By Mike Westfall
October 31, 2005
PENSIONS ARE "OFF LIMITS" !
After a lifetime of difficult and stressful labor, an autoworker’s pension and retirement benefits should be
considered sacred and “Off Limits”! Destroying autoworker pensions is not the answer and can never be supported.
How can any thinking worker be manipulated into supporting an agreement that is the obvious beginning of the decimation
of his or her own future retirement?
How could self-respecting top union leaders turn on needy retirees and use their safety net pensions and benefits as
pawns?
I coined the term "UAW Black October" because decades from now working Americans everywhere will remember October 2005
as the “UAW Black October” agreement. This is the date that changed the definition of the UAW forever for loyal
retired workers and all workers wishing to retire someday.
There are multiple issues relative to the profound employment changes that American autoworkers are facing today. These
tentative changes affect both active workers and retirees alike. This paper will address pensions.
Ford and Chrysler are already demanding that they want on board the UAW retiree concession train at GM so that they
too can force their retirees to accept equal cuts and be equal participants in the retirees UAW Black October.
Legally, it is
questionable that UAW officials have the right to bargain away important retiree health care benefits without fancy footwork
in the courts. Retires don’t get raises like active workers and unlike active workers, these benefits belong to retirees.
The only way UAW officials’ can bind retirees to these groundbreaking cuts is with a court order. On Tuesday October
18, 2005 officials of the United Auto Workers, in order to have the legal right to make concessions “stick” for
retirees, requested that a federal judge approve that right for them so they could carve up and significantly reduce the health
care benefits for over 500,000 retired workers and their spouses. Unfortunately many UAW officials are not strangers to the
court system. See National Legal and Policy Center...http://www.nlpc.org/artindx.asp
Hard won pensions and pension benefits took "workers and past union leadership's" decades of bargaining and multiple
painful strikes to achieve and are tentatively some of the largest givebacks in the history of organized labor. These givebacks
are so large that they even shocked and surprised analysts and corporate officials alike who never expected such a huge windfall
by union negotiators.
“If ratified this tentative agreement will likely be only the first step in a fast progression of rendering a
decent retirement, as active workers know it, obsolete ”.
This UAW "retiree court maneuver strategy" will make it difficult, if not impossible, for UAW retirees to win a dispute
in a court of law to challenge these deep painful cuts and will bind struggling retirees to the concessions and the resulting
impact on their retirements for their lifetimes.
While working, auto retirees negotiated defined pension plans that included health care benefits in place of wage increases.
Workers paid for these benefits through “sweat equity and reduced wages” all through their working years.
These benefits belong to struggling retirees. GM's active and retired salaried employees have seen their benefit packages
deliberately hammered for several years to seemingly be used as contrived comparisons to UAW
officials in an attempt to get equal or greater cuts from the bigger plum, which is the blue-collars workers/ retirees
benefits. GM has betrayed their white-collar employees.
Historically,
UAW officials have always refused to negotiate a cost of living factor on the dwindling buying power of the pensions of struggling
retirees. They have said that it was unnecessary because they would see that retirees would be taken care of. These UAW officials
have now turned their backs on their struggling retirees and are using their power and influence in a way that will hurt,
in important ways, each and every retiree and their spouse for their entire retirement. Auto retirees deserve much more then
being flushed down the drain like a piece of waste.
How
can any retiree, present or future, hope to afford to live if your union breaks its promise and refuses to negotiate pension
increases just to keep up with rising inflation and then goes to court once you retire in an effort to concession away what
you have?
After a lifetime of paying union dues, enriching employers, paying into social security, paying into pension plans,
paying the taxes to support our nation and planning for their retirement, our retirees have delivered our great country to
the threshold of being the undisputable strongest and most admired nation on earth. In return they are being delivered, by
deliberate union contract, to a life of destitution.
It may be difficult for pampered union officials, who have not had to put up with the difficulties of decades of work
in the factories, like the workers, to understand the importance of being able to get out and eventually retire, but workers
plan for this all of their working years…
This is the first step in the quick elimination of autoworker retirement…
“For there to be a retirement”, struggling retirees must be protected. Fixed pensions and benefits must
be considered sacred and 100% “Off Limits”. Destroying autoworker pensions is not the answer and can never be
supported.
On another front, conniving American blue chip companies are now devising ways to declare bankruptcy when they are
far from broke. Then they terminate and hand over their pension responsibilities to the governments " Pension Benefit Guaranty
Corp." or PBGC. The PBGC in many cases then gives many of these shell shocked workers only a fraction of their pensions and
"no" benefits. This exchanges the workers' earned negotiated pensions for a federally sponsored welfare program. The companies
"steal" these workers pensions and then our government's PBGC program comes in and bails out, " not America's suffering workers”,
but the companies from their pension responsibilities and delivers retirees and their families a double knockout blow. As
the government allows more companies to weasel out and terminate defined benefit plans and the PBGC is overwhelmed with costs,
just who is going to cover the costs? How much lower will the actual pension payouts drop for affected retirees as time marches
on and funds run out?
