The collapse of the automobile industry-is it because of the union?

According to The Indianapolis Star, the average base salary for GM blue-collar employees for the year ending 2007 was just under $ 28 per hour. The average is $ 39.68 per hour, taking into account basic salary, living expenses adjustments, night shift premiums, overtime, holidays and vacation salaries, according to GM officials. Healthcare, pensions and other benefits average an additional $ 33.58 per hour. This brings the total average cost of hiring a GM worker to an astonishing $ 73.26 per hour.

Compare these exorbitant hourly numbers with the corresponding numbers in Mexico. In June 2008, Ford Motor Company announced that the union had agreed to reduce the wages of new employees to about half of its current $ 4.50 per hour wage. Starting wages at some factories in Mexico are as low as $ 1.50 per hour, far reducing the associated pensions and medical costs of US workers. The total cost of hiring workers in China is even lower than in Mexico. I think the point is pretty clear, so you don’t need to analyze these numbers.

The entire North American automotive industry is on the verge of collapse, and I wonder how this can happen in the world. The answer is very clear. North America cannot simply compete with foreign car makers. Certainly not these hourly wages. The union had a knife in the manufacturer’s throat for a very long time. Its purest form of greed broke the back of the automobile industry. The Union will not repent because it has already announced and declared that it will refuse any form of concession, even during the darkest hours of the industry.

Leadership on behalf of the union has a great responsibility. Cow shepherds advise and instruct their herds to fight to the end to get what they want, if you want. They do not consider the economics of their demands. Their stance should be consistent and give us what we want. Otherwise we will go home with the ball. In other words, they will go on strike. Once again, take the industry hostage.

Big Three’s Talking Heads has asked Congress to kindly hand over $ 25 billion in taxpayer money to help resolve the crisis. That’s a surprising number, but it certainly isn’t the benefit of the savings demanded by the automotive industry. Gunshot wound bandages do not stop bleeding. Without increasing its competitiveness with foreign markets, the automotive sector will gradually recede and return to its current funk.

Congress will seem to be negotiating with the wrong people. They need to sit down with the United Auto Workers and provide a brief ultimatum. Accept some very deep cuts not only in your wages but also in your benefits and pensions, or the government will break the coalition and start anew. Then, and only then, the government should consider providing financial assistance to industries with this problem. Strict, probably absolutely necessary. With limited benefits and a small pension program, I’m confident that there are enough people currently unemployed and welfare excited to work for $ 15 an hour in the industry. Let’s face it. Most of these positions require monkey intelligence and dexterity, so the supply pool should be quite large given that college graduates and computer programmers are currently sitting in the doll.

The impact of the collapse of the North American automobile industry is enormous. Imagine that hundreds of thousands of workers no longer contribute to income taxes, medical care, pensions and unemployment insurance. Instead, these same workers are now drainage channels in our society, as they all rush to the unemployment line at once.

The US government has bailed out the financial sector with a payment of just $ 250 billion. The collapse of the automobile industry will bring about a further collapse of the financial industry. Government brain trusts need to determine how many of these car workers could confiscate their loans or mortgages if they suddenly lose their jobs. Their numbers are staggering and their bailouts disappear faster than the donut box on the cop’s ball. Of course, our people who are still employed will be submitting the bill with higher taxes.

The management of these companies is also unharmed and cannot escape. They have contributed to this financial crisis with millions of dollars in salaries and business jets, but the coalition spends far more money than management. But it’s time for these so-called talented CEOs to put down crackberries, roll up their sleeves, and develop a viable plan that can save North America from the financial crisis. It plans to make the industry competitive with other global markets, as well as significant company-wide reductions.

Our country cannot withstand the collapse of the automobile industry. The impact is so great, the impact of trickle is so great that it is almost impossible to assess the overall devastation. Resolving this crisis is essential. The government must hold the union leaders and CEOs of these failed companies accountable. Most importantly, we, the people, need to hold the government accountable. After all, they are giving these failed businesses our hard-earned money.