Originally posted by: 3chordcharlie
Originally posted by: Ferocious
Originally posted by: halik
Whats your solution for the problem? I'd like to hear how you'd go about running a business at loss, because your unionized assembly line workers cost 25/hr and take about 20% longer to assemble a car (compared to non union labor). Let me know when you find out an answer...
The solution is quite simple. Plan long term and not only for the next annual report...and make products that people want to buy!
Automakers in South Korea, Europe and Japan are all heavily unionized. The UAW is really a non-issue...except to delay the inevitable (with concessions) when management and engineering can't do its job year after year. Even GM's management has said the union isn't the problem now.
Oh and GM currently has 3 of the top 5 (including #1) most productive assembly plants in the North America. However they have so many old ones that need more capital investments if they are to be competitive. But because of managment's poor choices over the years...they will probably need to be closed due to lost market share.
But again all a moot point if they make products nobody wants.
Some people forget that capital investment has more to do with 'average labour cost per car' than any real differences in how hard people work; Big3 employees may have 'interesting' attitudes about work, etc, but the fact is once the line starts rolling, the cars get made; I've seen one of the better lines (Oshawa #2) and it's amazing how fast a 55 yo with a beerbelly can move
😉
The myth that labour is the direct problem at Big-3 plants is just that, a myth; there may be some obstructionism in terms of process improvements (that could lead to job-cuts), but 'lazy' isn't a major problem. Add to this that most foreign plants in North America are less than 10-15 years old, and of course they would tend to appear productive; they're
all highly modern facilities.