Tuesday, October 08, 2019
It Drags On
The General Motors strike has entered another week with no progress on either side. The strike has hardly entered the consumer's consciousness beyond initial reports, and it shows how little impact the UAW has on the economy. Unions deserve a place in the market as a check on corporate behavior that seeks to maximize shareholder returns, frequently at the expense of workers. The UAW's beef with GM is that GM's workforce suffered greatly during the chapter 11 of the company in 2009. Now that the auto company is healthy again, workers deserve a larger share of the profits. GM's position is that the auto world is undergoing transition from gas-powered to electric autos and its resources need to be husbanded for an inevitable future. Besides, auto workers are paid well by comparison to other labor classes. So, it drags on costing tens of millions a day for the company and for the striking workforce. It is hard to say who will blink first.
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