How to save the Big 3 US automakers

Dondrei

Diabloii.Net Member
Re: How to save the Big 3 US automakers

Dondrei:

That's correct for two main reasons.

1). Unless it's happened fairly recently, The United Auto Workers (UAW) has never successfully unionized any foreign Auto Company's plants in the United States.

2). Much of the problems with union contract terms go back a half a century when the Big Three had close to a monopoly in the U.S. market. Salary is not the issue; benefits are.

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I never said that the agreements between the UAW and the Auto Companies were not part of the Free Market, I just said that they are a major cause of why the Auto Companies are not competitive.

What is going to NOT be part of a Market solution is the bailout (if it happens). The goal of any Economic System is to provide for the most efficient and effective allocation of goods within a Society. The way a Market accomplishes this goal is by rewarding the productive and punishing the non-productive. Bailing out companies and unions that are locked into agreement terms that are fifty years out of date means that the taxpayer will end up subsidizing both Management salaries and Union wages and it does absolutely nothing to resolve to cost differential between domestic and foreign plants. In addition, it allows other interested parties (after all, we as taxpayers are paying a sizable chunk of the bill) to persuade the Government to force the auto companies into building cars that meet goals based on other ends than building cars that people want to buy.

This best thing to do? I prefer bankruptcy and re-organization. This allows the companies to 'break' the agreements that have become so onerous and that is the best approach to take if you want to preserve the most jobs while simultaneously allowing the companies to try to become competitive.
These agreements spanned fifty years? That sounds pretty extraordinary. I'm surprised a company can actually bind future management and shareholders for such a span of time. And get away with it.



 

WildBerry

Diabloii.Net Member
Re: How to save the Big 3 US automakers

You honestly believe there are good guys and bad guys in this? You really think that unions are more noble than the corporation on the other side of the bargaining table? Can you possibly be that naive?
You bring up flippant accusation of spurious violence. I refute them. Now it's about good and bad guys? All I see is you trying to paint them as black as you can with anything, never mind the truth value of your claims.

And it's about me choosing sides? Whatever.

So now explain to me how the cessation of a business organization's existence will satisfy its obligations to its creditors? The whole point of bankruptcy is that its better deal for the creditors.
Liquid funds seized and divided by creditors. Property auctioned, profits divided by creditors. Deals and debts made without intention of or capability for paying are paid as far as they can be.

Bankruptcy, these days, is just a free pass out the debts without proper organisation and planning for payments. Skinning corporations that would make empty promises at least prevents them from making them again.

Now your getting all turned around. The analogy you're trying to make just isn't working. A corporation filing for bankruptcy can't possibly meet its obligations EVEN IF IT DIES. In the case of the self-sacrificing organ donor, dying is precisely how he meets his obligations. OBVIOUSLY, it is POSSIBLE for him to settle the contract by doing EXACTLY what the contract stipulates. I REPEAT: It is not POSSIBLE for the corporation to meet it's obligations NO MATTER WHAT. Killing it off would be stupid and wasteful, A LOSE-LOSE SITUATION.
They were making tying themselves to obligations they cannot fulfill? Then fraud.

You're still pulling that "cannot meet obligations" from your hat, though. A corporation can pay outrageous paychecks, they will just do so at a loss and soon go under. But it's not like they physically cannot sign those checks or anything.

They used non-union labour to install it, and non union electricians. The device, a life safety critical piece of equipment for everyone in the building, was repeatedly vandalized. This endangered the lives of everyone in the building.

Now there is no proof that it was the unions, but no piece of plant in the building which was built by Union work was damaged.
Some kids vandalised the girls bathroom at the school yesterday, but without proof I'm not blaming the Construction Union.

That does sounds cheesy, I admit, and I fully know that there are flavours in the degree of militancy of the Unions. It's just the "they're all the same" attitude that gets to me - whether it is assuming the best or the worst, as it was in this case. Even if all the Unions in U.S. were enemies of Rainer Wolfcastle and had EvilCommuNazi Party membership required, which they do not, it still wouldn't automatically make the phenomenon global.



