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DETROIT/HAMBURG — The United Auto Workers union is staking its future on the kind of struggle it hasn't waged since the 1930s: a massive drive to organize hostile factories.
This time, the target is foreign car makers, whose workers have rebuffed the union repeatedly. Specifically, Reuters has learned, the union is going after U.S. plants owned by German manufacturers Volkswagen AG and Daimler AG, seen as easier nuts to crack than the Japanese and South Koreans.
It's a battle the UAW cannot afford to lose. By failing to organize factories run by foreign automakers, the union has been a spectator to the only growth in the U.S. auto industry in the last 30 years. That failure to win new members has compounded a crunch on the UAW's finances, forcing it to sell assets and dip into its strike fund to pay for its activities.
In dozens of interviews with union officials, organizers and car company executives, a picture has emerged of UAW President Bob King's strategy. By appealing to German unions for help and by calling on the companies to do the right thing, King hopes to get VW and Daimler to surrender without a fight and let the union make its case directly to workers.
Central to this effort is the belief that if car companies refrain from actively opposing a UAW organizing push, workers at German-American factories will gladly join the union.
Volkswagen tops the 10 best car ads of 2011
But that belief may be off-base. Workers know that almost every job lost at U.S. car factories in the last 30 years has occurred at a unionized company, while almost every job gained has come at a non-union company. And most of the factories the UAW is targeting are in the South, which is historically hostile to unions.
"People have a different opinion in the South about unions," said Robert Plisko, a retired autoworker who helped UAW organizing efforts at German and Japanese plants in the 1970s and 1980s. "It's a lot harder now than it has ever been, and I don't see it getting any easier."
German auto executives declined to talk in detail about the UAW's push. Privately, they remain wary of the union and its confrontational past. "They view the UAW as a disaster," said a Wall Street banker who has worked extensively with the industry.
King dismisses skeptics of his plan, but on one point he agrees with his fiercest critics: If the UAW fails to crack the transplants, as it calls foreign car factories in the United States, the union has no future. "I have said that repeatedly, and I believe it," he said in one of several interviews.
US automakers revved up for the new year
This do-or-die imperative helps explain why his offensive sometimes feels passive.
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In early December, the UAW's executive board convened at its riverfront headquarters in Detroit in a room outfitted with Swedish midcentury furniture. King, 65, had set a goal of winning one of the organizing battles by year end, and auto executives expected him to ratchet up the pressure by naming a target. But by the end of the meeting King concluded that naming a target would be seen as a hostile act and could undo the progress made behind the scenes with VW and Daimler.
"It really is ultimately up to the companies," King told Reuters after the meeting.
Whatever the outcome, King's march through the South will be a milestone in U.S. labor history. Famous for winning hard-fought campaigns at General Motors, Chrysler and, eventually, Ford between 1937 and 1941, the UAW was once one of the mightiest unions - and political forces - in the country.
But its membership has fallen 75 percent in the past three decades, and last year it started dipping into its strike fund. If it fails to boost its ranks, the richest union in the United States will hit a cash crunch.
Winning over 'heathens'
A decade ago, King led a campaign to organize a union at a Nissan plant in Smyrna, Tennessee.
As part of the campaign, Nissan employee Chet Konkle recalls visiting hundreds of workers in their homes. He sat in their kitchens, shook their hands and asked for signatures on union cards.
"Sometimes I felt like I was a Baptist preacher trying to win over the heathens," he said of his efforts as a labor evangelist in a southern state.
In October 2001, Nissan workers rejected the union by a two-to-one vote, with hundreds defecting from the UAW cause. For Konkle, that was an epiphany. "The UAW in its current form is on its deathbed," he said.
Now 47, Konkle leads a team that cuts waste at the plant and which is credited with saving over $10 million for Nissan.
Tennessee is once again a union battleground. At the geographical midpoint of a band of foreign auto factories stretching from Texas (Toyota) to Ohio (Honda), the state has worked hard for its piece of the U.S. auto industry.
In 1979, Gov. Lamar Alexander flew to Tokyo to meet with Nissan executives, showing them a picture of the United States with the Eastern seaboard lit up. When they asked where Tennessee was, Alexander recalled pointing to a relatively dark spot "right in the middle of the lights." Tennessee looked like an industrial blank slate within a short ride of a big market. Nissan also liked the state's law preventing mandatory union membership, he said.
