[carl in alaska]

The company agreed to non-sustainable wages because the only alternative was the Caterpillar Option: build up a maximum level of cash and product inventory, then tell the UAW a big "NO" to higher wages and benefits. Then endure a very long, costly strike that ends in no contract settlement and the workers finally going back to their jobs 6-9 months later under the old contract. Caterpillar made a very wise but difficult choice to go down that road and refused to give the UAW higher wages and benefits. GM always chose the easier way out and caved in to the UAW by giving them most of what they wanted.

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.

[phantomworker]

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.

You're right. IAM and AFL/CIO blue collar unions strike over such emotional stuff as respect and pride.

But there is a big difference between blue collar and white collar unions, imo. Professional unions know the business strategy and work with the company to negotiate a good deal where both sides win. The real pay-off is to have a good working relationship with the unions. This way the worker isn't screwed by greedy executives and the unions don't bankrupt the company.

There is such as a thing as conservative union members and conservative union leaders.

[ridesthemiles]

The company agreed to non-sustainable wages because the only alternative was the Caterpillar Option: build up a maximum level of cash and product inventory, then tell the UAW a big "NO" to higher wages and benefits""

Go back further in history and look into the Kohler Company answer to the Union organizers. After 3 1/2 years, Kohler re-opened the doors and the workers were very happy to have jobs again. Kohler Plumbing Products.