Friday, October 10, 2008

Under Obama, Unions Could Do To Rest of Economy What They Did to GM: Will MSM Notice?

This is an interesting post from on the current troubles GM has competing with Japanese carmakers and the costs of union labor. They make the point that this will only get worse if JoBama gets into office. Read the entire piece here.

By Mark Finkelstein | October 10, 2008 - 07:18

Labor costs the Detroit Three substantially more per vehicle than it does the Japanese. Health care is the biggest chunk. GM, for instance spends $1,635 per vehicle on health care for active and retired workers in the U.S. Toyota pays nothing for retired workers - it has very few - and only $215 for active ones . . . Contract issues like work rules, line relief and holiday pay amount to $630 per vehicle - costs that the Japanese don't have. And paying UAW members for not working when plants are shut costs another $350 per vehicle. -- Fortune magazine, January 26, 2007
Obama and Biden will strengthen the ability of workers to organize unions. He will fight for passage of the Employee Free Choice Act. Obama and Biden will ensure that his labor appointees support workers' rights and will work to ban the permanent replacement of striking workers. -- Official Obama website statement on labor [emphasis added].

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