...relatively speaking that is.
With the newly drawn up contract between the UAW and GM, the automaker will transfer almost $30 billion into a what is basically a health care fund, with another $5 billion to $7 billion added down the road.
...that's more than enough to just buy the General outright, essentially turning it into an employee-owned company.
They should buy the company. Together with GM's notoriously arrogant and short-sighted management, the UAW has ridden GM this far into the ground. Why not finish it off?
I can't think of a better example of the anachron that organized labor has become. How many more American industries have to go bankrupt?
American automakers can't compete any more when every car they push out the door carries the weight of several thousand dollars' worth of pension and health care obligations to workers that no longer contribute, and when they did they produced such poor product they had to force feed it to the dealers.
Meanwhile, the Japanese invest these same dollars in superior materials and engineering and ultimately create a more secure employment scenario for their workers, who seem to have retained the pride in workmanship that the American worker has long since discarded.
Don't believe that? Look at the paint on my car, Chrysler's top of the line; then look at the same on even the most lowly Japanese car. Granted, my car was screwed together in Ontario, but many Japanese cars are made in America by Americans. American automakers have allowed mediocrity to dominate their culture, extending all the way out to the dealership.
As the UAW and their "pay me more, then I'll work harder" minions gut the General, eventually bankrupting the company, those pensions and benefits will be slashed any way so what good will the union ultimately bring to their members?
American consumers have long since turned a deaf ear to "Buy American" rhetoric after being cheated on so many times and despite being begged to come back home with ever-larger rebates and gimmicks.
Meanwhile...there may be hope for Chrysler, now owned by Cerberus an organization with a history of turning around companies bereft with labor issues. As for GM and Ford? A merger of equals?
Equally in trouble that is.