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You are here: Home / Elections / Election 2012 / A Modern Success Story

A Modern Success Story

by John Cole|  September 17, 20115:30 pm| 35 Comments

This post is in: Election 2012, Free Markets Solve Everything, Republican Stupidity

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I don’t know what team Obama plans to do to get re-elected, but this should be front and center:

The United Auto Workers union won $5,000 signing bonuses for its workers and a promise to reopen an assembly plant in Tennessee as part of its tentative new contract with General Motors, according to people briefed on the negotiations.

In what is being viewed as a landmark deal, the union also preserved health care and pensions and improved profit-sharing for its roughly 48,000 members who work at G.M.

The U.A.W.’s tentative, four-year agreement with G.M., announced late Friday, also opens the door for the automaker to bring back laid-off workers and move jobs back into the United States.

G.M. is the first of Detroit’s Big Three to reach a deal with the union. Details of the agreement were being withheld until the union can inform members, who will vote on ratification over the next two weeks.

The union’s president, Bob King, said in a statement that union members would get a larger share of the profits from G.M.’s comeback from its federal bailout and bankruptcy in 2009.

“When G.M. was struggling, our members shared in the sacrifice,” Mr. King said. “Now that the company is posting profits again, our members want to share in the success.”

G.M.’s lead negotiator, Cathy Clegg, said the agreement allows G.M. to continue adding jobs as it increases market share in the United States.

“We worked hard on a contract that recognizes the realities of today’s marketplace, enabling G.M. to continue to invest in U.S. manufacturing,” she said.

Industry analysts said the union achieved its goals of balancing economic gains in the agreement with solidifying G.M.’s cost structure for future growth.

“I think the U.A.W. went way beyond holding the line here,” said Harley Shaiken, a labor professor at the University of California, Berkeley. “The union made some real gains in the contract in the context of where G.M. becomes a more competitive company.”

If the Republicans had their way, every single person associated with GM, from suppliers to the dealerships, would be without a job. They pitched a fit when the government was involved out of necessity.

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Reader Interactions

35Comments

  1. 1.

    Dr. Squid

    September 17, 2011 at 5:34 pm

    Too bad most of those associated with GM forget that the Repubs wanted them all to die in a fire. They’re claiming, “Well, it had to be done,” as if the crazy Republicans would have all of a sudden become sane, and as if they were entitled to a bailout.

    Damn white people.

  2. 2.

    Mino

    September 17, 2011 at 5:36 pm

    I wonder how many of those Reagan Democrat autoworkers are voting Republican nowadays? Sorry. Still bitter.

  3. 3.

    LT

    September 17, 2011 at 5:37 pm

    Excuse while I finish guffawing at the first comment…

    Okay then. Yo, John Cole, you forgot your blockquote. And galdamnit I just went back to the story and you timed me out at the NYT. Wanted to see if there were some positive comments from GM on this deal. Are there any?

  4. 4.

    Yutsano

    September 17, 2011 at 5:37 pm

    You know the story will be spun as union thugs threatening their Galtian overlords. How DARE they interfere with their capacity to make a profit?? The bailout won’t even get noticed because, well, UNIONS!! You can’t expect them to put two and two together.

  5. 5.

    Belafon (formerly anonevent)

    September 17, 2011 at 5:38 pm

    opens the door for the automaker to bring back laid-off workers and move jobs back into the United States

    But the masses won’t be peasants any more if there are jobs for everyone.

  6. 6.

    cleek

    September 17, 2011 at 5:39 pm

    the wingnut line is that Bush gets credit for the bailouts.

    yes, the GOP opposed the bailouts, and even filibustered one attempt; and Obama and the Dems were pushing for them; and Bush only signed the stuff under pressure. but, they are going to claim credit out of one side of their mouth while complaining that it was evil out of the other.

    i think we’re all going to get really good at typing “hypocrisy”.

  7. 7.

    Belafon (formerly anonevent)

    September 17, 2011 at 5:39 pm

    @Yutsano: Actually, I expect the story to be about how George Bush saved GM.

  8. 8.

    Keith G

    September 17, 2011 at 5:44 pm

    I don’t know what team Obama plans to do to get re-elected

    Apparently not much except surviving this month, if they are lucky.

  9. 9.

    Jim, Foolish Literalist

    September 17, 2011 at 5:47 pm

    @cleek:

    they are going to claim credit out of one side of their mouth while complaining that it was evil out of the other.

