Has The UAW hobbled the Domestics?

[DDiedrich]

Nothing like a labor debate to start off the week!

The UAW and CAW contracts, Ford is going to assume liability for Visteon union workers' retirement benefits if parts maker fails, no healthcare concessions until bankruptcy threats...

It just seems to me that big labor is one (Not the only) reason the domestics can't compete.

Sure, you might say that the Asian imports are now using UAW labor, but they aren't paying pensions stacked up for decades.

Have poor decisions been made on the part of management? Sure, but do the unions have any portion of the blame?

Any thoughts?

[Mr. Pebble]

The Big 3 gave away the farm 20-40 years ago and the UAW was there gobbling it up. I was one of them and it worked fine for me.

Unfortunately, the UAW did not realize that they were borrowing against their future and were boud to pay, big time, for the excesses to the 1950's and 1970's. My plant was horribly inefficiant and was one of the first to close (Fisher Body, Flint #1) but even after losing half of its members and lots of others going to reduced wage Tier suppliers, the UAW and the Big 3 still haven't got the message.

I wrote a proposal to help save GM from chapter 11 for our local paper and it addressed some of these problems. Among the suggestions:

1. Question healthcare COSTS rather than the premiums. $55 for a pair of diabetic socks is outrageous but no one challenges it.

2. 30 and out is out. A gradual change to 40 and out would allow the Big 3 to reduce contributions to the retirement and health care fund and save billions.

3. Go to a gradual retirement, say, three months this year, six months next year, etc. and allow retirees to come back if they can pass a physical exam would greatly reduce contributions to retirement payments and health care.

4. Concentrate on reducing costs. I have yet to find a plant, Big 3, Japanese transplant or Tier supplier where they could not reduce costs by $1 million per year for every 100 employees. No one cares.

The entire report was 24,000 words, plus spreadsheets by GM has not shown any interest and neither has anyone else including the UAW.

Mr. Pebble