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07 Jan 09 In Defense of The U.S. Auto Worker - Part III


By: Ang Biondo

Part III of IV – The Substance of The U.S. Auto Makers Workforce

The U.S. auto workers are your neighbors, a mostly patriotic generous bunch of people ready to chip in at any time and even more so when the chips are down. They are volunteer firemen and paramedic living next door who go to church on Sunday and might belong to your bowling league. They are good team players who shine when called to help out. And, they may not be employed by the “Big Three” directly. There are hundreds of thousands of those whose jobs are affiliated with the auto industry. They work for the suppliers and they build the various parts and components that go into the automobiles made by the American auto companies. They may work for a subsidiary or contractor who builds small parts or components for the Big Three as well as the transplants. They too are very competitive, or their companies would not have gotten the contracts to supply the product they build to the auto industry. The products they make range from the smallest screw, to the onboard computers that control the electronics, emission systems, and engine monitoring devices.

The honor plaques on the walls of the factories they normally work in, list their service status while on leave fighting the war on terror. And the memorial plaques hanging on that same wall, honors their deaths for their bravery, dedication and sacrifice to God and Country so we can be free.

There is a quotation that applies to everyone no matter what station in life you are assigned. That creed is true regardless of whom you are including those at the top. It simply says: “The world owes no one a living.”- Mark Twain, Many seem to have forgotten or never heard of it. But it is very true and most learn the truth of Mark Twain’s quotation early in life, while others never learn is at all.

Those fortunate enough to be employed, especially those in a position of trust, are expected to live up to that trust, they are not expected to abuse that trust. Executive and Corporate Greed are abuse of trust:

  • Voters have a right to be represented.
  • Stockholders have a right to expect a profit on their investments. 
  • Tax payers have a right to get their monies worth.

To the Corporate executive, “corporate greed”, has taught him/her that as long as they pay the stockholder a pittance on their investment, they could take the remaining millions in annual salaries. Since salaries are a debit, and the profit sharing clause of G.M., Ford, and Daimler Chrysler, contracts are based on profits from sales on vehicles made in the U.S. – no profit sharing benefits need to be paid to the American worker who worked so hard to make the profit they feel they are so entitled to.

The modern day automobile has become and will continue to grow in complexity as years pass. Much of the technology comes from the educated ingenious engineers, a product of higher education however, a lot of it actually comes from the ingenious minds of the less developed high school factory worker through the companies suggestion plans. From those less fortunate individuals who didn’t have the opportunity to attain the college degree to get them the real job they desired in engineering or design. The auto industry gave them that chance to provide for their families and hopefully afford to give their kids the college education they were never able to attain themselves.

They know the value of a job. They know, to be able to work is a privilege, a value they try to instill in their children. Those of us that hit the bricks and fought for working conditions and having to live from hand to mouth for months at a time, know the value of work. We like to think the gains we made over the years through the sacrifices we made, set the tempo for better working conditions for our children. Conditions enjoyed by both those working in the private sector and civil servant jobs of today and tomorrow.




It is for this reason and the fact they feel the American auto industry is a viable entity that its employees have agreed to the concessions they have had to make. Concessions needed because of the costly errors and greed of the executives who have placed the destiny of the American made automobile at the mercy of a Congress and public opinion who would rather see their jobs literally on a boat to China.

I’ve got news for the Senator Bob Corker’s of the U.S. Senate, the Chinese people don’t vote for you, we do. And the few employees working in at the Transplants, will soon learn that the only reason they are paid as well as they are is because of the wage structure of the U.S. auto workers. Once these jobs are eliminated, or wages reduced to what amounts to slightly more than minimum wage, THEY ARE SURE TO FOLLOW SUIT.

The U.S. auto worker is very much aware of the global competition it is up against, and they are prepared to face it head on. They have met the adversities placed their path and are willing to do what has to be done within reason to keep the industry viable.

The people of America and all lands have a right to breath clean air. As the lands become more and more populated so do the number of vehicles on the global roads. Emissions need to be reduced before the ozone layer is depleted completely. But this is not the responsibility of America alone. All of the nations of the world must be involved in the effort to reduce the fluorocarbons responsible for the pollution of the air we breath.

