Follow Me On Twitter!

Tuesday, November 03, 2009

Why People Hate Unions

Here is a perfect example of why many people no longer relate to labor unions:

Click here: UAW won't renegotiate after Ford deal fails

A little background. The concessions that the UAW membership rejected are concessions that UAW workers at Chrysler and GM have already accepted. Essentially what Ford workers did was to vote to keep Ford from being competitive with GM and Chrysler, as well as all of the foreign automakers, in the future.

This is exactly why many were predicting that if GM or Chrysler filed for bankruptcy, the other two companies would have to follow suit. There is no way that one or two of them could go without the union concessions that would result for the company (or companies) that did file. So what the UAW has done here is pretty much guarantee that Ford will have to file for bankruptcy in the future.

The truth is now known that the reason for the demise of the Big Three was a direct result of the UAW, and their nefarious demands over the years. Ford, GM, and Chrysler were forced to accept those demands, separately. Any thought of them collectively balking would have resulted in collusion charges, and, no doubt, lawsuits. Meantime, the union workers at all three companies could collectively bargain without any charge of collusion. That's fair, right?

Now the UAW points to Ford's $1 billion dollar profit as a sign that Ford doesn't need the same concessions that GM and Chrysler received. What the short-sighted UAW membership fails to remember is that it was a relatively short time ago that both Chrysler and GM were also profitable. This is exactly the kind short-sighted union thinking that resulted in GM and Chrysler having to file for bankruptcy.

Never mind facts like this being Ford's first profitable quarter in their North American operations since the 1st quarter of 2005. No, this quarter's profits, no doubt boosted by Cash For Clunkers, is proof that Ford doesn't need the same concessions as the other two. Right.

The UAW only needs to look at the NHL's labor strife from a few years ago to see what kind of precipice they have placed themselves on the edge of. Just like the NHL players realized, Ford employees need to realize that a few concessions now could go a long way toward ensuring their jobs in the future. But no, they'd rather reject concessions now and risk everyone's job in the future.

That is really intelligent.

UPDATE: theblogprof has an excellent post up on this issue. As he points out, the UAW owns GM and, therefore, has a conflict of interest in turning down these concessions with Ford!!

No comments: