Labor Union’s Stupidest Move Of Late – Tell Me Again Why We Need Unions?!

General Motors admitted today that a two-month strike at American Axle and Manufacturing
Holdings Inc. has cost it $800 million and 100,000 vehicles. The strike
has apparently affected at least 30 of General Motors’ plants.  Let’s remember the most simple truth of manufacturing – production drives revenues.  No production of parts from this striking union plant means (1) American Axle (AND ITS WORKERS!) is losing precious revenue, and (2) GM has suffered less production & revenue.  I think it’s time GM found a non-union substitute for these parts, and it’s time American Axle employees leave the union for that new non-union shop.

The striking workers at American Axle have lost two months of VERY good wages, while likely settling instead for a smaller compensatory check their union is  giving them.  Meanwhile, fellow union workers (UAW) at 30+ General Motors plants have been scaled back or laid off as well due to lack of work:

  • Janesville, Wisconsin, up to 1,000 workers
  • Arlington, up to 1,200 workers
  • Oshawa, about 1,000 workers
  • Both Flint and Pontiac, Michigan, up to 2,000 workers

The striking American Axle plant’s major client – General Motors – faces almost certain bankruptcy due to their own runaway union costs.  How does killing the already sickened "cash cow" client guarantee sweeter milk in the future of American Axle?  Both General Motors and Ford have demonstrated in the last two rounds of union negotiations that the WILL NOT make large monetary concessions to ANYONE in light of their dire situation, so why is this strike even happening?  GM is not going to pay American Axle more money for their parts, so American Axle can’t possibly continue to fund the generous salaries & benefits for their well paid union employees (higher than industry standard as I hear it) while still battling skyrocketing material resource costs and decreasing sales.

Pathetic.  Explain to me again why this union idea is so smart and necessary?  Think of this the next time your union bosses/reps tell you "We’re looking out for you!".  They should also be reminding you: "Pay up those union dues!" and "Don’t expect to get promoted quicker just because you do double the work of that guy we hired the day before you!" and "Be proud when we ask you to lose two months wages while on strike – it’s for the greater good!  Even if you get laid off or fired!". Sick  These union bosses are probably still deducting union dues from their substitute checks and not losing a wink of sleep during these "negotiations".

Labor unions – really, why?! Sarcastic

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2 Responses to Labor Union’s Stupidest Move Of Late – Tell Me Again Why We Need Unions?!

  1. don says:

    Are you for real? You are blaming the unions for a profitable company wanting to slash wages 50%, eliminate health care and pensions? The idea on contract negoiations are for both sides to bargain toward a contract. The UAW has offered 2 concessioary proposals to American Axle and have been refused. The AA wants deals given to bankrupt companies so they can stay in business even though they are profittable. American Axle employees are not attempting a pay raise in these negoiations. My guess is you are a college graduate who still owes tuition, can’t find the job you want, make half what these workers get and you think this country owes you a job because you went to college. Sometimes you have to make a stand, when you partner with a company, build it, make it profitable and then the company wants to elimate you or force you to accept concessions and they keep right on making millions. A strike is the power unions have to put the company at the table and bargain fairly or close. They can take their pick. This isn’t the unions fault, lust plain company greed.

  2. C says:

    In response to your obviously emotional rant: "My
    guess is you are a college graduate who still owes tuition, can’t find
    the job you want, make half what these workers get and you think this
    country owes you a job because you went to college."Suffice it to say you couldn’t be more wrong on that score, as you are about Unions. Unions only exist because of bad law.  They do not fit the model of a free market.  Rather, they fit the model of a socialist market.  I refuse to work for a union for that very reason – I never have and never will. I will choose my OWN career destiny and not pass off my career future decisions to some nameless dues-supported lackie.With that out of the way, you keep reciting the Union "SPIN" line – "they are a profitable company".  A profit today is unheard of in the parts supplier business.  One only needs to look at what happened to Delphi nad TRW to see what is on the horizon for American Axle.Let me give you a personal and VERY pertinent example of why this Union, as do all the others, sucks (and this is from someone who was raised on my dad’s UAW union job!):In my second job out of college, I had a near carbon-copy situation occur.  My employer, who’s main client was a financially bankrupt NFP hospital, decided, DESPITE BEING PROFITABLE THEMSELVES, that they would give everyone on the payroll a 5% pay cut.  This was done by our management in an act of solidarity with the main client NFP hospital, because the hospital was doing exactly the same thing to their payroll.  Management had done this in anticipation of the hospitals certain future demand that we cut all our service’s charges for them.Well, management was right.  The NFP hospital did indeed demand – AND RECEIVE – big breaks on what we charged them.  I took my 5% pay cut – was p!ssed off – and moved on to my next job within the year.  Many others at that company did so as well.  The company survived, and those that stayed – many who are still very close friends of mine – are doing VERY well today after those rocky times.  Their pay cuts allowed the company to weather the storm, and they were later monetarily and/or promotionally rewarded for their loyalty (or ignorance – however you choose to see it).I have been self-employed since leaving that company and now have the ultimate in control over my financial destiny.  I doubled my income the first year after I left the company, and as of today have more than quadrupled my income. Anyone can do this, SO LONG AS THEY DON’T CONCEDE THEIR INCOME POTENTIAL TO A UNION!American Axle sees the writing on the wall, and like any intelligent company would, they’re being proactive in cutting costs as opposed to waiting for the disaster to hit.  Since you sound like a Democrat, think of American Axle’s proactive approach as them avoiding the George Bush/Katrina democrat criticism. 🙂

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