Where is the UAW?

You know, the number of times that GM, FORD, and CHRYSLER have come up in the news is amazing. They are floundering, or would like us to believe they are floundering. I read somewhere that for every truck that FORD sells they lose 7000 dollars to pay off pensions of former employees. That is more than the cost of the steel to manufacture the ENTIRE TRUCK if it is accurate.

So, when you think about how much the UAW has helped the employees get better working conditions. I think you now have to weigh how terrible it will be for their members if the companies fold. I think it is time they came to the table with concessions to keep these companies afloat during the downturn.

For instance, if the UAW was not around there would have been more investment in automation and innovation. Because there wouldn't have been someone keeping them from the investment because it would reduce the number of workers on the job, which in turn reduces the dues paid to the union. For all the good unions were at one time, they are their own corporations now.

So while Toyota has invested more than the US budget for research into their car manufacturing process, the US automakers continue to get worse innovation. I wonder how much would have happened if it weren't for outside influences like EPA guidelines for miles per gallon. Would the industry have gone that direction if not ordered to do so.

With all the glut tacked onto the cost of these cars, it is no wonder they are hurting. With all the focus placed on building bigger and badder, not innovative and efficient, it is no wonder that they will suffer in an economic downturn.

This is not rocket science. They were not prepared financially just as most americans are not prepared financially. The rule I hear in school is to have at least 6 months of liquid assets lying around should you lose your job or need money for an emergency. While most americans live paycheck to paycheck. Here too, these large corporations are living paycheck to paycheck because they aren't making much money off of the vehicles they sale. Why is that? the overhead is too high. Why is that? because they are hemorrhaging money due to union agreements.

Example of the UNION impact on FORD, they built one of the worlds most innovative facilities for building cars in the world...and it is NOT in the United States. Why? because that level of innovation would have contradicted with their union contracts. So, they built it in Brazil. How does that help the US economy? How does that help the FORD employees? How does that help the UNION?

I wait patiently for the UNIONS of the world to come to the table with some ideas of their own on how to solve some of these financial issues and stop driving around in their limousines. I think that JFK said it the very best "Ask not what your country can do for you...ASK WHAT YOU CAN DO FOR YOUR COUNTRY!!"