The news just mentioned that the UAW and the UAW controlled General Motors have reached a very generous contract agreement (I’m shocked, I tell you!)<\/p>\n
Back in the good old days, GM *wanted* to be the company that got selected as the strike target.\u00a0\u00a0 That’s seems counter-intuitive, but here is why.\u00a0\u00a0 That let GM define what the “industry standard” would be.\u00a0\u00a0 GM could promise wages and benefits that it believed the weaker car companies could not match.<\/p>\n
With the GM contract in hand, the UAW could demand that Ford, Chrysler and American Motors match the terms of the contract.\u00a0\u00a0 If the other companies refused and were struck, when it ultimately would go to arbitration, the UAW would say “GM already agreed to this – so that’s the industry standard and the arbitrator should use that as the basis for what Ford should have to pay us, and the other non-monetary rules”.<\/p>\n","protected":false},"excerpt":{"rendered":"
The news just mentioned that the UAW and the UAW controlled General Motors have reached a very generous contract agreement (I’m shocked, I tell you!) Back in the good old days, GM *wanted* to be the company that got selected … Continue reading