GM - Union bash or go bust? Economist Article

[Joe1]

http://www.economist.com/agenda/displayStory.cfm?story_id=4052656

Interesting read about GM and the union from the Economist...a very respected publiccation.

 

[Bryanccfshr]

What will be interesting is how this plays out. Good article and not such a pretty picture.

 

[obbop]

"the car giant’s generous health-care plan for blue-collar workers."

Yeah, the white collar crowd is tossed crumbs, no doubt. Sure, mention is made that white collars pay a larger share of the costs but, notice, no mention is made of wage differential.

In yesterday's newspaper I read that the UAW is going to make concessions.

It is time for the "rank and file" to work with management. It takes a team to make things work.

I have long advocated that all workers in a firm unite, receive a basic wage that allows a basic lifestyle, then develop a profit sharing system that rewards all but is based upon one's contributions, amount of education/time needed to prepare to perform a function, etc. etc.

In such a system all good workers are ready to oust the non-productive, the slackers, those not contributing their share.

Time for a revolution in how the workplace operates. Just ensure that all benefit to some extent since it IS a team effort.

As it stands, across the USA as a whole, the rewards seem to be increasingly relegated to a minority as Census Bureau data shows...... the upper tier is doing very well while the bottom 40% are either treading water or losing economic ground. Allow this trend to continue and I foresee what has happened a multitude of times in the past: social turmoil if not outright revolt.

 

[GROUCHO MARX]

The managements of all corporations should accept a ceiling of compensation based on x times the wage of the lowest level worker.

Maybe then the rank and file will work with management.

 

[Pablo]

GM as a whole sucks almost, almost as much as the UAW.

GM management sucks more than the UAW and a hooker party without straws combined.

What a greedy God awful mess. This is NOT free enterprise but GM is failing at it. The really hilarious thing about GM management/engineering - they treat their ranks as some intelligent club - tough to join unless you speak their lingo. Toyota has given it to them a platter - more than once, and they can't find it. Sick, disturbed and scary.

I guess I should read the Economist article now - do I have to?

 

[Pablo]

And the first line is:

"THERE is a sickness at the heart of General Motors....."

'nuff said.

 

[XS650]

quote:

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Originally posted by GROUCHO MARX:
The managements of all corporations should accept a ceiling of compensation based on x times the wage of the lowest level worker.

Maybe then the rank and file will work with management.

---

I have long thought that part of the problem is the obscenely high pay many CEOs get. The pay is so high that you get a class of people as CEOs who are primarily interested in making money. And only distantly interested in the good of the business they are in charge of, other than tweaking the numbers to make theirselves look good in the short term.

Money is a good reward for a job well done, but at some point the amounts of money get so large that they become the primary reason those people are in their in their incestuous relationships with the boards of the company that feather all their nests.

 

[tundra30]

Who ever wrote this article is obviously anti-union.
I am all for the "workers" having bargaining power especially with huge corporations like GM. The system is not perfect but it works fairly well.
I will say that the UAW would be fools to kill the goose that lays the golden eggs but, GM's shortcomings cannot ALL be blamed on the "overpaid blue collars".
Look at GM products lines...nothing in them really stirs the soul. Take the truck wars for example. Dodge has power, aggressive looks. Ford nice new redesign, improved safety. Toyota and Honda reliability are legendary. What does GM have? The same old so, so reliability and looks that I thought were great (12 yrs ago).
I believe GM needs a major overhaul across the board. They cannot just "cut" their way out of this one.

 

[Texas Aggie]

I'll have to say, unions have definitely been big problems where I've worked. Their strikes hurt not only the companies involved, but those of us who need to work to feed our families. Throw in the problems with union violence, and I'd be happy to see GM bust them up.

 

[Gary Allan]

This is a jobs program. It's been a jobs program for many years. Now we're seeing the "realignment" or "technical correction". You see it with just about everything. If they can change my deal on social security when I'm over halfway to the goal line (and as far as I know they can do it again assuring that I never collect retirement) ..don't you think a masked jobs program is going to feel the same pinch?

btw- does anyone know the direct labor costs involved with a car? How about that figure compared to indirect labor? I somehow can't imagine the assembly process, however expensive, amounts to a whole lot in the end user price of an automobile. In the dye industry, direct labor was approx 3% of the cost of the product, far outstripped by raw materials. Indirect labor typically exceeded direct labor (engineering, lab, R&D, management). They both added up to about a buck with anything from $40/lb or $300/lb dye.

 

[brianl703]

I'm more interested in knowing the labor costs in picking lettuce.

 

[Shannow]

Gary,
think of the costs of generating electricity (500MW unit burns nearly 5000tonnes per day of coal, and evaporates 25 million litres of water), and pro-rata, has 8 operating staff (4 people on 2 shifts), and 40 engineering/maintenance/support.

When it comes time to talk budgets, what is the first item placed on the table ?

My entire working life I felt no need to be in a union. The last 4, I've been in a union, and won't begrudge them a cent.

 

[tweeker43]

quote:

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Originally posted by Gary Allan:

btw- does anyone know the direct labor costs involved with a car? How about that figure compared to indirect labor? I somehow can't imagine the assembly process, however expensive, amounts to a whole lot in the end user price of an automobile.

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at final assembly there are generally between 20 and 30 man-hours of labor. this depends on the vehicle and the manufacturer. some of the japanese plants are below 20 hours.

i know that most of the places i've been direct labor is between 10~15% of the product cost. the least direct labor i've worked with is less than 5%.

overhead factors have ranged from 2 to 5.