Whether You Like It Or Not: Being Prepared for the UAW Current Events in Bob King’s World Terry A. Clark Lewis T. Smoak CONSTANGY, BROOKS & SMITH, LLP OGLETREE, DEAKINS, NASH, SMOAK & [email protected] STEWART, P.C. [email protected] 1 The Detroit News The Detroit News The Detroit News February 4, 2013 UAW: Wages won’t rise without organizing foreign plants Washington – United Auto Workers President Bob King told a union gathering Monday that if workers at foreign automakers aren’t unionized, then wages of suppliers and new auto workers won’t rise. “We will never win full wages and benefits – equal pay – for our sisters and brothers in the second tier, or the entry level in the Big Three, or in the parts supplier sector if we leave over half the auto industry unorganized.” The union has failed to organize any new foreign auto plants in decades but has made it a top priority. “We have to redouble those efforts. We have to re-triple those efforts,” King said. 2 http://www.uaw.org/articles/king-were-not-willing-accept- injustices-growing-america King: We’re not willing to accept injustices growing in America 2/04/13 Washington On Day 2 of the UAW National Community Action Program (CAP) Conference here, UAW president Bob King told the 1,500 delegates that the nation needs a social movement propelled by activists who care about eliminating poverty, discrimination and injustice, and the union needs to rebuild. UAW members and leaders, he said, have been working to help those in the parts supply industry. “If you don’t bring parts supplier workers up, we are going to get pulled down to their level,” said King. 3 Will Mercedes Become The First Transplant To Be Organized By UAW? Mercedes UAW Organized Suppliers Z.F. in Tuscaloosa, AL Faurecia in Cottondale, AL Johnson Controls in Cottondale, AL Existence of UAW activity GeStamp plant in McCulla, AL. Brose Tuscaloosa, Inc. in Vance, AL 4 UAW Faurecia Organizing Victory 5 UAW Faurecia Organizing Victory June 21, 2012: Workers at the Faurecia plant in Cottondale voted Wednesday to join the United Auto Workers. By more than a 2-to-1 margin, employees voted 79 to 33 in favor of forming an union. “Oh my gosh, I am so ecstatic,” said Stephanie Wilson, an employee who Kendall House, a Faurecia backed the unionization. “Having this plant become technician, said: “We look forward to union means so much to building the best quality seats for us. You should have seen Mercedes and we look forward to the expression on working with Faurecia management.” management’s face when the vote was counted.” 6 UAW Faurecia Organizing Victory Faurecia is a major French based automotive supplier with manufacturing plants worldwide. Its Cottondale plant makes seating for Mercedes-Benz’ M-Class sport utility vehicles. Wilson said employees were excited when they watched the vote being tabulated Wednesday evening. “We now have something to look forward to when we get up to go to work,” she said. 7 UAW Faurecia - What Went Wrong “Workers didn’t feel they were treated politely by management” “We don’t feel they gave us the pay and benefits we deserve,”. Employee Jacqueline Kynard of Perry County also said “she did not feel employees were treated fairly”. “We get disrespect, cursed at and are expected to work long hours in that environment," she said "It has been so stressful." 8 UAW Johnson Controls – Organizing Victory 9 UAW Johnson Controls - What Went Wrong Johnson Controls originally built the Cottondale plant to make seats and interior components for Mercedes SUVs made nearby in Vance. But when the new generation of the Mercedes M- Class was announced, the automaker awarded that work to Faurecia. 10 UAW Johnson Controls – What Went Wrong One of the main reasons that employees voted for the UAW: Current pay levels & uncertainty concerning further reduction in pay. As a result of loss of work, the pay cut of $3.75 was announced in January 2012. The pay cut took effect in July and beginning August 2012. Employees were obviously upset. 11 UAW Johnson Controls - What Went Wrong Mercedes picked Johnson Controls to make doors and interior cockpits for its next generation of C-Class sedans. In June 2012 the plant reduced its workforce with a permanent layoff of 103 workers. 