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How GM lost its way (SHOCK: the UAW)
The Wall Street Journal ^ | June 2, 2009 | Paul Ingrassia

Posted on 06/01/2009 8:42:55 PM PDT by St. Louis Conservative

Decades of dumb decisions helped send General Motors to a bankruptcy court yesterday, but one stands out.

The year was 1998, and the United Auto Workers was striking at two factories in Flint, Mich., that made components critical to every GM assembly plant in the country. The union was defending production quotas that workers could fill in five or six hours, after which they would get overtime pay or just, you know, go home.

Most strikes are forbidden during the life of a labor contract, so to provide legal cover the union started filing grievances. GM lawyers contended the walkouts violated the contract anyway and drafted a lawsuit -- the first by the company against the UAW in more than 60 years. But GM's labor-relations department freaked out because the lawsuit would antagonize the union.

Just think about that. The union had shut down virtually all of GM, costing the company and its shareholders billions of dollars, and yet the company's labor negotiators were afraid of giving offense. After heated internal arguments, the suit was filed and GM seemed on the verge of winning. But the company settled just before the judge ruled.

UAW members marched victoriously through downtown Flint. GM executives who advocated a tougher stand got pushed out of the company.

The picture of a heedless union and a feckless management says a lot about what went wrong at GM. There were many more mistakes, of course -- look-alike cars, lapses in quality, misguided acquisitions, and betting on big SUVs just before gas prices soared. They were all born of a uniquely insular corporate culture.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Miscellaneous; News/Current Events; Philosophy
KEYWORDS: automakers; bailout; generalmotors; uaw; unions

1 posted on 06/01/2009 8:42:55 PM PDT by St. Louis Conservative
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To: St. Louis Conservative

A couple years before this..Caterpillar headed by CEO Don Fites faught off a long UAW strike and imposed an agreement on them when they returned to work. CAt was in a much better position to to it since they had strategically reduced the number of plants in IL with the UAW and had enough office staff, field staff and engineers to run the plants without the UAW. Everybody worked 12 hour days for a long time..and the mgmt employees were paid time and a half for overtime. They found out they could make the same product with fewer people and never took back the same number of UAW who walked out. I guess the car companies just couldn’t do the same thing. It took years of positioning to get there.


2 posted on 06/01/2009 8:48:22 PM PDT by Oldexpat
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To: St. Louis Conservative
This isn't rocket science. And lest the union drones out there cry this is erroneous data, it is from their own beloved liberal government that is providing the teat they will be sucking your and my tax dollars from so they can continue to pay union dues that ultimately end up in the pockets of the liberal socialists now running the show.

3 posted on 06/01/2009 8:48:58 PM PDT by rlmorel ("The Road to Serfdom" by F.A.Hayek - Read it...today.)
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To: St. Louis Conservative

Romney on this mess:

http://www.freerepublic.com/focus/f-news/2262657/posts


4 posted on 06/01/2009 8:49:15 PM PDT by Saundra Duffy (For victory & freedom!!!)
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To: St. Louis Conservative

The unions are always whining that their main mission is workplace safety. I watched a piece on FOX news yesterday that was filmed on an assembly line. The union idiots were building cars dressed in T-shirts and shorts. None in the camera view had safety glasses or hard hats. I thought that it just looked a little weird for these guys who were assembling cars to be dressed like they were going to the beach.


5 posted on 06/01/2009 8:50:59 PM PDT by FlingWingFlyer (Gibbs needs to be "exceedingly careful" when threatening the American people.)
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To: St. Louis Conservative

Problem’s bigger than GM. The US is no longer a country where anything gets solved, just debated and band-aided endlessly until a crisis hits or the problem is beyond repair. Compare the U.S. that rebuilt the Pacific Fleet after Pearl Harbor in a matter of months, sent men to the moon, etc. etc...

GM may be a great metaphor for the country the U.S. appears to have become.


6 posted on 06/01/2009 8:56:47 PM PDT by quesney
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To: Saundra Duffy; All

“Romney on this mess...”

Romney and his fellow RINOS are a mess.

If the GOP had provided a consistent, compelling free-market alternative over the past two decades, we wouldn’t be where we are now. Obama isn’t the biggest problem. The biggest problem is the feckless tweedle-dum GOP limp-wrists from Romney to Dole to McCain that have accommodated creeping socialism for decades. They’re as much to blame as anyone for the situation in which we find ourselves today.


7 posted on 06/01/2009 9:01:03 PM PDT by quesney
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To: St. Louis Conservative

Related thread:

GM: Its rise, fall and future (Founder was strongly anti-union)
http://www.freerepublic.com/focus/f-news/2261996/posts


8 posted on 06/01/2009 9:05:40 PM PDT by 2ndDivisionVet ("The unarmed man is not just defenseless - he is also contemptible." Machiavelli)
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To: St. Louis Conservative
Back in the 80's I worked in a shipyard in Wisconsin. A cargo ship came into the yard for repairs and amongst other things we have to service a minor pump on board which had spun a bearing.

I went aboard with three workers. All from different unions in the yard. I had a pipefitter to pull the plumbing away from the pump, a electrician to disconnect the wiring from the pump and a laborer to pick the pump up.

My job was to point out which pump to service as none of the aforementioned tradesmen were allowed to read blueprints.

The yard went from 5,400 workers to 500 in 5 years.

9 posted on 06/01/2009 9:07:11 PM PDT by Last Dakotan
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To: St. Louis Conservative

apparently the UAW has told its members their base pay will not decrease and they will keep their health and pension benefits. Those that keep their jobs anyway. meanwhile this is unsustainable without huge amounts of govt stolen money


10 posted on 06/01/2009 9:11:20 PM PDT by GeronL (http://libertyfic.proboards.com <----go there now, NOW)
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To: St. Louis Conservative
This is the beginning of the “Britaining” of the American auto companies. Starting in the Late 50’s through the 70’s all of the British car companies were merged mangled and finally owned by the UK government. Now there isn't a single British marque other than the very small boutique builders that are not owned by foreigners. It is only a matter of time before we see the next generation Cherry Corvette.
11 posted on 06/01/2009 9:12:53 PM PDT by Boiler Plate ("Why be difficult, when with just a little more work, you can be impossible" Mom)
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To: FlingWingFlyer
The unions are always whining that their main mission is workplace safety.

Workplace safety is what they always whine about when they want yet another gimme in a contract.

Unless they can get at least an 8-hour day out of these babies and get rid of crap like low quotas and job banks, GM will keep failing.

12 posted on 06/01/2009 9:38:34 PM PDT by VeniVidiVici (Chavez and Obama are competing to see who can seize more companies. Obama is winning.)
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To: GeronL
apparently the UAW has told its members their base pay will not decrease and they will keep their health and pension benefits. Those that keep their jobs anyway. meanwhile this is unsustainable without huge amounts of govt stolen money

A relative of mine works for GM and said they were told they'd be losing dental and vision. Don't know if that's for current or retired employees.

13 posted on 06/01/2009 9:40:18 PM PDT by VeniVidiVici (Chavez and Obama are competing to see who can seize more companies. Obama is winning.)
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To: VeniVidiVici

I meant their core benefits, like base pay not necessarily other things like overtime


14 posted on 06/01/2009 9:58:00 PM PDT by GeronL (http://libertyfic.proboards.com <----go there now, NOW)
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To: St. Louis Conservative

BMFL


15 posted on 06/01/2009 10:29:38 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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