negotiations

Something happened in the auto industry recently that was mostly overlooked by the mainstream media – but which may have huge implications for the industry and the United Auto Workers union.  

Seven years ago, the UAW made a concession that I am convinced would have had Walter Reuther spinning in his grave.

They agreed to accept a two-tier wage system under which most new hires would be paid slightly less than half what long-time auto workers made.

Think about that.

This means most of them are earning less than $30,000 a year.  Can they buy a house with that salary?  Even buy one of the new cars and trucks they build?

You know the answer. Yet the union agreed, because it felt it had no choice.

Pobrecito33 / Flickr

The United Auto Workers' lead negotiator with Ford Motor Co. says talks with the Dearborn-based automaker are ahead of schedule and says the union is asking its locals to hold routine strike authorization votes by Sept. 2.

Jimmy Settles tells the Detroit Free Press the votes are "nothing unusual" and are a normal part of every contract cycle with Ford.

Settles and UAW President Bob King announced the decision to hold a strike authorization vote Tuesday at a UAW meeting in Chicago. The union started negotiations with Ford late last month to replace a four-year contract that expires Sept. 14.

Contracts also are up at General Motors Co. and Chrysler, of which Fiat is the majority owner.