Smart and tough, Gettelfinger for nine years has kept the shrinking union relatively intact.
The revised labor contracts that were the result of the Chrysler and General Motors bankruptcies are still not competitive with non-unionized transplants in U.S., particularly those run by Hyundai and Kia that pay as little as $12 an hour, according to the Chief Economist of the Center For Automotive Research. Honda’s costs are estimated at twice that.
At GM so-called first tier jobs for existing workers with benefits cost an estimated $59 an hour.
The GM and Chrysler contracts also provide no significant cost advantages compared to the ones in place at Ford Motor Company, where workers have overwhelmingly rejected the same terms put in place at GM.
“The difference only amounts to $30-$40 million a year,” says Dr. Sean McAllinden of CARS,
In his analysis, McAllinden says that claims of significant wage reductions at Detroit Three makers are based on the eventual hiring of large numbers of second tier workers at reduced costs of $32, something that GM and Chrysler are in no position to do, as they continue to contract.
Moreover, all of the Detroit Three companies need to reduce more expensive “skilled trades” classifications, $66 hour, in their plants from about 20-25% down to about 10%, which the union is resisting.
The UAW is in the midst of picking a new leader, as Ron Gettlefinger is retiring next year. It is expected that Ford Motor Company, which has not had a strike in 35 years, will be the target company for the next round of contract negotiations.