I am amazed that so little is being said about the real labor issue affecting the competitiveness of the American automotive industry. Inevitably the discussion goes to pay and benefits, which misses the overriding factor controlling total cost: WORK RULES. Work rules de-lever the efficacy of capital thereby contributing to significantly higher total costs and lower product quality. The notion that labor contributes 10% to the cost of a car may be valid under archaic accounting conventions. It is pure fantasy to think the impact of labor is only 10% of the total cost.

Until American automotive company management and labor practice what their foreign competitors have long known regarding work rules, we are simply wasting money on loans, bailouts or any other attempts to bridge them to competitiveness. Work rules rob employees of the their natural desire to contribute and the opportunity to secure their own future. Those whose labor generates the greatest leverage on invested capital win. The winners can and should be well compensated. In an organization with competent management and good leadership employees find restrictive work rules demeaning.

THC, Portland, OR

It seems logical to choke the UAW while choking the American
Taxpayer too. The question is “how much?”. The auto-workers now earn (earn? or have a right to receive?)approximately 9-10 times the wages that the Tax Payer earns (or receives). If the UAW is choked and forced to receive a wage equal to twice the amount that the taxpayer receives, then this should be semi-acceptable to the tax payer. (NOT ACCEPTABLE to the UAW, but nothing is, except MORE MONEY). This arrangement might allow the Big three to survive, ALONG WITH THE AMERICAN TAXPAYER. It may look like it’s more important for the Big 3/UAW to survive than it is for the taxpayer survive, but this must be an octical palusion or mirage produced whenever UAW President, The Reverend Ron Gettlefinger describes the problem.

Ron preaches a form of equality involving a level playing field with Big3 management, etc. The trouble is he practices a “pay or strike” form of semi-extortion against the Big3. This method makes him seem more equal to The Reverend Al Capone than anyone else.

The American Taxpayer has a voice in what happens, and it’s time for the American Taxpayer to say what he/she wants in this Socialistic / Capitalistic argument and to say it very loud and very clear. If the Tax payer does not speak up, then the pill may be very, very hard to swallow.

honestly,
S. Daniels
WV