
The UAW has been a favorite whipping boy of both the press and Republicans in Congress. Every time I turn on the TV or read a news report it seems that another pundit, politician, or member of the press wants to accuse unions of kidnapping the industry, or demands that they make more concessions. To understand the UAW’s role one must examine their past relationship with the domestic auto companies.
The UAW has succeeded at negotiating with the big 3 over the years to

Auto executives have been heavily compensated with near-term incentives based on near-term profit. They have been willing to agree to concessions that preserved their profit machine and near-term incentive based compensation.

The problem with the foreign transplants is truly a “right to work” vs. “union shop” (mandatory union membership) issue. The transplants are located mostly in “right to work” states, while the domestic automakers are not. This means that the foreign transplants are largely able to avoid the type of dysfunctional relationship that has existed for decades between the domestic automakers and the UAW. I believe that employees have a right to be unionized, if they so choose. I also believe that unions should compete with other available labor in a free market economy. In other words I believe that “right to work” is the way to go, not “union shop”. I don’t say this lightly.

I appreciate the fact that unions have much to do with the creation of the middle class in this country; however, they must compete like everyone else in a free market. My own personal philosophy aside, this problem doesn’t go away unless there is national uniformity (all “union shop” or all “right to work”).
It has been asserted that the big 3 are making products that are inferior to their competition. This idea has been largely debunked. As a person who owns four Fords, I can attest to their high quality. I have owned two of these cars, both Taurus’s, for 8 and 10 years respectively, with no serious repair issues and minimal maintenance. Industry publications consistently back this up. If anything, company management is guilty of failure to get this message out. The workers have done their part.
So is the UAW at fault for the auto collapse? It has to shoulder some of the blame, which lies in many places. Many changes are required, including additional union concessions.
I think that unions need to stop pressuring companies into making such lucrative deals because many big industries in the U.S. are suffering because of that today.
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