Perspectives on the Auto Industry
Auto Matters
05.28.2009
UAW sets record straight on GM restructuring
Recent news stories, editorials and op-eds regarding the GM restructuring plan have contained a number of inaccurate assertions regarding the share of equity in the new company that will go to various stakeholders. (pdf 48 KB).
05.15.2009
UAW: GM shouldn't increase imports
Retaining the maximum number of jobs in this country should be the main goal of any plan for General Motors in order for it to receive taxpayer assistance, the UAW says in letters to Representatives and Senators (pdf 43 KB).
03.13.2009
Cut their pay and kick 'em when they?'e down
Tim Sramcik, editor of Automotive Body Repair News, takes on the mainstream media for its treatment of auto workers during the bridge loans debate. Sramcik further discredits mainstream media myths about UAW pay, our productivity and tells who was really behind some of the negative things said about union auto workers.
01.19.2009
AFT stands with UAW
The American Federation of Teachers' Executive Council has passed a resolution (pdf 44 KB) that calls upon Congress and the incoming Obama administration to reject measures that would attempt to solve the current economic crisis by driving American manufacturing workers into a 'race to the bottom.'
12.18.2008
Unite Here on Toyota's low-wage strategy
In today's Los Angeles Times, President Bruce Raynor of Unite Here exposes the low-wage, union-busting strategy behind last week's filibuster by a minority of senators against emergency aid for the U.S. auto industry.
Demands to "restructure" UAW contracts, Raynor writes, are linked to Toyota's five-year plan -- revealed last year by the Detroit Free Press -- to "slash $300 million out of its rising labor costs by 2011."
The company intends to "benchmark" prevailing manufacturing wages, which would be $12.64 an hour in Kentucky -- "less than half Toyota's $30-an-hour wage." Raynor observes that if southern Senators can "wipe out or weaken the UAW, [Toyota] will be free to implement their plan."
Not going to happen, says the leader of the union representing more than 465,000 workers in apparel, textile and hospitality industries. Instead, a long-term auto restructuring will lead to real solutions that recognize the contribution of active and retired auto workers.
"What the economy needs now is rising wages," says Raynor. "That means stronger unions. Indeed, I believe eventually it will mean the unionization of the entire U.S. auto industry."
12.16.2008
Narrow, 'America last' politics
That's what one New York Daily News columnist called the Senate GOP's maneuver to block bridge loans to the U.S. auto industry.
Errol Louis writes that even though a "truckload" of industry leaders and economists, bipartisan majorities in the House and Senate, as well as President Bush and President-elect Barack Obama all saw the drastic need for the bridge loans, a small clique of Senate Republicans could not see past their own anti-union agenda and the fact that most have foreign-based automakers producing vehicles in their states. Many of those plants are subsidized with taxpayer dollars.
"What we do know for sure is that the economy won't recover anytime soon if (politicians) keep subsidizing foreign companies at the expense of American industry," Louis writes.
12.15.2008
Auto loans: They're not just for keeping U.S. automakers healthy
As the Associated Press reports, bankruptcy of any of the domestic automakers would have not only a serious impact on the three U.S. automakers, but on their competition here at home.
"The conditions for the U.S. auto market are extremely tough right now," Toyota Motor Corp. spokesman Hideaki Homma told the AP. "Any additional negative is sure to make things worse."
It boils down to suppliers and consumer buying power. If one of the domestic automakers goes under, it's likely to take suppliers and jobs with it. Those suppliers also provide parts to foreign auto companies with manufacturing plants in the U.S. No U.S. parts means no cars to produce, not only for U.S. but foreign-owned companies. And huge job losses from the automakers and suppliers means less money that consumers have to buy any cars, domestic or foreign brand.
Japanese automakers are already feeling the consumer cash pinch here in their biggest market, the United States, just like domestic makers are. In November, American auto sales dropped 37 percent. But Toyota's dropped as well by 34 percent, Nissan by a whopping 42 percent and Honda's by 32 percent.
12.11.2008
Hijacked by the right
Auto loan debate used to attack workers and their unions
Serious times call for serious dialogue, says David Madland of the Center for American Progress. Sadly, in the debate over extending federal loans to the domestic automakers, the public has been given a near overdose of conservative spin that vilifies UAW members.
"It is crucial, given the gravity of the consequences, that the conversation moves beyond the conservatives' petty, misleading charges to a more honest discussion of the facts," writes Madland. "The truth is the UAW, is not primarily responsible for the current state of the auto industry. Rather, they have been a reasonable, productive partner in the industry's efforts to restructure."
Not ones to let the facts get in the way of a good story, many Republican lawmakers refuse even to acknowledge the painful sacrifices UAW members made in 2005, 2007 and again last week to help the companies compete and succeed. They don't seem to be listening when told labor accounts for only about 10 percent of a vehicle's cost.
American workers, whether in a union or not, deserve better from their elected representatives, whose generous wages, lifetime health care and pensions, let's remember, are also paid for with taxpayer money.
"By launching disingenuous attacks against the UAW, conservatives are doing a disservice to the public at a time when our country cannot afford to divert attention from the issues at hand," writes Madland. "This is not time to play politics." We agree.
