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The US auto industry has to reinvent itself: True, but
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Posted by PT (more from PT) on Tue, 11 Nov 2008 17:42:36 Share Post by Email
In Reply to: The US auto industry has to reinvent itself, Noel, Tue, 11 Nov 2008 05:12:33
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I don't think it will learn anything much from all of this, just like I don't think the public are going to learn much from this either. 1990 isn't that long ago, but we're having the same again, only worse. I don't think the Manufacturers are the the biggest culprits in the union issue, the unions are. The manufacturers are stuck with deals negotiated 40-50-60 years ago; the people negotiating the deals at that time had to be aware that it would be a problem for someone down the line, but that someone wouldn't be the person negotiating the deal. My bet is that none of the 3 will go bankrupt, but all will probably get very close, and it will take a realization and acceptance from the unions that GM/Ford/Chrysler etc is on the verge of going broke, and that it in fact WILL go broke if the union contracts are not renegotiated. And, if the companies go broke, the workers will get far less than they would get from a renegotiation. That penny hasn't dropped yet... I don't know when it will, but I think it has to, some time sooner or later.
Plenty of industries work fine without unions, which in most cases add complexity and bureaucracy which vastly exceeds the benefits they contribute. I'm not saying they don't add something, I'm saying they don't usually add enough to justify the baggage they bring with them. I'm not aware of cars being built in the US in non-union plants being any worse than cars that are built in union plants. Actually, since the cars built in non-union plants are mainly Japanese brands, it's probably fair to say they're better built...


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