Our government is allowing companies who are worth billions of dollars to shirk their pension responsibilities through
manipulated and contrived management moves. They are allowed to go bankrupt after openly stating that they are making these
moves exclusively to get out of paying their so-called Legacy costs. This is the worst kind of betrayal for devastated workers
and those wanting to retire someday.
Workers know that the way present retirees are treated is the way that they and their spouses will be treated when
they retire.
Auto workers have seen their plants close down, subjected their families to crazy work shift patterns and have been
forced to cave in to totally unfair two tier wage settlements, where two workers doing equal and similar work directly next
to each other make profoundly different wages. Loyal workers have been forced to shift their families from town to town and
state-to-state to stay employed and are now faced with these unfair devastating cuts that their UAW officials are asking them
to take.
Companies have been allowed to under fund pensions, restructure and export away jobs, make profound management mistakes,
manipulate the bankruptcy laws and then shift their mistakes onto the blue collar and white collar backs of retirees, workers
and taxpayers.
Since becoming UAW President, Mr. Gettlefinger has repeatedly gone on record proclaiming
that he was unwilling to have autoworkers and retirees pay more for their health care costs. It turns out that this quickly
flew out the window when he began getting intimidating stares from GM’s very good negotiators who will laugh all of
the way to the bank with their healthy bonuses for outfoxing UAW officials... "BUT"…They overlooked one important
fact...this agreement has to be ratified by the rank & file who might be smarter then they are being given credit
for and surprise them all.
Again...This is the first step
in the elimination of retirement, as workers know it…
“For there to be a retirement”, struggling retirees must be protected. Pensions and benefits must be considered
sacred and 100% “Off Limits”. Destroying autoworker pensions is not the answer and can never be supported.
Why are these UAW officials caught like deer in the headlights? Why weren’t they minding the store and developing
strategies years ago to counter these changes so workers and retirees wouldn’t be faced with these horrific concessions
that have been quietly negotiated behind closed doors?
Why didn't they use their power and influence to actively go after national health insurance when they should have
known that this was the primary problem?
No amount of concessions will solve the health care problem. Harmful concessions won't even phase it! The healthcare
problem is a legislative problem not a bargaining problem. Where is the vision of todays UAW officials? Lip service hasn't
been enough.
Autoworkers have not been able to afford their top union leadership to quietly hide in the corner
with their tails tucked between their legs like a whimpering little puppy. They also could not afford a company union.
This industry has lost hundreds of thousands of good paying jobs that have been allowed to “quietly”
dwindle away over a time period of three decades. Why haven’t UAW officials noticed and developed better strategies?
These are lost jobs that our children needed and our communities and nation needed going forward into this new millennium.
“Long before now” UAW officials should have been much more forceful and should have
let the world know in no uncertain terms that if the corporations wanted cooperation on a comprehensive national health insurance
program that they will get it, but on concessions for hard won "necessary life and death benefits, if they want a fight, then
it will be a war that workers and retirees would not lose? Instead the UAW officials are asking retirees “who could
never recover” to voluntarily step backwards through 50 years of bargaining. It is clear hypocrisy.
Top union leaders who have turned their backs on their retirees should not be surprised to see
a powerful backlash going forward by retirees and workers alike.
Many workers now conclude that never in the history of organized labor or the " Great UAW" has
Solidarity between workers been so shredded because of the failure or perceived silence, ineffectiveness and confusion of
union officials.
Why would union officials expect otherwise given the workers perception that union officials have
become enamored and are now pandering to the corporate position and to top corporate officials whose sole mission and purpose
in life is to devastate retirees and workers?
Again... This is the first step
in the elimination of retirement, as workers know it…
“For there to be a retirement”, struggling retirees must be protected. Pensions and benefits must
be considered sacred and 100% “Off Limits”. Destroying autoworker pensions is not the answer and can never
be supported.
Once retired it is impossible to find part time employment rich enough to cover promised “stolen” benefits.
The insulated
top union officials at Solidarity House have gifted themselves with vastly superior perks, benefits, salaries, pensions and
other compensations. When they concession away worker and retiree benefits it doesn’t affect them. See "Salaries UAW
Constitution"...http://www.uaw.org/constitution/article11.cfm
The givebacks and lifestyle reductions they negotiate are not for them but rather for those they represent, the very
workers who support them and their safe and protected lush lifestyle.
I believe that Union officials wages should be no better then workers and their pensions should be no better then retirees.
