Why doesn't GM just pull a President Reagan, refuse to negotiate with these folks, and bring in a bunch of new employees at 30%+ higher than the old non-union wages?
The two reasons which come immediately to mind are 1) it's illegal, and 2) bad blood.
Reagan had a few trump cards in his hand during the air traffic controllers' strike. Primarily, the government gets to decide which services are crucial and are therefore not open for strikes. But also, the union base was spread out geographically, and largely existed in areas where a sufficient population with the necessary skill sets could be brought in quickly.
GM has neither of these advantages, although the latter is arguably more important. Manufacturing has decreased as a percentage of the entire US economy, but automobile plants still are large fish in small ponds when it comes to employment in the towns where the factories are. Unless the entire plant moves -- a costly option -- GM will still need to hire from much the same employee pool if it converts to non-union shops. And those former union workers might hold a grudge.
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Re: management has the leverage
Tue Sep 25, 2007 at 11:23:38 AM EST
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Sure, it would be illegal to fire them all for striking. But hey, if GM happens to hire permanent substitutes for the duration of said strike then they can keep production going. Just offer the replacements what they offered the union and sooner or later everything will work out.
I do not understand the mentality of the union. The golden goose is gone. GM and American auto workers are going down the tubes in terms of profitability and it seems like their "full pay until the last day" stance is only digging the grave faster.
How come Japanese manufacturers can hire workers in the US for lower wages and benefits without much complaint from the workers?
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Re: management has the leverage
Tue Sep 25, 2007 at 01:46:20 PM EST
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Can't find anything about wages yet...but it seems that health care isn't so much an issue (aside from the taxes that companies pay to subsidize the health care or course). YMMV
It's the end of the world as we know it, and I feel fine
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Re: management has the leverage
Tue Sep 25, 2007 at 02:24:55 PM EST
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Ehh... tis true health care is settled. I was just bringing up that if the management really wanted to be devious and cut their bottom line, now would be a good chance to jettison a lot of these inflated costs.
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In other words...
Tue Sep 25, 2007 at 02:41:23 PM EST
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jettison a lot of these inflated costs.
i.e. people?
It's the end of the world as we know it, and I feel fine
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Re: In other words...
Tue Sep 25, 2007 at 02:58:21 PM EST
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When the amount paid per hour and for benefits is far beyond what is paid to comparable workers in the same industry at other companies, then yes, it would be wise for a struggling corporation to look at cutting costs by returning those wages to industry standards.
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Re: In other words...
Tue Sep 25, 2007 at 06:12:08 PM EST
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Wise? Probably...ethical? I'll leave that one for the philosophers. That being said, the GM workers are going to get it in the shorts. I sympathize with the workers, but I have to agree with Wetkarma...the company holds the cards in this case. Will that do anything to prevent GM from going down? Probably not. You may say that the workers are being greedy. Maybe so...but it's a sure bet that the Big-3 have a long way to go before they build cars that are worth buying. While the US luxury brands rate well, the cars the rest of us buy are just above average, but still behind the Japanese. And even though the American cars are better than they used to be, the legacy of Detroit heavy iron crap is still hard to shake. It also doesn't help that GM can't design something other than a PT Cruiser wannabe. Apparently, there are also subtle issues of design inefficiencies as well. 81 different styles of review mirror vs. two? Yikes.
So sure...blame the workers. I mean, they have a good thing and don't want to lose it. But the management at the big three have just as much of a hand on the knife that's stabbing the golden goose as the workers. So, with that in mind, if we do "jettison" the workers, can we jettison the management as well?
It's the end of the world as we know it, and I feel fine
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Re: In other words...
Tue Sep 25, 2007 at 06:18:44 PM EST
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...it's a sure bet that the Big-3 have a long way to go before they build cars that are worth buying
"Worth" buying? That's precisely the point: union-made cars cost more than they're worth
because they're union-made. "Look for the union label" now means "you're paying too much for what you're getting."
...if we do "jettison" the workers, can we jettison the management as well?
Again, you've hit the nail on the head. Companies like GM can eliminate excess management positions whenever they need to, but they cannot do the same with excess union labor.
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Re: In other words...
Tue Sep 25, 2007 at 06:38:54 PM EST
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"Look for the union label" now means "you're paying too much for what you're getting."
Funny thing...Japan has labor unions too. American workers must suck more than I thought.
Again, you've hit the nail on the head. Companies like GM can eliminate excess management positions whenever they need to, but they cannot do the same with excess union labor.
Except of course...lay them off.
It's the end of the world as we know it, and I feel fine
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Re: In other words...
Tue Sep 25, 2007 at 06:49:37 PM EST
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Except of course...lay them off
Bravo. Once again you've cut to the heart of the issue. The problem is that past practice, i.e., under the newly-expired contract, when GM laid off workers,
they still had to pay them,
...the jobs bank, which critics call the epitome of the American auto industry's inefficient labor practices, could be in its last months at the three Detroit automakers
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Re: In other words...
Tue Sep 25, 2007 at 07:20:33 PM EST
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I'm curious...does Ford and Chrysler have the same sort of layoff deal as GM? If not, it must explain while they're doing so well.
By the way...I'm glad to see you got your condescension account out of arrears.
It's the end of the world as we know it, and I feel fine
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Re: In other words...
Wed Sep 26, 2007 at 11:11:33 AM EST
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...does Ford and Chrysler have the same sort of layoff deal as GM? If not, it must explain while they're doing so well
Each contract is different, but broadly similar. Ford went through their pain four years ago when they closed several plants.
I'm glad to see you got your condescension account out of arrears
What are you talking about?
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Re: In other words...
Tue Sep 25, 2007 at 07:11:11 PM EST
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Whoa, you misunderstand me. The blame is on both sides here . The management for failing to read the market, and letting labor contracts get out of control. Sure, labor took what they could get and what was offered to them, but they should have been reading the writing on the wall and noticing the golden goose taking its last breaths.
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Re: In other words...
Tue Sep 25, 2007 at 06:11:20 PM EST
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i.e. people?
He ain't talking about steel.
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Re: In other words...
Tue Sep 25, 2007 at 06:12:43 PM EST
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They still make cars out of steel?
It's the end of the world as we know it, and I feel fine
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Re: In other words...
Tue Sep 25, 2007 at 06:21:11 PM EST
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They still make cars out of steel?
Among other things: aluminum, plastics, glass, upholstery, rubber, and tender loving care.