AAM Hi-Lo Driver. This is Earth Calling. You are not worth $29/hr to American Axle

I’d like to invite the American Axle workers to return from the cosmos to our fine planet named Earth?  Here on Earth, hard work is required to sustain life. Ingenuity and analytical thinking normally reap more rewards than monotonous physical labor.  Blue collar workers don’t make millions working as drones for fat queen bees; they merely become dependent on the cumulative outbut of the hive, every day finding it harder to be ambitious and reach for something more.  I’m not saying this is the case for all of the AAM hourly employees.  I realize that for some, it is a building block.  I realize that there are very capable intelligent people working in every rung of that company.  I realize that circumstances end people up in a variety of places.  But I know many people that have worked in assembly-line unionized environments, and I hear horror stories, too.  I hear about inefficiency and people with an over-inflated sense of entitlement. 

 

The fact of the matter, they were not economical.  They can say all they want, “we earn this company millions of dollars and there is no reason we need to take a cut and the executive officers get raises.”  I don’t agree with the huge separation of the pay, but that is the fallout of a capitalist economy that doesn’t put a corporation in check early enough.  No one has to work there if they think the company is immoral.  The stockholder’s will not respond until it starts hurting their pocketbook.

 

I work in an office where people make less than $10/hr without medical, 14 days vacation, pension, buyouts, buy downs, COLA supplements, etc. They realize that they will have to work to change their standing, but I’m sure, many of them would still be willing to take a line job at AAM. 

 

The auto industry is unique because of the divisive nature of the union.  At my company, you stay because you are valuable; you grow within the company because you are invaluable.  A lot of auto workers are invisible, because the work is monotonous and requires little skill in many areas.  It is difficult to separate yourself and stand out.  The union recognizes the combined worth of the workforce and has raised the individual rewards, apparently too high. 

 

The way capitalism works, if you can find equally skilled labor at a lower rate, you pursue it.  I haven’t heard many AAM workers argue that this couldn’t be done, that is why they are so threatened by scabs.  The only argument they make is that it simply isn’t fair.

 

Isn’t fair?  You are on a 4-year contract. That means nothing is certain when that contract ends.  My father worked under contract.  They could no longer quantify his value and offered him a significantly lower wage at renewal time.  He understood the circumstances and understood that it came with the territory as a contractor.  He moved on and looked for something better.  I think the main difference here, is that he had tangible skills that could translate into value at many other companies.  Now, he makes more and works less.  Auto workers can’t do this, so they freak out when they see their cash oasis dissipating into the air, leaving them high and dry in the dessert. 

 

I like to see all succeed, but you can’t live in a dream world.  Furthermore, this contract is not bad.  They have so many options. 

 

Here is the deal: http://www.clickondetroit.com/download/2008/0519/16323701.pdf 

 

Buyouts:           Less than 10 years = $85,000     More than 10 years = $140,000 (I make that in about 4 years)

 

Buy Downs:      Using the buy down, workers are really losing no wages over the next four years of this contract.  AAM is calculating the lost wage, times a multiplier to beef it up, times the average hours worked in a year, times four years; and dividing it into 3 lump-sum payments.  Workers are not losing any wages under this contract, but they are being prepared for the next contract, where there will be no buy downs. 

 

Poor guys now only get 14 paid holidays.  Cry me a greasy river; I get the fourth, Thanksgiving, Memorial Day, and Labor Day.  The biggest thing that will hurt the long-term workers is the frozen pension, but how many companies do you know that still offer a pension?  They don’t want these perks because it is fair.  Look at the rest of us; we don’t get it.  They want it because their greedy and don’t understand the laws of supply and demand. 

 

I understand that with the advent of the auto industry and the huge profits it once reaped, the unions provided a buffer against greedy corporate rulers and owners.  I love the idea of a union; it is what keeps things in check.  But, once you create that caste system, you will be at odds, rather than on the same team.  Co-dependency is not the same thing.  It is rather disgusting at AAM.  Their CEO made over $10 million in 2007, according to Executive Paywatch, an online watchdog for executive pay at public companies.  The company netted $37 million in 2007.  They could have boosted their profit over 20 percent if their CEO only made one million. 

 

I feel bad for families that are familiar with a certain lifestyle and have to watch it go, but they have to realize, this is just the market correcting itself.  I feel bad for kids that will have to stop shopping at Somerset and now shop at Salvation Army.  Actually, no I don’t, people brought up by parents with good character and without lots of material possession normally end up being the people I like. 

 

AAM offers skilled trade and education reimbursement programs.  I recommend you workers utilize that so that in 4-years you are prepared when the money stops growing on trees.  In the meantime, maybe you can use your tears to save on industrial lubricant costs for the machinery, while you waste time making axles for trucks that are going to continue to have a plummeting market share.  I hope, for the sake of AAM workers, they broaden their product line. 

The real story is the UAW and how they manipulated this situation.  This is the offer they were going to get all along.  AAM was just waiting for GM to kick in some support, and the UAW was trying to starve the workers to the point of acceptance.  They should be happy, though.  Most people don’t get 4 more years for reality to sink in.   

Tags: AAM, Agreement, American Axle, Assembly Line, Axle, Capitalism, chrysler, Contract, dana, Detroit, ford, General Motors, GM, Hamtramck, harley davidson, Hourly, mexico, Salary, Socialist, THree Rivers, UAW, UAW local 235, Union, United Auto Worker, visteon