Union Decides To Kill Jobs

[mrjarrell]

Once again a union has decided that they'd rather see their members on unemployment and welfare than working. Their decision to refuse pay cuts has likely doomed a plan to resurrect their plant and keep jobs in Indy. Yay, unions!

via Indiana Barrister

[article text removed to comply with new copyright rules]

 

[irishfan]

Once again a union has decided that they'd rather see their members on unemployment and welfare than working. Their decision to refuse pay cuts has likely doomed a plan to resurrect their plant and keep jobs in Indy. Yay, unions!

via Indiana Barrister

I could care less with this being a union issue as it is more of a pay issue for the individuals. IMO, you are trying to make something of the wrong issue as it is a local worker issue. Can the people even make ends meet living in Chicago and making only half the pay? Delphi had something like this happen here if I remember correctly and I can't blame some people for saying NO and taking a stand on that. However, you better have a plan on what you are going to do while you are taking a stand as unemployment doesn't pay much better than half pay at a good factory job.

 

[mrjarrell]

The workers don't live in Chicago. They live in Indy, where the plant's at.

Local GM workers defy UAW | IndyStar.com | The Indianapolis Star

 

[ATOMonkey]

Doesn't matter if they can make ends meet or not on that one salary. That is the market wage for the labor needed to run the machines.

What law says you can only work one job?

If your skill set is button pusher, expect to work 2 jobs to provide for your family.

 

[irishfan]

The workers don't live in Chicago. They live in Indy, where the plant's at.
From the Star article
Local GM workers defy UAW | IndyStar.com | The Indianapolis Star

Oops...my bad I read it wrong

Doesn't matter if they can make ends meet or not on that one salary. That is the market wage for the labor needed to run the machines.

What law says you can only work one job?

If your skill set is button pusher, expect to work 2 jobs to provide for your family.

No law says that...that is not my point. They are taking what they feel is a stand and they need to accept the results. If that is the market wage then there will be plenty of qualified people to do it.

 

[ATOMonkey]

Absolutely.

The thing about a uinion jobs is that the labor cost is typically 5 to 10 times higher than the actual wage.

For the same jobs, prevailing labor cost in this local market is about $150/hr or lower. UAW labor costs are over $300/hr. Wages are about the same for the most part.

So, in order for an employer to break even with the UAW he has to pay a much lower wage and lower benefits.

 

[irishfan]

Absolutely.

The thing about a uinion jobs is that the labor cost is typically 5 to 10 times higher than the actual wage.

For the same jobs, prevailing labor cost in this local market is about $150/hr or lower. UAW labor costs are over $300/hr. Wages are about the same for the most part.

So, in order for an employer to break even with the UAW he has to pay a much lower wage and lower benefits.

Source for that number please

 

[ATOMonkey]

Those are the internal numbers we use when considering to outsource a job.

Our prevailing UAW LABOR COST is $300/hr.

We can contract out to any local machine shop for $150/hr or less.

Internationally, European labor costs are between $150-$200/hr as well. They also pay much higher taxes so benefits are paid out by governments rather than employers, but the gross wages are comparable.

 

[rambone]

Always lookin out for them little guys, unions are.

 

[John Galt]

This brings to mind one of my favorite quotes, "You can evade reality, but you cannot evade the consequences of evading reality." - Ayn Rand

We are living in surreal times

 

[Jubbie]

We just went through a couple union strikes up here in NWI. First the Ironworkers went on strike, then another union went on strike. I heard the Ironworkers were trying to get an $8/hr raise this year, and another $8/hr raise next year in their contract. Both strikes overlapped each other and held up construction on major roads (80/94). One local road that was stopped close to completion was finished by the city workers. They ended up getting done 3 days early. They are holding out during the busy season to have more leverage to ask for more money when they should be happy they have a job. Start of this week a union building Chicago roads went on strike. All it'll mean is the state will be even more broke and will be able to fix even less roads/bridges. I work in the bridge business, another I-35W is likely to happen considering the condition of all the bridges and the lack of money to support/repair/replace them.

 

[akaindy]

There is a fairly simple solution to this. The businessman in Chicago should let the company close; all the employees will be out of a job. He can than come in and buy the factory and tooling for next to nothing saving even more money doing this. Then re-open the plant and hire people at even more competitive free market wages without ever having to deal with the union contracts. The unemployed people can than come back to work at lower wages once they realize there are no other jobs to be had. Just make sure to keep the unions out once the plant is reopened.

 

[djl02]

Dang unions.Why would anyone want to be able to negotiate wages,benefits?

 

[Jack Ryan]

Once again a union has decided that they'd rather see their members on unemployment and welfare than working. Their decision to refuse pay cuts has likely doomed a plan to resurrect their plant and keep jobs in Indy. Yay, unions!

via Indiana Barrister

The union doesn't kill the jobs or decied to keep the plant open or closed.

The company does.

You are right though, you don't know, don't understand or have a clue.

Full speed ahead though.

 

[SemperFiUSMC]

The union doesn't kill the jobs or decied to keep the plant open or closed.

The company does.

You are right though, you don't know, don't understand or have a clue.

Full speed ahead though.

I understand that companies exist to make a profit. I understand that companies exist to benefit their stockholders. I understand that companies don't exist to provide jobs. I understand that a well run company should endevor at all times to reduce as much ovehead, including labor cost, as possible. I understand that companies require capital. I understand that if I put the capital into an enterprise no one is going to run it but me. People have a choice if they want to work for a company. They don't have the choice to shut it down.

If the workers decide they don't want to work for the company, that's fine. They should quit, get out of the way, and let someone else work. It's that simple.

 

[chizzle]

+1

This brings to mind one of my favorite quotes, "You can evade reality, but you cannot evade the consequences of evading reality." - Ayn Rand

We are living in surreal times

Great quote. Thanks for posting it.

 

[critter592]

I wonder when the last time was that a CEO took a 50% paycut. I'm sure there's one. But are their two?

My family is a business too. I require a return on my investment of time doing a prefessional job and looking out for the companies assets and liabilty. My time away from home has worth. Yes, there does get to be a point where it is no longer worth doing the job at any wage less than a bottom level. Yes, I am in a union. Yes, I have taken a paycut to help my company.

Know what the company did with that paycut? Lied to us about new contracted work, got payed the same themselves and pocketed the difference. It came out in court. We got nothing from it.

Companies that need labor to perform a company's work will need employees. People running around with their head cut off like chicken little screaming "oh my god we should just be happy to have jobs" are the symptom of a lack of self worth.

My time and skill have worth. Pay me. And I will see your work is done correctly, on time, with a smile and will provide feedback on how we can do things better on the frontline. No consulting fee necessary.

 

[mrjarrell]

Well, the local uaw franchise decided that being on the dole was better than having a job. They've driven a stake through the heart of the deal that their union bosses brought before them. While I must admit that the pay cuts were draconian, half a sandwich is better than none in bad times.
IndyStar.com | Indianapolis news, community, business, sports, yellow pages and classifieds. Serving Central Indiana.

 

[Eisman]

I think that we all should go back to 1980 wages as long as we can pay the 1980 out of pocket expenses

 

[Indy_Guy_77]

I think that we all should go back to 1980 wages as long as we can pay the 1980 out of pocket expenses

I'd just as soon people be paid what the job is worth...no matter the context.

-J-