Workers may get violent if their wages are cut. The United Auto Workers union (UAW) has a monopoly and was an anchor on the Big Three U.S. automakers. These two ideas were professed by two labor leaders at the recent Federalist Society Convention in Washington, D.C.
There may be violence, says Damon A. Silvers, Associate General Counsel for the AFL-CIO and Deputy Chair of the Congressional Oversight Panel for TARP. Silvers spoke on last Friday’s panel “Labor: Wall Street, Labor Unions,…
The United Auto Workers’ (UAW) loud complaining that they’re being asked to bear a disproportionate share of the costs of restructuring the Big Three begs the question: How much is their fair share to bear? As Holman Jenkins notes, in his Wall Street Journal column, the UAW may not like the answer.
The two parties that turned the Big Three into a perennially limping freak of unwritten industrial policy now will take formal ownership of their handiwork. The United Auto Workers…
Last night, the Detroit Big Three bailout package crashed and burned for the best of reasons. To their credit, Senate Republicans refused to abide the United Auto Workers’ cavalier attitude toward further, drastic concessions. Reports The New York Times:
Late Thursday, the Senate did not take up an assistance measure passed by the House, after hours of negotiations between Senate Republicans with the auto companies and the U.A.W. The sticking point apparently was the union’s refusal to agree to lower wage and…
Apple's 1984 "Big Brother" ad
An article over at Ad Age brings up an angle on the whole auto industry bailout probably not considered much before. The fact that a yet-to-be-appointed “car czar” will have control over a multibillion dollar advertising budget for the big three. Under the guise of “oversight,” this would effectively “Create World’s Most Powerful Marketing Exec[utive].”
The draft rescue plan for Detroit sent to the White House by Congress yesterday calls for the appointment of a “car czar”…
Eli, in answer to the blog post you phrased as a question, the argument from the individual you heard, echoed by other Big 3 execs, is not a valid point in support of a bailout.
Their claim that consumers won’t buy from an automaker in bankruptcy is a specious argument. Yes, some won’t, but many consumers also are not going to buy cars from companies perceived to be so weak that they have to beg for a bailout from the government. A…
While lawmakers consider whether or not to bail out an industry they holed beneath the waterline, perhaps they could learn from the history on another once-thriving auto industry, that of Great Britain. It’s a salutary tale.
As the Senate prepares to debate the proposed $25 billion bailout bill for the Big Three Detroit automakers, it’s worth pointing out — as many times as possible — just what this money might be going to pay for. First, as Larry Kudlow, points out, there are uncompetitive salaries.
Here’s a stat from my friend, blogger Mark Perry: Total compensation per hour for the big-three carmakers is $73.20. That’s a 52 percent differential from Toyota’s (Detroit South) $48 compensation (wages + health…
In his CBSNews.com column today, CNet’s Declan McCullagh makes a good case against bailing out the Detroit Big Three. As he rightly points out, decades of extremely generous union contracts have yielded huge liabilities in what have become known as “legacy costs,” which include such things as pensions and retiree health insurance.
In recent years, these legacy costs have become an enormous burden on GM, Ford and Chrysler, who face increased competition from foreign automakers, most of whom have lower labor…
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