Quote:
Originally Posted by Bunky
The worker's salaries and benefits including retirees is a large part and equally as responsible as the management ineptness is another large part. The union leadership has to justify their existence and like the bailout bill they probably decided to balk to show unity and expect a better deal later. This is not likely the last vote...maybe just in this session of Congress.
The problems with situations like this is it affects us all despite being able to show that they do not really deserve and both (mgmt and unions) show little remorse. Now we know why the Big 3 are in trouble.
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While I do understand what you are talking about, remeber that "the past history" of these companies are why they are in the shape they are in now. By not designing better vehicles in the past and holding on to market share, they are now unable to meet their future obligations such as UAW agreements. Ford was the best of the three that tried to adapt to a changing market, but I think that they did it too late. So when I say that mismanagment is the main reason for their issues, I am not negating the employee's wages as part of the problem. However I think (and feel free to disagree) that cutting their wages also sets a different expecation across the American labor force.
Let's face it, our social-economical lifestyle averages higher than most of the world, but our companies have to stay competitive with foregin makers. I am not sure of what the cut would be in order to bring the American auto workers in line with the Japanese, but if it is too large I think that it may send to wrong signal to other american manufacturing companies.