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General Motors Company Message Board

  • webuchadnezzar_reva webuchadnezzar_reva Sep 25, 2011 11:46 AM Flag

    Can GM force UAW into bankruptcy?

    GM needs to kill the UAW; I think that is a given.

    The good news is, I believe they have already started, and will succeed.

    They have bought out or laid off UAW members by the thousands, which reduces the UAW's dues income.

    They have opened new factories overseas in non-UAW environments (China, etc), which effectively prevents the UAW from recruiting those workers.

    They have foisted health care responsibilities off onto the UAW through the VEBA deal.

    They have caused dissension in the ranks of the members. The UAW's two-tier solution to GM's concession demands is a disaster. It is the exact opposite of solidarity. "I got mine, Brother; so screw you...."

    Without badmouthing the UAW, GM has clearly achieved victim status. I don't think the public is angry at GM for diminishing the UAW, but I think the public is VERY angry at the UAW for diminishing GM.

    If GM can force the UAW into BK, and replace it with a less militant and less extortionate union, it will be a wonderful day for America.

    The UAW is its own worst enemy (besides me of course). It is outspending its income, and depleting its warchests, which will mean less political influence in the years to come.

    -web

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    • <<It is outspending its income, and depleting its warchests, which will mean less political influence in the years to come.>>

      True. The UAW doesn't yet understand fixed costs. Even though their membership has shrunk from 1.5 million to 300K, they still maintain the same organization and basically the same asset base. A few examples:

      1. Most people know about the GM, Ford, Chrysler, and Ag departments of the UAW, but there is also a shadow organization under the Regional Directors. The Regions ALSO represent each local union within their geographic area. Please refer to the UAW website:

      http://uaw.org/node/2320

      This is the page for Region 1, and if you look at the right hand side of the page, you will see the list of local unions within the region. These locals are ALSO represented by their respective car company departments, GM, F, and Chrysler. It is a double organization with double the overhead. You almost never see the regional guys in the plant, but whenever there is a big announcement at the plant, or a strike, etc., it's almost like the two groups of the UAW have to introduce themselves. No company could exist like this.

      2. The UAW still maintains Solidarity House, the Human Resources Center, Black Lake, etc. These facilities are fully manned despite the fact that the UAW is 20% of what it was. Other than the HRC, these facilities are fully funded by the UAW. They have to be swimming in red ink, but don't know how, or don't have the intestinal fortitude to fix it. So, they continue to soak their membership to fund these, plus the 800 people employed by the UAW, 418 of whom make <$100K per year.

      • 4 Replies to wngr123
      • <<<<<It is outspending its income, and depleting its warchests, which will mean less political influence in the years to come.>>>>>

        <<<True. The UAW doesn't yet understand fixed costs. Even though their membership has shrunk from 1.5 million to 300K, they still maintain the same organization and basically the same asset base.>>>

        =================

        Wngr,

        That is encouraging news for me. I truly believe GM should be the greatest car company on earth but will never get there with this union intact. Unlike some posters, I don't badmouth all unions, but the UAW has got to go if GM is ever to achieve its potential.

        -web

 
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