New Chrysler 3rd Shift Is 100% Temp - No UAW Members

[Perian]

Link: http://www.detnews.com/apps/pbcs.dll...606160387/1148

Josee Valcourt / The Detroit News

DaimlerChrysler AG's Chrysler Group, under a provision negotiated with the United Auto Workers in its 2003 labor contract, will use temporary workers to staff a third shift at its Belvidere, Ill., plant.

When their two-year contract ends, the 1,000 workers who start at the factory in July aren't guaranteed future employment and won't be part of the union unemployment program known as the "jobs bank."

The new employees will start at $18 an hour versus the typical $26, and will wait eight months to receive health insurance benefits.

The move could anger rank-and-file UAW workers at other Chrysler plants; at least one employee at a Sterling Heights Chrysler plant is worried the plan could lead to wage cuts for full-time workers.

The temporary workers, who will be represented by the UAW, will build the new Dodge Caliber hatchback and Jeep Compass crossover alongside 2,650 full-time UAW employees. Production of the new Jeep Patriot will be added later this year.

The additional shift reflects Chrysler's push to flood the market with a record 10 new products in a single year.

Chrysler chose to hire an entire shift of temporary workers specifically at the Belvidere plant because the volume of cars produced there depends on market demand, Chrysler spokeswoman Michele Tinson said, noting the 2003 UAW contract gives the company the authority to hire temporary workers.

"This particular arrangement is unique to Belvidere," she said. "Could we do that elsewhere? Yes. Would we want to do that elsewhere? Well, that would have to be decided on in a case-by-case basis."

Although putting temporary union workers on assembly lines isn't new for the automotive industry, staffing an entire shift in Belvidere is unique, experts say.

"It's an important development," Harley Shaiken, a labor expert and professor at the University of California-Berkeley. "We are likely to see more rather than less, but it doesn't necessarily shape what will happen at the bargaining table in 2007."

The move irritates UAW members, who fear the Auburn Hills-based automaker will take similar measures at its other U.S. plants.

Bill Parker, president of UAW Local 1700, which represents workers at Chrysler's Sterling Heights assembly plant, worries the automaker will use the provision to cut wages.

"My question is where are all these decisions being made?" Parker said.

[Perian]

This is amazing.

The Big Three couldn't even dream up something like this three years ago.

[nadepalma]

Originally Posted by Perian

This is amazing.

The Big Three couldn't even dream up something like this three years ago.

I agree Perian. I wouldn't get all that excited yet, but I wonder if the other domestics are looking at Chrysler as a test case for this situation? Maybe if the UAW goes along with it in Belvidere, they'll implement it someplace else? Who knows, but it's interesting to think about, no?

Good find.

[Bravada]

Very good move by Chrysler. Even if the plastic offensive fails, they won't be burdened with additional jobs. And they actually DID increase employment, so it's still good for the labor market.

[jlt0x]

The plan, in my opinion, makes a lot of sense. Permanent workers produce vehicles to keep outgoing capacity level, then have temp workers produce the "additional" vehicles as determined by demand. As demand varies, vary the amount of temp workers necessary for the 3rd shift.

This plan allows the manufacturing plant to consistantly make money as the market demand varies throughout the life of the model it produces. And it almost eliminates unnecessary overtime pay to the 1st and 2nd shift, while never being needed for the 3rd shift.

...somebody worked out some hard financial situations and equations for this one...

[sigma]

While is does make some sense, I would prefer that the workers be UAW out of the jobs bank. Those workers probably are better trained, more experienced, and collecting a paycheck for doing nothing.

[Bravada]

Now you're right Sigma, didn't think of that - does Chrysler still have a jobs bank?

[camaro_freak]

Originally Posted by Perian

This is amazing.

The Big Three couldn't even dream up something like this three years ago.

Originally Posted by perian

The new employees will start at $18 an hour versus the typical $26, and will wait eight months to receive health insurance benefits.

wow a temp worker really doesn't get $hit besides a paycheck huh? What if these guys get injured on the job? Who is going to foot the bill?

This is exactly what will happen across the country if this sticks.

NO UAW = temp workers
little to no benefits
no guarantee they will even have a job in 12 months

Probably won't make for happy or productive employees will it?

[momo67]

I'm sure the temps at $18/hr will build cars exactly the same as the $26/hr UAW types. This will embarass the UAW and be pretty clear proof that they're overpaid. What DCX is doing is what you should do in any business - produce according to demand, not according to what the UAW wants. The Big 2 need to follow this example or else.

[jbartley]

Fantastic! And if they are doing a crappy job, they can be FIRED, on the spot!

[SUPERBADD75]

Originally Posted by camaro_freak

wow a temp worker really doesn't get $hit besides a paycheck huh? What if these guys get injured on the job? Who is going to foot the bill?

This is exactly what will happen across the country if this sticks.

NO UAW = temp workers
little to no benefits
no guarantee they will even have a job in 12 months

Probably won't make for happy or productive employees will it?

apparently they will have health benefits in 8 months. it was 6 months before i got them at my job, so that's not too far out of line. as far as job guarantees, there aren't any in the real world, so why does the UAW have such luxury? i think this is a phenomenal idea, and it's one that could help save the U.S. auto industry if it's implemented in other plants by other automakers. the UAW is sucking the domestic automakers dry, something has to be done about it and this is a great move. good on ya, DCX!

[asim]

Wow...now these temp people are going to stay temp for howlong?

[ScottS]

I wonder what this will do to quality control. Instead of hoping to get a Wednesday car, now you hope for a 1st shift car?

[HEVguy]

Good job DCX, more of this is needed for all the domestic producers.

[lytmup]

This is just a mirror to what is happening to employment all over America.

I call it the contracting out of America. There is no true "employees" anymore, just contractors. And, as long as there are people who agree to fill the contractors role, then there is no way to fight it. Period.