antiquecarman

Auto Industry Watch: You Can't Get Different Results Doing the Same Thing

I think this problem was the companies doing. The contracts were legally negotiated. The union threatened to strike (sometimes did) and the companies decided it would be too expensive to call the union's bluff. Bad decision. But, whoever's fault, Mr. Wilson is correct the labor costs need to be restructured.

Doing the same thing and expecting different results is insanity. That is exactly what is happening, but it is not the car-making business that will be the same, it is the union (bailout) negotiation that is the same. We are afraid the alternative to a contract (bailout agreement with this bluffing union) will be too expensive. So we fold again and the union takes the pot, even though they do not have the best hand. Later on, we loose the whole thing again for a larger price. Insanity.

It is time to call the union bluff, and let GM or Chrysler go bankrupt. Then if the union workers want their jobs back, they can make a new contract everyone, including the bankruptcy judge thinks will work.

That will be excruciatingly painful. Just like getting off a drug habit. But you’ve got to do it if you want the monkey off your back. We Americans need to recognize this is our problem, and it is going to hurt to get it fixed.