12.08.2008
The Engine of Democracy
The recent images of the crisis in automobile manufacturing are of three CEOs being grilled by lawmakers, sometimes fairly, other times not.
But The Engine of Democracy Coalition, which represents millions of others -- workers, dealers, car owners, suppliers, and businesses that cater to autoworkers -- has started a Web site that shows a different side of the story: the broad and diverse faces of America's auto industry.
Spearheaded by dealers and suppliers in every state, TheEngineofDemocracy.com invites visitors to share their own viewpoints. The site is full of facts and figures showing how a strong auto industry helps ensure national security, a robust manufacturing base and the economic well-being of our nation and its citizens.
12.05.2008
Interactive map shows impact of auto industry
The automotive industry affects many hundreds of thousands people all over the United States -- not just those in the industrial heartland. An interactive map produced by the Detroit Free Press shows just how much everyone would be affected if the American automakers were allowed to slip into insolvency.
Even though Michigan is the leader in automotive employment, states like No. 50 Alaska would be impacted because it has nearly 2,500 workers in the industry, mostly in dealerships. California, which usually isn't associated with auto manufacturing, is No. 2, with 189,749 auto industry jobs and $3.3 billion in annual wages.
See how your state is affected –- and make sure your Senator or Representative knows that manufacturing jobs are important in every state in the union.
11.26.2008
Detroit's best model needs to be saved
What's the best model Detroit has ever produced? The Corvette? The Mustang? The Chrysler minivan?
None of the above, according to University of California-Berkeley labor economist Harley Shaiken.
The best model Detroit has ever produced is an economic engine: The American Middle Class.
But right now some commentators say bankruptcy is the best medicine for what ails Detroit, even though they also admit that eight in 10 consumers say they would not buy or lease a car from a manufacturer that files for bankruptcy.
Shaiken, in a letter to the New York Times today, said bankruptcy "may be the single worst policy idea to address the crisis to date" because of the overall effects on workers and communities, something most economists, in their business calculations, always seem to forget.
11.24.2008
White collar vs. blue collar
When comparing the bailout for financial institutions to the bridge loans for the domestic auto industry, Steelworker President Leo Gerard made this comment:
"The people who take a shower before they go to work get bailed out. The people who must take a shower after work get thrown out."
11.24.2008
Radio ads: Stand up for American auto companies
Wayne County (Mich.) Executive Robert Ficano last week released two radio spots that ask senators from southern states to stand up for American automakers. Ficano notes that thousands of parts and supplier jobs in the South will be lost if Congress doesn't act to provide GM, Chrysler and Ford with bridge loans.
Hear the ads: Alabama ad . Washington ad.
11.21.2008
Rep. Frank: Don't undo what unions have gained
Rep. Barney Frank, D-Mass., is not one to shy away from standing up for what's right, especially when it comes to America's workers ? union members in particular ? and the gains they've achieved.
Frank chairs the House Financial Services Committee, which heard testimony from UAW President Ron Gettelfinger and the Big Three CEOs on Nov. 19.
In a National Public Radio interview aired earlier that morning, Frank was asked if the proposed $25 billion bridge loan to provide automakers aid would be enough to save the auto industry when insurance company AIG had received over $100 billion.
"Well, I don't think anyone would think (AIG) was as important to the American economy as the auto industry," he said. "To some extent, let's not have a white-collar/blue-collar bias in our public policy. You know, those who say, hey, go bankrupt so you can cut back on what unions have won ? the unions have already made some concessions. But, you know, we've had enough anti-union activity, and enough increase in income inequality in this country. I don't want to set a precedent that bankruptcy now is a way in which you undo what gains unions have been able to hold on to."
11.20.2008
It's a fight for communities everywhere
Saving America’s auto industry is about more than cars and trucks.
It's also about jobs and communities throughout the country. In a recent letter to the editor posted at Delaware.com, concerned citizen Pamela Thacker of Elkton, Md. challenged readers to see the bigger picture.
"There would be a ripple effect through car dealerships, steel mills and parts suppliers. Banks, credit unions and other institutions that provide loans to consumers to purchase cars would also suffer," she wrote.
"The ripple effect would cost some $60 billion in funds for parks, highways, police departments and other government services," Thacker added.
Her letter makes it clear that what happens with the Big Three is not just a crisis for Detroit; it affects communities throughout the country.
Like Pamela, you can add your voice to the national debate on America’s auto industry, with letters to the editor, comments on news sites and blogs, and letters, phone calls or e-mails to your elected representatives. Get the facts and figures on why we need to support Main Street manufacturing.
11.19.2008
Fight the untruths about our workers and vehicles
With auto companies, workers, suppliers, dealers and others working to win federal assistance for America's auto industry, there's been intense press scrutiny on all aspects of our industry.
Unfortunately, there are a lot of half-baked notions out there in the media and cyberspace about the vehicles we union members make.
Earlier this week the Detroit Free Press made an effort to slash through some of the half-truths and misrepresentations with a story called “Six myths about Detroit.”
Auto writer Mark Phelan sets the record straight about the popularity of vehicles sold by Chrysler, Ford and GM, the quality and reliability of UAW-made cars and trucks, and the commitment of domestic manufacturers to fuel efficiency.
It's worth a read – and will give you some ammunition to stand up for our industry and our members.
