Saturn Workers Keep Labor Pact
Workers at Saturn, the "new kind of car company" where the employees get a say in how the business is run, decided Wednesday to keep their unique contract, which rewards productivity and ingenuity.
The 7,200 United Auto Workers members could have scrapped it in favor of the contract all other UAW members have, but instead voted nearly 2-to-1 to maintain the agreement in place since the plant opened in 1990. The vote tally was 4,052 to 2,120.
"It's a special day for us to know that the GM-UAW-Saturn partnership has been reaffirmed," Saturn president Don Hudler said at a news conference with officials from UAW Local 1853. "It's been a remarkable success story and GM is committed to continue that."
Mike Bennett, shop chairman for Local 1853, said the vote "represents that this local is dedicated and committed to the original Saturn idea," but he expressed anger with General Motors Corp., Saturn's parent.
He said GM executives have taken away much of the local autonomy that allowed Saturn to be successful. And he reiterated the union call for GM to spin off Saturn.
"GM gemologists are building with a hammer and chisel, cutting this diamond into dust," he said.
Under Saturn's "risk-and-reward" pay program, employees average about 12 percent less in salary than other GM workers but can add to their base pay by hitting efficiency, training and other targets.
In earlier years, bonuses hit $10,000 and Saturn workers made about $4,000 more than GM's other employees. But last year, because fewer cars were made, it was about $4,000 under their GM counterparts.
Bennett said that "increasingly Saturn policy and procedure decisions are being made by GM" and that union suggestions about car design and components are being ignored.
Hudler denied such changes have occurred.
"I don't believe there's any difference," he said. "I think the assumption might have been that [Saturn] had more authority [with GM] in the past than we really did."
Hudler said the best way to address workers' concerns is to boost car sales so bonuses increase. Saturn plans more aggressive marketing to try to do that, he said.
Some workers are angry that two years ago Saturn ignored their suggestion to develop its own line of sports utility vehicle. Today, Honda and Toyota have hot-selling versions and Saturn is considering the product for 2002.
Last month, workers voted to hold the referendum. In 1992, the only other time the contract went before workers, 80 percent voted to keep the deal.
Saturn worker Tony Stiel voted to scrap the current deal because he's afraid what will happen if demand for Saturns continues to fall.
"The bottom line is car sales," he said. "What's going to happen if car sales continue to decline? If I were GM I'd say we're going to have to eliminate jobs."
Phil Meteva, who came to Saturn 5 1/2 years ago after working at GM plants, voted to keep the contract. He feels he has more job security now.
"Going back to the national contract is a step backward, not a step forward," he said. "If we stay here we can work on what we've got."
Written by Vicki Brown
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