As if GM should be making any kind of deals with unions to get them more, they have done just that and, in my mind, cemented their place as an automaker that will be looking for another bailout by the government that owns them in the very near future. The government and the unions do not understand economics and will never understand economics, or they would understand all this plan does is make for more problems in the future. We have to look at why the problems that GM faced in the first place came to be, and one of the major issues was the unions who wanted more and more and GM who kept giving them more. The unions were like crack heads looking for another fix, and the heads of GM at the time were the guys who were throwing money at the crack heads to get their fix. After a bailout that cost the taxpayers BILLIONS of dollars of money that we did not have to spend, we are back in the same position as we were before the bailout, with the unions getting more bonuses and pay increases for workers who already make so much money it would make our heads spin.
As the taxpayers go on with their lives and watch television to make up for their dull lives otherwise, GM (a company that has lost billions in taxpayer funds and continues to lose more with every dip in their stock) continues to make deals that support the unions more than the business. The individuals running GM right now have to understand this is the dumbest move they could have made, but when you have the unions down your throat the right answer is not always the good answer. The unions have the deck stacked at GM and know they can get what they want, but they should also know that the next time GM is about to fail there will be no more money left to bail them out again. The government needs to get out of the business of owning priority stake in auto companies, especially when those auto companies are run by individuals who are out to help the unions more than the individual worker. It is not about what kind of work a person does anymore, it is about what kind of union they are in and what that union can do for them which will determine the price of their labor. This is, in my eyes, the biggest reason for the collapse of GM and the new collapse that we could see within a year, I believe. read more »