The Market Wants to Get Rid of the UAW

In the past, unions served a high purpose. If no one would take care of the workers, the workers had to take care of themselves, and they did. But then the government got involved and took some freedom of choice away from employers. In effect, the government severely hampered how well the employers were able to negotiate. So now we’ve got a monster called the United Auto Workers (UAW). The average wage of someone who belongs to the UAW is about $25 more per hour than someone working for Honda, Nissan, or Toyota. That’s a huge difference, and that’s the main problem of the Big Three auto makers. They have to compete against higher quality cars that are made even cheaper than the crap they send down the line, and they have to keep their retail prices in the same ballpark as the imports. But if they do that, and they DO do that, that means they LOSE money on just about every vehicle they sell. It’s simple math. If you spend on average $25 more per worker per hour, you will not make a profit by pricing your product at the same level as the competition. It’s time to let employers decide what to pay their workers and when to fire them. With the impending failure of the Big Three, the market is telling us that the UAW needs to go, or at least it needs to reevaluate its priorities: have a job, or get paid gobs of money and then have no job. It’s their choice.

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