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It's very simple. Unions, these days, reward complacency. That's devastating in today's markets. It also isn't restricted only to auto makers either. If you're guaranteed a job, once you get on and you don't do something stupid like fail a drug test, then what motivation would you have to push the envelope, push yourself and others around you? In fact pushing others around you to work harder in the unions I've worked in turned you into the blacksheep.
GM had damn good vehicles, but the unions sucked them dry, to the point where they could no longer sell enough cars to fund all the benefits for the people who no longer even worked at GM, much less their productive employees. GM was the poster child for being anti-union.
It's apples to oranges to compare the legacy costs of GM to the foreign owned auto factories operating in our southern states. (You didn't say it but it's been implied in this and other threads.) Those factories haven't been there long enough to have retirees to collect on their pensions where GM has been around forever. Those foreign owned companies, too, will come to a point where their car sales will have to fund people no longer working there. That's the way pensions work for everything from teachers to government workers. Don't blame GM and the UAW for something that is commonplace across the board.
It's very simple. Unions, these days, reward complacency. That's devastating in today's markets. It also isn't restricted only to auto makers either.
That is the truth. I used to work with people in the Boeing plants in Washington state. Those union workers only need to show up for work and keep their noses clean, there is no incentive to actually do a good days work.
Those legacy cost usually come with union "looking" out for its workers. Non-unionized companies tend to empower their workers with 401k type plans so they aren't on the hook for the rest of the life of a workers that won't be producing anything for them. They are no longer value added. If it's a good company that doesn't mean they'll just leave that worker high and dry, they'll make sure they have some sort of savings and in many cases match said workers own contributions up to a point.
It's apples to oranges to compare the legacy costs of GM to the foreign owned auto factories operating in our southern states. (You didn't say it but it's been implied in this and other threads.) Those factories haven't been there long enough to have retirees to collect on their pensions where GM has been around forever. Those foreign owned companies, too, will come to a point where their car sales will have to fund people no longer working there. That's the way pensions work for everything from teachers to government workers. Don't blame GM and the UAW for something that is commonplace across the board.
But it is apples to apples on why they go there in the 1st place. Not having to deal with unions frees them to operate in a competitive mode and not have their hands tied.
You don't see a lot of any new manufacturing being built by the private sector in any heavily union areas. You do in right to work states.
That is the truth. I used to work with people in the Boeing plants in Washington state. Those union workers only need to show up for work and keep their noses clean, there is no incentive to actually do a good days work.
For me, I worked at two entirely different beast. One was supported mostly by government funding, cost+10% and another, UPS which had to compete. The cost+10% company was the epitome of what you don't want in a company that's unionized. Not only was profit guaranteed through the tax payer but everyone was at or near retirement. From the day I walked into the place the common talk was how much longer till they close the plant so we can get our pension, unemployment and retirement. It was strange because at the same time they wanted the plant to close they didn't want to work themselves out of work. The longer it stayed open the better their pensions got. At the same time they were hoping it would close soon. It was bassakwards to say the least. There was a good bit of adjustment for me when I went to work in the real world.
You don't see a lot of any new manufacturing being built by the private sector in any heavily union areas. You do in right to work states.
Not to mention that the southern right to work states gave free land and millions of dollars worth of incentives to the foreign auto companies to get them to build there.
Not to mention that the southern right to work states gave free land and millions of dollars worth of incentives to the foreign auto companies to get them to build there.
You say that like it's a bad thing. The return on investment is tremendous. Tax Income, jobs, all the spin off business.... wow no wonder they get it for free.
Maybe this is what Blue State / Unions do not understand. It takes a competitive business to create jobs.
You say that like it's a bad thing. The return on investment is tremendous. Tax Income, jobs, all the spin off business.... wow no wonder they get it for free.
Maybe this is what Blue State / Unions do not understand. It takes a competitive business to create jobs.
Ya, we understand things like the Federal government granting Toyota a "special trade Zone" so they can import to this country Japanese auto parts duty-free while our American auto companies can't. We understand that federal and state grants and incentives worth $100 million given to Toyota in 1987 came from our tax dollars.
Nice try but some of the best colleges in the US are also in the south and other red states. What you have offered is no excuse for states spending more then they take in from their citizens.
Maybe the Blue states need to adjust some of their wages of all their intellectual types so they don't go broke. It's not very intellectual to go broke and rely on the federal govt.
Are you saying there are better schools in Michigan then Texas ? I don't think so.
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