I think there should be court orders for situations like this. Back when GM wanted to shrink labor costs, UAW went on strike for months and costed GM billions. I think govt should step in at some point for some industries.
Here in NYC there was a strike a few years back. City transportation workers wanted better benefits with 55yr old retirement with pensions and 50k+ salaries. It locked down the city for several days. The city ordered it illegal and fined every worker who went on strike and the union boss had to sit in court. Now that UAW laborers are collecting taxpayer money as a salary, they essentially waltzed right into the one group they cant strike against.

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the union is a premonition of the country's woes.

based on the above comment, there are more retirees than UAW workers and its breaking backs.

Wont be long before that is the US as a whole.

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@geo.stewart...

You nailed it! So keep working hard and break out the check book... Oh come on...you'll need to open it wider than that!

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I guess we will all just have to live on our social security when we get old.....

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All three American Auto Manufactures have similiar problems;

1) Toyoto has under 2000 dealerships nationwide. The big three average approximately 7900 each on dealerships. You have to make a lot of cars to stock that many dealerships.

2) When an autoworker is laid off, they receive 95 percent of their salary, for four years, and sit in a job bank. Where is the incentive for that person to go find another job?

3) GM specifically was paying approximately 11 million dollars a year in Viagra. Now if someone needs help getting it up to get off, then said person should pay for the drug, not insurance. While some will argue, it is not life threatening to get your sexual satisfaction, so insurance should never pay for those drugs.

4) While the quality of the big three cars and trucks have risen in quality, Toyota and Honda still build the best vehicle. Let me give you a personal example. I bought a 1999 Chevy Malibu, brand new. That was a great car. It ran fine and the body lines were pretty. The lower intake manifold gasket blew, thankfully to the outside. I paid for the repair and began investigating. Seems GM used the same gasket, knowing it was bad on 3.1L, 3.4L, and whatever the next size engine from 1996-2002. I called GM on several occasions voicing my complaint. I was told the car was out of warranty and we are sorry. It took a class action lawsuit for GM to finally admit the problem was created by Dexcool. I filed my claim and am getting my $575.00 back. However, many buyers had the gasket leak to the inside and blew the engines before the problem was realized. I was a fourth generation GM buyer. I am now the proud owner of two Honda Accords that run w/o problems.

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quote from Dave: -
"GM wages for new workers (actual wages worker take home) now amounts to $14.00 an hour while Toyota is $27.00 and hour." -

Your figures leave out a couple of important pieces of info. The $14/hr wage is for noncore, nonproduction jobs. Read more about the contract here: http://www.autoblog.com/2007/09/28/uaw-gm-contract-details-revealed-local-leaders-vote-unanimously/

The average production worker makes closer to the upper $20/hr range, within a dollar or two per hour as thier non-union counterparts.

Including the benefits and healthcare costs though, the Big 3 spend far more per employee and that's where the biggest difference between the UAW wages and those of non-union plants comes from.

Read more in these two similar articles

http://www.nytimes.com/2008/12/10/business/economy/10leonhardt.html?_r=2

http://blogs.moneycentral.msn.com/topstocks/archive/2008/12/11/do-auto-workers-really-earn-73-an-hour.aspx

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"Why pay union dues if everybody makes the same amount and has the same benefits?"

That about says it all. The UAW now has to defend their worth, when the golden goose can't lay any eggs. If they can't deliver higher wages (and very soon, they won't), then why allow them to skim your paycheck?

The next question: how long for the average line worker to figure this out? Tick-tock.......

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quote from snp: -
"The only thing i think should be changed is Medical benefits and Pensions. Those should be modified to be 401k + company contributions higher patient copays." -

That's basically exactly what GM is proposing I imagine. For instance, the 2007 renegotiation already mandated 401k's with new employees getting them first.

The problem is, that new contract isn't going to begin until 2011. New workers are held to the terms of the new contract, but when was the last time you heard of GM hiring new workers? So, in other words, that new contract doesn't mean anything right now.

My guess is, they want to negotiate for an earlier start date for the new contract than 2011. Plus, they will probably ask for more concessions on benefits as well.

Going back to another comment of yours and one that was touched on by Scott, it's already a well-know fact that UAW workers make pretty close to what non-union autoworkers make(it's less than a $2/hr difference in wages, not total compensation). So, that's not where the cuts are going to be made, it's in the benefits and healthcare that are costing the Big 3 so much more than their non-union counterparts.

I still think it is funny that the UAW claims to push for higher wages and better benefits while at the same time mentioning that they won't agree to more cuts because their workers already make almost the same as their non-union counterparts. So, what exactly are the union workers paying for??

Honestly, the benefits are no longer as extravagent as they once were, for instance no more guaranteed pension plans etc. I'll admit that a large part of the benefits cost are legacy payments to cover workers who no longer work for GM and as those retirees die off(crude, but that's the truth, they get lifetime benefits and pensions) those costs will come down. That can still be 20-30 years down the road though. Therefore, other cuts need to be made in order to make the company more competitive and viable in a World where the Big 3 no longer have a monopoly over the US auto market as they once did.

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carlos, how much do you think it cost to build an assembly plant, and aquire the land for it. Bill

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I'm with you, kick the UAW to the curb, stop paying full benefits to retirees (some who went into retirement at 55 years old) and move the factories to non-union states.

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I'm with you. The union has forced domestic makers to their knees. "Gently fingered" and his henchmen have to go!

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