UAW wake up call

Dick Dauch, chairman and CEO of American Axle Mfg said that he can take his production elsewhere if the union is unwilling to make a deal. in the Free Press article on this there are all sorts of union sympathizers saying that the union needs to hang in because AAM will have to cave soon because GM is turning the screws.

well, be careful, UAW, or you may just find out that Dick's bite is as bad as his bark.

do you think he relishes puting people out of work? of course not. but the reality is that he in large part built this company and he is not going to let overpriced union labor ruin his company. you have to look at the reality that in a state with 7% plus unemployment that he can easily go out and find non union guys who would jump at the chance to work at $14/hour. and thats keeping jobs right there in Detroit. just think of the wages that he could get in Mexico or Asia.

the reality is this: the UAW cant call the shots anymore. whether you like it or not you have to face the fact that we live in global economy, and no matter how loud you shout 'BUY AMERICAN!' it means nothing. GM, Ford, and Chrysler all have to compete with VW, Honda, Toyota, Hyundai, and soon Tata and Mahindra. there is no changing that.

US companies theoretically have the advantage of no or minimal shipping costs. but that is squandered on overpriced union labor making a frequently inferior product the same price or more expensive. i must admit that US auto companies have stepped it up recently, especially GM, but the fact is their reputation is still stuck with the late 90s stigma. unfortunately if US companies dont continue to compete making affordable and high quality cars there will be no more 'American' brands.

to help save the industry and your jobs and future American jobs and the economy, you need to take some cuts. if you want the UAW to be relevant, sit down to a real negotiation. you have to recognize that AAM and Dauch are in the power position. he can make AAM American in name only and you cant do a damn thing about it. then that will be one more part in your 'American' cars that will come from south of the border or across the seas.