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UAW workers in Indiana approve Lear Corp. contract

By WTOP Staff

HAMMOND, Ind. (AP) — Workers at a Lear Corp. plant in northwestern Indiana that makes automotive seats approved an agreement Sunday that will end a two-tiered pay system that left some workers earning much less than others.

The United Auto Workers said in a statement that members of Local 2335 had “overwhelmingly” backed the four-year contract. It did not give a specific vote count. Local 2335 Vice President Hanif Hassan had said earlier that about 760 union members were voting.

Workers at the Hammond plant about 30 miles southeast of Chicago make seats for the Explorer and Taurus models produced at Ford’s Chicago Assembly Plant. They went on strike Sept. 13, but returned to work the next day after the tentative deal was reached.

UAW Local 2335 President Jaime Luna said the contract will end a system that locks newer workers into lower wages, and will raise the top wage to $21.58 an hour.

Under the tiered system, Hassan said upper-tier workers could earn nearly $20 an hour while some workers on the lower tier made as low as $11 an hour. Many fast-food workers do not earn much more than the federal minimum wage of $7.25 an hour.

The union’s hard-line stance with Lear Corp. in striking to get rid of the second-tier wage could be an indication of how it will handle contract talks next year with General Motors Co., Ford Motor Co. and Fiat Chrysler Automobiles NV.

“The agreement is a victory not just for the workers at our plant, but for thousands of autoworkers across the country who do the same hard work we do and will benefit from the higher standard we achieved by taking a stand in Hammond,” Luna said in the statement.

Workers have been pressuring UAW leaders to scrap the lower wage because recently hired factory workers make only about two-thirds of the roughly $28 per hour that longtime UAW members get for doing the same jobs. The two tiers violate a UAW principle of all-in solidarity.

The union agreed to the second tier in 2007 as Detroit automakers were headed into financial trouble, and it allowed expansion of the lower wages in 2009. The lower pay, which then started around $14 per hour, was instrumental in bringing Detroit automakers back from near death during the Great Recession by cutting the automakers’ labor costs to make them competitive with U.S. factories run by Asian automakers.

Now, all three automakers are pulling down healthy profits, and many in the union think it’s time to end the second tier.

“The UAW has shown that it is willing to do a strike in order to get out of a two-tier wage settlement and have a single tier,” said Gary Chaison, a labor relations professor at Clark University in Worcester, Massachusetts. “I think they perceive that as a mess that we got ourselves into; this is a mess were going to get out of.”

The union was barred from striking against GM and Chrysler in the 2011 contract talks while the two companies were partly owned by the U.S. government, but that prohibition is over.

Automakers want to keep the second tier wages, or bring down the top tier in order to keep their costs in line. This creates an early disagreement in contract talks that officially start next summer.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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