no third solution

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$60M to Stifle Competition?

June 14th, 2006

Welcome to a day in the life of a Union slappy. Sixty-Million dollars taken from the dues of Union members in order to recruit more union members, because, you know, the cartel doesn’t work if one’s competition refuses to abide by the agreement. If Unions really performed a valuable service, they wouldn’t need to spend $60 million recruiting new members – the service provided, and the incorporated goodwill ought to be enough. Unless, of course, they’re useless, or worse – counterproductive.

“As General Motors Corp., Delphi Corp. and Ford Motor Co. prepare to cut tens of thousands of jobs over the next few years, the UAW is looking to expand into other sectors of the economy.”

Great. You fucking drove the Big Three (and most of their suppliers) into the ground – and now, as penance for your sins, you wish to spread your cancer throughout the rest of our economy? Just fucking brilliant. What correlation can we draw between the unionization of the Big Three, and their total inability to remain competitive with their non-union counterparts? Ask yourself this: What non-unionized industry in this country is cutting jobs this fast? And what is happening to non-union automakers?

“[T]he money will be used to try to organize the U.S. plants of Toyota Motor Corp., Honda Motor Co. and the other Asian automakers. The UAW has tried and failed to organize some of the Japanese automakers’ U.S. plants.”

Tried, and failed. Much like the fate of soccer as a viable spectator sport in the US. No matter how many times we’re told, “this time it’s for real,” the overwhelming majority of viewers prefer to watch reruns of Will & Grace. There simply does not exist an interest in unions within the ranks of the Japanese automakers. That, and the fact that they’re historically impotent in non “right-to-work” states, where their cartel is not legally enforceable. Unions are a necessary byproduct of poor management – and while the Japs have brought us “just-in-time” logistics, fuel-efficient vehicles, and shareholder wealth, the UAW has brought us, well, crap. General Motors share value has decreased by something like 60% over the last 5 years, while both Toyota and Honda have seen gains.

(click for link) But management is not off the hook: General Motors put an Accountant in charge of running a company, who focused all of the company’s efforts on driving down costs in the short-run. As a result, General Motors, and Delphi absorbed many of the small shops that used to supply the Behemoth with sprockets and cogs.

The result: Where GM used to benefit from a competitive supplier base – they are now nearly wholly dependent on one supplier. A Delphi strike could literally finish General Motors as we know it.

no third solution

Blogging about liberty, anarchy, economics and politics