DETROIT — The United Auto Workers’ mission used to be simple — fight Detroit’s automakers for better pay and job security.
But things got more complex when the government bailed out General Motors and Chrysler two years ago in a deal that left the union with big chunks of stock in both companies. Now the UAW has to be both owner and worker advocate, essentially sitting on both sides of the bargaining table.
The tricky dual role is causing problems for union leaders — in particular UAW president Bob King — as they prepare for contract talks later this year.
“That conflict of interest, I think, should probably be illegal,” says Nick Waun, who works at a GM plant in Ohio and says King should put workers first.
In 2009, when GM and Chrysler nearly collapsed, the companies were allowed to use stock rather than cash to pay into UAW trust funds that cover health care costs for about 800,000 retirees. With bankruptcy looming for the auto makers, the union was faced with taking the stock or risking getting nothing.
The trusts now own about 13 percent of GM stock, which is publicly traded, and 65 percent of Chrysler, which is privately owned but could go public later this year. The trusts can sell the stock to help pay bills.
King, 64, contends union members will benefit if the companies’ stock prices go up. He has tried to position the union as a business partner rather than an adversary of Detroit’s car companies.
Angry union members say he’s more concerned about profits than winning back raises and benefits surrendered by the union the past six years.
