Who wins in the GM strike?
The United Auto Workers union is shooting itself in the foot with this strike, says Doron Levin in Bloomberg. GM pays up to $30 more an hour in labor costs than Toyota, and much of that gap is “due to the cost of retiree health care.” GM is offering to fund a union-managed health care trust, but the UAW acts as though this “creative solution” is something it “is being asked to concede rather than a golden opportunity.” Well, the current “$50 billion health-care entitlement” is bound to “go up in smoke” if GM files for bankruptcy. One thing’s for sure: “Under no circumstances can GM afford to keep building vehicles in the U.S. if it can’t find common ground with its workers.”
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