December 19, 2008

Big 3 CEO's and UAW Leadership,

   I’ve been watching with much interest, the “Big 3/Main Street” proceedings over the past weeks, and I’m saddened and very discouraged by “Wall Street” and Congress’ attempt to use the misfortunes of the “Big 3” to take a crushing blow at the “Big 3” and the Unions. (The UAW in particular and all Unions in general)

    There was a big push this election year in several states to get “Right To Work” laws passed. There are problems with fighting “Right To Work” in that most people outside the Unions aren’t aware of the dangers lurking there. When proponents ask the un-informed, “Doesn’t everyone have the “Right To Work?” most un-informed people believe that sounds fair and consequently shake their heads yes in agreement.

    We were fortunate, or so I thought, that we weren’t significantly harmed by “Right To Work” at the ballot box. However failing that effort, I believe “Wall Street”, “Corporate America” and “Right To Work” proponents have taken this opportunity to use their lobby influenced legislators to gain from the “Big 3 and the UAW’s” present vulnerable condition, what they failed to gain at the ballot box.

   When Congress turned down the “Big 3”, I, as well as most of “Main Street” America, was very disappointed. Now President Bush has vowed to come through. I have mixed emotions with Corporate America’s friend, Republican President Bush, offering to be “Main Street’s” savior, as I’m wondering at what price?

   The Bush administration is also giving hints the “loan” to the “Big 3” may be as little as $5 billion. Given the reports I’ve seen and read, $5 billion likely won’t suffice as it simply won’t stretch far enough to provide needed long term assistance.

   I have concerns whether it be Congress, or Bush, the results will be much the same. The “Big 3”, at a corporate level, probably will be harmed by Federal concession demands, as will the UAW, who likely will pay dearest.

   To many Americans outside of Detroit, $5 billion may give the appearance that the government did all it could, while those close to the industry knows it may take anywhere from 3 to 10 times that amount to give the “Big 3” the real footing it needs.

   $5 billion may be the least Bush feels he can offer, and still be allowed federal intervention into the “Big 3”, and more importantly, still be able to rewrite portions of the UAW contracts, and demand concessions from the UAW, which may have tentacles that could eventually erode benefits to Unions nationwide, some however, sooner than later.

   I work for DTE and already DTE is making overtures to Local 223 UWUA and Local 17 IBEW, that they want to inflict changes that aren’t supported by our contracts, based on Detroit’s economy.

   I believe Union members nationwide need to look for countermeasures immediately to minimize the damage to the UAW. The question now becomes, how can the many Unions across America be united to work toward an internal solution? Can “Main Street” step forward and save itself and prevent government intervention and potential damage to the UAW as well as other Unions? It is an intriguing idea to say the least.  

   I don’t know how far out of the box your solution thinking has taken you, but let’s try to think about this.

   In early 2008, according to the Department Of Labor Statistics, there were 15.7 million Union workers nationwide. If the minimum amount of money (15m) were to be raised strictly by Union workers, it would require a $1,000 dollars investment from each Union member to raise $15.7 billion.

   Could the UAW, the Teamsters, the utility workers, the farm workers and other Unions be united and mobilized in a cause to invest $10 weekly into the “Big 3”? The investment (loan) wouldn’t simply be an investment in just the “Big 3” but an investment in the economy and security of all Unions.

   The success of the UAW and Teamsters has a direct effect upon the success of many other trade Unions. A temporary $10 weekly investment by all is a small price to pay to assure the sovereignty of our Unions.

   When I grew up we always tried to buy American and always looked for the “Made In America/US” or Union label. People have got away from that, and it’s imperative we stop buying foreign products wherever possible. The public needs to be educated about the importance of buying American and how our current national economic condition is a likely by-product of not doing that. Unfortunately, many Union members need’s to be made to understand this as much as the public at large.
      
   A $10 weekly investment by 15.7 million Union workers could raise as much as $16.328 billion over 2 years. Granted there would gaps as not every Union member could or would invest $10 weekly for 2 years, however, there are options to fill the gaps.

   Union members could help enlist non-union workers at their place of employment to make weekly investments in the “Big 3”. They could also approach their management teams to make monthly, quarterly or yearly investments.

   The “Big 3” could play a role as well by asking their dealerships to make monthly, quarterly or yearly investments and ask dealership employees to make investments as well.

   The “Big 3” could also use their influence with their suppliers and vendors to ask for monthly, quarterly or yearly investments and use the current economic state to leverage them into price concessions so all could survive. The “Big 3” could also request supplier and vendor employees to invest as well.

   Both the “Big 3” and the UAW could make pleas on TV, radio and newspapers in communities where there are auto plants, asking businesses and other neighbors to add support by buying stock in the company.

   The “Big 3” executives could start making good on some of the already agreed to concessions to show good faith. The UAW could do the same to show good faith and to bring their loaded costs in line with other workers making similar hourly wages.

   By pursuing these “other” options, the gaps could be more than filled and would resolve many negative consequences to the “Big 3” and the UAW.
If successful,
1.    This process wouldn’t require government intervention in the corporate processes and affairs of the “Big 3”.
2.    This process wouldn’t require the presence of a “Car Czar”.
3.    This process wouldn’t compromise UAW Union contracts in areas that are otherwise unnecessary.
4.    This process wouldn’t immediately bleed over affecting other Unions.
5.    Corporate concessions, Union concessions, supplier & vendor concessions could help drive down manufacturing prices increasing the “Big 3’s” ability to compete.

   Granted this leaves several logistics issues to be worked out, however, they are not insurmountable. It’ll require a lot of work and a lot of teamwork. Should you think this is a viable plan share it with your “Big 3” counterparts. I’d suggest spending the next 2 weeks working on the logistics issues creating the framework so the players could hit the ground running immediately after the first of the year.

Thank you for your time,



Bill St.Clair