: The latest UAW/Chrysler soap opera
I'm obsessed with the auto industry, so here's the latest from what I've been reading today:
The UAW refused to give in to Chrysler's need for cost cutting because DC's German half is very profitable. As a result, shareholders and perturbed German managers want to sell Chrysler entirely.
If Chrysler is spun off on its own or sold to GM, the UAW loses big time, being forced to concede MUCH MUCH more than what DC originally asked, since GM would have tremendous leverage.
Now, the UAW is pushing to keep DaimlerBenz and Chrysler together, forcing the healthier, more efficient half of DC to subsidize its existence.
Meanwhile, GM is quietly stockpiling its more popular vehicles in case of a strike. Chrysler already has a massive pile of cars remaining from its embarrassing 2006 "hidden inventory" debacle.
German executives haven't ruled out hiring replacement workers in the event of a strike.
03-08-07, 07:25 PM
Heh, f'ckin UAW.
03-08-07, 07:36 PM
Here, this seems appropriate
03-09-07, 12:18 AM
Toyota paid their workers last year comparable wages to UAW employees without having them pay union dues. Crazy huh?
Unions serve no purpose. UAW will be gone in 10 years or the big 3 will be gone.
The Big 3 need to start to push out the unions. Agreed, they serve no purpose anymore except to take workers money.
The reason for the union was companies taking advantage of the workers.
Toyota has the right idea, pay fair with fair benefits and not allow the unions in. The Big 3 need to do the same, just start axing the unions. You strike over it, you are gone. Period, no hire back. You either take the non union position or when the contract is up, you are gone, no hire back. Period.
If the union does ANYTHING to COST the company money, the plant needs to be planned for shutdown and all jobs lost. Screw the unions. They need to play hardball. They contracts need to be written so that the unions do not have the ability to damage the company's profits by staging strikes.
If I am wrong about the benefits of UAW at the Big 3, please educate me. I just think they are one of the #1 reasons that the big 3 are having such a hard time being profitable and why they are in the position they are now.
03-09-07, 11:28 AM
The anti union sentiment seems to be strong on this website. I am not a union employee, but am almost jealous of the benefits they receive. I work at a non union job, in sales, and after working full time for 5 years I get 0 sick days, 0 personal days, healthcare with large copays that the quality of which leaves something to be desired, and STILL after 5 years only 2 weeks of vacation.
The reason Toyota is paying their non union employees what they are is becuase they need to keep themselves in line relatively with the UAW positions. If they didn't, then the Toyota employees would see what the UAW employees are getting and want to form a union of their own.
With my job, there is no competition out there that employs union people, but if there was, and they received sick days, personal days, etc, do you think it would be more likely that we would have some of those benefits? It would be wise of our employer to do so to keep our skilled staff instead of jumping to the other place with better benefits.
03-09-07, 12:17 PM
The anti union sentiment seems to be strong on this website.
It certainly is. Being that most of us are "car-people," we've all watched the UAW strangle the American auto manufacturers they work for. A classic example of biting the hand that feeds them. Unions serve a purpose when the workers are not being treated fairly, but the UAW has gone far beyond serving a good purpose and has become a greedy, outdated organization that should be disolved.
Unions are corrupt.
Employers are greedy
ya just can't win.
03-10-07, 02:53 AM
I have about as much sympathy for the UAW as I do for Child Molesters. Detroit has, on average, over a $2,500 per car disadvantage over the foreign brands which assemble cars in this country.
Everyone says how Japanese cars are better than American cars, that's garbage. Camrys built in Kentucky had fewer defects than Camrys built in Japan.
Where the Japanese brands are killing the domestics is in content. It used to be that a typical Japanese car cost over $1,000 MORE to make in material costs than a Domestic one, if anything, that gap's wider now. But when you have a huge cost advantage, you can pull that off and make record profits.
But the UAW is famous for cutting its' nose off to spite its' face. Furthermore, notice how the import plants are all in "right to work" states? BMW's inferred that if Spartanburg WERE to Unionize that a huge amount of their production could be transferred to Germany and South Africa. Do ya blame em?
I am surprised more manufacturing isn't in South Africa. Labor there is cheaper than China. We can only hope that somehow they will figure out to have more manufacturing back here in the US.
My personal opinion, quality in more cases than not is CHOICE. One of the factors is cost. Look at the Ford A4LD trans. If you were LUCKY you got 100K miles on one. Even rebuilds only lasted 75-100K. They were junk. What could they have done to fix it? LOTS. In the initial testing they HAD to had seen the issues. You send it back to the engineering team and correct. Customers don't give a rat's behind if the car costs $10 more to be reliable for 200K than 100K. Most customers WILL gladly pay a little extra to have world class reliability than crap reliability. Yes, it takes more time, but you can't convince me that Ford, GM, etc don't know what it takes to make something reliable.
I want to see the Ford 8D on the A4LD, and see what corrective actions have been done on it to fix it long term. I'll bet not many were done in a timely fashion.
Look at the 3800 V6 GM has. It has been a staple of reliability. BUT in the old days it sucked. I even saw one spin a bearing at 27K miles. Pathetic.
Look at Toyota in the 80's and rust. Pathetic. But they seem to have got it under control, but it took 15-20 years to fix. Unacceptable.
Look at Ford and those crap plastic headlights that yellowed in a few years in the 80's and 90's. Come on!
I know the automotive industry from the inside. You can't imagine how HARD and SLOW they are at allowing change. And in they are slow in the interest of QUALITY! Sheesh! It takes 6 months to a YEAR to make a CHANGE!