"And yet there is nothing inherently unsustainable about employing a high-priced, unionized workforce. The crisis of Detroit's wage bill is entirely relative. Specifically, their labor costs far exceed the low-cost, nonunion American workforce at the U.S.-based, foreign-owned plants of competitors Toyota, Honda, Nissan and Subaru.Thanks to Jim Holbel for passing this along.
"If the UAW really is to blame at all, then, it is because of the union's utter failure to unionize any of the transplants. What has the UAW been doing all these years? Isn't it the responsibility of any good union to protect union employers from competitive labor disadvantages by organizing wall to wall, throughout the industry? How could it have left these transplants unorganized?
"As is now clear, when the UAW exposed the Big Three to insurmountable competitive disadvantages, it cut its own throat."
Monday, December 8, 2008
Jonathan Cutler says the U.A.W. is partly to blame for the Big Three's problems, but not for the reason you might think. The union's mistake? The failure to organize workers at the non-union foreign auto factories in the U.S.