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General Motors Company Message Board

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  • wngr123 wngr123 Sep 25, 2011 12:24 PM Flag

    Can GM force UAW into bankruptcy?

    <<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.

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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.>>>

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

      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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