The company agreed to pay wages that were non-sustainable. Now they are trying to get out of it. I don't know anyone that can take a 60% pay cut. The company reneged on its contract, so the workers are well within their rights to strike.
Don't waste your time with people who think they know it all.
"The company reneged on its contract, so the workers are well within their rights to strike."
I don't think anyone is arguing whether they have the right to strike or not.
Bankruptcy is a legally sanctioned way to reneg on legal, binding contracts. You can't force a business to stay open when it can't meet all of its contractual obligations.
The ONLY way for Delphi to stay open as a viable business is for these drastic cuts to be made. It's going to ruin a lot of lives and communities.
In one way, I suppose, there is logic to striking a bankrupt company - There is no assurance that Delphi will be managed any better in the future (even with drastic wage cuts) that in the past, so why not just force it to close and let people get on with their lives?
I don't agree with that logic, but I can see how some people would think that way, especially if they are living paycheck to paycheck before a pay cut.
Personally I hope these workers do strike and that Delphi immediately shuts its plant.
L
"so the workers are well within their rights to strike."
Sure, for all the good it will do them. The company is bankrupt. Reality has set in. Going on strike is not going to get these unskilled workers $20/hour and benefits.
In my view, the leaders of the big, old unions have essentially zero understanding of business strategy. Like so many Democrats, they make decisions based on emotion, pride, and what makes them feel good today. The big old unions have totally screwed themselves up by using dumb business strategy and refusing to change their strategy as Asian competition has strengthened. It's sad the way this has screwed over the union people and has cost them so many jobs and more jobs in the future.
Absolutely agree. By taking a stand, they are telling other companies that it is not right to treat people like that. If they did nothing, this type of thing would continue unchecked.
I think you have to give credit to anyone who stands up for what they believe. Is it better to just complain and do nothing?
The company agreed to pay wages that were non-sustainable. Now they are trying to get out of it. I don't know anyone that can take a 60% pay cut. The company reneged on its contract, so the workers are well within their rights to strike.""
Ypu appear to either be a Union worker or too young to know the consequenses of these actions. Good Luck to you in your future.
None of the post I read up to this point disputes their right to strike. What I think is being said, 'are they stupid or what?
The price a business can get for its product is not determined by the the seller, but by the buyer.
Regardless of what something cost to make, if it is priced more then a buyer is willing to pay, they will not by it.
A business then has to determine how to make their product for what a buyer is willing to pay. Cost of material is one way, quaility is another, labor is another.
If the business can not (or will not) lower cost, and attempts to sell their product for less then it cost to produce, there is only one result possible. When the capital runs out close the doors.
Labor in this case says, don't look to us to help you lower the cost of the product we make. Ok fine, but if it turns out there is no other place to cut, then in the end, the workers will instead of being employed at $12.00 an hour, will be unemployed at $27.00 an hour. A wage I dare them to find anywhere else.
So stike, but but don't get your panties in a knot when others laugh at you for being stupid.
Sure...and when they are unemployed, they'll get the sympathy they've earned.