Keeping The Faith Saturn Workers Vote Overwhelmingly To Retain Unique Contract
Workers at Saturn, the “new kind of car company” where employees get a say in how the business is run, decided Wednesday to keep their unique contract that rewards productivity and ingenuity.
The 7,200 United Auto Workers members could have scrapped it in favor of the contract all other UAW members have, but instead voted overwhelmingly to maintain the agreement in place since the plant opened in 1990.
The vote tally was 4,052 to 2,120.
“The vote today represents that this local is dedicated and committed to the original Saturn idea,” said Mike Bennett, shop chairman for UAW Local 1853. “The partnership is alive and well in Spring Hill.”
Under Saturn’s “risk-and-reward” pay program, employees average about 12 percent less in salary than other General Motors Corp. workers but can add to their base pay by hitting efficiency, training and other targets.
In earlier years, bonuses hit $10,000 and Saturn workers made about $4,000 more than GM’s other employees. But last year, because fewer cars were made, it was about $4,000 under their GM counterparts.
Since the first Saturn came off the line eight years ago, company advertising campaigns have touted content employees who cheerfully work together in teams. The contract gives workers representation at every level of management.
But in recent years the market for small cars has shrunk and Saturn has cut back production. Last month, Saturn cut the goal that helps determine this year’s worker bonuses from 310,000 cars to 280,000 and set the maximum payout for production and quality goals at $5,000.
Last month, workers voted to hold the referendum. In 1992, the only other time the contract went before workers, 80 percent voted to keep the deal.
Joseph Rypkowski, president of Local 1853, said a small, vocal group pushed for a vote.
The contract allows for layoffs in the event of “unforeseen or catastrophic events or severe economic conditions,” but what that would be has never been defined.