Thursday, December 4, 2008


The UAW is saying that they are open to making a few concessions if that's what it will take to get a bailout from the government. They will not consider reopening contract negotiations.

I think that UAW management should listen to what GM's management is telling Congress (presumably, under oath.) They are saying that GM will be insolvent by the end of the year without more money. This is in 3 weeks. When they become insolvent, those contracts won't be worth the paper they're printed on. If they want GM to survive, if they want to continue to work in the auto industry, then they had better consider every option, and they had better be prepared to renegotiate everything. Congress is, remarkably, resisting help for a company and a union that will not change it's ways. 

The UAW has a sense of entitlement that is possibly exceeded only by that of GM's management. They continue to make claims of great sacrifice, as though their members are not compensated better than the vast majority of Americans. They call themselves the backbone of the country, but if they refuse to accept the changes that are needed, and cause the bankruptcy of GM, then they may instead become the straw that broke the country's back.


  1. pete, much of what is happening now is merely a template from what the airlines did to their pilots.

    they cry a big game and threaten and intimidate their pilots to accept a substandard contract. basically they say accept this or else--- lose your retirement, have the bankruptcy judge impose its own idea of "fair" conditiones etc.

    well when the pilots fo untied airlnes gave BILLIONS to the company- they not only still decalred bankruptcy, they took their pensions and made them the wost paid in teh industry , while mgmnt awarded themselves ridiculously for getting labor to take the cuts=----- now honestly is that fair? is it right?: we all know its legal-- the unions are trying to close those loopholes but of course the auto industry is trying to capitalize on them before they do.

    well now that there is a new administration coming, look for a change in the way things are handled and done---- i know my brothers and sisters want what we've given back to make united a successful and profitable company and if we dont get it, well then it just easier to not work than to work for those types of wages--- basica supply and demand and willing to strike to do it--all major airlines except delta are in negotiations and the mgmnt is running scared--- now should an auto worker make $75/hr, well its what the company agreed to--- how is it the employees fault mgmnt cant run a profitable company or make cars that people want and make cars that are comparable to foreign one.

    im sure the uaw will give something back, but dont look for too much--- it still doesnt make me want to buy a car form them, and i still wouldnt. problem is who really needs a new car nowadays?

    later, did you see i tagged you in two pictures.


  2. The UAW certainly is not solely to blame for the problems in Detroit. The Big 3 have been fighting Washington on fuel efficiency standards for years, and have no doubt had to make concessions on labor contracts in order to gain the political support on the CAFE front from congressmen with labor ties. Labor did what was expected of them. They used their political connections to get the best deal for themselves. And it may, in fact , have been the best deal for the senior labor leaders, who may not care if GM survives for long, since they are nearing retirement anyway. But they killed the goose that laid the golden egg. They have no moral claim to the terms of the contract. They made a bet that it would work out, and it didn't. That's life.