UAW Versus Chrysler/Cerberus

Article Submitted by: David Walsh
Corporate News


The UAW is trying to hold the line at Chrysler but it's a futile last stand. They tried at GM and for the most part capitulated. Now they'll face an even more formidable contender. Cerberus will slash and burn, it's what private equity companies do.

 

Submitted: Oct 10, 2007    Views: 232    Comments: 0    Likes: 5   


The UAW needs to face reality.  American car companies are getting pounded and if they don't become more efficient there won't be any jobs left - period.  China is producing cars, Vietman wants to produce cards, Korea is producing cars, and of course Japan is producing.  Soon, I'm sure India will join the fray.

How can American workers with their significantly higher salaries and beneifts ever hope to compete.  And make no mistake about it, this is about American workers competing against foreign competition.

Some of the blame lies with management.  They produced terrible cars over the last thirty years.  Of course, their hands are partially tied because no matter how much they try, they can never be as efficient as the foreign competition.  The wage differential is just too high.

Some point to the Honda and Toyota plants in the United States as an example of how American workers can be more productive.  These are really only assembly and finishing plants.  The vast majority of the car is manufactured elsewhere.  Nor do these factories have the high health care and pension legacies. 

So, what's the UAW to do?  Save what it can.  Work with management to find the profitable, competitive divisions jettison the rest.  The battle is over, now it's time for survival.  Striking isn't the answer.

 

 

 




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