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People latch on to little tidbits and think that they are the reason for GMs downfall. For example, the statement: "GM pays people not to work." Inevitably unio
by blackguardx 18y ago
People latch on to little tidbits and think that they are the reason for GMs downfall. For example, the statement: "GM pays people not to work." Inevitably unions will be blamed somewhere along the line as well. There is more to this story than meets the eye.
GM is a factory with a semi-skilled labor force. They produce very expensive goods. Because of this, they don't produce at maximum output all the time. If sales numbers slump one month, they cut production. To cut production, they have to cut their workforce. When they cut their workforce, they don't want to fire someone that has a lot of experience because they may just need him/her next month when sales pick back up again. So they pay this person to keep up a relationship until they need him/her back at work. They may not even pay this person his/her full rate.
Consider that while one car's sales are dwindling, another's might be picking up. Well, a person putting doors on a Chevy Malibu can probably do the same thing on a Chevy Trailblazer. In this case, the worker isn't paid to be idle, he/she just switches car lines.
Even if the worker is paid to be idle, you shouldn't blame the worker or the union. A contract requires two parties. The auto manufacturers made these agreements with the unions, knowing the consequences full well. Why blame a person for wanting nice pay and benefits?
Also, if the auto manufacturers wanted to renegotiate to save themselves, the unions would support it. In the past, the US auto manufacturers have renegotiated union contracts to cut pay. After all, what good is a union if its members have no jobs?
- redrobot5050 18y agoThe problem is UAW doesn't want to re-negotiate because it knows there's no way it will ever have its standard of living this good ever again. GM and Ford would probably insist on slashing wages by half. Already new hires who are not UAW are put on a different pay and benefit scale to reflect that a machine could do their job. GM has already volunteered 300,000 UAW employees for "early retirement" -- coaxing them to leave the line and retire early -- so they could be replaced with cheaper, non-union labor.
- blackguardx 18y agoThe UAW won't exist if the big three fold.
- redrobot5050 18y agoIts not smart to know that. Its confident they will be bailed out.