Apr 18, 2011
After the UAW Bargaining Convention, UAW V-P Joe Ashton told reporters that the UAW would be willing to expand the two-tier wage system, whenever GM re-opens its Spring Hill and Janesville assembly plants. Ashton said the UAW would give up wages to create jobs.
But, as corporate-friendly analyst Sean McAlinden said later, “The carmakers are producing near the limits of what the current UAW workforce of 102,000 can do on maximum overtime.”
In other words, GM must create jobs, must re-open these plants, to gain production it needs. This gives the UAW a big bargaining chip.
But the UAW leadership gave up this chip to do GM a favor.
No – two-tier doesn’t create more jobs – only transforms more jobs to two-tier.