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December 12, 2012
Michigan Auto Union Reactions a Harbinger of Things to Come?
In the early 1980s, Ford and Chrysler were struggling to make ends meet and Chrysler needed a government bailout to keep going. General Motors' predicament in the 1980s wasn't life threatening so it continued along its merry way without making significant changes. I don't remember which automaker it was, but in the early 1980s one of the Big Three asked its union workers in Michigan to take a pay cut so that it could continue to operate. The unions were told that if they didn't accept a pay cut, the firm would move production to Texas. The unions considered the request and unceremoniously rejected it. The company closed the plant and started manufacturing in Texas. That's a perfect example of union workers in Michigan cutting off their nose to spite their face. GM still hasn't made the kinds of changes that it must make if it hopes remain solvent, and without government intervention GM would have gone down the tubes in 2009. Even with government support,...(Read Full Post)