UAW Versus Chrysler/Cerberus

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.

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.

 

 

 

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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