Walter Reuther said “you can tell the quality of a union leadership by how well they take care of their retirees and
we should never take a step backwards”.
UAW officials’ today will never be accused by anyone of being a Walter Reuther.
I remember bringing Victor Reuther, one of the founders of the UAW, back to Flint in 1987
to be keynote speaker at our huge combination 50th anniversary of the UAW/ anti concession Rally. People were bused in from
all over the country. See… 1987 UAW 50th ANNIVERSARY RALLY
PART “B” WITH VICTOR REUTHER AT… https://michaelwestfall.tripod.com/id16.html
The UAW leadership stifles dissent and criticism as if they are above it. This is still
America and they are not above criticism! Founding father, Victor Reuther had no problem "loudly criticizing" the UAW leadership
and neither should the workers.
If you read the "Westfall Papers", put out 25 years ago, which are now archived
in many of America's libraries, we projected everything that is happening today. What is happening today in auto didn't have
to happen, it wasn't a force of nature, and we predicted it. If they had only listened to us and developed strategies back
then today’s picture would be totally different.
When Mr. Gettelfinger was sworn in as newly elected UAW president in 2002 he pounded the
podium and told the delegates that the UAW must not back down from those who stand in the way of improving the life of working
Americans. The very next year in 2003 he forgot his own inaugural statement and betrayed UAW retirees by ignoring their need
for even minimal pension increases. Mr. Gettelfinger fed the UAW retirees to the wolves by refusing their serious need for even minor pension increases to just keep up. Now he wants these same struggling retirees to have reduced health care at a point in life when
they can least afford it and need it most. What kind of UAW leader sacrifices retired members who cannot afford cuts and have
no options? …
Again...This is the first step in the elimination of retirement as workers know it…
“For there to be a retirement”, struggling retirees must be protected. Pensions and benefits must be considered
sacred and 100% “Off Limits”. Destroying autoworker pensions is not the answer and can never be supported.
In the 2003 contract UAW negotiators negotiated themselves healthy pension increases going forward but negotiated nothing
for existing struggling retirees. It certainly appears that “the negotiators personal pension increases” will
cover “their own newly negotiated pension concessions” at the exclusive expense of existing struggling retirees.
Today, many workers believe that the UAW officials’ leadership policies are not as much about Solidarity and
equal sacrifice as it is about pitting one worker against another through strategies like two tier wages or pitting one plant
against another through company union strategies which are reducing all workers to the lowest common denominator. Just consider
the unfair and unjust suffering being forced on Delphi workers.
The health care problem in our country has gotten beyond the point of pain for all Americans. The answer is not for
UAW officials to lead the fight by joining in with those who are out to destroy their own members retirements.
Again...This is the first step in the elimination of retirement as workers know it…
“For there to be a retirement”, struggling retirees must be protected. Pensions and benefits must be considered
sacred and 100% “Off Limits”. Destroying autoworker pensions is not the answer and can never be supported.
Historically, autoworkers wages and benefits were always the "gold standard" that other workers across the nation
used to upgrade their contracts. This brought up the standard of living of our entire nation. If autoworkers continue the
downward slide then the entire countries industrial base won't be far behind.
To suggest that slicing the health care of America's workers, retirees and their families will fix the problem in any
way is insanity and it is " false ". Giving back hard won benefits has always been just a down payment on future more expansive
concessions. Both the companies and union officials know this fact.
Our nation does have a profound problem but it is not with our retirees who have contributed so much to society, rather
it is with the out of control healthcare system which has priced itself much too high.
As a nation we can no longer afford to waste billions of dollars for an inefficient health care
system that slices our competitive ability by forcing upwards the price of every product we produce. Our medical system is
unfair, inefficient, uncompetitive and cannot be sustained “as is” any longer. It is provider driven by the doctors,
hospitals for profit, drug producers, medical equipment suppliers and insurance carriers.
Unfortunately for workers, the auto companies and today's UAW leadership are confused. They both
have it backwards. The problem is not with workers, retirees and their families at the bottom end who desperately need the
health care. Any concessions should come exclusively from the top end bloated health care establishment, which has been allowed
to create this problem with their greed. Concessions will fix nothing!
It
may come as a surprise to Mr. Gettlefinger, but auto factories are not the healthiest of places to work. That is why "responsible"
and "concerned" UAW leaders before Mr. Gettlefinger negotiated hard won earlier retirements and health care benefits to protect
workers. In many plants the workers life expectancy is much less then the normal life expectancy because of the exposure to
smoke, fumes, carcinogens and all the other multiple workplace chemicals and dangers unique to building automobiles.
I
would think that as president of the UAW Mr. Gettlefinger should know this.
