Eagle Jim

UAW Pricing Itself Out of the Auto Market

This isn't the first union that has priced themselves out of business. Another example is the ILWU which destroyed the sugar industry in Hawaii. In economics it is called "the law of dimishing returns". When the wages and benefits exceed company profits, businesses have no alternative but close the doors permanently. Nobody wins and the ones that get hurt the most are the employees who followed the advice of their union leaders.