UAW Members Protest Alabama Senator Richard
Shelby
by Region 8 Webmaster and LUPA Advisor
Board Chair John Davis
Alabama Senator Richard Shelby conducted a town
hall meeting at Greenbrier, Alabama on April 11, 2009. The Senator
was greeted by a large number of his constituents, many of which
are retirees from UAW Local 2195, UAW Local 1413 and Region 8 staff
members Retiree Representative Tom Savage and CAP Representative
Roy Thomas. The UAW members  gathered
outside the restaurant where the meeting was held and hosted signs
in a peaceful protest to the Senator’s position.
In recent months Senator Shelby has taken a hard
line stand against bridge loans requested by General Motors and
Chrysler to make it through the current downturn in the economy.
Senator Shelby has repeatedly called upon the companies to file
bankruptcy and shed their obligations to their retirees.
While most Alabamians many feel this is a mid-west
issue, many have forgotten the manufacturing footprint that Detroit’s
automakers once had in Alabama. General Motors operated manufacturing
facilities in Athens and Tuscaloosa, Ford in Sheffield and Chrysler
in Huntsville. As of the end of March this year, 10,341 Alabama
citizens receive a pension check from GM, Ford or Chrysler. So,
when Senator Shelby suggests dumping retirees, it isn’t just
people in Michigan, Ohio or Indiana who are at risk but also over
10,000 of his own constituents.
In the restructuring plan General Motors submitted
to the U.S. government in February ask for a loan between 22.5 and
30 billion dollars to cover the company through the current downturn
in the economy. This request was not a “bailout” which
banks received but rather a loan to be repaid with interest. The
same report stated that a bankruptcy filing by General Motors could result in liabilities to the U.S. government totaling as much as
86 billion dollars. When Senator Shelby pushes for bankruptcy, it
could be said he prefers the taxpayer assume 86 billion in liabilities
rather than loaning the company 22.5 billion.
In a traditional bankruptcy, many of GM’s
retirees would see their pension check and health care wiped out.
While the Pension Benefit Guarantee Corporation (PBGC) insures a
portion of GM’s pension liabilities, this government run agency
has stated a default on the GM’s pension would more than likely
bankrupt their operation.
In his comments to the press Senator Shelby is quick
to point out what he considers the faults of GM which include in
his opinion poor management and the UAW. However, the Senator’s
remarks do not contain facts. Has far as quality, GM and Ford tied
for the leadership position in the 2008 J.D. Power Initial Quality
Study – 11 models ranked in the top three of their respective
segments. In the most recent Harbor Report which ranks the productivity
of manufacturing facilities, GM has overtaken Toyota in North American
vehicle assembly productivity (22.19 hours per vehicle for us; 22.35
hours for Toyota). Through the end of March, GM had outsold Toyota
by 50,000 units for the year.
One of the greatest hurdles for GM and Chrysler
to clear to stay out of bankruptcy court is renegotiating debt from
their bondholders. To date the bondholders have been unwilling to
compromise and trade debt for equity. Many of these bondholders
are the same Wall Street banks that have received billions in actual
bailout money from the federal government. Senator Shelby continues
to demand that GM and Chrysler should balance their books on the
backs of their union workforce and retirees. However, according
to the website opensecrets.com Senator Shelby has accepted almost
1.8 million dollars in campaign contributions from the banking and
real estate industry since first being elected as a congressional
representative. He currently ranks fourth in the Senate in campaign
contributions from mortgage bankers and brokers – the very
people holding up GM and Chrysler’s ability to restructure
and secure their future business, maintain their commitment to active
and retired workers, and to protect their shareholders. All government
reports show a bankruptcy by one or more of the Detroit automakers
could lead almost immediately to a loss over one million additional
jobs to the economy.
“Our folks are here to encourage Senator Shelby
to step back and look at the facts concerning the bridge loans and
the impact a failure of one of the Detroit’s automakers would
have on 10,000 Alabama families,” states UAW Region 8 Assistant
Director Donny Bevis. “While we are concerned about our members
and retirees, the further impact to the communities they represent
is also a concern. In North Alabama we have already seen the impact
the loss of the Delphi plant is making. Local school systems are
currently feeling the impact from the loss of local tax base as
a result of this loss. At this time Huntsville, Athens, Decatur,
Sheffield, Muscle Shoals and Tuscaloosa are just a few of the cities
that are represented by these 10,000 plus retirees. The loss of
these pension plans not only eliminates the income and sales tax
these retirees pay, but places additional burden on local agencies
to provide assistance for these folks if their livelihood is taken
away. The good citizens of Alabama need to realize the demise of
the domestic auto industry is not just an issue for the Midwest,
but also 10,000 of their neighbors and family members, not to mention
the additional impact that will flow back to others in the communities.”
Senator Shelby ducked into the backdoor of the restaurant
when he arrived, avoiding the crowd outside. However, on his way
out the Senator came out to ask the protesters if they noticed he
was riding in an American made car, a Lincoln Town Car and said
it was a great vehicle. I guess the Senator doesn’t realize
that Ford closed their Wixom, Michigan plant where the Towncar’s
were produced a couple years ago in their downsizing. Today Lincoln
Towncars are produced at Ford’s St. Thomas Assembly operation
in Ontario, Canada. At least the Senator thought he was riding in
a U.S. produced vehicle. With that in mind one has to wonder if
it is American auto companies or American auto workers that Senator
Shelby has a problem with?
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