re: #76 FurryOldGuyJeans

This is just so wrong:

Under Restructuring, GM To Build More Cars Overseas

Unfortunately, there’s no way they will ever be able to compete using American workers as long as the UAW remains intact. UAW workers have effectively priced themselves out of the market. Despite significant progress over the last few years achieving wage parity between new hires and foreign counterparts, there are too many older workers still on the line, and way too many retirees, sucking up cash and benefits at the grandfathered rates. It will be a couple of decades before those disparities are completely flushed out of the system.

So if GM wants to remain competitive, the answer is simple: move production out of the US to the largest degree possible, and as quickly as possible.

It’ll be fascinating to watch the UAW take a seat on the board at Chrysler, and possibly GM, in a position where they are answerable directly to the shareholders over the company’s profits, and are faced with the stark reality their union has brought to pass. They’ll be forced to support draining America’s production workforce, or face Federal conflict of interest charges and ouster by shareholders irate over declining share prices.

All may not be lost. Given a couple years of this sort of BS, the country may finally be in the mood to relax draconian labor laws to the point where a new automotive startup can hire non-union workers at a decent - but not insane - wage. And there’ll be plenty of potential workers to choose from who will be happy to take such jobs by that time.

Ironically, Detroit may once again find itself a prime location if this comes to pass. The illiteracy rate in the city is currently 50% - fully half the residents can’t read, meaning they can never, ever hope to get a job paying any meaningful amount. Line work, however, will remain an option for many in this category. It sure beats a local politician’s suggestion that we address this problem by passing out blankets and corn.