 

PFSS

Diabloii.Net Member
Re: How to save the Big 3 US automakers

Some kids vandalised the girls bathroom at the school yesterday, but without proof I'm not blaming the Construction Union.

That does sounds cheesy, I admit, and I fully know that there are flavours in the degree of militancy of the Unions. It's just the "they're all the same" attitude that gets to me - whether it is assuming the best or the worst, as it was in this case. Even if all the Unions in U.S. were enemies of Rainer Wolfcastle and had EvilCommuNazi Party membership required, which they do not, it still wouldn't automatically make the phenomenon global.
You put the Girls Bathrooms in out of the way mechanical plant rooms that are not (easily) accessible to many of the buildings users?

I realize that all unions are not like that, and am personally in favor of the rights of unions to organize and feel that they can offer workers protection that would otherwise not exist. However it does seem that US unions are very different to European Unions, and to judge American attitudes to Unions by European standards isn't really fair.


 

Tanooki

Diabloii.Net Member
Re: How to save the Big 3 US automakers

The only sway a union should hold ought to be that they are already trained to do the job, and the company would have to fire them all and start over with a brand new crew. So it'd be a bigger hassle to fire them all than to simply negotiate better contracts.
 

Moosashi

Diabloii.Net Member
Re: How to save the Big 3 US automakers

First, you really should read The Jungle. Sure, it turns out to be Socialist propaganda, but I think that reading it will enable you to see the other side of this debate. The book is very influential. Here's a passage from wikipedia:
The other side of the debate goes without saying. It's obvious. Of course corporations are evil and underhanded. My point is that unions are no better and don't qualify for greater rights or sympathy than their management counterparts.

Second, about the buyers club analogy. (The following may not line up with the ideas of the person who introduced it). Each company (in the management sense) is comprised of from dozens to hundreds of individuals and organized capital. The employers are already organized, so the workers must become organized in order to bargain properly. I don't think that the analogy that relates the worker-employer relationship to the producer-consumer relationship is apt. Consumers in aggregate respond to prices set by the producers, but they certainly don't organize to negotiate collectively. Consumers don't organize, so they are certainly not analogous to management.
Consumers don't organize generally, but obviously, a buyers' club is an organization of buyers. It's not typical, but there it is.

Now, in one sense, management is organized. But why draw the line at the doors of the corporation? Unions organize across entire industries and even beyond. The UAW is an organization of workers for GMC, Ford and Chrysler. Do these corporations have the same management?

Third, do you really think that workers and consumers are two disjoint groups? The workers are the consumers. What good do "fair" prices do you if you you can't make a living wage? The way you seem to want it: sure the feds guard the front door, the the thieves are coming in through the back.
Of course not, but it's just another point in my favor. All workers are consumers. Not all consumers are workers. Thus, there are more consumers than workers. From a utilitarian perspective, lower prices are better than higher wages for workers. And of course, workers might get a lower wage, but their money goes farther too. High wages that result from essentially forced contract negotiations are essentially subsidies from the general consumer to unionized workers. Subsidies never make economic sense for the production of normal goods.

On a practical note, UAW entry level wages and benefits are WAY above a "living wage".



 

WildBerry

Diabloii.Net Member
Re: How to save the Big 3 US automakers

I realize that all unions are not like that, and am personally in favor of the rights of unions to organize and feel that they can offer workers protection that would otherwise not exist. However it does seem that US unions are very different to European Unions, and to judge American attitudes to Unions by European standards isn't really fair.
Then again, neither is judging the European unions by the American attitudes. Still, your point is a valid one.



 

Moosashi

Diabloii.Net Member
Re: How to save the Big 3 US automakers

Then again, neither is judging the European unions by the American attitudes.
I don't think it's an American attitude to suppose that unions, no matter where they are, engage in unfair, coercive and/or illegal behavior. Europe is populated by human beings just like America, and just like in America, European human beings do nasty and vicious things if they can get away with it, whether they're members of corporate management or union organizers. No one ever said that because unions can be bad, corporations must necessarily be good. That is an extra layer you're throwing on all by yourself. If there's a problematic difference, it's that the general public sympathizes more with workers even when they're just as selfish and greedy as corporate management.