    That’s essentially what Romney did and no doubt will do

    Let Detroit Go Bankrupt
    By MITT ROMNEY
    Published: November 18, 2008

    I imagine an alternative universe in which a Republican had Obama’s record to run on. David Gregory would start every roundtable with googly-eyed and reverential “The economy is still in rough shape, but Democrats are taking on the president who killed bin Laden and saved the auto industry”

  10. 10.

    M--pop

    September 17, 2011 at 5:52 pm

    Well, I know what my next car is going to be.

  11. 11.

    Jim, Foolish Literalist

    September 17, 2011 at 5:53 pm

    If the Republicans had their way, every single person associated with GM, from suppliers to the dealerships,

    Also, too, Ford and Chrysler, and since we are, or were, talking about the entire supply chain of the industry. all US-based manufacturing and sales for foreign car-makers, too, no? and a ripple effect pretty much across the world?

  12. 12.

    General Stuck

    September 17, 2011 at 5:56 pm

    Is Obama a corporatist or soshulist sellout, or sellin, or a sell high. In this war, things get confused, out there in the field.

  13. 13.

    PeakVT

    September 17, 2011 at 6:01 pm

    Looks like the gap between the two-tiers of workers (old vs. new) was closed some. The details on that will be interesting.

  14. 14.

    kay

    September 17, 2011 at 6:08 pm

    Canada bailed them out too:

    Two years ago, it was widely held that both governments, as well as their U.S. counterpart, were throwing good money after bad and that Chrysler and General Motors should be allowed to fail. I recall railing against the “partial nationalization of a dying company.

    ”

    Yet there was Finance Minister Jim Flaherty standing alongside Chrysler chief executive Sergio Marchionne on Monday at the company’s Etobicoke casting plant, defending the decision to lend the auto companies $13-billion.

    He indulged in a little schadenfreude at the expense of his critics. “It was crucial to protecting jobs in Canada and the auto industry. Fifty-two thousand Canadian jobs were protected by government action, in the midst of a fragile recovery … It was criticized severely by some. But it was the right decision,” he said with a quiet satisfaction.

    The difference is, Canadian conservatives admitted they were wrong. What would you do if you heard a US conservative admit they were wrong? I think I would faint dead away.

  15. 15.

    desraye

    September 17, 2011 at 6:22 pm

    @Keith G:

    Maybe they will do something if they actually knew who their opponent is.

  16. 16.

    kay

    September 17, 2011 at 6:22 pm

    @Dr. Squid:

    Too bad most of those associated with GM forget that the Repubs wanted them all to die in a fire.

    In my experience, it’s the opposite. None of them remember that Bush was the first lender. I think we (finally) benefitted from media’s conservative meme-promotion. They thought it would fail, so they put the whole thing on Obama, per orders :)

    Which is fitting, because if it had failed, we wouldn’t hear anything about Bush’s role, so Obama took all the risk.

  17. 17.

    Odie Hugh Manatee

    September 17, 2011 at 6:29 pm

    This is f’ing excellent but I’m sure that the Wingerati and Glibertarians will let us know all of the downsides of this deal with the Satan Unions.

    Galt is weeping.

  18. 18.

    kay

    September 17, 2011 at 6:32 pm

    And I know we’re all inured to it, but there was so much flat-out lying about the bail-out, we’ll never get it straight:

    “People look at this industry and see six big silos,” said Bob Carter, Toyota Motor Sales USA vice president, referring to the three American and top three Japanese carmakers, GM, Chrysler , Ford, Toyota, Nissan and Honda, that between them dominate sales in the U.S. “But once you get below that it’s like peeling an onion, it’s all intertwined,” he said.

    Not only is Toyota concerned about the fate of the components suppliers its manufacturing operations share with GM and Chrysler, but it also has concerns about its dealer network, Carter said.

    “A lot of our dealers also sell General Motors and Chrysler cars,” said Carter. “The whole financial system, supporting the industry is intertwined,” he added, noting that Toyota wants to see GM an d Chrysler regain their footing and thrive. “Strong competitors are good for the business,” insisted Carter.

    These myths will live forever. I heard the WH manufacturing person trying to explain the effect of the Japanese earthquake on US manufacturing and it was just all blank stares. Poor guy. I felt like telling him, “Oh, just hang it up. They don’t CARE about your boring facts and figures.”

  19. 19.

    Halteclere

    September 17, 2011 at 6:42 pm

    It makes me wonder how well Ford would have done if GM and Chrysler had been allowed to fold. Sure Ford did not take any government money, but how would have Ford’s distribution line held up? If the manufactures and distributors had gone away, Ford would not have been able to sell what they could not produce.

