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Fourth Chrysler plant rejects new UAW contract

10/22/2007, 8:13 AM

By Drew Johnson

Chrysler’s proposed four-year contract with the UAW could be in jeopardy as a fourth large plant rejected the contract over the weekend. The latest rejection at Chrysler’s Jefferson North plant in Detroit is the sixth UAW local to vote down the deal — representing over 11,000 workers — but at least eight others — representing 6,500 workers — have approved the contract.

According to The Detroit News, 56.7% of the Jefferson North’s 1,100 production workers voted down the contract, along with 79.5% of the plant’s 195 skilled trades workers. In total, the plant has 2,200 eligible voters.

“That ‘no’ vote really indicates that there may be broader discontent in play,” Harley Shaiken, labor professor at University of California, Berkeley told The Detroit News. “It could still be close. But the early plants are sending a strong ‘no’ message.”

Chrysler’s UAW workers are concerned about the contract’s lack of future product promises and two-tier wage system. There are about 45,000 Chrysler workers eligible to vote on the contract, of which a majority is needed for ratification.

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10/22, 8:17 AM

posted by:

buenos

I love the last paragraph; “lack of future product promises” which may be a direct result of a “lack of future products”. Take it while you can get it.

10/22, 8:19 AM

posted by:

67_L-88

Out of all automakers, Chrysler is probably in the worse shape. This is just what they need, thanks UAW.

10/22, 8:20 AM

posted by:

casualobserver

Paging Dr. Kevorkian. Your services have been requested.

10/22, 8:21 AM

posted by:

deutschetouring1337

You know what? If these people keep pulling this crap they aren’t gonna have any jobs. Jobs are just gonna move south to Mexico, Brazil, and Argentina where labor is CHEAP and people would be happy to have UAW jobs.

10/22, 8:27 AM

posted by:

deutschetouring1337

And thats all we need on welfare. Freaking morons more people needing “help” when they put themselves there. Its like dumbass Christian conservatives who are against drugs like ru-486 and abortions but…..whine because “mexicans” are taking over, since alot have their kids here but others really dont have an alternative. I say we give illegals the UAW jobs, and ship the UAW workers to mexico, then maybe after living outside the bigger cities below the poverty line they’ll be more grateful for their job.

10/22, 8:41 AM

posted by:

sik59rt

at least some of the people at Chrysler have the balls to say that they think this is a bad deal, but unfortunately itll probally come back and bite them in the balls…hard

10/22, 9:14 AM

posted by:

Scott Kempton

I’m not sure which side of this arguement I’m on, but I think I lean towards the management side. I know the workers all want to maintain, or maybe even improve, their lot (and I don’t blame them), but when there are a billion Chinese and Mexican workers willing to do the same job for a LOT less money, I don’t see where they have a “leg to stand on”. That is the reality of the modern world—that we Americans have worked so hard to create.

As for “future products”, I’m afraid buenos may have hit the nail on the head: there may not BE any future products. I hope I’m wrong, but I may be right.

10/22, 9:20 AM

posted by:

Scott Kempton

Speaking of future product, next year’s Detroit and Chicago auto shows should be pretty “telling” about the Cerberus group’s intention for the future; if they show up with a cool concept or two, they may actually intend to stick around for a while and be an actual car company. But if they show up with nothing but their current crop of stale models, I think that’ll be a pretty sure sign that the “handwriting is on the wall” for Chrysler.

If they have no intention of sticking around as car makers, I can’t blame them for not committing to the UAW for future products. I wouldn’t either.

10/22, 9:45 AM

posted by:

Jazz

Well said Scott.
Does anyone think that Cerberus can make a profit by parting out Chrysler though? I think Daimler still wants them around.

10/22, 9:46 AM

posted by:

RicardoHead

Me vote NO because

……me skilled tradesman

…………me use hammer put radios in cars…

………………me smart.

10/22, 10:00 AM

posted by:

HoosierHero

I don’t think Daimler is in any position to say anything about Chrysler’s future. They already screwed it up enough. Thanks Dr. Z!

10/22, 10:27 AM

posted by:

autonut

Cerberus bought Chrysler marquee to make money. And since some of it their money they will make it. Those “boyz” from Cerberus screwed much more sophisticated crowd then UAW and their lowly shiesters. At this point it is good for Cerberus to have strike:
1. reduce inventory of those precious vehicles that so difficult to sell
2. reduce number of dealers, who don’t know what they are doing
3. mark plants for extinctions and perhaps close them

What UAW has to gain? If they think the public opinion on their side their products would be selling well and Benz would not get rid of them on fire sale.

10/22, 11:02 AM

posted by:

deutschetouring1337

What people dont understand yet is that when the UAW strikes, its passes on the price hikes onto the consumers. We endup paying more for wages, the old forms of protectionism need to be done away with. The US has already become uncompetitive with the Japanese taking over what we had in the 80s. Also our constant “Defense Spending” that goes into South Korea to keep its closed economy going while they have no importation of vehicles but yet we have KIA, and Hyundai are bascially auto companies funded by us and being payed with our tax dollars to sell cars back to us but they dont buy any of our products, how screwed up is that?

10/22, 11:37 AM

posted by:

RicardoHead

I just wish the dollar weren’t such an assrag against the Euro. Not that there’s any eurpean products I particularly want, but I feel like visiting some friends and hanging out in southern Italy for a bit but it’s not worth the coin.

