- Apr 21, 2006
A UAW-free General Motors: the consequences
#1. GM management could fire inefficient employees without worrying about a strike, resulting in higher quality vehicles.
#2. GM would be able to use more efficient, lower-cost methods in building their products instead of negotiating it with the union to the point of creating 'phony' jobs to placate the membership.
#6. GM would not be paying $140,000 per employee to leave.
#10. GM workers, without the union benefits, would be motivated to consider saving for the future instead of threatening for more money from an already financially-strapped company.
Hmmm. A bit harsh but perhaps there are some grains of truth in there. Opinions? Shout out in comments.
*Reisman does state his analysis also applies to Ford Motor Co. and Chrysler. He chose GM for his example since it's the largest automaker.
[Source: Ludwig von Mises Institute]