Chrysler files for bankruptcy, about time?
This is probably the best news for Chrysler and long overdue. Propping a failed car company with taxpayer funding is utter nonsense and the Obama administration has wasted time and energy "fueling" GM and Ford. By filing for Chapter 11, Chrysler might have an opportunity to restructure and drop some of the dependencies that lead to the bankruptcy in the first place. The details are unclear as of now, but if Chrysler plans to exist and proceed further then it needs to completely shed itself of it''s union obligations. As of now, the United Auto Workers are holding Chrysler by the proverbial balls and until that hold is released then Chrysler or GM/Ford for that matter will squirm in place and howl in pain.
Unions got their teeth and power during the Great Depression armed with legislation stemming from FDR's policies. Unions use strong arm tactics to leverage their demands and siphon profits out of the company's coffers. Worse still, domestic companies in the United States under union control turn to international labor to fulfill their needs. We often hear about the evil US companies outsourcing their jobs to places like China, India, Mexico, etc - but why do you suppose that is? In order to escape the union clutches and their never ending appetite for retirement benefit, American companies turn to cheaper labor to get things done.
One argument for unions is that they are perfectly legal and provide the opportunity for people to organize - a protected right. However what many do not realize is that American unions operate similarly to organized crime outfits, but more powerful because they have union friendly legislation giving them certain rights. Specifically the right to demand union exclusivity within a certain locale. For instance if I start the RkD Car Company and UAW moves into my neighborhood demanding union membership from my employees the following things happen.
1) My employees will be pressured strongly to join and those that do not will experience intimidation.
2) I can't call another auto union to provide competition and assuming one existed, UAW could actually sue me because they have a right to my company.
What once started as a mechanism to ensure equality and battle unfortunate byproducts of a thriving economy - like child labor, has quickly turned into a gigantic tumor within America. Some of the stories during the formation and power grabs of unions in America are so crazy, they border on the brink of fantasy.
Unions got their teeth and power during the Great Depression armed with legislation stemming from FDR's policies. Unions use strong arm tactics to leverage their demands and siphon profits out of the company's coffers. Worse still, domestic companies in the United States under union control turn to international labor to fulfill their needs. We often hear about the evil US companies outsourcing their jobs to places like China, India, Mexico, etc - but why do you suppose that is? In order to escape the union clutches and their never ending appetite for retirement benefit, American companies turn to cheaper labor to get things done.
One argument for unions is that they are perfectly legal and provide the opportunity for people to organize - a protected right. However what many do not realize is that American unions operate similarly to organized crime outfits, but more powerful because they have union friendly legislation giving them certain rights. Specifically the right to demand union exclusivity within a certain locale. For instance if I start the RkD Car Company and UAW moves into my neighborhood demanding union membership from my employees the following things happen.
1) My employees will be pressured strongly to join and those that do not will experience intimidation.
2) I can't call another auto union to provide competition and assuming one existed, UAW could actually sue me because they have a right to my company.
What once started as a mechanism to ensure equality and battle unfortunate byproducts of a thriving economy - like child labor, has quickly turned into a gigantic tumor within America. Some of the stories during the formation and power grabs of unions in America are so crazy, they border on the brink of fantasy.
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