The Nation.



Strike! A Defining Moment for the UAW

By Max Fraser

September 25, 2007

There was a feeling of inevitability about the United Automobile Workers' decision to strike General Motors plants across the country yesterday, and it wasn't just because of the sixty-minute contracts they've been extending an hour at a time for the past week and a half, ever since the UAW settled on GM as the lead company in the latest round of contract negotiations. If this is the first time the UAW has called a national strike against GM in nearly thirty years, it is because the cycle of concessionary bargaining, mass buyouts and Chapter 11 busts that have wracked the auto industry for decades have come with increasing frequency in recent years. All this has made 2007 a defining moment for the union that to many has epitomized the declining fortunes of the postwar labor movement.

» More

It is defining because the motivating factors behind Monday's walkout--job security guarantees and the much-debated healthcare trust that GM is essentially expecting the union to bankroll--may well determine the union's fate in Detroit once and for all, and are sure to have ramifications in other sectors of the industrial economy as well.

With the UAW's GM workforce now at one-fifth of 1990 levels, overall employment numbers in the industry declining slowly but steadily since 2000 and the only growth taking place in nonunion plants in the Southeast, it's hard to disagree with UAW president Ron Gettelfinger's assertion that "there comes a point in time when you have to draw a line the sand." When GM predictably tried to turn the jobs issue against the union in a terse statement that expressed disappointment in the UAW for striking during "bargaining [that] involves complex, difficult issues that affect the job security of our US work force," the waves of downsizing that have swept the industry these last years made it sound a bit like the corporate giant wants to have its cake and eat it, too.

Perhaps more significant, however, is the ongoing discussion over the creation of a voluntary employee benefit association, or VEBA, to assume GM's $55 billion liability in healthcare benefits. The VEBA proposal--which GM has been pushing hard and the UAW leadership has seemed willing consider, much to the consternation of dissidents within the union--is technically separate from the contract negotiations and thus not a direct cause of the strike. That said, there is little doubt that the company's efforts to discharge its benefit obligations onto a poorly funded trust vulnerable to market fluctuations that the union will have to underwrite to a significant degree has a great deal to do with the frustration now being expressed at union halls and on picket lines.

The benefit packages negotiated by the UAW in the middle decades of the last century were the gold standards of postwar unionism, and their gradual erosion and now imminent death-by-VEBA is as clear an indication as any of why American workers, even those lucky enough to still belong to a union, are in desperate need of healthcare and pension reform. If the Big Three automakers succeed in shrugging off their benefit obligations, there is little doubt that more large employers, especially those in other core industries, will follow suit. If the UAW is unable to protect the generous benefits its members currently enjoy, no private-sector union can feel all that safe.

The UAW's bargaining position has been so weakened by recent industry trends and its own previous poor strategic decisions that the outlook for the strike is hardly good. Considering Gettelfinger and his negotiators have already signaled their willingness to accept GM's VEBA proposal, the high ground may have already been lost. But if nothing else, the strike is a courageous stand by a union that remains a pacesetter, even as its own future will remain in doubt until it can finally crack the nonunion plants operated by companies like Toyota and Honda in Tennessee, Alabama and elsewhere outside the UAW's traditional strongholds.

And for the rest of us, it's another sign of why we need comprehensive, worker-friendly, universal healthcare reform. Let no Democratic presidential candidate walk the pickets in the coming days without a serious commitment to a national healthcare plan even a UAW member could love.

About Max Fraser

Max Fraser, a journalist, directs The Nation Institute's internship program. more...

Popular Topics
Most Searched

Issues »

Most Emailed

Issues »

Blogs

» Campaign 08

Cindy Sheehan is Putting Impeachment on the Table | A peace activist's independent campaign prods Speaker Pelosi.
John Nichols

» The Notion

Fox News Attacked by Rapper, Blackroots & Colbert | Fox's worst nightmare: Liberal bloggers and Black hip hop.
Ari Melber

» The Beat

Obama Sets the Right Middle East Peace Timeline | Like Carter, he says he would start working on inauguration day.
John Nichols

» Capitolism

Why Air Travel Sux: An Explanation | An airline expert responds to our irresponsible bashing of big air.
Christopher Hayes

» The Dreyfuss Report

Back in the USSR | Russia hinting about challenges to US in Cuba and Venezuela. Sound like the good old days?
Robert Dreyfuss

» ActNow!

Send Karl Rove to Jail | The former Bush advisor regards the law with contempt, so it's time the law and Congress hold him in contempt as well.
Peter Rothberg

» Editor's Cut

Rethinking Afghanistan | There is no easy answer but we need to think beyond the reflexive response of troop escalation in order to find sane and humane alternatives.
Katrina vanden Heuvel

» Passing Through

In Youth Organizing, the Old Becomes New Again | Organizational models and institutions from the 2004 election are beginning to see a revival in 2008.
Michael Connery

» And Another Thing

McCain Opposes Contraception -- Pass It On | He's for Viagra and against the pill. Why won't the media cover this important story?
Katha Pollitt