Unions turn down car dealers

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St. Louis: Unions turn down car dealers, strike continues
Sep 17 '04

A 47-day strike at service and parts departments of many St. Louis-area automobile dealerships appears no closer to a settlement after Machinists and Teamsters on Thursday overwhelmingly rejected the latest contract proposals.

The dealerships had hoped that some modifications to offers made in July would be accepted. Instead, the proposals appear to have steeled the resolve of about 1,800 members of the International Association of Machinists District 9 and the International Brotherhood of Teamsters Local 618.

Though his family is trying to survive on $140 a week in Machinists strike pay, Robert Worlitz said he voted against the contract.

"I'm struggling, but I won't accept a contract where I will earn less or even be without a job in 10 years," he said.

Patrick M. Sanders, spokesman for the affected new-car dealerships, mainly on the Missouri side of the metro area, said the group was disappointed that its effort to resolve the union concerns in the last week and a half of negotiations was rejected.

"I don't know exactly what will happen next," he said. "There are no new talks scheduled."

Thursday morning, Machinists turned down the offer 1,096 to 37; Teamsters rejected theirs 320 to 67 in an afternoon vote.

The strike started after the unions rejected separate contracts offered in July.

For the Machinists, the key issue remains the "helper," less-experienced workers who do certain tasks, such as lubrication. Though this job classification has existed for years, only about 30 helpers work for the affected dealerships, which have about 900 journeymen mechanics, according to the union.

But the dealerships want to expand the type of tasks these helpers can do, such as brake maintenance and front-wheel alignment. They say they need to compete with independent chains, which can do light repair and maintenance at a lower cost.

Machinists worry that the dealerships will shift jobs to the lower-paid helpers, who earn about half the mechanics' hourly rate.

In the most recent offer, dealerships proposed some limitations on the helpers.

Under the proposal, dealerships could have one helper for every three mechanics, effective immediately through 2006. Starting in 2007, they could hire one helper for every two mechanics. In 2010, it would be a 1-to-1 ratio.

Rank-and-file members saw the ratios as a sign that the dealerships want to replace many mechanics with helpers.

"This means a lot of these people will be out of work in the future," said Mary Cowan, a service adviser.

She and her husband, a Machinist who also is on strike, voted against the contract.

Sanders disputed that interpretation, saying the dealerships expect to expand their work force as they take more business from independent repair chains.

The dealerships had agreed to grandfather existing workers from reduced vacation and sick-leave benefits for new hires, an issue that helped to provoke Teamsters' rejection of the July offer.

But members remained unhappy with the idea that new hires should get less vacation and sick leave, Teamsters Local 618 President Rod Joggerst said.

The other issue facing Machinists and Teamsters was the new demand by the dealerships to push forward the contracts' expiration dates from July 31, 2007, to Oct. 31, 2007, so they would end during a slower car-selling season.

The unions worry that moving the date forward would weaken their ability to pressure dealers in the event of a labor dispute.

Teamsters also said it didn't make much sense to approve the contract because they wouldn't cross the picket line if the Machinists remained on strike.

During a 2001 Machinists strike, Teamsters honored the picket lines. Because they weren't striking, the Teamsters couldn't receive strike pay.

Machinists assistant directing business representative Tony Rippeto told members Thursday that he would present an existing contract with Sunset Ford as the union's counteroffer.

Sunset is a member of the St. Louis Auto Dealers Association, but it negotiates separately with the union. Its mechanics are paid more than those at dealerships struck by the Machinists and have no helper clause, the union said.

The affected dealerships are 61 members of the St. Louis Auto Dealers Association Signatory Group, which negotiate in a bloc. They represent about 60 percent of the dealers association; other members have separate contracts or non-union shops.