When I was the chairman of the huge union caucus that was in power many years ago, at America's
largest truck assembly plant, one of my friends was a hourly health and safety expert. He had written health and safety language
for the national agreements and told me that he could tell what department a worker spent their years in by their death certificate.
There are departments in these plants that have tremendous long term health problems and many times the problems like cancer
that come from this employment and exposure doesn’t surface for many years or until workers retire. "Mr. Gettlefinger
should learn that is why workers and retirees need their healthcare” and also a little compassion from union officials.
Retires also need food to eat and fuel to keep warm in the winter. While Mr. Gettlefinger may not realize this from his distant
and insulated ivory tower at Solidarity House, it is still a fact.
The answer to
the health care problem is not to declare open season on struggling retirees through starvation concessions. The solution
is pooling resources and going after the real issue and that is the need for a comprehensive national health insurance program
not just for “autoworkers” or other unionized workers, but also…for “all” Americans. We knew
this many years ago but the UAW officials didn’t listen… https://michaelwestfall.tripod.com/id15.html
Surely corporate leaders have clearly seen how fast and easy UAW officials have caved to
their demands. They must be licking their chops for the next major set of concessions in the 2007 contract. They will expect
UAW officials to continue to grease the path in their quest to force America’s workers to slice their lifestyles to
a point where they not only compete but also surpass the companies exploited foreign workers.
The continued bidding down of the workers standard of living to make them competitive with
exploited foreign workers will eliminate America’s middle class. There will only be the rich and the working poor who
have no hope of ever retiring to a respectable retirement.
For UAW officials to participate in the destruction of defenseless retirees to temporarily hide a corporate problem
is no solution. To target and sacrifice retiree’s health care is morally wrong.
Auto retirees and workers have given these companies their accumulated experience, knowledge, wisdom and skills. They
and their spouses have put up with 30 or more years of incredible hardships and the difficulties of working on and around
unhealthy assembly lines. They have worked tirelessly to improve the quality of the products
they produce and they have improved their efficiency. They are a hard working and dedicated workforce that are being rewarded
with criticism, no appreciation, sliced jobs and now the companies and even their top union leaders are demanding sliced health
care benefits and devastation to their retirees and their pensions…
Retirees are now labeled as “legacy costs”, like a piece of garbage. A term used in a demeanor by those
with an agenda to discredit and dehumanize them so they can be targeted and eliminated as a cost.
For UAW officials to suggest that the UAW is as strong as ever makes one ponder the question, "In what context"? In
the context that the UAW officials world continues to go on as usual and they are able to maintain their own little well protected,
insulated and disconnected fiefdom that may be so. In the context of the hundreds of thousands of workers that have lost their
jobs in Americas once premier industries and to those workers and retirees who are now under attack, that is another matter.
“For there to be a retirement”, the struggling retirees pensions and benefits must be considered 100% sacred
and “Off Limits”.
Decent labor leaders with any measure of respectability and those voting on this agreement, if they have a brain in
their head, should now be declaring..."Workers pensions and retirements are sacred and will remain so until...Hell freezes
over! They are both...100% off limits!
https://michaelwestfall.tripod.com/index.html
http://westfallmike.tripod.com/
"UPDATE!" November 11, 2005
The auto companies orchestration for the complete and total redefining of the term "labor
relations” and "union representation" is moving along as they planned.
With encouragement from smiling and smart GM leaders & cooperating UAW officials, GM
workers ratified the groundbreaking deep concessionary agreement on health care by 61%-39%.
Struggling retirees were not allowed to vote.
By supporting this terrible "chump" agreement, voting autoworkers gave encouragement to
auto executives and UAW officials alike that will assure further deeper cuts. This is just the beginning...there will be no
end.
At Delphi, the "first offer" draconian wage and benefit cut demands are designed by the
corporation to be but a threatening "first step" towards the profound cuts that they really expect to get. This will afford
Delphi's "UAW official counterparts" an opportunity to negotiate upwards a little which gives them a purpose for being....In
their minds.
The ultimate end results will showcase "horrific" and terribly painful cuts for all workers.
Soon after the horrendous settlement at Delphi the companies will nudge UAW officials to
pressure the entire membership for the New Delphi agreement to become the standard for all domestic autoworkers.
What autoworkers are witnessing is the breakdown in Solidarity where pattern bargaining
has flown out the window, two tiered wages have become accepted and workers are pitted against the retirees who built the
union.
What good is a weak and lost union leadership that behaves like a company union and allows
the destruction of the union from within?
...God help the workers who blindly supported this "Black October agreement" and are about
to become Americas working poor.
...God help the UAW retirees, present and future, who have been fed to the wolves for the
rest of their lives by UAW union officials.
This Black October paper will remain as a testament for future workers relative to the
key historic labor events that came to a head and took place in October 2005.