Monday, September 24, 2007

The UAW - Slowly Killing GM?

UAW union threatens strike against GM


DETROIT - After 20 straight days of negotiations, the United Auto Workers union said it would strike General Motors Corp. Monday morning if a new contract agreement isn't reached, citing the automaker's failure to address job security and other concerns.

Full Story

Conservative Bloggers Comments:
I have previously written about how I believe that the useful time for unions has passed. This is a great example of how they can hurt American workers. They are pressing GM for further wages etc, in an environment where GM is marginally competitive already and struggling to survive. Toyota workers are supposedly considering the union option as well. How fast do you suppose the Japanese would reduce or completely close their US operations if US workers decide to unionize? They would never say that directly, but you can bet that they would not expand and would more likely reduce the scope of US operations if production costs go up too much. The UAW is in a unique position. They are potentially able to destroy the entire US auto market by painting the auto makers into a corner on wages, benefits etc. The UAW says they wants job security for their workers. Causing the auto makers to become non-competitive and possibly close their doors is not the greatest way to go about this. The thought of GM going under and dumping their pensions on the US taxpayers is not something that I would look forward to. Wake up UAW and start thinking of the workers REAL needs.


lasermike026 said...

Unions have very little to do with GM's problems. GM has an extremely bloated management staff, they haven't put out a decent car in years, their designs are behind the times, and they don't seem to have problems with unions in Cananda. GM does large manufacturing right outside of Toronto. We can rebuild American manufacturing and Unions could help lead the charge.

Conservative Blogger said...

GM's pension is like a GIANT anchor around their neck. Their production costs are gigantic compared to many other manufacturers. If they can't make a decent design that's a whole different story. I can't speak to the management structure, but if it's too big then it should be trimmed as well (though I doubt its that fat). The bottom line is that even with a new hot design, GM has a hard time competing due to the benefits, pensions etc. that they have allowed the union to saddle them with. It's a cancer that is slowly killing them.