Posted on 06/21/2010 6:56:36 AM PDT by SeekAndFind
Detroit — They’re b-a-a-a-a-ck. Actually, they never left. And that’s the problem.
It’s fitting that — one year to the month since GM declared bankruptcy — the annual United Auto Worker’s convention is being held here amid renewed, militant calls that the Detroit Three give back last year’s labor concessions. In retrospect, the White House–engineered bankruptcy looks like a brilliant move, artfully dodging a prolonged bankruptcy of a major American industry in the middle of a national economic free-fall.
But it is also apparent that the “UAW bailout” — engineered by a union-beholden Democratic president — did not address Detroit’s structural problem. Indeed, experts say the automakers missed a once-in-a-generation opportunity to fundamentally change the industry, scrub its union culture, and enter the 21st century with a modern, union-free business model like their U.S.-based Japanese, German, and Korean competitors.
The UAW agreed to significant concessions in return for staying in the shop, including $14 an hour wages for new hires, a wage freeze on existing employees, and a no-strike commitment at GM and Chrysler until 2015. But that was then, this is now.
The UAW has a short memory when it comes to the outrageous union benefits that drove automakers to the brink. With the industry still on its back, deeply in debt, and just showing the first signs of profitability, the UAW this week raised the volume on demands that the industry return to business as usual.
“(Ford) is making lots of profits and if we couldn’t strike, we’d have nothing to force them to get back what we’ve given up over the last two years,” says UAW official Gary Walkowicz as he targeted Ford, which — unlike GM and Chrysler — got no assurances regarding labor stoppages.
The union’s new president, Bob King, also signaled that UAW workers would already be looking to recover the 2009 concessions. King vowed the union would win back concessions — he’s already won tuition payments for hourly workers (try finding that perk in any other industry!) — and said “we are going to pound on” automakers to unionize new plants.
This is Detroit’s nightmare. Having saved the union — and the company — from wrenching restructuring, Washington’s “drive thru” bankruptcy did nothing to cure the Detroit Three of their flawed shop culture: That is, they have two managements under one roof.
“There is no evidence that they really rethought the problem,” says Michael Levine, distinguished research scholar and senior lecturer at NYU School of Law. “That is what a true bankruptcy does. It turns you loose to rethink the problem.”
“But politics played a part because the government wanted it over with. Government should have made sure they were on the road. Instead, government paved the road,” Levine adds, arguing the feds were right to step in — but should have stopped at guaranteeing supplier contracts.
Professor Lynn Lopucki of UCLA Law School admires the legal dexterity of the Obama team, but agrees however that the quick bankruptcy success may be the enemy of long-term health. “It was quite a legal success, but nothing was done to improve operations.”
In other words, Big Labor is still there. And it’s getting hungry again. You can hear the beast’s stomach growling in Detroit this week.
I would say the relationship is more like being held captive rather than a marriage.
As I’ve said before, union mentality is a mental illness that is terminal. The question only to be answered by a business is who will it be terminal for?
I’ve never purchased an American made car, not because of the government, because I absolutely refuse to give money to the UAW thugs.
The UAW has a new boss.
He is about to put his mark on his company.
Already threatening strikes.
What is the mugabe admin going to do when his car union strikes against his car company? Which side will his press take? Who will be the bad guy in this story? I’d bet it will be GM leadership (picked by obama) who ends up under the greyhound. A purge in the works? Hey GM managment, better dust off the resumes because your boss is about to dump you for more compliant managers. Isn’t marxism fun?
Nice car company you have there, hate to see anything happen to it.
Fascism propping itself up. We all pay, and pay, and pay. With a world population of several billion, why is there only 1 viable auto company based in the western hemisphere?
The UAW is the main reason that a pick-up truck costs $50,000.00. Break the union and you may be able to afford a new vehicle. The value in GMC’s products doesn’t exist. When a vehicle only lasts for about 10 years, on average, and a home can last many more years, put your money in land.
Until they walk back the decision to give the Unions part-ownership of their company, my family and I will not be purchasing andy GM product.
Short memory? Or just spoiled people wanting a life style they haven't earned or the company cannot pay/sustain....Unions are known for their crippling actions, teachers Unions are among the worst...California's Longshoremen just abused the 'picket line' rules....Unions cannot be trusted to act in favor of the United States....these unions have turned rogue....joining a union can be and is dangerous to your health.
Great idea, kill the last remaining profitable auto maker. I used to defend unions, no more.
I sincerely hope that these union thugs do strike and fight for higher wages, benefits, what have you...the sooner they do their evil, the sooner we will be rid of them.
I agree generally about value. To be fair tho its not solely the unions fault. GM as a company is pathetic. More and more plastic self destroying pieces are used which severely limits the longevity of the vehicle esp trucks that are used for work. My current 1/2T is the last GM product I ever intend to purchase.
And there it is in a nutshell why I will not buy a Hussien Motors nor a Fix It Again Tony Chrysler.
I will not support union made anything. Won’t drink union made beer, won’t buy union made cars.
In ten years, Ford will be producing, and selling, almost 100 percent of its product overseas.
Striking against Ford should be a blatant antitrust violation, since the UAW are owners of its competitors.
Me and mine will NOT purchase GM products until the UAW isn’t in power anymore. To do so is un-American, un-patriotic, and a threat to the Republic to permit them to exist. When enough people simply refuse to purchase their products, they will become inconsequential.
BUMP!
“GM as a company is pathetic. More and more plastic self destroying pieces are used which severely limits the longevity of the vehicle esp trucks that are used for work.”
And why did GM move to put these inferior materials into play? Probably because the union contracts were gutting their profits; therefore, in order to stay in business, they had to sacrifice somewhere.
Is this right? Truthfully, I do not know. But, if they had not cut corners to appease these union thugs, the company as a whole would have went out of business a LONG time ago!
Miller Brewing is having the same problems with their unions: contracts are written so that even when a line is not working (it is under repair) the operators are all at work (in the break room playing cards and drinking coffee and watching TV) just in case they have to turn up the piece of equipment. Even if it is only to move a few cogs! If the line is powered up for ANY reason - union employees MUST be present! Absolute idiocy!
No doubt unions had their impact. However, its hard to imagine GM wouldn’t have implemented the ‘cost saving’ measures w/o lowering price. I’m not sure GM was all that upset w/ paying union overage. It certainly has given them a smoke screen behind which they can dither. If you look at very large corps and govt theres not too much difference between them as to incompetence.
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