Tuesday, March 4, 2008

they just dont listen

and now GM is laying people off.

the American Axle vs UAW strike is now rippling through the auto industry. Delphi and Lear are now looking at layoffs. they say they are temporary, but if AAM cant supply the parts that they had been because of this, then the will be less temporary.

while i dont ethically agree with AAM's tactics and stance, i cant say i blame them. they want to stay competitive. and with a surplus of labor in in Detroit, why not push the union. if GM hurts for parts, they will start to push the UAW as well. there are plenty of people who would sign up for jobs at the rates that AAM is offering, and the UAW wont meet them.

I dont blame the UAW for trying to hold their ground, theyve got a great deal going. those guys making those ridiculously high wages dont want to give them up. but the reality is that they are over paid and that AAM could go out and find workers to train and pay half of what the current union guys make. and those workers would be happy. the union is try to shore up pay rates that the market cannot support.

its a delicate balance, and i can see both sides, and i can see why this isnt getting resolved as quickly as i had hoped. i just have trouble justifying the union side of this. if it was AAM trying to rob people and pay them minimum wage, i could see it. but thats not the case. domestic manufacturing needs to be able to compete with outsourced manufacturing. and that doesnt mean paying Americans cut rate prices that they get away with in other parts of the world. US companies have an advantage of being able to buy raw materials domestically and sell the finished ones domestically avoiding all sorts of shipping costs and tariffs. therefore they can still pay decent wages, which i have to say AAM is offering.

maybe im missing something, but the way i see it, the union has to give more. not completely agree to AAM's conditions, but it cannot single handedly shore up unrealistic wages.

im pulling for you, Detroit.

i like the freep.

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