10/22, 11:38 AM

posted by:

sharpie

Lack of future promises? I don’t think Chrysler exec can even promise the company have a future. Who else has a job that guarantee future promises here? We all work our job and hope that we can keep it if we are good.

I hate to say it, but let Chrysler outsource its production to Mexico, Brazil, China, India and none of this would matter as UAW will be no more!!!

10/22, 11:44 AM

posted by:

golf4me

Funny how people with a HS diploma (at best) think it’s a god-given right to make more $$ and have more job security than the engineers & managers (most with a Masters Degree) designing the cars…it just doesn’t make any sense at all and it will lead to their eventual extinction. I can’t wait for the day when one of the Domestic makers just says “sorry, this is what you are worth, take it or leave it” and hire an all-new workforce to replace strikers. I think Cerberus will have the balls to do this if this pact is not ratified. They probably got enough Minivans produced in the meantime to last them a few months. There are a LOT of people who would take half of what the UAW has and even move to the armpit that is Michigan to do so…

10/22, 12:40 PM

posted by:

Scarface03

Scott Kempton and others:
I’m not sure that the ‘08 auto show circuit is enough time for us to get a flavor of Cerberus’ intent towards Chrysler. It’s not that long after the change, and product and concept development, I’m guessing takes a lot longer. The Ford GT was an example of a rocket-fast concept-to-production car, and it still took over a year….

I think the UAW is playing with fire. As Jazz queries, we still don’t know what Cerberus’ long-term plan is for Chrysler. Anything that might make the car company less profitable (say, a large-scale UAW strike) just might tighten the noose around Chrsyler’s neck.

What if Cerberus wants to sell off Chrysler in bits to fund a Jag/LR purchase? Ever think about that, UAW?

10/22, 1:32 PM

posted by:

deutschetouring1337

I’m sorry autonut you just contradicted yourself. “As a matter of fact this does benefit American consumer. The only one who loose from “close door” or protectionism policies are consumers of the country that exercise protectionism.” What do you mean?

10/22, 2:32 PM

posted by:

Get Real

Me no use hammer, radio use plugs only.

Hammer hard to use, plugs easy to do, no use brain.

Need money for new boat and big house, vacation house also needed.

10/22, 8:32 PM

posted by:

Catiadesigner

I am part of what the UAW see as the enemy, yet, I am earning less than workers doing the same job twenty years ago, I have to pay for my own healthcare, I don’t get any paid vacation, nor sick pay. Welcome to the wonderful world of Contracting…
I’d leave and work for another agency except chrysler have a nice “unnofficial” 90 day rule that stops me from moving agency and continuing to work for, or on, any chrysler program, supplier or in house project, and now I have to do 40 hours a week to qualify for overtime even if I didn’t want the day off (it used to be anything in a day over 8 hours).
I’d go and work for ford except that they are just as bad.
(I also cost chrysler somewhere in the region of $20 less an hour than an unskilled UAW track worker, and they are the ones complaining)

10/22, 11:13 PM

posted by:

deutschetouring1337

Man, Catia the days of company healthcare are coming to an end, even companies like IBM and others are trying to get retirees to switch to a privatized HMO. Have you considered moving to Europe? Or working for a Motorsport company.

10/23, 12:27 AM

posted by:

Commodore

I am afraid I actually agree with Sharpie on this one..Unlike GM, and to a lesser degree Ford, Chrysler is not really able to guarantee anything in the future. They are the most unstable of all the Big 3 automakers. If the UAW rapes Chrysler too much, Cerberus will just break up Chrysler, kill most of it, and sell Jeep to someone and be done with it.

10/24, 2:13 PM

posted by:

jackjimturkey

Comment by sharpie, posted on October22 at 11:38 am
Funny how people with a HS diploma (at best) think it’s a god-given right to make more $$ and have more job security than the engineers & managers (most with a Masters Degree) designing the cars…it just doesn’t make any sense at all and it will lead to their eventual extinction. I can’t wait for the day when one of the Domestic makers just says “sorry, this is what you are worth, take it or leave it” and hire an all-new workforce to replace strikers. I think Cerberus will have the balls to do this if this pact is not ratified. They probably got enough Minivans produced in the meantime to last them a few months. There are a LOT of people who would take half of what the UAW has and even move to the armpit that is Michigan to do so…

Comment by golf4me, posted on October22 at 11:44 am
Scott Kempton and others:

golf4me: I was born in Michigan. Parts of it are not at all armpitty.

Scarface03, Commodore: I’m predicting Jeep will have european owners within 2 years, and Dodge will have Japanese owners within 7. Chrysler may go away or get bought by Ford or GM.

autonut: I like free markets, as long as their actually free.

10/25, 1:13 PM

posted by:

Scarface03

jackjimturkey,
Interesting prediction. Jeep has cachet and unique model line. It could find a home just about anywhere. Don’t know if the current Jeep offerings would meet Euro pedestrian, and other, regs., but it still could be valuable.

I don’t know about Dodge. Nissan, Toyota, and Honda all have very diverse model lines… which is another way of saying, they have bottom-rung model lines that would compete with the lower quality Dodges. Dodge may die.

My prediction is that Chrysler will go away, but who knows what other private equity firm or consortium might come along and gobble it up. I am convinced though, that Chrysler will not be bought by Ford and GM. With Ford, Mullaly’s been awfully clear that cutting costs is the way to go, and they’re already poised to kick Mercury out to the curb. I don’t see them filling in that void by buying a troubled car company. And GM, too, best benefits by trimming the fat and continually working on the Opel-GM synergy that is working out so far.

We all shall see….

 
 
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