Reading about the Bush administrations terms to the Automakers and unions, he is forcing a reduction in union wages. From the first view, this might seem unfair - after all, the union negotiated wages in for these workers.
But what the unions don't seem to really get is that they are forcing non-competative condidtions on GM and subsequently, that product will cost too much to compete.
The union releaseed statements saying that Bush is allowing foriegn companies to set the cost of American labor, but what he is really doiing is letting the market set it.
Don't get me wrong - I'm at odds with Bush policy almost all of the time, but when I'm loaning the Auto industry money, I'm loaning it to the workers as well. Plenty of Americans work for Nissan and Toyota and make a good living doing it.
Some say this is a move by the administration to render the union irellevant. In truth, they already were, because they are dictating an unworkable situation. The union needs to let their workers work - recovery will mean sacrifices for everyone. The american taxpayer sacrifices by risking their money. The industry will have to radically reshape itself and the workers will need to work for market rates.
What is being offered is not starvation. It is possibly the same pay and in sme cases lower pay. What the incoming administration needs to do is to help those effected by the change in living conditions by making credit laws fare - allow the restructuring of personal debt, set caps on interest rates that are charged in unfair circumstance and offer consumer consolidation loans at low interest rates.
Unions want gauranteed pay and employment and need to realize their leverage is not good at this point - in order for them to have clout, the business needs to be strong - and it is not. They can best serve their members by making sure that work conditions continue to be safe and that wages do not drop below market norms. otherwise, they will find themselves standing outside, while their workers decide to leave them behind altogether.
