TAG | United Auto Workers
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The Auto Industry Management Abuses – UAW Golf Course Issue Visited Again
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The Auto Industry Management Abuses – UAW Golf Course Issue Visited Again
Michelle Malkin
Nero fiddled while Rome burned. The UAW golfed. While carmakers soak up $17 billion in taxpayer bailout funds and demand more for their ailing industry, United Auto Workers bosses have wasted tens of millions of their workers’ dues on gold-plated resorts and rotten investments. The labor organization’s money-losing golf compound is just the tip of the iceberg.
Last week on my blog , I noted that the UAW owns and operates Black Lake Golf Course — a “championship caliber” course opened in 2000 that’s part of a larger “family education center” and retreat nestled in 1,000 acres of property in Onaway, Mich. Spearheaded by former UAW president Steve Yokich, the resort also includes “a beautiful gym with two full-sized basketball courts, an Olympic-size indoor pool, exercise and weight room, table-tennis and pool tables, a sauna, beaches, walking and bike trails, softball and soccer fields and a boat launch ramp.” Like everything else we’re subsidizing these days, the UAW’s playground is a money pit. The Detroit Free Press reported earlier this year that the golf course (valued at $6 million) and education center (valued at $27 million) have together lost $23 million over the past five years. While membership in the union has plummeted, the UAW retains assets worth $1.2 billion.
Curious about how the UAW will be spending my money and yours, I sifted through the union’s most recent annual report filed with the U.S. Department of Labor (which you can find at unionreports.gov). Who knew hitting the links was so central to the business of making cars?
In May and November 2007, the UAW forked over nearly $53,000 for union staff meetings at the Thousand Hills Golf Resort in Branson, Mo. In September 2007, the UAW dropped another $5,000 at the Lakes of Taylor Golf Club in Taylor, Mich., and another $9,000 at the Thunderbird Hills Golf Club in Huron, Ohio. Another bill for $5,772 showed up for the Branson, Mo., golf resort. On Oct. 26, 2007, the union spent $5,000 on another “golf outing” in Detroit. In May and June 2007, UAW bosses spent nearly $11,000 on a golf tournament and related expenses at the Hawthorne Hill Country Club in Lima, Ohio. And in April 2007, the UAW spent $12,000 for a charity golf sponsorship in Dearborn, Mich. In August 2007, the UAW paid nearly $10,000 to its for-profit Black Lake golf course operator, UBG, for something itemized as “Golf 2007 Summer School.” UBG had nearly $4.4 million worth of outstanding loans from the union. Another for-profit entity that runs the education center, UBE, had nearly $20 million in outstanding loans from the union.
Perhaps, the union bosses might argue, they need all this fresh air and exercise to clear their heads in order to make wise financial decisions on behalf of their workers. If only. UAW management has proven to be a money-squandering corruptocracy with faux blue-collar trim. Former UAW head Yokich, who built the Black Lake black hole, is also responsible for bidding $9.75 million of workers’ funds in a botched bid to purchase the gated La Mancha Resort Village in Palm Springs. The 100-room walled resort with spas, poolside massages and a “croquet lawn lit for night use” was on the verge of bankruptcy with $5.2 million in debt. Despite outrage from rank-and-file union members who thought one gold-plated golf resort was quite enough, leaders defended the La Mancha bid because, as union spokesman Paul Krell put it, “‘You can never tell if you are going to become snowbound.” Always putting the workers first!
That deal didn’t go through, but the UAW’s quixotic dalliance with a failed airline did. In February 2000, the union poured $14.7 million into Pro Air, a Detroit start-up airline that, well, didn’t get off the ground. Plagued by safety problems, the feds shuttered the company less than a year later. The union didn’t fare much better in its venture with a liberal radio network. In 1996, union heavies got the bright idea to invest $5 million in United Broadcasting Network, a left-wing precursor to Air America that the UAW hoped to use to spread its corporate-bashing propaganda. They shelled out for a $2 million, state-of-the-art studio in Detroit and incurred years of losses of a reported $75,000 a month before closing the network down in 2003.
And while the UAW and carmakers cry poor, they’ve operated massive joint funds for years that have paid for lavish items such as multi-million-dollar NASCAR racer sponsorships and Las Vegas junkets. The dire economic downturn hasn’t changed the behavior of profligate union bigs at the front office or the shop floor. Local Detroit TV station WDIV recently caught local UAW bosses Ron Seroka and Jim Modzelewski — both of whom make six-figure salaries — on tape squandering thousands of hours of overtime on such important labor security matters as on-the-clock beer runs and bowling tournaments.
