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!". 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?!