Originally posted by: Strk
Originally posted by: Double Trouble
More pointless drivel based on political ideology instead of factual analysis. The bottom line is that these people make more money than they should given their education (because of the union) than they would otherwise. They make $20 or $30 per hour for jobs that would (outside a union) get them $10 - $15 per hour. They get health care benefits that the rest of us can't even dream of. Until recently the workers for GM didn't pay anything towards their health care. How many of you, working in the private sector can say that? This situation is fine if the business continues to make money (like Major League Baseball or something), but when the big three are sinking fast, it's pretty obvious they cannot continue to overpay for resources.
GM and the big 3 need to go bankrupt, get rid of the union and current executive management altogether, and be reborn as more efficient companies. That's the only way they can be competitive in the long run. A bailout or cash infusion won't change the fundamental problems that are killing the companies, especially if the bailout comes with strings attached that force the companies to continue to squander money because of unions.
I'm also not arguing that the problems for the big 3 are exclusively the fault of union workers, it's just one factor. Idiotic management and squandering of resources are major components as well. There are plenty of other workers out there who work jobs just as hard or harder than working for an auto manufacturer, but they don't get paid the same salaries. Their jobs often require more skill and education as well (teachers, policemen, etc etc), but they still don't make as much as the auto workers.
The need to go broke and start over without the weight of decades of stupidity (by management as well as the unions) dragging them down.
Honda, Toyota pay similar, in some cases more, and they seem to be doing fine. Don't get me wrong, the legacy costs are still dragging on GM. But as I said earlier, GM has managed to bring their cost down to about $60, which is pretty good. That's still higher than Toyota ($48, last I saw), but it takes time. A lot of what GM and Ford are doing now should have been done years ago. In the past year, the two companies each have reduced their workforce by 40,000, yet their production is about the same, which is pretty bad when you think about it. The union wasn't telling them to hire people, nor was it saying not to use attrition to reduce their workforce. It took some pretty dire circumstances for them to kick it into gear.
And it's been said, with some exceptions, the top rate is around $24, which is industry standard (Nissan is close to $25, for example). Anything above that is for a very specific job and, of course, cost of benefits.