09/24/2007

This Century's Edsel -- The UAW

Hello:

So the UAW workers are striking at the GM plants because, among other issues. GM no longer wants to foot the bill for healthcare insurance. GM is one of the largest purchasers of healthcare insurance in the United States. Healthcare costs are rising faster than the average rate of inflation.

Having grown up in Ann Arbor in the 1970's, I remember that we knew when the local auto factories had their paydays. The spending sprees were obvious and predictable. We would shake our heads at the line workers motorboats, custom vans and other toys. That was before global labor costs became so competitive.

Could it be that instead of comparing what UAW workers received decades ago vs. what they receive now is an outdated frame of reference? What with cheaper labor overseas, and with cheaper shipping costs on an inflation adjusted basis, perhaps a better basis of comparison would be to look geographically rather than historically. Times change, and this is a new century with new paradigms. The economy in Michigan wasn't too strong after the last nationwide strike in 1976, and there is not much data to support that this strike will lead to a stronger economy in Michigan.

It is time that the labor unions and their workers woke up to the reality of a flattening global economy, as it is time for us all.

Please make a note of our primary fax number: 909.866.6002 for faster service.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager