General Motors
As we all know, the once mighty GM declared bankruptcy recently. What went wrong? Bad decisions, poorly constructed labor contracts, and a shifting economy are just some of the reasons. This brings out one of the issues that Americans are going to have to confront. That issue is that of unions and labor contracts.
1998, two plants in Michigan were striking. United Auto Workers were defending production quotas that stated that workers could fill in five or six hours. After that, it was overtime or they could just call it a day. This would seem that the workers could rack up overtime that was unnecessary. Ultimately, fearing the wrath of UAW and public opinion GM bowed to them and settled this out of court. This ignorant policy was left on the books.
If one knows their business/economics, one will know that this led to their demise. Overpaid employees who were not contributing enough to the bottom line. This engrained idea that it is workers against the evil of management is a bit outdated. Feeling that anybody who rises in the ranks is going to take advantage of the lowly peasant. Well, earth to workers/peasants. These same workers became greedy, unscrupulous, and with a feeling of entitlement. Just because they got up that morning and decided to keep breathing does not mean that they are entitled to a high paying job. One has to prove oneself worthy of that.
I worked at a factory once and I dealt with the same thing. Workers that had been there a long time felt that they did not have to work hard. They could coast by and not give a darn about what they do. They showed up and did not die so that was good enough. These workers are expensive. If UAW would have thought about having its workers take a pay cut, this may have resulted more favorably.
Management is not off the hook. They are not upstanding citizens but I tire of the other side always getting the sympathy vote. Money corrupts all equally. Given the chance, most people will take the money and consider the consequences later.
Overall, I feel that Unions are, for the most part, outdated. Some fulfill their purpose but some like UAW are engines of their own demise. Keeping wages artificially high because your workers decide to show up is not enough. If the demand for the product goes down, then so should the wage. It is simple good business sense. What should Americans learn from this? Not to feel entitled and think long term. If it meant that I would have a job for three more years, I would take a pay cut. If it meant that my family would have some financial security for the next three years, I would be the first one to break union ranks and take a pay cut. To conclude, the demise of General Motors was due to gutless management, overpaid and underproducing employees, decline in demand, and having too many brands.
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-- Posted by midea on Thu, Jun 4, 2009, at 9:42 PM
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-- Posted by OpinionMissy on Thu, Jun 4, 2009, at 9:53 PM
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-- Posted by MrMister on Fri, Jun 5, 2009, at 3:09 AM
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-- Posted by OpinionMissy on Fri, Jun 5, 2009, at 7:00 PM
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-- Posted by MrMister on Fri, Jun 5, 2009, at 10:56 PM
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-- Posted by OpinionMissy on Sat, Jun 6, 2009, at 1:03 PM
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-- Posted by MrMister on Sat, Jun 6, 2009, at 11:50 PM
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-- Posted by OpinionMissy on Sun, Jun 7, 2009, at 12:20 PM
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-- Posted by MrMister on Sun, Jun 7, 2009, at 6:07 PM
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-- Posted by MrMister on Sun, Jun 7, 2009, at 6:09 PM
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-- Posted by OpinionMissy on Sun, Jun 7, 2009, at 7:32 PM
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-- Posted by MrMister on Mon, Jun 8, 2009, at 12:40 AM
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-- Posted by MrMister on Mon, Jun 8, 2009, at 12:42 AM
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-- Posted by Beau on Mon, Jun 8, 2009, at 3:16 AM
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-- Posted by MrMister on Mon, Jun 8, 2009, at 4:02 PM
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-- Posted by twilcox1978 on Wed, Jun 10, 2009, at 11:50 PM
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-- Posted by Beau on Fri, Jun 12, 2009, at 4:02 AM
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-- Posted by MrMister on Fri, Jun 12, 2009, at 4:39 PM
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-- Posted by twilcox1978 on Sat, Jun 13, 2009, at 1:31 AM
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-- Posted by twilcox1978 on Sat, Jun 13, 2009, at 5:32 PM
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-- Posted by twilcox1978 on Mon, Jun 15, 2009, at 10:16 AM
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-- Posted by twilcox1978 on Wed, Jun 17, 2009, at 10:20 AM
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-- Posted by twilcox1978 on Mon, Jun 22, 2009, at 4:04 PM
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