covers some job fairs with workers hooking up prospective employers.

"It's going pretty slow," said Jerry Sullivan, head of UAW Local 600 in Dearborn. "If they didn't take the last buyout, a lot of people's circumstances haven't changed that much for them to walk away now. A lot of them understand these kind of jobs with these wages, it's not going to be easy for them to find again. I'll let that speak for itself."

The head of the United Auto Workers union unit at the Auburn Hills automaker said Wednesday the company may have fallen short of its goal of getting 10,000 workers to sign up for the buyout or early retirement offers that expired in February.

"I don't think they'll get quite 10,000," General Holifield, a UAW vice president, told Reuters. Chrysler intends to slash 8,500 to 10,000 hourly jobs this year in an effort to hasten turnaround plans. Holifield said Cerberus Capital Management LP, Chrysler’s new owner, might have to negotiate a round of richer offers if it falls short of its target.

When the going gets tough, the tough gets going. And autoworkers know exactly the value of exceptional handling and cornering ability. They know whether the Eibach brand is good or not. But this time around, it is them who need exceptional handling and cornering ability.

To outsiders, it seems that buyouts and early retirement packages appear rewarding. Chrysler LLC offered in January buyouts of as much as $100,000 to most of its hourly workers. GM and Ford offered a maximum $140,000 payout dependent on age and seniority of workers. GM also offers a $35,000 lump sum for retiring workers who will also retain their full package of benefits, according to Detroit News.

For the workers, the buyouts and early retirement packages come with a steep price. "They understand they are at the end of the industrial spectrum," said Steve Babson, a labor historian.

"They've seen the decline of blue-collar jobs and what's happened earlier in mass production industries -- steel and rubber is gone. They are, essentially, the last group of high-wage blue-collar jobs," Babson noted. "That cannot make it easy for many to leave."

Source:  Amazines.com