Reality Check? UAW Struggles With Why Massive Recalls Affect Their Profit Sharing Checks

Reality Check? UAW Struggles With Why Massive Recalls Affect Their Profit Sharing Checks

The United Auto Workers union is in talks with Detroit automakers about recall costs taking a bite out of members’ profit-sharing checks, according to President Dennis Williams.

Union officials, he said, are “in continued discussions about the profit-sharing versus the recall,” as automakers spend hundreds of millions, if not billions, of dollars this year to fix and repair cars and trucks.

Williams, speaking with news media Monday at the UAW’s Solidarity House headquarters in Detroit, did not provide details about the discussions. It’s likely the union is arguing that the cost of the recalls — many of which are older models — shouldn’t detrimentally impact members’ annual profit-sharing checks. Payments are based on each of the automakers’ North American profits.


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TheSteveTheSteve - 12/16/2014 12:06:11 PM
+3 Boost
Dear UAW,

"Profit Sharing" is a scheme in which employees share in The Company's profits. The bigger the profits, the more the employees benefit. The smaller the profits, the less they benefit. Consider yourself and your members very fortunate because even though you share in the profits, you don't share in the losses. The Company takes on all that risk.

Regards,
Steve


Agent009Agent009 - 12/16/2014 12:30:20 PM
-1 Boost
The UAW argument is the recalls are not caused by their actions, therefore should be excluded.

After all organized labor wants the rewards of work not performed by them, but also to not be affected by areas outside of their control.


Vette71Vette71 - 12/16/2014 12:51:04 PM
+1 Boost
009. That's not how profit sharing works. Like in sports, the whole team shares in the risks and rewards regardless of the source. The emphasis is on team. Good economy=increased profit; bad economy=lower profit. UAW has no control on that. So if the UAW builds shoddy cars and sales fall, the marketing and engineering folks should argue they should still get their profit sharing?


TheSteveTheSteve - 12/16/2014 3:48:33 PM
+1 Boost
'009. Please re-read my post above yours (1st one in this thread). The UAW can argue all they want. The fact is that they share in The Company's *profits*. "Profit sharing" doesn't mean they get bonuses just doing their job.


Agent009Agent009 - 12/16/2014 2:57:13 PM
0 Boost
@Vette71 Exactly the point, UAW wants the rewards but no risks.

Profit sharing is just that, sharing of profits. If they are booming then good times roll, If there are none then no check for you.

It is a team effort, but also think about it. If there is shoddy design the workers on the line should have a voice and point it out (this does occur at Ford and I would assume others as well)

The grey area is supplier parts issues. technically the supplier should be on the hook poor quality, but it appears this is not the case.


Vette71Vette71 - 12/16/2014 6:59:39 PM
+2 Boost
Its not a grey area. Schiess happens and profits are down. It effects everybody in the company equally. The UAW is seeking favoritism and would have the stockholders (which includes the UAW pension fund) take it in the chops so they get more then they agreed to.


gkearns56gkearns56 - 12/16/2014 5:01:11 PM
+1 Boost
Dear Santa:

Can you please send these UAW idiots a piece of black coal for Christmas. They deserve NOTHING for the crappy cars they consistently build. They're a bunch of greedy pot smoking workers who only care about themselves. Oh Santa....I thought you saw EVERYTHING.....well if you don't believe me about the pot smoking, beer drinkers check this out from the North pole: https://www.youtube.com/watch?v=hzyRjX_pX5c




TheSteveTheSteve - 12/16/2014 7:17:18 PM
+2 Boost
Here's a suggestion for the UAW: Next time you negotiate your contract, build in bonuses based on two factors: (1) Number of units completed, and (2) Reduction of manufacturing defects. You build more cars with the same same number of defects (due to manufacturing, not component failure), you get a bonus. Generate the same number of vehicles but bring down the number of manufacturing defects, you get a bonus. Do both, you get a double bonus.

With this crazy idea, you get more money by providing more value to The Company. Now if they don't manage things well and end up not making more money in spite of fewer manufacturing defects and/or creating more vehicles (with the same number of defects, at the same cost), then that's a sign of a problem elsewhere.

I bet the UAW won't do this because they're not into the idea of generating more value to get paid more. That's just crazy talk.


MDarringerMDarringer - 12/16/2014 8:14:16 PM
+2 Boost
Dear Blood-Sucking, Gestapo, Mafia, UAW:

You are the problem. You are no longer relevant.


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