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Why the UAW said no


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Why the UAW said no.

#1. During recent meetings with the Senate. The UAW was asked for wage concessions 'on par' with 'transplant assembly operations.'

The UAW said no. They had to.

Problem is: There is no such thing as a 'fixed' wage for 'transplant assembly operations.'

The transplants base their wages slightly below what the UAW collectively bargains for with the Big 3.

With transplant wages very close to UAW wages, The transplants hope to keep the UAW out.

The nearest thing to a 'fixed transplant wage' ....IS the UAW contract.

So basically..

If the UAW had agreed to a $5 per hour wage cut. Within 24 hours, all the transplants would have followed with the same $5 per hour wage cut.

I can see the Xerox now...."Attention all hourly Toyota employees....due to recent changes in market conditions...the new hourly line rate is..."

So within 24 hours. We would be right back at square one. The transplants do not have any contract with their employees whatsoever.

"It's a good paying job. Be here or else." That is the transplant contract.

The transplant workers will always be paid a couple bucks per hour less then UAW workers.

So if the UAW had dropped hourly rates. Your UAW members lost, and your competitor just got even stronger.

Ironic, drop the UAW hourly rate a couple of times....You might actually piss off enough transplant workers that they would now be willing to join the UAW.

#2. There is more to GM then Rick Wagner and the UAW.

I think Rick is a pretty good CEO. Taking a huge pay cut to $1 per year darn it. Poor Rick. I suspect Rick has made 10 of millions of dollars as being CEO of GM for almost 10 years.

I bet Rick is in a pretty good position for the future.

I think the UAW take is this..

The UAW has made substantial concessions recently.

Are the plant managers, car designers, everyone else involved at GM taking a cut in pay? Bob Lutz? Or just Rick and the UAW?

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Unfortunately it may have been a situation in which there was not a way to reach agreement. Certainly a small pay cut is preferable to being out of work, and certainly the UAW could have agreed to match current prevailing wage rates and agreed on a value. What is not clear to me is if that would have made the deal; it could be that if it was not this issue it would be some other issue, and the point for the Republicans was to force conditions no one would agree to in order to derail the automaker loan support.

Executive pay never makes sense to me; I don't understand why you would ever pay someone millions of dollars a year. I also don't understand why so many millionaires continue work as managers, or serve in Congress for that matter. I suppose they like the challenge. I think if I were independently wealthy I would volunteer part time at a job I enjoyed.

Sounds more and more like the White House is going to take GM into a pre-structured bankruptcy. I am pessimistic on how well this will work out, but we'll see. Certainly there will be more layoffs and supplier closures ahead.

Bruce

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Reducing Labor's income is a component of class warfare leveled on Labor by "Preppy Parasites", so drunk on themselves, that they fail to understand Say’s Law – the principle that “production creates its own demand,” based on employees being paid enough to buy what they produce.

Depressing Labor's Income/Living Standard stifles the domestic consumer-goods market.

Living standards are supported by either wages or CREDIT. Exporting production reduces wages and in turn increases debt peonage...CREDIT.

"Alan Greenspan’s asset-price inflation that flooded the banks with credit, which was lent out to homebuyers and stock market raiders. Rising home prices were applauded as “wealth creation” as if they were a pure asset, much like dividends suddenly being awarded to one’s savings account. Homebuyers were encouraged to “cash out” on the rising “equity” margin, the (temporarily) rising market price of their homes over and above their (permanent) mortgage debt. So while most mortgage money was used to bid up the price of home ownership, about a quarter of new lending was reported to be spent on consumption goods. Credit card debt also soared. In the face of a paycheck squeeze, U.S. consumers were maintaining their living standards by running further and further into debt."

Debt-financed bubbles can’t last. The chickens have come home to roost. Kill Labor (host)

and all will fall.

rek

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I like that expression, Debt Financed Bubbles

I have described these bubbles as false appreciation driven by low interest rates allowing easy money. Obviously if the interest rate is low you can afford a higher mortgage, this drives up the sales prices of homes

During the last 5 or so years the interest rates needed to rise. In addition, no credit check, no credit, bad credit loans needed to have higher interest rates due to the risk involved, but that would have gone against FNMA/FHLMC policy of easy loans

There are a lot of heads that could be chopped off in all of this

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Good article here. Compares GM to Toyota.

Also, the Harbour report shows the 9 most efficent plants in North America are owend by Domestic, unionized, manufacturers.

http://money.cnn.com/2008/12/19/autos/auto...dex.htm?cnn=yes

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Here's a very interesting video about Ford's newest and most advanced plant in Brazil:

http://info.detnews.com/video/index.cfm?id=1189

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There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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Let me say this about workers unions: It absolutely sends shivers up my back when I think of what the working conditions, wages and living standard of every working man and woman in America would be without the improvements fought for and won by all of the unions. Rather than trying to break the UAW we should be more concerned with returning jobs of all types to the USA and preventing the off-shoring of more American jobs under that national swindle know as "Free Trade".

We are witnessing the collapse of the "post industrial", "service based" economy that government and academic shills for the corporations used as justification for

depressing the cost of labor in this country by shipping out US jobs to those Asian countries that provide coolie labor. Every working man and woman in the USA should be standing shoulder to shoulder with members of the UAW and demand that enough is enough. The middle class in the USA will not recover from this squandering of our economy until "Free Trade" is stopped, US corporations are prevented from shipping US jobs to the coolie nations and those jobs that have been "off-shored" are returned to the USA.

Today it's the UAW tomorrow it will be the rest of us...

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Ross Perot said it 20 years ago!

Remember his "sucking sound" comment whenever NAFTA was brought into a discussion?

The "sucking sound" he was referring to was the sound of jobs leaving this country. The situation has expanded geometrically beyond the shores of North America.

And I don't see FDR II being able to correct the situation in the short term and possibly even the long term.

Jim

Drive your car.

Use your cell phone.

CHOOSE ONE !

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Well said MrEldo

Thank you Ranger.

We really need to take to the streets again to stop "Free Trade"!

Is that a call for revolution?

During a "smoke break" at a factory two assembling workers discuss their miserable life in communist Russia.

- Enough is enough! We need another revolution!!!

- What if we win again?

:)

The saddest thing in life is wasted talent

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Well said MrEldo

Thank you Ranger.

We really need to take to the streets again to stop "Free Trade"!

Is that a call for revolution?

During a "smoke break" at a factory two assembling workers discuss their miserable life in communist Russia.

- Enough is enough! We need another revolution!!!

- What if we win again?

:)

Yes.

The working person in America is supposed to continue to roll over and get screwed because the USG and the corporations say that "Free Trade" is good for us? "Free Trade" is a scam and the balance of payments proves it. Fair Trade yes; "Free Trade" NO.

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Well said MrEldo

Thank you Ranger.

We really need to take to the streets again to stop "Free Trade"!

Is that a call for revolution?

During a "smoke break" at a factory two assembling workers discuss their miserable life in communist Russia.

- Enough is enough! We need another revolution!!!

- What if we win again?

:)

Yes.

The working person in America is supposed to continue to roll over and get screwed because the USG and the corporations say that "Free Trade" is good for us? "Free Trade" is a scam and the balance of payments proves it. Fair Trade yes; "Free Trade" NO.

I agree with you. The problem is that the government IS for corporations (no matter Republican or Democrat one)....

The saddest thing in life is wasted talent

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