Harley Shaiken
Harley Shaiken
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Many companies are looking to roll back benefits, and benefits for retirees are at the top of the list. This decision says that while they may be first on the list, they may not be easy to cut.
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It's going to have significant impact on the companies and on the industry. It is a painful option for the union but it is the best option of those available.
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Historically, GM has been the most tone-deaf of the auto companies when it comes to labor issues. But York is speaking plainly and directly about critical issues between GM and the UAW.
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The hotels are confronting a union that has significantly more leverage and more imagination than in the past. The union is slowly but surely introducing national bargaining in an industry in which the companies used to tower over the local unions.
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A lot will depend on who's the first company up. You may almost have an insipid auction taking place among the companies trying to be first.
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Economic growth in the United States in the 20th century was based on building entrances to the middle class, from Henry Ford in 1913 to strong unions in the '50s and '60s.
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Everyone on the picket line who thought they could be out of a job for good will be out of a job for good.
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They've got tough issues, but nobody wants to put the moneymaking on hold to sort it out.
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The corporation knows the sensitivity of these kinds of issues, they have a lot of experience with what will provoke a local strike. What I suspect they (the GM management) didn't anticipate is that it would reach this intensity.
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The CAW, given the context, has done very well. The boat is afloat and upright after going through the rapids. They wanted to protect their members.
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It's certainly representative of the discontent that's out there. The retirees are frustrated, but I don't think it represents a major threat yet.
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This was difficult for the union to do, but the union is being pragmatic. Its goal is to preserve jobs. It realizes the severity of the situation that GM is in.
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What GM gets in changes in the jobs bank is likely going to be based on compromises they are willing to make elsewhere. The fact that they are talking about this so early is unusual and shows how important it is.
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There's a cushion but it doesn't prevent the fall. It eases the pain but it's not the same as having the stability of a successful company.