My knee jerk reaction is to agree with you. But I keep thinking about the ripple effect — all the ancillary businesses and suppliers that depend on them for a living, etc. This is going to hurt a lot of people who have nothing to do with the Big 3 unions and that’s a shame. It will be very painful for a lot of people who didn’t make the big bucks the union employees made.
Think about this, not all but many of the suppliers to the Big 3 also do work for the other car makers as well. I know this is not good, but the longer the Big 3 have to pay unrealistic labor cost, $1,500 per car vs. Toyota and others paying $115.00 per car; they can’t compete. I driven many American cars, the last 3 never went to the dealership for any repairs at all.
First, it makes no sense to make more cars than demanded. Second, it makes no sense to pay more people than you need to do the work. Third, it makes no sense to have a defined benefit retirement program when you have fewer workers contributing to more and more retirees. Finally, there are a lot of successful care makers in the U.S. that are not part of the big three or UAW controlled. People will still buy cars and the remaining car makers will need parts.
Who is buying their cars now to help those suppliers?
They have already declined if they were tied to the Big 3.