Auto Loan Daily - UAW Loses the Option of a Strike
Quote:
UAW Loses the Option of a Strike
By Ross Edwards
Friday, 09 January 2009 06:24
The only truly effective tool a union has is the threat of strike. The job of a union is to give workers equal bargaining power with large companies. The workers all agree that if they are treated unfairly, they will stop any productivity at their employer by refusing to work. Rather than being able to replace any workers who don’t agree to unfair terms of employment and scaring the others into silence, employers are faced with the decision of either replacing an entire workforce or agreeing to fair wages and working conditions.
The wording of GM’s deal with the federal government for $13.4 billion in aid effectively removes the United Auto Workers union’s ability to strike. According to The Detroit News, a provision in the contract between the U.S. Treasury and GM states that if a strike should occur, GM would automatically be considered in default on the loan. If GM defaults on the loan, the U.S. Treasury Department could break apart the company and sell off its assets to recoup the billions of dollars lent.
As already discussed ad nauseam, the demise of GM could have cataclysmic effects on the U.S. auto industry. It would almost definitely be the end of the UAW
More...
|
From what I've been hearing, a lot of people will be dancing in the streets after hearing this.
09 Jan 2009, 08:48 am
UAW Loses the Option of a Strike
Similar Threads
Linear Mode
