The economic difficulties facing Detroit auto makers have been to some extent generated by the United Auto Workers. The 240,000 auto workers employed by GM, Ford, and Chrysler have received salaries and benefits that are among the highest of any unionized workers in the United States.
While the auto companies need as much help as they can get in order to survive, the UAW has drawn a line in the sand, stating that it will resist “further concessions.” The unionized auto workers who have receive high salaries, generous benefit packages, and extraordinary pensions should agree to concessions not only to help save the companies that have provided them with comfortable middle class lives, but also to help assure the economic well being of the United States, which would suffer if the big three auto companies went into bankruptcy.
For many years, while winning ever higher wages and benefits for its members, the auto workers’ unions have done very little to help cut costs and increase productivity. Their formula has been a road map leading to disaster.
While the Democratic party is working with union leaders to strengthen the power of organized labor, party leaders should look at how strong unions have brought the US auto industry to the brink of destruction. They may want to re-write their agenda before the country sinks deeper into recession.