  20. 20.

    Amir Khalid

    September 17, 2011 at 6:44 pm

    I seem to remember that aside from saving the companies, their suppliers, and tens of thousands of jobs, the US Government even made a profit on bailing out the carmakers when it eventually sold its stake in them. Team Obama shouldn’t let people forget that, either.

  21. 21.

    kay

    September 17, 2011 at 6:50 pm

    @Halteclere:

    Ford said that, repeatedly, but that was ignored in the rush to tell a more compelling story; one that included a “good” company and some other “bad companies”, so as to gin up the RAGE. It’s a nice contrast, yes, if you’re in the story-telling business? Good/bad.

    It wasn’t true, but that didn’t matter.

  22. 22.

    Odie Hugh Manatee

    September 17, 2011 at 6:50 pm

    @kay:

    The typical American voter hates facts and figures. They just want things to work, no matter who they vote for. The problem with their ignorance is that they are like an idiot with two boards, a hammer and a nail.

    They keep hitting themselves in the head with the hammer and wondering why the nail isn’t being driven into the boards.

  23. 23.

    Jim, Foolish Literalist

    September 17, 2011 at 6:55 pm

    @kay: Ford is now running (IMHO very dishonest) ads about how they stood on their own two feet:

    This Ford ad’s been out for a while, but Paul Bedard blogs about it anew and gets some Drudge attention. In the ad, a Real Live Customer says he bought a Ford because “I wasn’t going to buy another car that was bailed out by our government. I was going to buy from a manufacturer that’s standing on their own: win, lose, or draw. That’s what America is about is taking the chance to succeed and understanding when you fail that you gotta’ pick yourself up and go back to work.”

    anecdotally, I’ve heard of individual dealers doing the same thing, saying Ford stands for “Federal Ownership Respectfully Declined”.

  24. 24.

    Raven (formerly stuckinred)

    September 17, 2011 at 6:58 pm

    Do we get a night time football thread?

  25. 25.

    kay

    September 17, 2011 at 7:02 pm

    @Odie Hugh Manatee:

    The typical American voter hates facts and figures

    I don’t necessarily buy this.

    In any event, it doesn’t matter, because it wasn’t the typical American voter listening. It was people who are paid to listen to the manufacturing czar listening, and then they (presumably) relay that information to the typical American voter. The reason they weren’t listening (IMO) is they were doing that “we’re cynical and savvy” thing. They thought the guy was spinning to protect Obama/economic performance because they’re soooo sophisticated. I don’t think he was.
    The supply chain exists, and the tragedy in Japan disrupted it, which was what he said. Seemed reasonable to me. It’s not like they were rebutting him with better information. They were just rejecting his EXCUSE MAKING because they’re TOUGH.
    I could not do that job. I would have to strangle one of them.

  26. 26.

    kay

    September 17, 2011 at 7:06 pm

    @Jim, Foolish Literalist:

    Well, it’s dishonest, but it’s an advertisement, so there’s hardly a high bar.

    Ford would not have been able to run the dishonest ad had anyone understood the bail-out.

  27. 27.

    kay

    September 17, 2011 at 7:15 pm

    @Jim, Foolish Literalist:

    It’s a silly ad on so many levels, because what would an auto dealer do w/out financing, both for inventory and for sales? Go out of business, fast.

    Ford benefitted from all the bail-outs. It’s a nifty ad, though. Very inspiring. Makes me want to take out a 6 year auto loan, on a car I can’t afford.

  28. 28.

    Odie Hugh Manatee

    September 17, 2011 at 7:25 pm

    @kay:

    I do buy it. IMO, too many people are too busy to deal with the complexities of the political/financial worlds. That’s why some are happy to get their info from sources that they trust to dumb it down for them. They feel they are doing their civic duty by paying attention to the world around them and voting accordingly.

    IMO the fact that so many people can be easily misinformed and misdirected into voting against their best interests proves my point. Too many people just don’t believe that the details are important. They are happy as long as the sun rises and they can make it through another day of life without shit going wrong. They may be angry with the direction of things but they will still vote against what they want because they aren’t paying attention to the details.

    That’s why the Republican party, with the backing of the rich and powerful, is so successful. They have known of this weakness in our system for a long time and have been exploiting it to its fullest.

  29. 29.

    kay

    September 17, 2011 at 7:49 pm

    @Odie Hugh Manatee:

    IMO, too many people are too busy to deal with the complexities of the political/financial worlds.

