Unions?

One group being blamed for the Big Three automakers is unions.  They demand high wages, pensions, great healthcare, and a number of other concessions.  The UAW drives up the cost of producing cars, reducing the margin the US automakers make on every car, raising the price of cars, or both.  Are they worth it?

In general, unions have been a good force in the labor market.  Even though I do not work in a unionized store and have never been a member of a union, I have seen some benefits from them.  My workplace is safer than it might be because of safety laws inspired by unions.  I also probably make more money than I would be if unions had not existed.

However, I feel that some unions have outlived their usefulness.  I think the UAW may very well be one of these unions.  As I stated in the last post, the Big Three pay a lot more per hour to their employees than the Japanese car makers do.  The union is giving the Japanese car makers a competative advantage over their employers.  It is a case of biting the hand tha feeds you.

I think the UAW needs to take a serious look at how it can help Ford, GM and Chrysler reduce their labor costs and still provide suitable pay and benefits.  Everyone is going to have to give something up if they are going to stay in business.