Understanding UAW Local 7′s “No” vote, Part 2

Although it appears that a new  UAW-Chrysler national agreement is on its way to being approved, deep fissures were exposed during the ratification process among union local leaders and the rank and file. For the UAW, one of the serious issues is the difference in perspective and outlook between younger and older workers.

LaNita Gaines, financial secretary-treasurer of UAW Local 7 at the Jefferson North Plant in Detroit, where members voted against the contract, is seeing the generational breakdown within the UAW and how this is impacting the ratification process.

When asked about a potential conflict between younger and older workers, Gaines was quick to point out that  “conflict is really non-existent because we just let go of 100 of our retirees under the Incentive Program for Retirement (IPR)  program, meaning you can retire with $70,000 and receive your pension, starting your retirement the next month.” For clarification, the IPR program provides for: a lump sum payment of $70,000 (pre-tax), and health care consistent with the terms of the National Agreement.

Continued -The exit of older workers translates to a changing of the guard within UAW Locals as younger workers flex their muscles. Gaines explains that “most of the plants now are younger seniority plants, where the highest seniority is maybe 15 years.”

For Gaines, the new generation of workers “came on in on good contracts, when the horn of plenty was there for them but they don’t know that sometimes in some contracts,  change comes about in the industry and the contracts reflect it and it literally scared them to death.”

The fear of younger workers is not entirely misplaced. Under the new contract, the Detroit News reports,  “Entry-level wages and benefits would apply only to 'noncore' jobs — those not directly related to the manufacture of a vehicle — such as forklift operators and paint mixers. What will be classified as noncore and core jobs will be decided by a committee made up of union and company representatives.”

The starting wage for these non-core jobs would be $14 – $14.63 an hour with annual wage increases. According to the Detroit News, one fear for members is that over time, Chrysler could take measures to fill “entire facilities full of workers making $14 an hour.” 

In the future, this could translate into Chrysler asking new entry-level “core” workers to accept a lower wage that would make current workers fearful that their jobs would be targeted for replacement.

For Gaines, the focus of current workers should be building solidarity with all workers while constantly fighting to improve the lot of all UAW members. “They (the new generation) came in with not understanding how things got that way. I guess they thought this is what the company offered —  but it was not, it was from the blood, sweat, and tears of those union members that went before them. The older seniority people know better.”