Harley Shaiken
Harley Shaiken
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This contract could be a watershed event within the telecommunications industry because a major union has used its existing leverage to break into a new area. This isn't simply any company. It's the largest telecommunications employer. On one level it's potentially a watershed event because the union could gain a toehold in the most promising area of telecommunications.
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Bankruptcy is allowing airlines to emerge with a clean slate, but it's bad news for workers. Pensions will be affected, and it will mean lower wages and probably fewer jobs.
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Delphi has essentially said: 'We need competitive wages.' Those wages currently are being set in China, not Flint, (Michigan).
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This is the first pitch in the game of hard ball and I think the union is both angered and not by any means intimidated.
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Caterpillar is a powerful symbol of this process. It dominates its field. It is one of America's largest exporters, and it is very profitable. If there ever was a company that could bring back the social contract of the mid-20th century, it is Caterpillar. But it chooses not to.
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Because they (Delphi) have considerable leverage at a moment of bankruptcy is not the same as saying the UAW is out of the game.
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Losing 30,000 jobs, closing 14 plants, has enormous consequences not just for the union, but for the future of their members. It is a major blow.
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Many companies are looking to roll back benefits, and benefits for retirees are at the top of the list. This decision says that while they may be first on the list, they may not be easy to cut.
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Miller has clearly chosen bankruptcy over collective bargaining to restructure the company. Delphi is using a bankruptcy judge to begin moving in the direction of Chinese wages and benefits.
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Miller, by taking such a visible and hard line, may have underestimated the UAW. The union would like to see a settlement, but not at the cost of 60 years of gains.
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It's going to have significant impact on the companies and on the industry. It is a painful option for the union but it is the best option of those available.
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It's unclear if it's a route to a better job or to a more educated unemployment.
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They have a very determined strategy and they are plunking a lot of resources into this. Northwest is not going to blink at this point.
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They are reaching out and offering the workers a service, but they are also laying out the possibility of workers beginning to work together. So as an individual, you don't have to confront the largest employer in the world. You can do it as a group.