06-04-2009, 07:00 PM
quote:Lets be fair and get rid of the UAW:
Originally posted by Bob Orts
Lets be fair:
First, The UAW is not the cause of GM's demise or current predicament. It was the economy that caused the problem. Had the fiscal/housing crisis not occurred, GM would be as profitable as it was before with the same union labor contract. GM was making millions in profits even with the labor contract so obviously the labor contract wasn't an issue for GM before the current fiscal meltdown. And remember GM agreed to all the terms and conditions in the contract. If they didn't think they would make money following it, they wouldn't have agreed. But they knew that they would be making money and they were making money until the current situation collapse many industries.
Second, Toyota is not making money. They are in the red for something like $28 billion. Only a massive subsidy from the Japanese’s government is keeping it afloat. So yeah it looks good on paper and to they are good to investors, but if the government decides to pull funding, Toyota will be standing next to GM.
Third, comparing a government employee labor union to a trades union like UAW is unfair. Laws allow a government entity to change the terms of a labor contract in an emergency so long as the government follows the requirements of the contract during that emergency. If Governor Lingle followed the conditions of the contract and law in furloughing state employees, the union's case won't go anywhere. But, if the Governor made up the rules and ignored both the law and the contract, the union will prevail.
The United Auto Worker’s greed have held the manufacturers and the consumers hostage. The current American auto industry business model is a failure, and to allow it to follow this path and pump billions of dollars into a model that will continue to fail is insanity. I have concluded that I would rather see GM, Ford, and Chrysler die this year than watch the death rattle drag on into the next decade at the taxpayers’ expense.
In the mid 80’s I had a good friend that worked on the racking crew at a GM plant in metro NY.
Closed in the late 80’s because it was too expensive to operate. The racking crew installed the equipment that made up the assembly line. These were the only workers that really had a trade; he called the rest of the workers “screw turners”. He made $58/hour in 1983, and he drove a vett. He would laugh out loud that he never worked a job, did so little and got paid so much.
The mismanagement of car companies force huge odds in making profits. The fact the UAW prices its labor and benefits at extreme rates forces the price of these cars higher and higher each year.
If you think health care is expensive now, wait until you see what it cost when it’s free...now here come the taxes.....