Thursday, October 18, 2007

Chicago Tribune, October 11, 2007, Thursday

Copyright 2007 Chicago Tribune Company

Chicago Tribune

October 11, 2007, Thursday

Chicago Edition

SECTION: BUSINESS ; ZONE C; Pg. 1

HEADLINE: 'Quickie' strikes puzzling;

Are unions ready to revive tactic or is process posturing?

BYLINE: By Stephen Franklin and Rick Popely, Tribune staff reporters

BODY:

With its two short walkouts, the United Auto Workers union employed a strategy that has almost become a relic for organized labor -- the strike.

Before the UAW's recent two-day strike at General Motors Corp. and its roughly six-hour walkout Wednesday at Chrysler LLC, the union hadn't struck a major automaker in 31 years.

These days there are fewer than two dozen major walkouts each year, down from 400 or more annually in the 1950s. And the fact that unions so seldom take to the picket lines raises some questions:

- Will the UAW's quick settlements with the two automakers on the heels of strikes pump new life into an old tactic?

- Or will U.S. unions remain gun-shy of an action that has often backfired?

Though the UAW had warned of a walkout if it could not reach a deal by Wednesday morning, its decision to send its members onto the streets came as somewhat of a surprise partly because in its unusually long bargaining with GM, the union had repeatedly pushed back its deadline.

But with no extension of its deadline with Chrysler, UAW workers starting walking out of most of the carmaker's 32 U.S. plants and major parts facilities at 10 a.m. Wednesday.

A little more than six hours later, the strike was over and the union said it had reached a tentative contract.

The union provided no details of the contract, which has to be submitted to its 45,000 members for ratification.

While Chrysler also gave no details, it said in a statement the tentative pact includes a trust fund for retiree health care like the one set up in the GM contract.

The company added the contract "balances the needs of our employees and company by providing a framework to improve our long-term manufacturing competitiveness."

That wording implies that, like GM's contract, the one hammered out between the UAW and Chrysler will include major changes such as hiring new workers at lower wages and benefits than ones current UAW members enjoy. GM's agreement sets a starting wage of $14 an hour for new employees in non-production jobs, about half the current pay.

The UAW struck GM on Sept. 24 and reached a tentative deal two days later.

The GM contract was ratified by a nearly two-thirds vote, the UAW said in a statement Wednesday, though it did not say how many of the 73,000 union members at GM voted.

The walkout at Chrysler did not include five of the company's nine U.S. assembly plants, including one in Belvidere. Belvidere was one of five assembly plants already idled to counter slow sales.

The UAW's contracts with Chrysler, GM and Ford Motor Co. expired Sept. 14, and the union still has to negotiate with Ford.

The Chrysler walkout, the equivalent of a New York minute in labor disputes, left analysts scratching their heads.

"Why send everyone out if you're that close to an agreement? If you're that close, you can just make a phone call and tell everyone to hold on," said Global Insight analyst Aaron Bragman. "This is a mystery for us to figure out."

Adding to the mystery, Bragman said, was word that the two sides reached a deal within two hours of the strike's start.

Some experts suggested that UAW officials may have stumbled into a showdown and kept going because they wanted to show the rank and file they were hanging tough.

That would make sense, they added, if union officials realized they would have to present members with unpopular concessions.

Going into contract talks with GM, UAW President Ron Gettelfinger had faced criticism from foes within the union that he was unlikely to stand up to the automakers.

It is also unclear whether the union's short-lived shows of strength will set a precedent.

Quickie strikes barely provide a union with leverage against a company, say labor experts such as Craig Olson at the University of Illinois.

"I don't think you could argue that either side achieved anything sufficient from a two-day strike," Olson said. "The settlement had to be close."

In fact, even longer strikes have been failures, said Rick Hurd, a labor expert at Cornell University.

Like others, he pointed to strikes by mechanics at Northwest Airlines Inc. where after 15 months on the picket lines most of the mechanics lost their jobs and by truckers against Overnite Transportation where after three years, the trucking company defeated the Teamsters union's organizing efforts.

Still, unions have come out winners in some strikes, but as Hurd and others pointed out, such victories have been few.

The Teamsters, for example, won a good contract from UPS after a 16-day strike in 1997, and white-collar workers at Boeing Co. won bonuses and pay hikes after a 40-day strike in 2000. In these disputes, the unions relied on timing and rank-and-file solidarity for leverage.

More recently unions in the health-care and service industries have been increasingly willing to launch large-scale strikes. "Because they are growing, they are more willing to take risks," Hurd said.

Similarly, unions that represent factory and airline workers talk more nowadays about taking on their companies, said Hurd. But these unions are driven more by despair than zeal, he added. "It's more of a sign of the difficulties that unions are facing as companies go after them for concessions," he said.

To Gerald Meyers, retired chairman of American Motors Corp., the GM strike was "very carefully choreographed" as a dramatic end to negotiations. Gettelfinger appeared at a press conference shortly after the strike started and explained to union members why they were striking, then returned to the bargaining table.

The union's brief face-off with Chrysler did not follow the same scenario, said Meyers.

"Neither side was prepared," he said.

sfranklin@tribune.com

rpopely@tribune.com

GRAPHIC: Photo (color): T.J. James (left) hugs Michael Tremaine after the announcement the UAW strike against Chrysler ended at Warren, Mich., plant. AP photo by Kathleen Galligan\ Photo (color): Engineering and Technical Workers against Boeing. AP photo\ Photo (color): Aircraft Mechanics Fraternal Association against Northwest Airlines. AP photo\ Graphic: Striking out\ As the number of labor strikes has dwindled, union successes are becoming rare.\ - NUMBER OF LARGE STRIKES (Involving 1,000 or more workers)\ - STRIKING WORKERS (In millions)\ A B C D\ 1950-2000\ Major strikes in recent years\ SUCCESSES\ A. Teamsters against UPS\ August 1997\ Reason for strike: Teamster-represented UPS workers opposed the company's increasing use of lower-wage, part-time workers.\ Outcome: After a 16-day strike, the union succeeded in getting the company to create more full-time positions and increase the wages of part-time workers.\ B. Engineering and Technical Workers against Boeing\ February-March 2000\ Reason for strike: The white-collar workers, represented by the Society of Professional Engineering Employees in Aerospace, demanded higher salaries and bonuses.\ Outcome: After a 40-day strike, the nearly 15,000 workers succeeded in gaining raises averaging 15 percent over three years.\ FAILURES\ C. Teamsters against Overnite Transportation\ 1999-2002\ Reason for strike: The Teamsters conducted a strike as part of an effort to unionize the trucking company.\ Outcome: Unionizing efforts failed and the company was purchased by UPS in 2005.\ D. Aircraft Mechanics Fraternal Association against Northwest Airlines\ August 2005-November 2006\ Reason for strike: The union opposed the airline's demand for wage and job cuts.\ Outcome: By the end of 2005, the airline had replaced all 4,400 striking workers. The following year, the union accepted severence pay.\ Sources: Bureau of Labor Statistics, Tribune and news reports\ Chicago Tribune\ -See microfilm for complete graphic

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