UAW President Says Contract Talks Will Require Creativity

by Jeff Gilbert
WWJ AutoBeat Reporter

The 2011 UAW-big three contract talks are looking more and more like an exercise in creativity, as the parties try to share the newfound wealth in the industry, without hurting the competitiveness of GM, Ford and Chrylser.

"It's a huge challenge," says UAW President Bob King.  "I've been very blunt about it.  I don't know the exact, best way to do it right now.  We'll work together in the creative problem solving that we've been doing, to do that."

King, talking to reporters after a speech at the Automotive News World Congress, wouldn't get into detail about goals for this year's contract talks and wouldn't directly comment on calls from auto execs to tie compensation to profits.

Chrysler CEO Sergio Marchionne telling WWJ AutoBeat Reporter Jeff Gilbert that they need to reward workers for all they've done, and allow workers to share in the profits.  But he says the deal also have to find a way to adjust labor costs during the downturns that will inevitably come.

"If there's truly an objective here in terms of sharing wealth, it needs to be done on the upside as it does on the downside," said Marchionne.  "We need to work out way through the mechanics of this."

General Motors has already tied salaried workers compensation to the company's performance, and CEO Dan Akerson has said he'd like to see the same thing for union represented workers.  GM's North America President Mark Reuss, saying they will work to find a way to reward workers for their sacrifices.

"We're making some money right now," he said.  "So, we're absolutely going to reward people for their effort, their hard work, and the quality cars that we're putting out of General Motors in Detroit these days.  So, absolutely, I want people to be rewarded."

The UAW will hold a bargaining convention in the fall, and begin the talks this summer.  The deadline is mid-September.  King says they are going in with a realistic attitude about winning back pay and benefits that were given up to save the domestic industry.

"You're not going to make it up overnight," he said.  "What's going to be important is the perception and the reality that both through the profit sharing checks and through the 2011 bargaining that members feel that they are being respected, and they're getting their fair share of the upside."

While the UAW is negotiating a new contract with the domestic automakers, it will also be working to convince foreign auto companies to agree to a set of principals for organizing efforts.

"You know these are all really good companies," said King.  "We just have to convince them that we are not the evil empire that they thought we were at one point."

Those companies include Toyota, Honda, Nissan, Hyundai, BMW, Mercedes, and Volkswagen.  None have UAW representation.  But, King says all work with labor unions in their home countries.

The union is having private talks with a number of executives from foreign automakers.  King wouldn't give any names or companies.  But, he did say the union's goal was to convince them that working with the UAW is a good business decision.

"Wouldn't it be a lot more cost effective to work with the UAW, give workers their democratic right to decide if they want to be in the union or not.  That business decision, that light bulb is going to go off, and I think you're going to see a democratic process."

So far, the companies have said little, but have generally been cool to the UAW principals that include equal access to workers.

"We do have principals in Toyota," said Toyota manufacturing chief Steve St. Angelo.  "They are called the Toyota way.  Those principals have worked very well for us, over the years.  They've worked well for our team members, our suppliers and everyone within the Toyota family."

St. Angelo saying he hasn't actually seen the union principals, so he can't react to them directly.  He said any decision on organizing is up to the workers, not the company.

King saying that the union is wants to work cooperatively with the major automakers, but is willing to fight, if workers aren't treated fairly.  He wouldn't give a timetable.

follow Jeff Gilbert on Twitter @jefferygilbert