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Originally Posted by dustygoon
Mistakes of management? I guess letting the union tie their hands for so many years is a mistake. Mngt has had very little wiggle room when it came to improving efficiency, adopting new technology, and reacting quickly to shifts in demand largely because of the unwieldly labour force. UAW makes a decision like shifting from SUV's to fuel efficient cars into a huge exercise. Retraining, guarantees on jobs, relocation, downtime, pay, etc. 30,000 layoffs is catch-up for so many years of inefficiency.
The only way Ford and GM have been able to add flexibility to production and get fixed costs down was to spin-off much of the lower value added work to separate companies and strike contracts with them that call for yearly price reductions of 2-5%. Not easy when salaries escalate by the same amount. Same with raw materials. This has put the burden on Delphi, Lear, Dura, Magna, etc to make the tough headcount decisions while GM and Ford can distance themselves.
The healthcare cost issue is a huge joke as well. Why does the union have to have the Mercedes Benz of healthcare plans while GM's non-union workers have a very good health plan (bluecross type) akin to a Camry? If the union would change to the same plan as the non-union employees, then the company would save $2b per year.
UAW has had it good for too long. Seriously, I don't see the purpose of unions anymore. Outsourcing to low cost centres would be less of an issue if uinons clout were reduced. Are work conditions in North America that likely to return to late 19th century levels?
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I'm not going to suggest that AUW has had no part in the struggles that have plagued American car manufacturing corporations but for you to disregard the mistakes of management is absurd.
How is it the responsibility of a union to ensure profitability for the managers? And how can you possibly suggest that employees should settle for a lesser health care plan simply because it costs the company a lot of money? The CEO doesn't appear to be expressing the same type of loyalty to his employees when he is laying off 30 000 employees as if it were the introduction of a new business model instead of a short term cost cutting manoever that will save the company some money this year.
I'm going to ignore your suggestion that we no longer need unions in our society because it is ridiculous. Instead I am going to pretend that you are suggesting that there are restrictions that should be put in place because that idea actually has some merit. And I agree. If the company needs to contract work to other companies for sustainability then there is obviously some problems in how their business is being run and they should work with the union in an effort to find solutions.
Outsourcing to low cost centres would be less of an issue if uinons clout were reduced. Are work conditions in North America that likely to return to late 19th century levels?
Maybe you should ask the workers that are employed in some of the "low cost centres"? Although I would imagine that eventually the workers would get together and form some sort of organization that will represent their right to proper working conditions and fair wages...