UAW Braces for Big Changes

June 12, 2006 — -- Though he voiced a message of solidarity at the union's annual convention in Las Vegas, United Auto Workers President Ron Gettelfinger also conceded that the union's long run of lucrative retirement and health insurance packages is likely to change in the near future

"We're not going to surrender!" Gettelfinger bellowed into the microphone in Las Vegas. As the cheers rose from delegates, he continued. "We're not going to lower our sights, give up our dreams or give up our fight for a better world for our children and grandchildren."

It was a pretty strong statement, except that's exactly what the UAW is doing.

Sure, the union will fight for a better world and so forth, but the days of escalating contracts and benefits are over, and Gettlefinger acknowledged that. Indeed, in a report to the delegates, the union basically said it has to sacrifice to save the industry that employs so many of its members.

"It is clear today that our challenges are unlike any we've faced in the past," Gettlefinger said.

He's right. This is the worst time in history for the U.S. auto industry. Period. General Motors is teetering on bankruptcy. Ford is trying to remake itself as a leaner machine, and if it didn't have the help of the Germans, Chrysler would be in the same soup.

"It is uncommon to be opening a major convention with such somber news," said University of Illinois economist Bob Bruno.

But Bruno agreed the union really has no choice but to sacrifice.

"You have to stop and ask yourself what is the advantage to being union," he said. "And once you begin to ask yourself those questions and you find that the advantage is slipping away, it becomes much harder to recruit."In 1979 there were about 1.5 million members of the UAW. Today there are some 550,000 -- 60 percent of whom don't even work in the automotive industry. The membership is the lowest it's been since 1942. Not good.

With the decline in members has come a decline in political clout. Recently, the UAW has often sided with Democrats who then go on to lose presidential elections and take any union-friendly policies down with them.