Quote:
|
Originally Posted by CGSTL
It seems simple to me - maybe too simple because I've never been in a union. The more you pack on the back of the mule, the slower he goes. Pretty soon he'll be unable to compete and will eventually fall down and die. We're seeing that slow death now.
It sounds like each round of negotions ratchets up the amount in the UAW package that the automaker has to carry, and it's not just salary.
Successful large companies don't carry huge labor package burdens such as lifetime pension payments and retiree healthcare benefits. Instead, the employees contribute to their 401K's and do other saving/investment options.
Why can't the unions see that this old-school model no longer enables big companies to compete globally?
I apologize if i offended any union folks - but IMO, the path the UAW has been on for decades will do nothing but seal the bankrupt fate of the US automakers. The pack gets heavier and heavier....
|
You're spot on.
It was the years of union demands for "cradle to grave" healthcare (sound familiar, Eric?) and the expectation of jobs for generations of families that truly broke the companies' backs. Of course, they bear some of the responsibility, as they didn't say "boo" to the unions when times were good, they just kept agreeing to their ridiculous demands for more and more in the new contracts.
Now the Big Three are reaping what they've sown (with the unions' help).