 

Johnny

Banned
Re: How to save the Big 3 US automakers

I don't think it's an American attitude to suppose that unions, no matter where they are, engage in unfair, coercive and/or illegal behavior. Europe is populated by human beings just like America, and just like in America, European human beings do nasty and vicious things if they can get away with it, whether they're members of corporate management or union organizers. No one ever said that because unions can be bad, corporations must necessarily be good. That is an extra layer you're throwing on all by yourself. If there's a problematic difference, it's that the general public sympathizes more with workers even when they're just as selfish and greedy as corporate management.
A huge part of the union effort here is about safety. That workers should not have to compete in who can do the job with the minimal ammount spent on safety. Meanwhile companies preffer to spend as little as possible on safety

It's hardly "nasty and vicious" for the unions to want safety as a given for all workers.



 

Moosashi

Diabloii.Net Member
Re: How to save the Big 3 US automakers

A huge part of the union effort here is about safety. That workers should not have to compete in who can do the job with the minimal ammount spent on safety.
Why not? The choice that many workers face is not "safe job" or "unsafe job". It's "some job" or "no job". The more that management spends on each of its workers, the fewer workers it can hire. Is it fair to bar workers who are willing to take more risks from competing for a job? Generally, these workers are the poorest and least experienced. The rise in unemployment that necessarily follows higher labor costs hurts them the most. Don't you care about the poor?

It's hardly "nasty and vicious" for the unions to want safety as a given for all workers.
It's not their demands that are nasty and vicious. It's their methods: destruction of private property, threats against management, intimidation of replacement workers, etc.



 

Johnny

Banned
Re: How to save the Big 3 US automakers

Why not? The choice that many workers face is not "safe job" or "unsafe job". It's "some job" or "no job". The more that management spends on each of its workers, the fewer workers it can hire.
Tell that to the big 3 "hey guys. We know you're not selling more cars but if you had more money you would employ more people right?"

Savings are not put on more workers. If there is more work to do then the profit made from doing the additional work will pay for the workers.

It's not their demands that are nasty and vicious. It's their methods: destruction of private property, threats against management, intimidation of replacement workers, etc.
Those events are as isolated on the union side as they are on the company side.



 

WildBerry

Diabloii.Net Member
Re: How to save the Big 3 US automakers

I don't think it's an American attitude to suppose that unions, no matter where they are, engage in unfair, coercive and/or illegal behavior.
Well, it sure isn't the attitude in here. If it isn't American, it's just yours, and that doesn't make it any more commonly accepted.

Europe is populated by human beings just like America, and just like in America, European human beings do nasty and vicious things if they can get away with it, whether they're members of corporate management or union organizers.
Maybe the deal is they can't get away with it in here. Whatever the reason, you're calling the model student of the class a bully here.

No one ever said that because unions can be bad, corporations must necessarily be good. That is an extra layer you're throwing on all by yourself. If there's a problematic difference, it's that the general public sympathizes more with workers even when they're just as selfish and greedy as corporate management.
I didn't see you throw any baseless accusations at the direction of the management, so I figured that was your way of choosing the least of the two evils at least.

And nobody here has denied that the Union claims are about wanting more money, more resources, and more benefits. Of course they're greedy, that's why they're around.

It's not their demands that are nasty and vicious. It's their methods: destruction of private property, threats against management, intimidation of replacement workers, etc.
Never heard of one of those in the last 60 years in here, and before that most of those turned out to be made up to garner support for employer organised strike-breaker cartels.

May it be that it could be a local cultural issue rather than an union issue?



 

SnickerSnack

Diabloii.Net Member
Re: How to save the Big 3 US automakers

The other side of the debate goes without saying. It's obvious. Of course corporations are evil and underhanded. My point is that unions are no better and don't qualify for greater rights or sympathy than their management counterparts.
No, you don't understand. You should read the book.

Consumers don't organize generally, but obviously, a buyers' club is an organization of buyers. It's not typical, but there it is.
It's incredibly atypical. And I don't think there's a widespread car buyers club - if we want to be topical.

