On Wednesday, UAW President Ron Gettelfinger predicted there would be no wage cuts as part of the union's concessions to GM and Chrysler. Gettelfinger argued Toyota's workers actually make $2-per-hour more than UAW workers, if you count bonuses. But ... but. ... Toyota did not go bankrupt. ... Toyota hasn't had to be rescued with $17.4 billion of taxpayer money. ... If Toyota can afford to pay its workers $2/hour more than UAW workers--perhaps because it doesn't have to build cars under the union's legalistic work rule system--that's great. It doesn't mean Gettelfinger's workers have a right to $28/hour if at that wage their employers can't stay in business without an ongoing multi-billion dollar subsidy. I'm sorry if this seems obvious. It's apparently not obvious enough. ... P.S.: So will promoters of greater unionization now boast that with unions, workers can earn $2/hour less? ... P.P.S.: The simplest solution would still seem to be to simply not give the Detroit companies more money. Let them keep the bailout funds they've gotten. Fine. A little gift. Beyond that, they have to work out amongst themselves--employers, union, creditors, bondholders, investors--how to survive. A car czar, or board of czars, increasingly looks mainly like a way to provide cover for ongoing subsidies, no?
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