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This time, the target is foreign car makers, whose workers have rebuffed the union repeatedly. Specifically, Reuters has learned, the union is going after U.S. plants owned by German manufacturers Volkswagen AG and Daimler AG, seen as easier nuts to crack than the Japanese and South Koreans.
It's a battle the UAW cannot afford to lose. By failing to organize factories run by foreign automakers, the union has been a spectator to the only growth in the U.S. auto industry in the last 30 years. That failure to win new members has compounded a crunch on the UAW's finances, forcing it to sell assets and dip into its strike fund to pay for its activities.
In dozens of interviews with union officials, organizers and car company executives, a picture has emerged of UAW President Bob King's strategy. By appealing to German unions for help and by calling on the companies to do the right thing, King hopes to get VW and Daimler to surrender without a fight and let the union make its case directly to workers.
Central to this effort is the belief that if car companies refrain from actively opposing a UAW organizing push, workers at German-American factories will gladly join the union.
Volkswagen tops the 10 best car ads of 2011
But that belief may be off-base. Workers know that almost every job lost at U.S. car factories in the last 30 years has occurred at a unionized company, while almost every job gained has come at a non-union company. And most of the factories the UAW is targeting are in the South, which is historically hostile to unions.
"People have a different opinion in the South about unions," said Robert Plisko, a retired autoworker who helped UAW organizing efforts at German and Japanese plants in the 1970s and 1980s. "It's a lot harder now than it has ever been, and I don't see it getting any easier."
German auto executives declined to talk in detail about the UAW's push. Privately, they remain wary of the union and its confrontational past. "They view the UAW as a disaster," said a Wall Street banker who has worked extensively with the industry.
King dismisses skeptics of his plan, but on one point he agrees with his fiercest critics: If the UAW fails to crack the transplants, as it calls foreign car factories in the United States, the union has no future. "I have said that repeatedly, and I believe it," he said in one of several interviews.
US automakers revved up for the new year
This do-or-die imperative helps explain why his offensive sometimes feels passive.
Advertise | AdChoices
In early December, the UAW's executive board convened at its riverfront headquarters in Detroit in a room outfitted with Swedish midcentury furniture. King, 65, had set a goal of winning one of the organizing battles by year end, and auto executives expected him to ratchet up the pressure by naming a target. But by the end of the meeting King concluded that naming a target would be seen as a hostile act and could undo the progress made behind the scenes with VW and Daimler.
"It really is ultimately up to the companies," King told Reuters after the meeting.
Whatever the outcome, King's march through the South will be a milestone in U.S. labor history. Famous for winning hard-fought campaigns at General Motors, Chrysler and, eventually, Ford between 1937 and 1941, the UAW was once one of the mightiest unions - and political forces - in the country.
But its membership has fallen 75 percent in the past three decades, and last year it started dipping into its strike fund. If it fails to boost its ranks, the richest union in the United States will hit a cash crunch.
Winning over 'heathens'
A decade ago, King led a campaign to organize a union at a Nissan plant in Smyrna, Tennessee.
As part of the campaign, Nissan employee Chet Konkle recalls visiting hundreds of workers in their homes. He sat in their kitchens, shook their hands and asked for signatures on union cards.
"Sometimes I felt like I was a Baptist preacher trying to win over the heathens," he said of his efforts as a labor evangelist in a southern state.
In October 2001, Nissan workers rejected the union by a two-to-one vote, with hundreds defecting from the UAW cause. For Konkle, that was an epiphany. "The UAW in its current form is on its deathbed," he said.
Now 47, Konkle leads a team that cuts waste at the plant and which is credited with saving over $10 million for Nissan.
Tennessee is once again a union battleground. At the geographical midpoint of a band of foreign auto factories stretching from Texas (Toyota) to Ohio (Honda), the state has worked hard for its piece of the U.S. auto industry.
In 1979, Gov. Lamar Alexander flew to Tokyo to meet with Nissan executives, showing them a picture of the United States with the Eastern seaboard lit up. When they asked where Tennessee was, Alexander recalled pointing to a relatively dark spot "right in the middle of the lights." Tennessee looked like an industrial blank slate within a short ride of a big market. Nissan also liked the state's law preventing mandatory union membership, he said.
Advertise | AdChoices
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