3 ms·
Disclosure: I work for GM. Anything here is solely my own opinion or understanding. The jobs bank went away in the 2009 bankruptcies/reorganization.
by csours 3y ago
Disclosure: I work for GM. Anything here is solely my own opinion or understanding.
The jobs bank went away in the 2009 bankruptcies/reorganization.
- linksnapzz 3y agoI was astounded the first time I read about it in the '90s; and even more so when it was still going on in 2006. The fixed cost of labor as a whole, and not just salary + benefits for a worker, but n workers at that rate, is daunting. Especially when it would be possible to build the same # of units with .25n workers.
- csours 3y agoDisclosure: I work for GM. Anything here is solely my own opinion or understanding. (Repeating because this is more opinionated) The bankruptcies weren't caused by one thing, but cost of labor was a large factor. Perhaps a bigger factor was the pressure to keep producing non-competitive, money losing products so as to maintain employment numbers. Unions do a lot for their members, and they should, but they cannot save a bad product. In my opinion, over-financialization was the other top factor. You can read "Bean Counters vs Car Guys" by Bob Lutz for an explanation of this.