Will this Strike Kill Ford/Chevy/Chrysler?

[andrewg]

Aren’t the workers part of the same corporation as the executives though? Shouldn’t the profits benefit all that contributed to the success, not just a small group?

My argument was about people from the outside vilifying UAW workers because they feel their compensation is over inflated.

Yes, the workers are of course part of the corporation. And in the case of the UAW, they are already compensated with a great wage and benefits. A reasonable expectation to get back what they gave up a few years ago is perhaps something to strive for. But that's not the case. The unions demands are entirely unreasonable at this point. Strikes are extortion...legal, but still extortion. This strike, and the unreasonable demands by the union are hurting the company they work for. Possibly, in the near future the production of electric vehicles will reduce the need for up to two thirds of this striking workforce. That is something that they should be more concerned about.

 

[GON]

What I can't figure out- the autoworkers signed a contract that saved their jobs on or about 2009, that had the US taxpayer bail out the domestic automakers, and make the union workers' pension whole.

Part of the new contract was limited cost of living increases for the union workers. Why hasn't the union lobbied elected officials over the past decade to not print USD, resulting in low inflation.... that seems a much more prudent course of action over asking for a inflation justified 40 percent pay increase......

Hey elected officials, want UAW votes- keep government spending in check... guess that conversation never happened.

 

[CKN]

But the cost skyrocketed anyways over the past three years.
Where did all of these profits go?
It’s funny how corporate profits have no limits, no morals and no negative perception, because that’s what corporations do, they make money.

But when working men ask for a pay rise it’s all of the sudden “too much”, “too greedy”, or their skill level doesn’t justify the pay.

For those that say they don’t get paid as well as the UAW workers do, why not, instead of vilifying them, join

On top of $92,000 in wages and bonuses, workers would receive health care coverage worth $17,500 and other benefits worth an additional $20,500 in the first year. Health care for permanent UAW-represented hourly employees would continue to rank in the top 1% of all employer-sponsored medical plans for lowest employee cost sharing.

For bolting on parts to a vehicle moving down an assembly line.
Yea sure.....
https://media.ford.com/content/ford...aw-contract-offer--significant-pay-incre.html

 

[CKN]

Someone tell GON that the UAW and unions don't dictate money policy in this country. He blocks my posts...
quote

Part of the new contract was limited cost of living increases for the union workers. Why hasn't the union lobbied elected officials over the past decade to not print USD, resulting in low inflation.... that seems a much more prudent course of action over asking for a inflation justified 40 percent pay increase......

 

[KrisZ]

On top of $92,000 in wages and bonuses, workers would receive health care coverage worth $17,500 and other benefits worth an additional $20,500 in the first year. Health care for permanent UAW-represented hourly employees would continue to rank in the top 1% of all employer-sponsored medical plans for lowest employee cost sharing.

For bolting on parts to a vehicle moving down an assembly line.
Yea sure.....
https://media.ford.com/content/ford...aw-contract-offer--significant-pay-incre.html

Then join them and start making all that money for nothing. Why complain about what they want? Isn’t it a free market?

 

[CKN]

Then join them and start making all that money for nothing. Why complain about what they want? Isn’t it a free market?

It is until you have to replace tens of thousand of workers if you don't succumb to their demands.

 

[KrisZ]

It is until you have to replace tens of thousand of workers if you don't succumb to their demands.

If that happens it happens, it will be their own fault. Short term thinking isn’t exactly only a union thing, the automaker executives are quite good at it too.

 

[4WD]

The UAW workers are also 'replaceable'. There are millions of recently arrived 'immigrants' who would gladly do their job for a lot less money. It would also save the taxpayers money that we are giving those 'immigrants'. It would also keep the steadily rising cost of autos down (actually trucks because that's all the Big 3 seem to make anymore).

PS: A few years ago a co-worker told me about his friend who bought a new pickup truck (GM IIRC) which had a rattle that the dealer couldn't find. After several trips to the dealer over this noise they finally found the culprit....a 'SNAPPLE' bottle was left in the door at the factory and covered by the door panel. I guess it could of been worse....it could have been a beer bottle. The UAW worker that left that bottle there had a lot of pride in their product....not.

 

[Exhaustgases]

Blaming the line workers for management decisions is backwards.

I guess the car and truck prices are not high enough for ya yet.

 

[thastinger]

Not sure how long this model is even sustainable, or perhaps that time has already passed as factories continue to relocate to cheaper labor markets.
Has Honda/Nissan/Toyota that have assembly plants in the US had these problems?

 

[thastinger]

If that happens it happens, it will be their own fault. Short term thinking isn’t exactly only a union thing, the automaker executives are quite good at it too.

Only need to look at Detroit city to see the future of all of it.

 

[wemay]

Delete.

 

[Dave Hess]

UAW and Ford is nowhere near reaching a deal as some media says negotiations are going well.

UAW is preparing to dig in and ‘stick to their guns’ .

 

[JeffKeryk]

Why should they have limits? Profits are needed to expand and grow the business. It's called capital investment.
Instead of vilifying the salaried executives....why not get educated and join them? Goes both ways.

You are correct in the respect that management sets direction and is responsible for ongoing corporation success. The workers have responsibility for their own livelihood. Agreed, it cuts both ways.

 

[JeffKeryk]

I guess the car and truck prices are not high enough for ya yet.

You don't understand business. Workers do not set car prices, decide what to build, etc. That's purely management.

 

[KrisZ]

I guess the car and truck prices are not high enough for ya yet.

Haven't the last three years shown that prices are not driven by labor costs? Labor costs are actually quite a small contributor to the final pricing.

 

[zzyzzx]

The consumers have already decided that they don't care where their vehicles are manufactured. Therefore, the long term prognosis for the UAW is extinction. The strike won't kill GM, Ford, or Chrysler, since they can always relocate production to Mexico and automate more (AI will get rid of union jobs).

 

[BMWTurboDzl]

Robots are great…. Until they’re not. Then they’re a royal PITA to fix.

Yeah, the union demands are a bit much, but they always settle somewhere in the middle anyway. Good on them IMO. I’m sick of hearing companies boast about their grossly overpaid CEO’s and stock buybacks, only to turn around and push back hard against any kind of additional compensation or quality of life improvements for the employees who make the actual products.

Stock buybacks are typically financed. They've all but disappeared in this high rate environment. The buybacks also increase the value of the shares. Pension and mutual funds own those shares btw.

 

[zzyzzx]

Haven't the last three years shown that prices are not driven by labor costs? Labor costs are actually quite a small contributor to the final pricing.

Do we know that actual %? Various sources quote vastly different numbers.

 

[zzyzzx]

It takes far less workers to make electric vehicles.

Isn't that more of a supplier issue than a GM, Ford, Stellantis issue?