The Workings of Automotive Unions

The Workings of Automotive Unions

The last bolt is screwed on as a relieved automotive worker marvels at his wondrous creation: a car. With the roar of an engine, the car slowly disappears into the distance. The worker gradually turns around, picks up his tools, and continues to work on a new car. As a consumer, we rarely wonder how things are made; we simply take everything we own for granted. For once, have you wondered how many hours of hard labor many automotive workers must go through? The automotive industry has been around for many years, but it has not always been as efficient as it currently is. As the industry continues to evolve, many new innovative ideas are still being developed. In the past, automotive workers have had to work in harsh conditions without much security or job benefits. Nevertheless, through the continuous development of organized collective bargaining, workers are being treated as they should be. Being the largest automobile manufacturer in the world, General Motors Corporation has been greatly affected by the needs of their workers. Rick Wagoner, CEO of General Motors, is currently in charge of “running the show” at GM. Being the most successful automotive company since 1931, it is obvious that he not only has to satisfy customers, but also the workers within the company. From the smallest things such as a work raise to bigger things such as the working condition, the management of General Motors has been pressured to make both positive and negative changes to the way the company is run as a whole in order to satisfy the workers who are part of the UAW Union. Therefore, the formation and development of unions encompasses both pros and cons.

As the automobile industry made its first appearance in the early 1900s, General Motors had already slowly begun its formation. GM was founded in 1908 by William C. Durant, a carriage manufacturer of Flint, Michigan, and today operates manufacturing and assembly plants and distribution centers in many countries, including Canada . Its major products include automobiles and trucks, a wide range of automotive components, engines, and defense and aerospace materiel. General Motors has a long history of business and technological innovation designed to deliver ever-increasing value to their customers and society. GM today has manufacturing operations in more than 30 countries and its vehicles are sold in about 200 countries. As the leading global automotive sales leader since 1931, the General Motors Corporation employs about 355 000 people .

With almost half a million workers employed for General Motors, it would be difficult to satisfy all its workers. However, through collective bargaining, it is now almost possible for GM to hear all the voices of its employees. Collective bargaining is a method of “jointly determining working conditions, between one or more employers on one side and organized employees on the other” . Through this method, members of the union employed by General Motors would have their voices heard. In 1935, not long after GM was declared the top automobile manufacturer in the world, the United Automobile Workers Union was formed with the passage of National Labor Relations Act (Wagner Act). This act protects employees by recognizing their right to join unions and engage in union activities. As one of the largest and most diverse unions in the world, the UAW union is the main arbitrator in terms of the automotive industry. With members in virtually every sector of the economy, the UAW is a powerful bargaining-machine. The UAW Union has approximately 710,000 active members and over 500,000 retired members in the United States, Canada and Puerto Rico. Throughout its years of existence, UAW members have benefited from a number of collective bargaining breakthroughs, including: the first employer-paid health insurance plan for industrial workers, the first cost-of-living allowances, and landmark job and income security provisions .

“The automotive business is extremely challenging no matter how you look at it. It is complex, demanding and continuously changing. It’s