    I agree with that, but I don’t think that means they aren’t interested in facts. They just conflate hazy facts “heard” and run them all together. For a long time, people used to tell me they paid a “death tax” (a federal estate tax). I questioned that (they were really mad about it!) and it would turn out they paid probate fees, or recording fees, or deed transfer charges, or unpaid property taxes. Every transfer or other fee from any state entity after a death in the family became “the death tax” they had heard so much about.

  30. 30.

    Odie Hugh Manatee

    September 17, 2011 at 8:07 pm

    Maybe the best way to put it is that too many people are armed with the wrong facts because they either misinterpret them or are deliberately misled by ‘information’ that appeals to or repels them at the gut level. I believe the latter will only face reality when they are mugged by it. Too many are in their comfort zones, thus they don’t have to face reality. They can believe in shit that we know is stupid because it just doesn’t affect them. Yet.

    I deal with the public on a daily basis, I take their money for in return for my work. I talk to these people daily and talk eventually evolves to the mess we are in as a country. Too many of them are just not politically plugged in and really have no idea why we are in the mess we are in but they sure are mad! Some have no problem blaming whichever side but when pressed they usually recite some tripe that I know is wrong.

    I do what I can to give them information that might give them some direction but sadly, too many just don’t care. Some do, so that makes it worth it. It’s business, so I have to walk softly…lol

  31. 31.

    boss bitch

    September 17, 2011 at 9:40 pm

    @Keith G:

    Apparently not much except surviving this month, if they are lucky.

    Right. Nothing much. Except the jobs bill, getting everyone and their mother to come out and endorse it, 30 second commercials for it in swing states, having Obama give speeches in the states of his opposition in Congress, setting up a site (Attack Watch) to push back on lies – yeah all just to survive the month.

  32. 32.

    J

    September 17, 2011 at 10:14 pm

    @Jim, Foolish Literalist And the local businesses like the donut shop, hair salons, bars, bowling alleys and any other local business that depended on the locals to spend their hard earned “fun money” after a week of working at the plants. I lived in Michigan during the Reagan “they can vote with their feet” years. Believe me, it wasn’t pretty seeing entire downtowns boarded up, block after block.

  33. 33.

    Caz

    September 18, 2011 at 1:32 am

    If GM went bankrupt, which is what happens when companies don’t succeed to a sufficient level in a capitalist society. There is nothing evil about it, although it is unfortunate for investors, employees, and loyal customers. Not every company can survive, and there’s nothing wrong with it.

    But to say that “if R’s had their way, everyone at GM would be out of a job” is a gross mischaracterization. When the top R, Bush, had his way, he started the bailout trend, meaning that GM employees would not have lost their jobs. If SOME R’s had their way, GM might have had to file bankruptcy, freeing up market share for other, more successful companies to take advantage of – these other companies would have made more money, made more products, expanded, and hired more people, hence jobs created. Also, in bankruptcy, companies often restructure and survive, as do their employees.

    Your next assertion that the govt was involved out of necessity is outright false. it’s a matter of debate whether the GM needed the govt to get involved in order not to lay off every single GM employee. The Constitution does not permit the federal government to use taxpayer dollars to prop up failing companies, invest in them, become majority shareholders, or make irrelevant the bankruptcy laws. The necessity you speak of is pure speculation that cannot, and has never been, backed up by any evidence. “We would have had another great depression!” No, we wouldn’t have, but that’s a nice propagandistic statement that’s impossible to prove one way or the other. Many brilliant economists have stated that there was no necessity and that gov’t involvement was not only unnecessary, but has probably caused additional systemic damage that we will incur as time passes.

    Is it too much to ask that you at least accurately characterize your opinions as such, and not as facts? Aside from myself and maybe one or two other trolls that don’t fall for the progressive propaganda, the only ones that read this blog are those that agree with you anyway, so what’s the point of lying? Just be honest and say you’re speculating, because you all know that’s what it is anyway.

    You’re dumb.

  34. 34.

    hamletta

    September 18, 2011 at 4:15 am

    I’m really happy they’re going to re-open the Spring Hill plant.

    It was where they made Saturns, and there was a whole thing among Saturn owners. There were Saturn gatherings, with concerts and shit.

    Everybody I know who owned a Saturn loved it, and they had a whole community of owners back in the ’90s, before the internet was a utility.

  35. 35.

    Modusoperandi

    September 18, 2011 at 5:32 am

    @Halteclere: “Sure Ford did not take any government money…”
    Um. Ford got money too.

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