Kalifornia
Well-known member
- Joined
- Jun 9, 2005
- Posts
- 217
Unions kill companies with excessive demands, and make them non-competitive. In 1994 the UAW pushed GM into a deal it knew it could most likely not fulfill. It gave unlimited medical and COLA to retirees. GM knew a lengthy strike might drive them into BK. They had exhausted the equity markets, and borrowing was the only solution. Much like living off your credit cards. So they bet on maybe things would work, but they knew in the end they were in trouble. The power of a potential union strike drove them to make a bad management decision.
As they lost market share to foreign rivals, Detroit's auto makers and the UAW lost the power to set standards on labor costs. Yet during the prosperous 1990s, they seemed reluctant to accept the fact that their business model -- with its expensive defined-benefit health and pension programs -- was driving the domestic industry toward ruin. The UAW and its biggest employer have effectively conceded that their golden age of dominance is over.
GM executives consistently acknowledged that it couldn't be competitive in North America without a fundamental change in its labor-cost structure.
The UAW got a harsh lesson in the consequences of bankruptcy proceedings when former GM parts unit Delphi Corp. sought Chapter 11 protection in 2005, and pushed through substantial job and wage cuts under a deal subsidized by GM.
GM's obligation to provide health care for 412,356 union members, retirees and surviving spouses lies at the heart of yesterday's agreement. Even after a partial overhaul of retiree health-care benefits in 2005, GM still faced a $51 billion obligation to UAW members. Health-care obligations added more than $1,900 to the cost of every GM vehicle sold in the U.S. in 2006, a heavy burden given that many GM vehicles sold for less than competing Toyota vehicles.
as they are doing in Wisc, Tuesday will prove how effective this is.
BTW: From the history books, it is 1941, Russia and Germany sign a non-aggression pact. The US is mobilizing, the arms are going to the UK under lead lease. Russia dosn't like arms going to someone who is a war with their buddy Germany. So the communist party calls for strikes throughout the US armaments industry using organized labor. Now June 1941 Germany invades Russia, Russia needs lean lease materiel. Hopkins tells Stalin that the strikes are limiting US arms production, suddenly the strikes diminish. History of labor unions, it is in the history books.
Yea, that's one extreme. The other extreme are the countless deaths and accidents caused by poor working conditions. Ludlow Massacre. Slavery is basically capitalism without boundaries.
It's taken hundreds of airplane accidents over the past 100 years to get to all the regulations in place in this industry.
Let's not forget that the management teams have their own unions in the form of trade associations, wealth management groups, lobbyist, lawyers,.