New York: Magna auto parts workers reject cutbacks in face of shutdown threat

[Hannah Bell]

By William Moore
7 April 2009

For the second time in as many months, the members of UAW Local 624 have rejected a proposed deal with the management of their plant in DeWitt, just outside of Syracuse, New York.

Magna, based in Canada, is a major auto parts supplier, second only to Delphi. The DeWitt plant manufactures four-wheel drive transfer cases. In January, the company had proposed drastic cuts in wages and had made continued operation of the plant conditional on a “return to profitability” by July....

If the plant was judged profitable, wages would remain at the current $20.16 per hour, down from more than $29 an hour only two years ago. Wages would be cut to $16 per hour if the plant came close to the break-even point. Finally, if the goal was missed by a wide mark, the plant would be closed. All of this was, of course, at the discretion of the management.

On February 3, the workers rejected the company’s proposal by an overwhelming 76 percent...The second round vote concluded on March 17 with a majority of the workers once again voting against the givebacks. This time, the revised offer was rejected by 52 percent.

...Based on the renewed defiance by the workers, NPG management announced that it would accelerate the closing of the plant. There has been no word from the union leadership regarding any actions to counter the shutdown.

Shortly after the vote, New York Democratic Senator Charles Schumer approached the owners...with the possibility of...$5 billion in federal funds assistance...the company rejected the federal money.

“The Canadian company says money isn’t the only issue and flexibility in work rules and other operational changes it has sought wouldn’t keep the plant competitive.” In other words, only the complete subjugation of the workforce would be satisfactory.

...The company, like the rest of the auto industry, was determined to place the entire burden of the economic crisis...on the backs of the employees...the complete prostration of the workforce in order to maintain profits for the owners.

It is clear that these workers understood the consequences of their action, but had reached a point beyond which they refused to be pushed even as their union leadership provided no perspective except surrender.

The plant’s shutdown will have a severely negative effect on the local economy. Not only wages but also tax revenue will be lost. The Syracuse Post-Standard reported that New Process Gear's town and county property taxes for 2009 total $714,251. Its school taxes are higher—$742,409 for the East Syracuse-Minoa School District in 2008-09.

However, it is not the company but the state that pays these taxes since the plant is located in an Empire Zone economic development area, a tax give-away to corporations by the state government.

http://www.wsws.org/articles/2009/apr2009/magn-a07.shtml

[firedupdem]

1. They didn't want the federal money because they were probably

going to close it anyway. If those workers take that cut and the plant closes their benefits will be based on that 16 dollar an hour salary. These companies are shit. They want to make it look like the workers are being uncooperative but according to the article they have already taken a 10 buck an hour cut. This stuff really ticks me off.

[Hannah Bell]

2. Good point; the $16 v. $21 would make the corp's liability less in the event of closure

or layoffs. They already don't pay taxes.

Machiavellian shits.

Glad the workers stood firm. Took guts.

[firedupdem]

3. The same thing happened to a friend of mine at a different auto

supplier. They took cut after cut and the company still closed. It's bad enough trying to make it on unemployment, but you don't want to screw yourself out of the max you would receive at your higher salary. The company knew they were closing the entire time. They just screwed the workers and took care of upper management.

[dysfunctional press]

5. there must be some memo somewhere from some company that admits this practice.

that would be a find.

[firedupdem]

6. It sure would be a find. n/t

[bkkyosemite]

4. They'll just go overseas for $2.00 an hour wages for their workers.