Now, in one sense, management is organized. But why draw the line at the doors of the corporation? Unions organize across entire industries and even beyond. The UAW is an organization of workers for GMC, Ford and Chrysler. Do these corporations have the same management?
I would be surprised to find that the automakers do not coordinate their negotiations with the unions. But even if they don't, that has nothing to do with the fact that workers need to organize in order bargain with a particular company. Just because one union organizes on a larger scale than the corresponding companies do doesn't mean that no workers should be allowed to organize at all. Plus, there's that whole free association thing. American workers organizing is a right.

Of course not, but it's just another point in my favor. All workers are consumers. Not all consumers are workers. Thus, there are more consumers than workers. From a utilitarian perspective, lower prices are better than higher wages for workers. And of course, workers might get a lower wage, but their money goes farther too. High wages that result from essentially forced contract negotiations are essentially subsidies from the general consumer to unionized workers. Subsidies never make economic sense for the production of normal goods.
I wonder where those consumers who aren't workers get their financial support. Could it be the workers? I'm afraid that point in your favor is negative. Lower prices aren't better than higher wages, that's absurd. What workers need is to be able to live on what they earn, regardless of how large the numbers are.

On a practical note, UAW entry level wages and benefits are WAY above a "living wage".
Probably, but how about some supporting evidence? What does an entry-level union worker make, and what does it take to support a family of 4?


 

AeroJonesy

Diabloii.Net Member
Re: How to save the Big 3 US automakers

Both sides are nasty and vicious. People's livelihoods are on the line, of course they aren't going to pull punches.

What I see as being the biggest problem is that unions were given a legal way to fight against unfair practices by employers. Employers have shaped up their act enormously, but unions still have the power they were previously granted by law. Another problem is that management is already up against shareholder interests. The union doesn't have the same additional outside force, which also gives them a bit more leverage.
 
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SnickerSnack

Diabloii.Net Member
Re: How to save the Big 3 US automakers

Some kids vandalised the girls bathroom at the school yesterday, but without proof I'm not blaming the Construction Union.

That does sounds cheesy, I admit, and I fully know that there are flavours in the degree of militancy of the Unions. It's just the "they're all the same" attitude that gets to me - whether it is assuming the best or the worst, as it was in this case. Even if all the Unions in U.S. were enemies of Rainer Wolfcastle and had EvilCommuNazi Party membership required, which they do not, it still wouldn't automatically make the phenomenon global.
You asked for one example, and he gave it. Don't pretend that one example is irrelevant now that he has given one.

You tell me when that's ever happened in my country and I'll show you a guy to revise history. For the first 70 years of the past 100 years, unionists have been attacked on numerous accounts, though.
---------------EDIT: end wildberry, begin aj --------------------

AJ: That has been brought up and refuted already. Posts 74 through 77.


 
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Moosashi

Diabloii.Net Member
Re: How to save the Big 3 US automakers

I would be surprised to find that the automakers do not coordinate their negotiations with the unions. But even if they don't, that has nothing to do with the fact that workers need to organize in order bargain with a particular company. Just because one union organizes on a larger scale than the corresponding companies do doesn't mean that no workers should be allowed to organize at all. Plus, there's that whole free association thing. American workers organizing is a right.
Of course. My main point is not that unions are wrong or bad (relative to management). My point is that there is no reason to tip the scales in their favor with Collective Bargaining. Collective Bargaining does more than guarantee the right of worker's to organize. Read some of my other posts about what Collective Bargaining actually is.

My secondary point is that an organization of workers with the aim of cornering the labor market and fixing wages is in principle no different than a collusion of companies hoping to corner a production market with the hope of fixing prices. If you think there should be legal restrictions on the latter, you should be questioning why you're comfortable with laws actually encouraging and empowering the former.

I wonder where those consumers who aren't workers get their financial support. Could it be the workers?
Don't tell me you buy into the widely discredited labor theory of value. You might as well be arguing that God created a flat earth 6000 years ago.
Consumers who aren't workers are professionals, businessmen, contractors, scientists, soldiers, and more. They derive their financial support by trading their scarce services for money.

