from the Working Life blog:
Tiresomeby Jonathan Tasini
Monday 17 of May, 2010
Some day, one would hope, journalists would stop accepting the usual erroneous assumptions. One of the biggest has to do with the unionized auto industry. Today, The Wall Street Journal has a piece that bemoans the lack of increase in workers hired at General Motors at a much lower wage, per recent concessions agreed to by the UAW. And we get this:
"That's probably one of the reasons the UAW agreed to (the lower wages). They knew right off the bat there wouldn't be a lot of leeway for the companies to hire new workers," said David Whiston, an auto analyst at Morningstar Inc. "There will always be this fundamental difference—that the Detroit companies have union shops" and the U.S. plants of foreign makers don't.
Until we see article and analysis that makes clear that the number one issue for the auto industry is not wages (UAW workers could work for free) but health care costs and the lack of a single payer system, we won't get beyond a very superficial understanding of the competitive cost issues.
http://www.workinglife.org/blogs/view_post.php?content_id=14875