Labor costs and unions

Monday, December 22, 2008

“"When you are paying 20 to 30 dollars more an hour to make cars, you know you can't be competitive."
— Peter Morici on labor unions

The auto bailout will require autoworkers to give up some of their hard-won benefits. Yet Obama is beholding to organized labor. Peter Morici joins The Takeaway to parse the details.

Guests:

Peter Morici

Comments [4]

J Moore

S. Musson - so you are saying the guys in suits are incompetent where product is concerned, but to be commended for their labor agreements? None of this stuff is in a vacuum. The problem with today's capitalism is there are no capitalists left. Today's CEOs are accountants, attorneys or politicians. What true capitalist would pay himself for a lousy performance? That takes a politician, or an embezzler, not to be redundant.

Dec. 23 2008 01:38 AM
S. Musson

I'm sorry, but the guys on the assembly line are not the problem, no matter how much money an hour they are making. It's the guys in the suits, who decided to which cars to make and who chose to IGNORE NOT EMULATE the successes of companies like Honda and Toyota. It's the guys in the suits who DESIGNED the gas guzzlers and got left in the dust by more fuel efficient versions from Subaru, Honda & Toyota.
It's the guys in the suits who pulled the plug on the Electric car.

Dec. 22 2008 08:05 PM
J Moore

I've listened to this segment several times, listening for any anomalies of audio interference to determine the exact point when the Mother Ship ordered JH to change the subject. It suddenly changes from Morici's obvious "takeaways" (1-Obama beholden to organized labor and NY banks; 2- wiggle room in bailout language for "accounting mischief"; 3- current UAW contracts are unsustainable, and Detroit was losing money BEFORE the economy turned down -- among others) to this: TAKEAWAY take-it-aways! There is no ground zero of the recession. -- Where did THAT come from? "The sub-prime issue pre-dated the melt down." -- Where did THAT come from? "Let's see if there's a typical community on Main Street that represents all of these financial problems" -- Where did THAT come from?

Dude, that was bizarre! That was a getaway, not a takeaway.

Dec. 22 2008 10:53 AM
chez

About Big 3 labor costs..In the NYT they showed the difference to be pensions and retiree costs.
How about a tax on foreign makers to equal the field? They benefit from only being here 20 years with few retirees.
Of course National Health would cut expenses, but that's SOCIALISM. Maybe now we'll all see how it hurts America not to have a Nat Health system that works.
If those non-union workers can ever retire, they may find their companies in trouble, too.

Dec. 22 2008 10:32 AM

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