There was a very interesting article in the Sunday Detroit News by Nolan Finley, a conservative columnist. The title of his column was THE REASON WHY WE’RE POORER and it explored reasons why the state of Michigan is suffering so much in this current recession / depression.
Basically, he blames our current poor economic condition on us. Detroit was the Motor City ; the automobile capital of the world. Unions made uneducated, unskilled workers pretty well off with high wages and benefits. Many people migrated to Michigan for a chance at one of those high paying jobs.
The middle class created by those union jobs had Michigan humming with prosperity. I remembered people from high school having no further ambition than to graduate and apply at Fords. My parents were not buying that; it was college or nothing.
So here we are now and today’s headline was “Tug-of-war within the UAW” 9/8/2010.
The auto companies, especially bailed-out GM, know that things have to change if they are to remain viable in the global marketplace. The UAW leadership knows that changes have to be made in how labor is paid but not the rank-and-file; they want their fat paychecks back or they will close the auto companies down. Do you think that is a stupid attitude to have? Do you think people should be thankful for having a job at all? Nope!
A GM plant in Indianapolis was slated to be closed when a buyer emerged but with the stipulation that the union workers take a pay cut; the union workers voted to close the plant.
GM announced that they will build new models at the Orion, Michigan plant where 60% of the union workers will make fat paychecks ($28 / hour) while 40% will make less ($15 / hour); union workers do not like this and may strike. We are talking about 1,550 jobs here.
Workers are saying that the lower wages are too low to raise a family. Well I will have to disagree with that statement. My father, who was unskilled and uneducated and did not work for an auto company, managed to raise us quite well thank you; we did not want for anything but, of course, we did not want much either.
I guess it all comes down to degrees. Yes, fat paychecks mean you can but more stuff and lower pay checks mean you buy less stuff, but you can survive and make it work – if you had to!
Here in Michigan , we created a union labor monster that is hard to slay but it must be killed if the state is to remain viable and if the auto industry here is to remain viable; at least the auto industry is trying instead of just leaving the state for more labor friendly states down south.
It appears that an auto industry vs. union labor Armageddon will have to take place and the sooner the better. The auto companies will have to take a stand or disappear at least from here, because the global marketplace will just crush uncompetitive companies.
I see the UAW leadership caving to member demands even though they know better. I also see the auto companies opening up their jobs to non-union contract workers willing to work for the lower wages and believe me, there are a lot of those who would gladly work for those lower wages; they would be happy just to have a job!
Michigan’s future will brighten if we bring in industry that requires educated, skilled workers that earn high salaries but to do that, we need to educate our population and that is not an easy task as you look at the utter mess that is Detroit’s Public School system.
Parents need to urge, no, demand their kids get a higher education or learn a skilled trade. Cost too much? I managed on the GI Bill and my brother took out loans and now is paying for his own Master’s Degree.
Where there’s a will, there is a way…