At least the groveling Big Three CEOs gave up their corporate jets. Where’s the public flogging for the greed-infested UAW fat cats reaching into our pockets to keep them afloat?
http://www.jewishworldreview.com/michelle/malkin123108.php3
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Basketball Courts · Black Lake Golf Course · Boat Launch · Branson Mo · Championship Caliber · Detroit Free Press · Family Education Center · Hitting The Links · Industry Management · Lake Golf Course · Launch Ramp · Michelle Malkin · Michellemalkin · Money Pit · Olympic Size · Onaway · Pool Exercise · Steve Yokich · Taylor Golf Club · Thousand Hills Golf · U S Department Of Labor · Uaw President · United Auto Workers
The United Auto Workers may be out of the hole now that President Bush has approved a $17 billion bailout of the U.S. auto industry, but the union isn’t out of the bunker just yet. Even as the industry struggles with massive losses, the UAW brass continue to own and operate a $33 million lakeside retreat in Michigan, complete with a $6.4 million designer golf course. And it’s costing them millions each year.
The UAW, known more for its strikes than its slices, hosts seminars and junkets at the Walter and May Reuther Family Education Center in Onaway, Mich., which is nestled on “1,000 heavily forested acres” on Michigan’s Black Lake, according to its Web site. But the Black Lake club and retreat, which are among the union’s biggest fixed assets, have lost $23 million in the past five years alone, a heavy albatross around the union’s neck as it tries to manage a multibillion-dollar pension plan crisis. Critics call it a resort for union leaders that wastes money from union dues. “It’s their members’ money that they’re spending on this thing,” said Justin Wilson, managing director of the Center for Union Facts, a union watchdog group. “The union has bigger issues at hand than managing a golf course.
Managing the course may become a burden for the union. The UAW covers costs for the Reuther Center from the interest it earns on its strike fund, according to tax documents, but massive losses in the past five years have forced the union to make heavy loans to keep the center afloat. Critics call it a poor investment for a group with over $1.25 billion in assets
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The View from “Our Neighbors to the North” of the Auto Industry Bailout Packages
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According to Forbes:
Labor cost per hour, wages and benefits for hourly workers.
Ford: $70.51 ($141,020 per year)
GM: $73.26 ($146,520 per year)
Chrysler: $75.86 ($151,720 per year)
Toyota, Honda, Nissan (in U.S.): $48.00 ($96,000 per year)
According to AAUP and IES, the average annual compensation for a college professor in 2006 was $92,973 (average salary nationally of $73,207 + 27% benefits).
Bottom Line: The average UAW worker with a high school degree earns 57.6% more compensation than the average university professor with a Ph.D., and 52.6% more than the average worker at Toyota, Honda or Nissan.
Many industry analysts say the Detroit Three, must be on par with Toyota and Honda to survive. This year’s contract, they say, must be “transformational” in reducing pension and health care costs.
What would “transformational” mean? One way to think about “transformational” would mean that UAW workers, most with a high school diploma, would have to accept compensation equal to that of the average university professor with a PhD.
Then there’s the “Job Bank”
When a D3 (Detroit 3 carmaker) lays an employee off, that employee continues to receive all benefits – medical, retirement, etc., etc., PLUS an hourly wage of $31/hour.
Here’s a typical story….
Ken Pool is making good money. On weekdays, he shows up at 7 a.m. at Ford Motor Co.’s Michigan Truck Plant in Wayne, signs in, and then starts working — on a crossword puzzle. Pool hates the monotony, but the pay is good: more than $31 an hour, plus benefits.
“We just go in and play crossword puzzles, watch videos that someone brings in or read the newspaper,” he says. “Otherwise, I just sit.”
Pool is one of more than 12,000 American autoworkers who, instead of installing windshields or bending sheet metal, spend their days counting the hours in a jobs bank set up by Detroit automakers as demanded by the United Auto Workers Union - UAW – as part of an extraordinary job security agreement.
Now the D3 wants Joe Taxpayer to pick up this tab in a $25 Billion bailout package – soon to be increased to $45 Billion if Nancy Pelosi and Hillary Clinton have their way.
The “Big 3″ want this money – not to build better autos. No. They want it to pay the tab for Medical and Retirement benefits for RETIRED auto workers. Not ONE PENNY would be used to make them more competitive, or to improve the quality of their cars.
We ALL have problems paying for our Medical Insurance – but the Democrat leaders in Congress now want us to pay the Medical Insurance premiums of folks who have RETIRED from Ford, GM and Chrysler.
In Canada, the Conservative minority government must use taxpayers’ money to help out the auto industry.
This is because the Liberals and the NDP have threatened to bring down the minority government if the auto workers don’t receive an “economic stimulus”. The auto workers union bargained for high wages when the car industry was profitable, because the workers wanted their share. Now that the industry is losing money, the union insists that the workers can’t have their wages or benefits reduced.
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Auto Workers Union · Autoworkers · Average Salary · Bailout · Carmaker · Crossword Puzzle · Crossword Puzzles · Detroit Automakers · Ford Motor · Ford Motor Co · Health Care Costs · High School Degree · High School Diploma · Hourly Wage · Medical Retirement · Michigan Truck Plant · Typical Story · Uaw Workers · United Auto Workers · United Auto Workers Union
