A website called thetruthaboutcars.com posted a story on Thursday about the financial situation of the United Auto Workers Union (UAW).
The article points out:
In many ways, the UAW resembles the companies it opposed for so long. The UAW is America’s richest union. One of its biggest assets is its strike fund, which stood at $763 million at the end of 2010. If push comes to shove, a union is as strong as its strike fund. The trouble is: The UAW spends more than it takes in. Increasingly, the union has to dip into the strike fund, the Reuters report says. According to government filings, the UAW liquidated $222 million of investments from 2007 to 2009 to cover the shortfall between expenses and revenue.
The article has charts that illustrate the financial problems of the UAW in recent years. One thing mentioned in the article is the fact that the UAW membership fees have dropped to $30 a month. At the same time, the union is having to spend a great deal of money on organizing as some car manufacturers are no longer in Detroit and are no longer unionized.
A Reuters new story reports:
“Volkswagen AG is paying newly hired workers at its Chattanooga, Tennessee plant $14.50 per hour. That is almost exactly what a second-tier UAW worker would make in Detroit. In a sign of demand for jobs at that pay level, the Chattanooga plant had 85,000 applications for more than 2,000 jobs. VW workers have been promised $19.50 after three years on the job. That is just above the $19.28 per hour maximum that entry-level workers at GM would make over the term of the four-year contract now before workers for ratification.”
That is not good news for the future of the UAW.