I'm afraid that point in your favor is negative. Lower prices aren't better than higher wages, that's absurd.
The point is debatable (I'm right, BTW), but it certainly isn't absurd. Wages and prices are clearly two sides of the same coin. A lower wage is not a bad thing if prices are also proportionately low. Since workers are not the only consumers of the products they help make, more people are affected by high prices than low wages. Unions that have the power to legally coerce above-market wages do so at the expense of everyone who buys the products sold by that employer. You have the typical Leftist soft spot for workers, but if you do the math, unions with coercive power do more harm than good (and just to avoid the inevitable strawman I mean misunderstanding, notice that I am not against unions per se, but rather the coercive power granted them through Collective Bargaining- in the legal sense).

Probably, but how about some supporting evidence? What does an entry-level union worker make, and what does it take to support a family of 4?
It's been given already in this very thread, and you can use Google as well as the next guy, but here you go anyway.




 

PFSS

Diabloii.Net Member
Re: How to save the Big 3 US automakers

Why not? The choice that many workers face is not "safe job" or "unsafe job". It's "some job" or "no job". The more that management spends on each of its workers, the fewer workers it can hire. Is it fair to bar workers who are willing to take more risks from competing for a job? Generally, these workers are the poorest and least experienced. The rise in unemployment that necessarily follows higher labor costs hurts them the most. Don't you care about the poor?
In many cases the person doing the work might not be aware of the danger that they are in, either through lack of skills/training or not being in possession of all the facts.

Also - again I don't have a source here, IIRC in the UK employers have found that the total cost of providing a safe working environment is frequently cheaper than the total costs resulting from accidents, it's just that the prevention costs are much more visible which tends to put people off.

Are you also saying that all the staff shouldn't be able to get together and say "Hey! This is dangerous! We won't work until you fix it."?


It's not their demands that are nasty and vicious. It's their methods: destruction of private property, threats against management, intimidation of replacement workers, etc.
Again - for the large part American Unions tend to behave very differently to European Unions. This sort of behavior is less common in Europe (though the French unions are pretty extreme sometimes).


 

WildBerry

Diabloii.Net Member
Re: How to save the Big 3 US automakers

You asked for one example, and he gave it. Don't pretend that one example is irrelevant now that he has given one.
He gave me an irrelevant example in the sense of no conviction. I'm sure dead bodies in woods would be really good to be blamed on the Unions as well, but I'm sure he could've done better if the vicious stuff was really their bread and butter.

AJ: That has been brought up and refuted already. Posts 74 through 77.
If you're talking to AJ, why are you quoting me? :ponder:



 

PFSS

Diabloii.Net Member
Re: How to save the Big 3 US automakers

He gave me an irrelevant example in the sense of no conviction. I'm sure dead bodies in woods would be really good to be blamed on the Unions as well, but I'm sure he could've done better if the vicious stuff was really their bread and butter.
Well - I don't have any photographic evidence that it was animal rights activists who beat the **** out of a Huntington Life Sciences exec outside his home either, but I think it's a fair guess.

Unions in the US are a very different breed to those in Europe and violence, threats, intimidation and vandalism are much more widely used in their tactics. which is part of the reason the US has a more allergic response to Unions.


 

WildBerry

Diabloii.Net Member
Re: How to save the Big 3 US automakers

Well - I don't have any photographic evidence that it was animal rights activists who beat the **** out of a Huntington Life Sciences exec outside his home either, but I think it's a fair guess.

Unions in the US are a very different breed to those in Europe and violence, threats, intimidation and vandalism are much more widely used in their tactics. which is part of the reason the US has a more allergic response to Unions.
Yes, but just for that particular reason I would've expected you to produce more clear-cut cases in stead of one where the unions are the prime suspect.

Wiki has some examples that, while not as recent, would've proven your point a bit better. Then again, if your example were a proven one, it would indeed demonstrate underhandedness better, as most of the Wiki examples are picket fights.

Are you also saying that all the staff shouldn't be able to get together and say "Hey! This is dangerous! We won't work until you fix it."?
As far as I can tell, he's trying to say that they shouldn't be able to prevent those willing to work in those hazardous climes from doing so. If I read him right, "they" in addition to workers applies to legislators as well.



 
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