Big strike at GM

[iron81]

CNN

73,000 UAW workers walked off the job at GM plants nationwide. They are arguing over wage, health care and outsourcing concerns.

I liked seeing that unions are alive and well in this country. IMO, the single thing that government can do to improve quality of life the most is to strengthen unions. I think it also proves that unions are not necessarily a competitive disadvantage: the dispute is over how much to cut from the old contract instead of what new goodies the unions are getting.

[lehighguy]

A failing union in a failing industry nails its own coffin shut.

[John Kilduff]

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CNN

73,000 UAW workers walked off the job at GM plants nationwide. They are arguing over wage, health care and outsourcing concerns.

I liked seeing that unions are alive and well in this country. IMO, the single thing that government can do to improve quality of life the most is to strengthen unions.

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And here I was thinking that the single thing government could do to improve quality of life the most would be to eliminate most of the taxes that are out there ;-) That wouldn't even be regressive; gas taxes and sales taxes and so forth kill poor people.

But back to the subject at hand:

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I think it also proves that unions are not necessarily a competitive disadvantage: the dispute is over how much to cut from the old contract instead of what new goodies the unions are getting.

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If they haven't already sunk GM with their accumulated demands over decades maybe there is hope yet. They'll probably have to do a lot of cutting to regain true competitiveness with companies like Toyota and Honda.

[ikestoys]

Iron, as someone from Michigan, who has their entire family working in the auto industry, I'll tell you that no single group has done more damage the Michigan economy other than the Union.

The union's had their time and place, but they are now holding back all of the major auto companies. Their constant resistance to modernization, streamlining and keeping costs down add about 2k per vehicle compared to imports and contributes to a lot of quality problems in manufacturing.

If Unions were truly needed and necessary to Michigan, you wouldn't be forced to join one to work at pretty much every plant. Compare "Right to work" states versus states where you can be mandated to work as part of a union to work in a plant. The "right to work" states are doing much, much better.

[guids]

If you approve of unions, you have no idea how they actually operate, and how detrimental they are to business. Imagine the govt, but about 1000 times more corrupt.

[SNOWBALL]

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Iron, as someone from Michigan, who has their entire family working in the auto industry

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I call BS. WHERE in the auto industry do they work? I'm guessing management, or some other non-union position.

[TomCollins]

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Iron, as someone from Michigan, who has their entire family working in the auto industry

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I call BS. WHERE in the auto industry do they work? I'm guessing management, or some other non-union position.

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I was thinking of getting a GM car last year, I'm glad I bought Japanese. Can't wait til these bums are on the street.

[Richard Tanner]

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If you approve of unions, you have no idea how they actually operate, and how detrimental they are to business. Imagine the govt, but about 1000 times more corrupt.

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I agree. I'm of the opinion that unions have long outlived their usefullness.

Cody

[lehighguy]

Ah, the accusation of dishonesty. Didn't take long to get that one out.

[W brad]

I read this summary of what is being fought over, and it looks like the union is once again only willing to do too little too late to actually help the US automakers survive.

UAW contract talks at a glance

Here are some of the issues in the contract talks between the United Auto Workers and General Motors Corp. The UAW struck GM at plants across the country Monday but bargainers remained at the table. Once GM and the UAW reach an agreement, the terms will likely be matched by Ford Motor Co. and Chrysler LLC.

LABOR COSTS: Detroit's automakers lost a collective $15 billion last year, and all say they need labor cost parity with their Asian competitors in order to turn consistent profits. GM pays its U.S. workers $73.26 an hour, while Toyota Motor Corp. pays its U.S. workers about $48 per hour, according to an estimate from the U.S. automakers. The UAW says labor is only about 10 percent of the cost of a vehicle.

HEALTH CARE: Among the top issues is the Detroit companies' combined $90.5 billion unfunded retiree health care obligation. GM, Ford and Chrysler want to get that liability off their books. The automakers want to establish a fund — known as a voluntary employee beneficiary association, or VEBA — with a portion of their obligations and let the union be responsible for future benefits. UAW President Ron Gettelfinger said Monday that the union isn't striking over the VEBA.

JOB SECURITY: UAW membership has fallen from a high of 1.5 million active members in 1979 to about 576,000 today, and the union already has agreed to massive buyout plans and changes to retiree health care to help the automakers. The union wants GM to promise future production and investment at U.S. plants, which is difficult for GM because the automaker's U.S. market share is in decline.