The OESA Human Resources Council focused on the labor contract negotiations between the UAW and General Motors, Ford Motor Company and Chrysler at its meeting on Oct. 27, 2011.  The analysis and basis for the discussion were led by Kristin Dziczek, director, labor and industry group, and Sean McAlinden, executive vice president, research and chief economist, The Center for Automotive Research.  With nearly 50 years of experience across corporate, union and academic positions between them, Dziczek and McAlinden are the leading U.S. automotive labor economists.                 

After exhaustive analysis of the bargaining positions and the final contract language, Dziczek and McAlinden summarized the months of preparation and negotiations between the companies and the union as follows:

• Overall, vehicle price inflation should exceed labor cost inflation
• Labor costs will fall with hiring of second tier workers and other contract provisions; Chrysler, with the largest share of second tier labor, will have a labor-cost advantage
• Wage inflation and COLA provisions have been replaced by lump sums and profit-sharing
• Active worker health care was protected for first tier employees, while employee-costs were increased in the second tier wage classification and maintaining a 20-25 percent cap

One of the most interesting elements of the negotiations was the use of social media.  While all the official channels of communication were maintained between the union and company bargaining units, Dziczek and McAlinden highlighted the many ways that Facebook, Twitter and YouTube were used to allow members to exchange opinions with the bargaining committee and leadership.  The committees monitored the traffic flowing on social media and used the alternative channels to gauge member reactions and explain official positions.  Dissident groups also maintained their own separate channels and engaged on official UAW pages.  This presented a vastly different, interactive dynamic during negotiations than the “old days” when all official UAW communications went through in-person meetings, the UAW magazine “Solidarity” and the union’s official website.

The HR Council is open to the senior most executives responsible for the HR function and their direct reports from OESA regular member companies.  The council’s purpose is to identify and address strategic issues, share best practices, recommend solutions and promote the welfare of the supplier industry by supporting the effective HR-related practices. The next HR Council meeting will be held on Feb. 2, 2012.  For more information, contact Karen Bohannon at 248.952.6401 ext. 230 or kbohannon@oesa.org.