Stop blaming the unions. Their contracts have two sets of signatures on them - union and management. Union contracts have to approved by two sides - union members and company management. If a company has a union agreement they do not like, they have only themselves to blame. They signed on the bottom line. And have since the 1930`s.
Actually, Japanese firms in the U.S. apparently pay wages comparable to unionized companies. They also offer benefits that may not be on the same level as GM or Ford, but their employees to do get some coverage.
The big difference between North American companies and non-North American companies lies in the money management hauls in. About ten years ago a survey was done on salaries firms paid their management and how those salaries compare with the ran-and-file worker. In Europe and Asia management salaries were about ten times the firms` average workers while in North America it was twenty-five times. And then there were bonuses the North American management received.
When Daimler acquired Chrysler in 1998 the white collar workers were astounded at the salaries their American counterparts were making. And the higher up you went, the greater the gap between North America and Europe.
And of course bonuses received by various upper management positions must not be overlooked. Image running a company that lost a $1 billion last year and getting a bonus of $10 million. That seems to be pretty much the norm these days.
Grossly overpaid executives are not much of an inspiration for anyone down the line to take a pay cut. And the bonuses executives receive when the company is losing money and even perhaps on the verge of bankruptcy is just plain criminal.
Would you take a 10% pay cut knowing the heads of the company you work for were paid millions, plus, even though the firm is running in the red, bonuses.
But all this does not excuse American manufacturers for giving the American auto market to the Japanese. They are the ones who decided to put all their development dollars into big trucks and SUVs and not cars. Especially smaller vehicles and more fuel efficient vehicles. Today Chrysler, for example, has two car bodies - Sebring/Avenger and 300/Charger. When the Neon was dropped, Chrysler abandoned the small car market. Now the economy is going down and they have only big vehicles that fewer people can afford to buy or lease.
And be careful when you slash workers`wages. Less income means less money to spend - on anything. Fewer cars or trucks, fewer electronic items, fewer homes, and so on. Those outrageous union pay scales have fueled the North American markets since WW II. Now that the union jobs are disappearing along with the factories they worked in, there just isn`t the money out there to fuel the economy.
Bill Vancouver, BC----- Original Message ----- From: "Sean B" <polecat2@xxxxxxxx>
To: <1962to1965mopars@xxxxxxxxxx> Sent: Monday, October 27, 2008 11:04 AM Subject: RE: not yet
You guys are going to hate me for this, but the biggest problem with the Big Three American car companies is the Union. The Japanese factories are Union-free, and are set up in low-tax states, as well. I just read where it costs GM about $1,700.00 per new vehicle it sells to cover certain Union costs. Toyota in America incurs ZERO dollars in this regard because of no Unions, and their workers are happy. BTW, I was a Teamster for years. Sean
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