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Congratulations. Where are all the naysayers now?
Likely figuring out how to finance a new baseline sedan at 9% for $45,000
Probably figuring out how these companies will claw back this money over the next couple years.
The naysayers? They’re all in the Honda, Toyota and Subaru dealerships purchasing higher quality at a lower price.
You asked, and ya got three silly answers. Pretty This contract will go down in history as epic.
Rick S:
“Silly” = “Perfectly Reasonable”
As much as I prefer manufacturing unions over teachers and other public-sector unions, these companies seem to be committing long-term suicide. At this rate, in a few years, GM will be as relevant as Sears.
lol do you think Honda, Subaru, and Toyota aren’t unionized?
A.R.
Honda, Subaru, and Toyota are not unionized in the U.S.
Lauren B.
+1
Jobs will be lost because of this one completely sided negotiations process.
It’s a $1 billion increase in labor costs for a company that brings in $14 billion in annual profit. They will be fine.
Unions get it done! Nice work!
The UAW has lost far more jobs than they have created.
Ford’s Labor cost will now jump up to about $ 90 dollars per
hour ( wages & benefits) on average. The non union wage & benefits
per hour are around $ 55 dollars per hour.
The additional labor costs will be passed on to the consumer in higher
vehicle costs.
The Big Three have around 50% of the domestic car market and virtually very
little if any outside the United States.
Prepare for more jobs to be lost here in the U.S.
Keith: This is a bunch of bunk. Unions have protected laborers from automation and profit-seeking labor cuts. The average increase in costs of a vehicle for this deal is about 2%. GM is a company that rakes in $14 billion in profits annually, they can absolutely absorb a $1 billion increase in their labor costs. The notion that the “Big Three have very little if any outside the US” is incredibly false. Opal is a GM company and they make up 37% of car sales in Germany! Overall, your statement is laughably untrue and goes against the long-standing history of unions.
Well now the automakers will have to decide whether to raise prices and risk losing business to better run competition or find other ways to reduce costs to remain competitive (May have to cut their executive bonuses by a couple hundred million – but probably won’t). Sounds like what drives innovation and a free-market system to me. The auto CEO’s, corporate institutions, and high wealth individuals can not perpetually rake in tens of millions of dollars because of soaring stock prices earned on the stagnant wages of the middle class workforce. The automakers survived the oil embargo in the 70’s, the Japanese onslaught in the 80’s & 90’s, and the great recession in the 2000’s (with the help of large concessions from the unions btw) and seem to be profiting as well as ever, but somehow many doomsayers on here think it will be this union contract that will be their death knell.
Greg S.
The profits are distributed to the shareholders which number in the
tens of millions to hundreds of millions of people. These investors
are the ones taking the risk, not the union members.
The additional costs will be added to the cost of the vehicle resulting in higher
prices.
Higher prices will effect market share.