Buyouts expected to alter face of UAW

There's still a possibility that the union will have to back up its strike threat.
DETROIT FREE PRESS
DETROIT -- At a recent meeting of UAW local leaders from across the country, a speaker asked how many of those representing General Motors Corp. and Delphi Corp. workers planned to retire or quit their jobs this year.
Half of the crowd -- representing 93 locals -- shot hands in the air, according to some leaders who were there.
The show of hands reflected the profound changes that are soon to play out not only at the Fortune 500 companies, but also at the union that is synonymous with the Detroit labor movement.
At a time when the UAW is preparing for the massive retirement of more than 30,000 members from GM and Delphi, the union is coping with declining dues from a shrinking membership and the prospect of a difficult leadership transition at the union locals.
And there is still the possibility that the union will have to back up its threats to strike Delphi if the bankrupt company unilaterally cuts wages and benefits. That could quickly shut down GM and hurt other automakers.
Challenge for leaders
The demands on the next generation of UAW local leaders will be more challenging, said Douglas Duchek, a labor lawyer and bankruptcy expert at the Bloomfield Hills, Mich.-based law firm Duchek Buckley. New leaders, even more than their predecessors, must grapple with a massive downsizing of the domestic automotive industry, smaller budgets, lower wages and fewer benefits for members.
"Some may not have the stomach to sell the new situation to the rank and file," Duchek said.
Rocky road ahead
One UAW local president who attended the meeting said he worries it could be a rocky road at many locals.
"The leadership drain definitely will be huge," he said. He asked not to be named because he wasn't authorized to speak on behalf of the UAW. "If you get all new leaders, everything will be a problem."
He wonders how the wave of younger, less-experienced leaders who emerge over the next six months or so will cope with pressures from troubled GM and Delphi to continue cutting costs.
So far, up to 30,000 workers at GM and Delphi have accepted offers to retire early or, in the case of GM, accept a buyout to quit the automaker. Many more workers are expected to accept the attrition offers before the June 23 deadline.
Among the thousands of departures in the months after June 23 will be many UAW local leaders, whose job includes explaining benefits to members, handling all the financial aspects of the union hall and monitoring workers' health, safety and general welfare in the plants. While serving at the local union hall, the union leaders remain employees of their respective companies.
Employees concerned
Rank-and-file employees, who will continue working for Delphi post-restructuring, are concerned.
Dan Lamb, a UAW Delphi worker from Dayton, with seven years of experience, said most of the bargaining committee in his Local 696 union is committed to taking early retirement.
"It'll definitely put a strain on our local," Lamb said. "We'll have absolutely no experience."
Patricia Neal, a UAW Delphi worker from Athens, Ala., with 27 years of experience, has been going back and forth on whether to accept Delphi's offer. In the cafeteria on a recent Thursday, she spotted her union president of Local 2195, who said he was taking the early retirement.
"Here in the South the union isn't that strong anyway," Neal said. "It's going to pretty much wipe out most of our union."
Bad timing
The local leadership loss comes at a time when GM and Delphi are planning to close dozens of U.S. plants and the UAW executive board, at the international office in Detroit, is going through its own turnover.
UAW Vice Presidents Gerald Bantom, Nate Gooden and Richard Shoemaker will retire at the UAW National Convention in mid-June. The three work directly with the Detroit automakers.
Because Delphi said in March it aims to close 25 of its 33 U.S. plants and cut 23,000 jobs, a greater percentage of Delphi than GM local leaders is expected to accept the early retirement offer.
Robert Betts, president of UAW Local 2151 in Coopersville, Mich., said he plans to take Delphi's offer, though he is leaning toward staying on as president for another year to help the transition.
Betts, 45, said he's not worried about the future of his local.
"You've got lower-seniority people that have been around for quite a while and actively serving on committees," Betts said. "We won't die, but we will transition."
The UAW international office in Detroit also has many service and benefit representatives who work with the locals and members. Some of them could take the GM and Delphi retirement offers.
Shrinking membership
The shrinking workforce and plant closings will result in some local union halls closing.
UAW Local 662 in Anderson, Ind., outside Indianapolis, put its 14,400-square-foot building up for sale in May for $750,000, according to a RE/MAX listing.
As was the case in many Midwestern towns, Anderson's economy once revolved around the automotive industry. But with the wave of layoffs at GM, Delphi and other automotive suppliers, Local 662 has seen its membership drop to fewer than 700 from more than 2,500 in 2000. The local represents members at a Delphi plant that the supplier has targeted for closure.
Although the unprecedented loss of experienced leaders presents a challenge to surviving locals, it also can create opportunities for fresh thoughts and new energy, said Van Conway, president of the restructuring firm Conway MacKenzie & amp; Dunleavy, which often works with unions.
"You could almost view this as an opportunity where fresh blood -- somebody that isn't married to history -- may bring a new idea, and maybe even some new enthusiasm, to the rank and file," Conway said.