12 UAW Johnson Controls - What Went Wrong November 14, 2012 Deborah Jones, a 14-year employee at the Cottondale Johnson Controls plant, voted to unionize. “It was very remarkable,” she said Thursday after the employees’ vote was official. “I was so very proud of the workers banding together.” Jones said she considers Johnson Controls to be a good company and a good place to work. She said workers had expressed different concerns in the days leading up to the vote. 13 UAW Johnson Controls – What Went Wrong Around the time the employees had their pay cut, Faurecia caused Mercedes to shut down due to the defects in seats. A major blow to JCI employees because: 1) Faurecia took JCI’s seat work and caused Mercedes to shut down because of defects in those seats; 2) JCI employees had to sort seats made by Faurecia; 3) JCI employees received lower paychecks due to the pay cut which resulted from losing seat contract; & 4) Because of the shut down caused by seat defects, JCI employees had fewer hours of work at lower pay rates. 14 UAW Johnson Controls - What Went Wrong “I think it was a composite of things,” she said of the factors that put the latest vote in the UAW’s favor. In general, economic issues were on the workers minds, she said Jones, a mother with children to support, said wages and health insurance are a concern for her. Etta Richardson, who also voted for the union, said wages are her main concern. “I was very happy with the way things turned out,” she said. “I feel like we need a united voice to represent us.” 15 UAW Johnson Controls - What Went Wrong She said things were peaceful at the factory after the vote and workers seemed happy with the results. She said the employees remain committed to the plant’s success. “We want to keep exceeding our customers expectations by sending them good parts,” she said. “We want to keep the plant successful.” 16 UAW Johnson Controls - What Went Wrong One of the key issues emphasized by the UAW was their promise the UAW can guarantee JCI employees a written contract. JCI employees have been on a pay freeze since 2005 and were hit with a pay reduction in 2012. Once they found out about the pay reduction, employees went to JCI HR and demanded a guarantee that their pay would not change anymore. Of course, JCI HR told them they could not guarantee that and it is all driven by business. 17 UAW Johnson Controls - What Went Wrong Meanwhile, UAW organizers said they could guarantee the employees that their pay would not change. JCI pointed out that other JCI & UAW contracts explicitly stated the pay rate will be negotiated and dictated by business needs. Employees were also told that JCI Cottondale plant is the highest paid interiors JCI plant. 18 UAW’s Next Target: Nissan In Canton, Mississippi 19 UAW’s Next Target: Nissan In Canton, Mississippi June 4, 2012 JACKSON, Miss. (AP) -- The United Auto Workers stepping up efforts to organize workers at Nissan Motor Co.'s auto plant in Mississippi. The UAW, faced with shrinking employment rolls at General Motors, Ford and Chrysler, has repeatedly said it's going to redouble its efforts at non-unionized plants operated by foreign-based firms. 20 UAW’s Next Target: Nissan In Canton, Mississippi Democratic U.S. Rep. Bennie Thompson, of Bolton, is among the political and community activists who have been appearing at press events and rallies seeking to help employees organize a union. 21 UAW’s Next Target: Nissan In Canton, Mississippi UAW President Bob King has said he's seeking deals with foreign automakers to allow workers to vote on union representation in an atmosphere free from the pressurized tactics that labor and management often use to make their case. Union has also been training workers to demonstrate at dealerships of non-union automakers. King also said in December that the union has reports of civil and human rights violations by Nissan from workers and the community. 22 UAW’s Next Target: Nissan In Canton, Mississippi Play the race card 80% of 3,500 workers= African Americans Historically, African American workers have been more likely to vote for unions than Caucasian workers. Wage Comparison to other Nissan plant Employees at Nissan’s Smyrna, TN plant makes $2-$3/hour more than employees at Canton. 23 Nissan= Civil And Human Rights Violator? Demanding “equal time” for UAW to make their case UAW & other union supporters are accusing Nissan of engaging in ant-union tactics such as showing anti- union videos to create a “climate of fear” and giving warnings to individuals and in group meetings. Workers want fairness in pay and benefits: Since Nissan received large tax incentives ($363 million) for locating its facility in Canton, Mississippi plant, Nissan should be more engaged in treating workers fairly to create stronger communities for their workforce. 24 Nissan= Civil And Human Rights Violator? Canton plant workers shouldn’t be treated like “second-class citizens.” “In Japanese plants, Nissan management cooperates with unions. In France, Nissan’s partner Renault also works with unions. Nissan willingly works with unions in their own country and around the world, but discourages them in America.