Chairman’s Report
July 25, 2009

On June 26, 2009 production ceased on the Alabama Site, ending almost 34 years of steering production. On December 8, 1975, the first steering pump rolled off the line as 150 employees began what would become a way of life and a living for over a generation of folks from the North Alabama and Southern Tennessee area. It all began in Plant 21 and in the end Plant 21 ushered out the last few pieces of production.

The past four years have been a roller coaster ride for our membership. When Delphi filed for bankruptcy on October 8, 2005, shockwaves were sent through the industry, through the corporation and through our local union. Delphi brought hired gun Steve Miller in to take the company into bankruptcy to redistribute their compensation cost up the food chain, and that is what they did. Long time Delphi workers were pushed out to make room for lower waged new hires, while dolling out over $500 million dollars in executive bonuses to the very management that made the decisions that brought the company to bankruptcy. Steve Miller repeatedly made fun of the UAW workforce in the press while defending his handover of millions to those sitting looking out the windows in those plush offices at the Troy headquarters. His ruthlessness was never ending as he bragged about all the lives he had destroyed at the other companies he had taken into bankruptcy.

The International Union began to negotiate a “soft landing” for those members caught up in the madness the Delphi bankruptcy was. UAW Vice-President Richard Shoemaker led the way in negotiating an agreement that allowed those with 26 years or more of seniority to grow into retirement. The GM Benefit Guarantee was triggered to cover those members who had worked for GM on the signing of the 1998 agreement. The remainder of our membership received lump sum payments in return for wages cuts. While the membership and the International Union didn’t like the terms Delphi demanded while holding the bankruptcy gun to our head, the feeling was that maybe through it all we could survive and work on restoring the our contract in the future. The Alabama Site was to be sold with a new company assuming ownership.

On June 22, 2007 the announcement came that the site would be closed – not sold. The announcement was another kick to a group of people who had given so much to keep the doors open. The events that followed have been a grim countdown for the nearly 4,000 UAW members both active and retired that toiled on the site.

With final production on June 26, 2009, the end of hopes and dreams for our members ended as quickly and as silently as a death. As the lights went out and the sound of silence echoed across the walls of Plant 21, the stark reminder of corporate greed and complacency of elected public officials washed over the site like the stench of death; death of hopes, death of dreams, death of promise and finally death of satisfaction in doing the right thing.

An agreement was made to accept the roughly 300 traditional employees who were left at GM’s Spring Hill Assembly Plant in Spring Hill Tennessee. Through the end of June there remained about 140 of members awaiting transfer to Spring Hill. However, on June 1, 2009, General Motors filed for bankruptcy and announced the closing or idling of a number of plants. Included in the announcement was the news that Spring Hill would be idled and its product moved to the Delta Township facility south of Lasing, Michigan. The fate of our brothers and sister who have been transferred to Spring Hill and that of those men and women who already make up the membership at UAW Local 1853 and Plant 23 allowed to operate independently. Little did we know that in the end it would be Plant 21 who lasted the longest, standing as a solitary facility as it began in 1975. When the announcement was made in the summer of 2007 the site would be closing, we began working toward this sad end we have now experienced. I can say without question this local and international union did everything we could save this site, the jobs, and the impact to the community.

Out of all of this turmoil we were able to find a place as close as possible for our members to flow to, even though at this moment that too seems in jeopardy. When the announcement came our site was closing many of the local pundits placed the blame for the site closing at the feet of the UAW. Nothing could be further from the truth. In fact – it was the UAW that allowed this site to operate as long as it did. When NAFTA became law in 1994, small garment factories began closing immediately and relocated to Mexico. Our site would have fell victim to the same fate had it not been for the protection of the UAW. Our collective bargaining power kept the site open for years as other non-represented companies saw their jobs and production move to Mexico.

Through all of this, surely this membership has seen the significance of voting for those who represent us. The ballot box and the bread box are truly linked. Take the automotive bridge loans for example; John McCain has consistently stated he was against any assistance to the automotive companies. Where do you think we would be today had it not been for the assistance by President Obama? I can tell you the situation we are currently would have been much dire. If the President had not extended the loans to GM and Chrysler, both companies would be in liquidation as oppose to Chapter 11. In liquidation, the pension fund would have been used to cover outstanding debts. The VEBA and retiree health care would be gone, and our retirees would have seen the pension plan dumped on the PBGC which would have meant losing about 45% of what they were drawing until they reached Social Security age. In addition, the domino effect would have rippled across the country sending us into another depression. While the restructuring has been painful, the failure to act would have been far worse.

I guess this all begs the question “how did we get here?” The International Union has been warning this day would come for many years. Far too long we turned a blind eye to things happening in Washington and all around us. We didn’t protest when garment workers were losing their jobs; we didn’t protest when our neighbors bought foreign cars – even our family members; we didn’t protest when the Republicans stripped away all regulations on financial institutions; we didn’t protest when both parties supported trade deals that began this race to the bottom; we simply didn’t protest as our way of life was floated down the river and those at the top of ladder hoarded everything for themselves.

Our complacency has cost us and cost us dearly. I only hope that from the ashes of these times comes a new activism among the working class. Surely, we have learned our lessons and will not stand idly by as the rich and powerful try again to play us like puppets. It is time to turn off Fox News, and educate yourself on the issues of the day. It is time to stand up and be counted when it comes to fighting back against the dangerous bills that are sent down the pike in Congress and it is time to hold our elected officials accountable for their actions, regardless of which party they are from. A few weeks ago a group of our active and retired members protested against Senator Richard Shelby at a town hall meeting he held at Belle Mina. We had about thirty folks show up, when we really need at least a hundred. I encourage each of you to lend your voice and take your place in bringing America back.

In closing, I want to express my gratitude to this membership for granting me the unique honor of serving as your Shop Chairman these past couple years. Those of us who have served during this time have known many hardships, dealing with the site closing and the downturn in the industry. However, I am honored to have had the opportunity to have worked on your behalf. I hope the future brings success to each of you as we all go out and attempt to make a place for ourselves in the world. This membership did everything they could to save this site and disperse knowing we did our part.

In Solidarity,
Greg Demike
Local 2195 Shop Chair