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Over 40,000 unionized workers at auto parts company Delphi recently had their pension benefits reinstated following the July bankruptcy and federal takeover of the former General Motors subsidiary. The restoration of benefits came as a result of GM contributing billions to the union’s pension fund, fulfilling a pledge made in 1999 to the three unions representing workers: United Auto Workers, United Steelworkers and International Union of Electrical Workers.
The 20,000-plus non-union workers, in contrast, have seen their pension benefits shrink following the federal government’s takeover of the company and its pension fund. The Pension Benefit Guaranty Corporation, a U.S. government agency, insures pension plans according to a formula aimed at minimizing its obligations to workers. As a result, the non-union Delphi workers will see drastic cuts in their pensions.
According to an Oct. 27 New York Times article, one woman had her monthly pension income cut from $2,925 to $390. Non-union workers at Delphi will see their pensions cut from an estimated 30 to 70 percent, the article states. Because of the union-negotiated agreement with GM, however, the union workers and retirees are expected to receive their full pensions.
The 1999 agreement between the old GM and the three unions came at a time when the company was attempting to spin off Delphi. When a company like Delphi is spun off, the parent company must transfer adequate capital to the pension fund. At the time, however, GM only came up with enough money to provide for the non-union workers. In response, the unions threatened to block the spin off unless GM agreed to back up the union pension fund, which it reluctantly did. The agreement and GM’s compliance with it 10 years later is unprecedented and demonstrates the strength of unions and collective bargaining.
Unions give workers real power
During a time in which unions are being attacked left and right, this is a living example of the benefits of union membership. The 20,000-plus non-union workers have little to no recourse to fight for their retirement benefits as individuals. Being organized in a union with co-workers, however, creates a structure that can level the playing field and provide workers with a voice when dealing with management and top executives.
When in a union, workers have a contract that outlines the company’s legal obligations. Without a union, workers are isolated, allowing a company to operate as it pleases. When times are good, the company may or may not compensate their employees well. But when times are bad, it is the workers who bear the brunt of the burden, not the suits in boardrooms.
Typically, so-called “white-collar” workers such as those at Delphi are reluctant to join and organize unions due to relatively high wages and benefits and illusions that their employers will look after their interests. These wages and benefits, however, are not protected and can be cut at a moment’s notice.
Additionally, workers such as these are often pressured into working overtime without pay—be it on weekends, holidays or after hours during the week. In the case of the Delphi workers, even the anti-worker, anti-union New York Times noted that union and non-union workers had roughly equal compensation due to overtime pay and other benefits received by the unionized workers.
Across the country, companies are slashing benefits and laying off “white-collar” workers in the millions. In many industries “white-collar” workers such as accountants, engineers and others who were at one time full-time, salaried employees will, if they are able to find jobs at all, be hired as “contract” or hourly employees through third parties in order to save the company from paying benefits such as health insurance and retirement.
The stories of the non-union Delphi workers should serve as an important lesson for the millions of “white-collar” workers who are influenced by the barrage of anti-union lies spread by the capitalist media, the government and corporate executives. The time has come to organize and fight back!
