Chrysler, UAW reach settlement

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Tons now available. 8 SOCIALIST ACTION NOVEMBER 1985 jubilantly strike of TELL ME AGAIN HOW IN GOING TO HAVE TO SACRIFICE AND HOLD THE LINE TO SAVE N THE INDUSTRY ZILLION IN SEL CONTRAC DEMANDS AUTO COMPANY ExECUTNES Owen president of the United Auto Workers, announced the settlement of the week-old 70,000 Chrysler employees on Oct. 23.

In claiming that all the union's bargaining goals were achieved, Beiber is deceiving auto workers. What the union got from Chrysler may have, indeed, been the UAW head bureaucrat's goal. But it was hardly the victory that he claimed.

Chrysler workers will get a 2.25 percent raise the first year-less than the expected inflation rate. • In the second year workers will get another 2.25 percent raise-but in a lump sum.

In the third year the raise will be 3 percent.

The cold facts of this wage accord, however, are (continued from page 1) lucky their train back undamaged.

Attempts to move steel by truck were equally unsuccessful as hundreds of steelworkers and their supporters swelled picket lines whenever such attempts were made.

The local community support won by steelworkers forced the states of Ohio, Pennsylvania, and West Virginia to agree that Wheeling-Pittsburgh's action constituted a lock-out and honor steelworkers' claims for unemployment compensation.

Recognizing this as a dress rehearsal for next year's basic steel negotiations, steelworkers around the country dug into their pockets to make the financial contributions that would enable the Wheeling-Pittsburgh workers to continue their determined stand.

Fears are justified The initial relief that they had forced the company back to the bargaining table was gradually replaced by feelings of fear and helplessness as company and union officials engaged in top-secret negotiations.

The tentative settlement was reached on Oct. 15. As steelworkers began to study this proposed agreement, they saw that their fears were justified.

Under this new agreement, WheelingPittsburgh steelworkers, 1 who were already making less than their counterparts who work for other basic steel companies, will suffer another direct pay cut.

The average wage will drop to $10.05 per hour, with an additional $1.09-perhour average incentive bonus. The agreement also calls for a "Price Escalation Bonus Plan,, which will allow for a possible additional $1.00-per-hour payment based on steel price increases.

Sunday premium pay, cost-of-living adjustments, and vacation bonuses for taking vacations during undesirable periods are eliminated. The shift differential for working afternoons or nights is 20 cents less per hour than at other basic steel companies.

Wheeling-Pittsburgh workers will have only half as many paid holidays $10 74/4 221 Sepcerto WHELLI USWA GAN ONID i compared to other basic steel plants. Ten-years seniority will be required for two weeks vacation, 17-years seniority for three weeks, and 25-years seniority for four weeks.

Pension plan, work rules attacked Prior to the announcement of this settlement offer, the banks mounted a serious attack on the pension plan.

Since this plan is now in default by approximately $400 million, due to the company's failure to make any payments since July 21, the banks that hold Wheeling-Pittsburgh loans have petitioned Judge Warren Bentz to remove the pension plan from the union contract. At the same time ex-chairman and CEO Carney was guaranteed over $1 million in severance pay.

The tentative agreement provides for a $1.05 per-hour-worked company contribution into a 'Pensioners' Relief Program Fund" in case the current pension fund is terminated.

While the cuts in wages and benefits are bad, the more serious attacks are on work rules.

In an attempt to appear cooperative and concerned about the needs of the company, the union agrees to job combination and elimination. The agreement says:

"In the negotiations that preceeded the signing of this Agreeof $2000 per worker and $1000 for each retired worker as partial compensation for the many-times higher wages lost since the big giveaway to save Chrysler from bankruptcy in 1979.

But this is not the worst part of the deal between Chrysler and the UAW bureaucracy.

Two-tier wage scale The contract includes a two-tier wage scale: New workers will start at 85 percent of the pay rates of the existing workforce. Also, Chrysler won a contract that will extend until Sept. 14, 1988, a year past the expiration of the current agreements at G.M. and Ford and the recently concluded pact between the Canadian UAW and Chrysler's subsidiary there.

The two-tier pay scale now completes the demoralizing institution of lower pay for new workers in the Big Three of America's auto makers. And the setting of an expiration date one year later in the case of the Chrysler workers will work to the auto capitalists' further advantage in future bargaining.

The contract contains many other clauses whose final form workers normally do not see until months after a contract has been approved. Typically the one affecting Chrysler's ability to further transfer work to "outside sources" (a euphemism for companies with lower wage scales) is called an "understanding" Such "understandings" usually end up with two opposed interpretations.

A so-called "security fund" (certain to provide no security) will also be established for "displaced" workers resulting from "outsourcing" as well as new labor-saving technology and speedup. Another clause covers "profit-sharing, but is admittedly even stingier than the one rejected by Chrysler workers in 1982.

ment, the Company stressed its need to reduce the costs of producing steel if it is to reorganize, become competitive in the steel industry, and remain as a source of employment for USWA employees. The Union recognizes that certain job combinations and job restructuring can be achieved by the Company."

A buy-out provision is introduced in exchange for these lost jobs. For each job lost, one employee will be allowed to buy out of the company for a payment of $967 per month over a 24month period.

Although 4700 Wheeling-Pittsburg workers had signed petitions demanding that labor-management participation teams be eliminated from the new agreement, the new "cooperative" program is mandatory. The USWA will also recommend one person to sit on the company's board of directors.

A myth exposed Although most contract language remains the same, one change in the grievance procedure will definitely allow the company to run roughshod over workers' rights on the shop floor.

Non-monetary grievances, for example, removal of a disciplinary warning VIEWPOINT Sops of $600 to spouses of deceased workers and $200 more to all retired workers and surviving spouses are slated to be tossed in the second year of the contract.

Owen Bieber, president of UAW That's right, it's Christmas buying time once again! So, what is the Neiman-Marcus catalog offering this season, you ask? How about a special "his" and "hers" gift-two finished South African diamonds cut from a single rough!

They're just that little something for those twin bank vaults you've been wanting to decorate-yours for $2 million postpaid-and you should count yourself lucky that apartheid makes diamonds so cheap.

from someone's record or improper scheduling of next year's vacation, will be handled as before. However, any monetary award must go to the federal bankruptcy judge to decide if, when, and how much the grievant will be paid. Thus, if an arbitrator rules a worker was unjustly discharged six months ago, this worker will be brought back to work with no loss of seniority. However, Judge Bentz will decide when and if the worker receives his wages for the six months he was out of work..

The agreement states: "The new management of Wheeling-Pittsburgh Steel and the USWA jointly recognize that in order for the company to meet the immediate challenge of survival and the long-range need for prosperity, growth, and secure employment, that both parties must more closely work together in a joint partnership that extends from the shop floor to the board room to solve problems in a quicker and more cooperatve manner."

The entire agreement is based on the USWA leadership's belief that what's good for the company is good for the workers. The proposed contract, however, will not do much to keep that myth alive.

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