Here is the legacy of the UAW over the last 40 years. This is my short summary of what has been written by George Reisman at the Ludwig von Mises Institute.
FIRST
The Big Three would have not made “Monday morning” automobiles. That is, poorly made cars due to a production date falling when too few workers showed up.
SECOND
Without the UAW, GM would have been free to produce in the most-efficient, lowest cost way and to introduce improvements in efficiency as rapidly as possible.
THIRD
Without the UAW, GM would have an average unit cost per automobile close to that of non-union Toyota. Toyota makes a profit of about $2,000 per vehicle, while GM suffers a loss of about $1,200 per vehicle, a difference of $3,200 per unit.
FOURTH
Without the UAW, the cost of employing a GM factory worker, including wages and fringes, would not be in excess of $72 per hour.
FIFTH
As a result of UAW coercion and extortion, GM has lost billions upon billions of dollars.
SIXTH
Without the UAW, GM would not now be in process of attempting to pay a ransom to its UAW workers of up to $140,000 per man, just to get them to quit and take their hands out of its pockets.
SEVENTH
Without the UAW, GM would not now have healthcare obligations that account for more than $1,600 of the cost of every vehicle it produces.
EIGHTH
Without the UAW, GM would not now have pension obligations which, if entered on its balance sheet in accordance with the rule now being proposed by the Financial Accounting Standards Board, will leave it with a net worth of minus $16 billion.
NINTH
Without the UAW tens of thousands of workers — its own members — would not now be faced with the loss of pension and healthcare benefits that it is impossible for GM or any of the other auto companies to provide, and never was possible for them to provide.
TENTH
Without the UAW and its fantasy-land mentality, autoworkers would have been motivated to save out of wages actually paid to them.
Instead, like small children, lured by the prospect of free candy from a stranger, they have been led to a very bad end. They thought they would receive endless free golden eggs from a goose they were doing everything possible to maim and finally kill, and now they're about to learn that the eggs just aren't there.
And the Big Three are complicit. They didn’t have to go along – but did.
1 comment:
Without the UAW would GM workers have any health benefits? Without the UAW would employees have decent wages? Unions came into being to protect the employees from unfair work practices. I agree that unions are too big for their britches but, do you really trust corporate america to do what's right for their employees? I work for corporate america and the biggest priority they have is what is in their pocket book at the end of the day. I have no job security, or loyalty from their end of the stick. I still work my butt off and do a great job, but whereas, working your butt off and doing a great job mattered in the long run a decade or generation ago, it means little today to the corporate america I know. I am loyal too, to my pocketbook and if something better came along, you can bet I'd be there. But as you well, know, it probably doesn't get any better than what it all ready is.
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