I saw an article on Reuters today entitled “UAW clout seen limited as autos drama plays out”.  In the article Reuters reports:

“The UAW is not going to be a part of the final solution. They are dead meat,” said Bill Adams, chief executive of Adams, Nash, Haskell and Sheridan, a labor relations consulting company in Erlanger, Kentucky.

Even if fellow unions were to rally around the UAW, it would not change the outcome, Adams said.

“They’re along for the ride, and unfortunately, they’re going to be out of business in the auto industry,” he said.

I’m not sure if this has been said by anybody, but I believe the end of unions in the US automobile industry will be caused, in large part, by the fact that compensation and benefits packages will need to be brought in line with those of non-unionized auto workers in the more southern states (with minor cost of living differences). The Detroit companies will continue to need to cut costs to become competitive. It’s the only way to avoid bankruptcy. If union workers see that they are being compensated at the same levels as their non-unionized counterparts, they will quickly see that their unions are giving them no return on the union dues they pay. So, in the end, it will be the auto workers themselves who give the UAW the coup de grâce.

Who is Winchester73?

March 27, 2009

I’m just a guy with a blog. Since the blog is anonymous, I can only accumulate credibility based on what I write. My plan is for this to be a blog about politics and social issues. I sometimes comment on articles at the Economist.com.  You may not agree with everything I post. I might change my mind about things. We’ll see…

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