>From: Harry Kelber <[EMAIL PROTECTED]> >To: [EMAIL PROTECTED] >Subject: LaborTalk: Unions View Auto Merger > >LaborTalk: Unions View Auto Merger >By Harry Kelber > >The Chrysler-Daimler-Benz merger marks a significant milestone in >labor globalization: the UAW, with 121,000 members at Chrysler, >and the German union, I.G. Metall, with 300,000 at Mercedez-Benz, >will be negotiating with the managers of the newly-merged >company. In this unprecedented situation, it is too early to tell how >the new complexities in labor-management relations will be >resolved. >While remaining silent on its labor policy for the future, >DaimlerChrysler, as the merged company will be called, stated that >there will be no layoffs or plant closings, at least for the >foreseeable future. Unlike most mergers that are usually followed by >mass layoffs, the company was able to give these calming >assurances because there is no duplication or overlapping in its >current products and world markets. >The big question for the auto unions here and in Germany is whether >the company will try to meld wages, hours, benefits and working >conditions to cover all employees or whether it will pursue a two- >track negotiating strategy, seeking separate contracts with UAW and >I.G. Metall. >There are dramatic differences between American and German auto >unions. While a Chrysler worker earns an average hourly wage of >$21.31--about $2 an hour more than a worker at Daimler-Benz--the >German worker is far ahead in the benefits that make up total >compensation. For example, he gets six weeks of paid vacation. He >and his family have full medical coverage, can choose their own >doctors and do not have to pay deductibles or co-payments. If he is >sick, he gets full pay for as long as four weeks. >While Americans can get unpaid leave of up to 12 weeks under the >Family and Medical Leave Act, Germans are entitled to child raising >leave for up to 36 months, with legal protection against dismissal. >Moreover, every family receives a monthly child- raising allowance >for each child. >The 2.7 million-member I.G. Metall, the largest industrial union in >the world, used its economic power to establish the 35 hour >workweek. There is relatively little weekend work. Sunday work is >forbidden in the union contract. By contrast, the average current >workweek at Chrysler is 50.5 hours, with mandatory overtime. >Americans are working 160 hours more per year than they did 25 >years ago. >There are important structural differences between the two auto >unions. In Germany, under a legal process that is called "co- >determination," the union has nearly an equal number of >representatives on the company's board of directors. Although it can >be outvoted by management, it can express its views about company >policies. It can also gain important information about its operations >and decision-making, which can be useful in future contract >negotiations.In the 1980s,former UAW President Douglas Fraser was >on the Chrysler board, but he has not been replaced. >In Germany, a factory usually has a works council that takes >up problems that occur on the shop floor. The works council has far >broader powers and responsibilities than the standard shop >committee in U.S. plants. >A hot-button issue is how the merger will affect the future of the >Daimler-Benz factory in Vance, Alabama. The auto factory was built >in 1993-4 and employs 1,500 workers. Until now, the company has >successfully avoided dealing with the union, but under the new >circumstances, the UAW is preparing to launch an organizing >campaign at the Daimler factory. It will be interesting to see how >strongly I.G. Metall will support its efforts. >Daimler/Chrysler is expecting to save $3 billion a year in the next >three to five years, and it forecasts a worldwide expansion of its >market share, with vehicles to accommodate >evey demnand and price range. The company appears to have worked >out a fairly clear, upbeat vision of the future. >Now it is up to the two auto unions to collaborate far more closely >than in the past and come up with a mutually beneficial global >strategy. Their efforts can set the stage for the eventual >development of global trade unions. > > > > Tom Kruse / Casilla 5812 / Cochabamba, Bolivia Tel/Fax: (591-42) 48242 Email: [EMAIL PROTECTED]
