Who Wins in the Auto Industry Bailout?
The UAW is one of the prime players in the government’s bailout of the auto industry. It is an accepted fact that the labor cost of an American made car is one of the driving forces behind the cost of the product produced. With the government accepting an equity share of the automobile business, what concessions will the labor union make to save the jobs that they have? One of the obvious concessions that the union is going to have to make is a salary cut. One of the easiest ways to make the salary cuts to the rank and file is to agree to having the workers with the highest wages take a buyout for early retirement. The big question however is will the buyout eventually hurt the union in the long run. One of the largest expenses in the labor contract is the retirement and health care benefits that are made to employees who were under union contract prior to the last contract being signed. While senior management members often have golden parachutes waiting for them, line workers often r