America wants to be a leader and show the way, and has done so by passing clean air regulations and encouraging alternate fuel vehicles. The “green” car act which mandates reduced emissions and a minimum of 35 mpg by the 2010 model year has placed an enormous amount of pressure on the whole industry. The government has given the “Transplants” an advantage by granting multi-million dollar tax incentives to build there factories in the south. Along with the tax incentives granted by Congress in ear-marks attached to other bills, some also received substantial cash supplements from their country of origin.

Countries like South Korea have laws that forbid the import of any product made in country. So even the vehicles made in the Korean owned factories by American workers here cannot exported to Korea because it is a product also made in Korea. However, there is no problem with them exporting the thousands of vehicles built in South Korea to the United States.

Also, China exports millions of products of every kind to the United States annually, and the U.S. consumers flock to the stores to purchase Chinese electronics, textiles, produce, toys, paper product and automobiles, etc., the list goes on. If you didn’t think China was exporting cars to the U.S. – think again.

Chinese-made cars debut in US market
“An Arizona car dealer is gearing up to become the first to sell a full line of Chinese-made vehicles in the United States at Wal-Mart-style prices he hopes will lure tens of thousands of buyers”
Chinese Car debuts in US market

The Total U.S. – China Deficit as of October, 2008 is: 

  • Total $61,027,000,000.5 (Exports) $284,423,000,000.3 (Imports) = -$223,395,000,000.8
  • The U.S. Trade deficit with China has been growing at a steady pace every year since at least 1985. For a detailed report visit: Trade in Goods (Imports, Exports and Trade Balance) with China
    Congress has not taken any steps to discourage these enormous deficits in the Trade agreement with China or any other country, Instead it has encouraged it and has given the foreign auto manufactures who build factories on U.S. soil (called “transplants”) many incentives. They have given them millions of dollars in tax incentives to build these factories on U.S. soil. The profits made from the U.S., consumer goes back to their country of origin where they are headquartered.

The Transplants young workforce would take five years by U.S. auto policy, before they would have to start offering employee’s vacation and benefit packages. They could easily incorporate any vacation periods into the model change period. Given that factor alone, how can the cost of the U.S. auto-worker vs. that same worker employed by the transplant possibly be compared to each other.

The U.A.W. who represents the majority of blue collar workers of the big three has already given concessions to reduce the pay structure of the members. The transplant’s workforce is non-union and on an average makes about $10.00 per hour less than their U.S. union counterpart who must pay 2 hours pay per month union dues. Honda and Volkswagen workers boasted an average wage of $31.00 and $29.79 respectively for the 2007 model year, while the U.S. workers average was somewhere around the $28.00 per hour mark. Thus, entering that factor into equation, the base hourly wage of the worker at the transplanted company is higher. However, it is the threat of the a union organizing its workers that compels the pay and work standards of the transplants to at least match those of their American rivals. At Volkswagen the workers pay about $74.00 per month for health care benefits that their workers boast about. A comparison of the U.S. counterpart are as near to basic benefits as is possible. The U.S. Active employee’s have a fully paid Blue Cross & Blue Shield traditional medical plan, along with dental and vision plans that leave much to be desired. Our civil servants are provided with more elaborate medical benefits which include such things as breast enhancement, face lifts, and liposuction, and their vision plan fully covers laser correction procedures, all provided by the most generous tax-payers of our fair community.

Are these civil servants worth this cost to the taxpayer? 

  • They educate our children. 
  • Protect us and our property and administer emergency life saving functions, risking their own lives… 
  • Deliver our mail in all kinds of weather. 
  • Haul away our garbage. 
  • Maintain and keep our streets safe in all kinds of weather. 
  • The power authorities keep our homes comfortable and lighted. 
  • The water authority keeps our drinking water safe and palatable 
  • And the list goes on.

I think their worth it. This is especially true for those on call 24/7. They not only deserve the pay they get, but also deserve praise and thanks from all those they serve.

I also feel the auto workers of the U.S. auto industries have been betrayed by the very people they elected to represent them. They have given many concessions in an effort to save the industry, while the executives and upper management managers of the industry have raped the corporations and the stockholders of the powerful Corporations they are employed by. These leaders of industry have not made concessions to save those companies they work for, but to the contrary, they have increased their multi-million dollar annual salaries and bonuses. They have taken elaborate golden parachutes. And, they have grossly mismanaged the corporation they work for. Only in America is one rewarded so handsomely for doing so poorly.

Next: Part IV – Controversial Issues & Solutions

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Reader's Comments

  1. |

    In every industry the problem due to economic recession is mainly imposed on the Workforce, there is no exception in auto industry also.

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