The Chris Townsend Show

Political Cornerby Stephen Thompson, posted on Sat, Nov. 29, 2008

Unions and Car Companies

It seems that Unions are bad for the country.   I know, it was a surprise to me too. I have never been in a union.    I wanted to join the Players Union in Football, but I was a tad short on my 40 yard dash time.   I wanted to Join the Actors Union as well, but I have to get a speaking role in a commercial or Movies first.    NOTE: Lee, I am still open for a speaking role in your next film :) I even tried to Join the Police union but they want you to work on Holidays and I am not down for working on MLK or Thanksgiving, it's just not me.

Still, a question remains, why is the political left and the Political right so far apart on this overall question.   "Are unions good for Business?"   The business part of this question is complex. But, I say yes!!!

In the Mid 1800s there were just ridiculous abuses to employees.   Manufacturers force workers to work 6 days a week 12 hours a day in terrible working conditions... Do your research and read Upton Sinclair's book "the Jungle." Unions started in the environment to give workers decent pay and safe working conditions. Even the congress got involved and put laws into place to protect workers.     Now we have a 40 hour work week, a safe working and a minimum wage.

Spin the clock forward and witness Unions today.   Unions today are very powerful and have been loosing membership for years. No, not the Screen Guild actors unions, but UAW has been losing member for years.    Although they have been losing member the Pension funds were getting stronger.    In the 2008 Election we have seen the Unions spend close to 500 Million on this Election and we have seen the Chamber of Commerce spend about 100 million to stop them.     Union are for more than workers protection, they are now a large lobbying group for business and wealth. The Unions wants better projects and the business community wants use the Union to get contracts from the government.

Still, I smell something really bad when the Chairman/CEO's of all three Car Makers and the President of the UAW Ron Gettlefinger go to Congress for bailout money together. I mean this was really unbelievable.   The UAW and the Car companies on the same page?    Remember, we were just told at the end of September that if the government did not fund 700 billion dollars to the US Treasury that we would face a financial crisses beyond belief.   Congress funded this unthinkable request because they were told it would help the housing market and pull off bad assets from the Banks... However, last week Hank Paulson tells us that he will not help bailout homeowners, but instead gave money to the 9 largest banks in America.   As a thank you, the banks are still not loaning money and are still going under.

So now the Car Companies and the UAW come calling to Congress. I think they got a bad welcome.   This Lame Duck Congress and President are not in the mood for the Car companies. The Car companies will go into Bankrupcy and we will see the largest one week layoff in history.   Currently the country is at a 8 percent unemployement rate. We will see this rate go to 15 percent for sure in 2009.   The Car companies have a valid explaination, but the people who run the companies are really to blame.   I know they build great cars in Michigan. However, when I drive down the street I see tons of toyota's and Hondas.    American cars are not great. Yes, I love my Dodge 2500, but that is a truck.    Yes, the Big 3 Car makers, make great trucks, but they have made massive profit margins on trucks and SUVs.   Now that people are not buying those trucks and SUVs the car companies are having problem. Not to mentioned that they were not focused on giving the customer what they wanted.   Instead, they bring out tired mustanges and the new buicks.   If it were not for police departments, state agencies and rent-a-car companies, I don't know how they could stay in business.

No Unions are not the problems for the big 3. Their problem is the pace of innovation and poor management.   Did you see those CEO's get off the planes in DC and run to congress to tell them they needed a loan. The companies told Congress how thier business was doing well if not for the economy and they are doing some really creative things in the factory plants.    Congress was not happy and from what I get from the American Public , they are not happy either.    If this business is so great with an enormous upside...   Just go to a Bank and get a loan:)