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General Motors must tell UAW to take a hike



The management of General Motors should not concede in its negotiations with the United Automobile Workers Union representing its employees. As with most unions, the UAW have little interest in the high rhetoric of justice they throw out. They are simply interested in extracting maximum resources without taking into account the broader economic factors.

But GM workers are already getting a much, much better deal than other auto workers nationwide. If GM had offered more than the exceptionally generous new contract it had submitted, a contract that included new generous share-sharing proposals would have betrayed the shareholders and risked its economic viability. That is, he would act unfairly.

The UAW sees things differently. Citing GM's current lucrative status, the union says its members deserve fixed pay and benefits improvements. However, their claims have a fatal factual disadvantage. As the Center for Automotive Research points out, "Car makers say the average U.S. worker pays 28% of their health care costs (Henry J. Kaiser Family Foundation, 201

8), but UAW workers only pay about 3% ( Naughton, 2019.) "Given the inflation in healthcare, this is absurd. It reflects a real increase in employee costs without any significant cost sharing measure – thus encouraging personal accountability, so look for more effective care options.

What about salaries? slowly, GM's wages remain far higher than its competitors. As this chart shows, GM workers earn an average of $ 13 more than foreign-based employees in the US.

  Screen Shot 2019-09-17 at 1.39.33 PM (2) .png

(Center for Automotive Research)

CNBC also notes that of the big three US car manufacturers (GM, Fiat Chrysler and Ford), GM provided employees with the highest payouts for profit sharing between 2015-2018: an average of $ 45,500. GM also employs far fewer temporary workers hired outside the union (7% of the total workforce) than the average for foreign car manufacturers based in the US (20%). It also shows that the UAW's greedy abuse of its top leaders is under federal investigation and one has been indicted. CNBC also notes that "union leaders earlier this year also received a 31% annual salary increase. This compares to two wage increases of 3% for employees in 2015 and 2017. "

That's why GMs have to tell the UAW to take a hike.

If GM comes, it will invite fiscal self-destruction when an economic downturn inevitably occurs. Or else he will have to come requesting another state document funded by us, the taxpayers. This is not acceptable. What we see here demonstrates the folly of Senator Elizabeth Warren's promise to force corporate councils to give seats to union members. When unions are significantly interested in short-term benefits, members of the executive board focus on long-term profitability.


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