A strike against Ford, General Motors and Stellantis?
The United Auto Workers Union (UAW) in the United States recently went on strike to demand a significant increase in wages and benefits for its members. This put the “Big 3” of the United States on the ropes: Ford, General Motors and Stellantis. From that moment on, there are those who support the union so that its requests are fulfilled, while others believe that the proposals are too aggressive and will end up bankrupting the large North American automobile companies.
Other rapidly growing automakers lack worker unions in their ranks, such as Tesla; although there have been times when some have tried to unionize at the rate that Elon Musk mercilessly fires them. That move, no matter how vile and cold it may be heard today, has been one of the stratagems of the Tesla leader that today avoids charging him a bill as is happening with Ford and GM.
Of course politicians are in favor of the union, including President Joe Biden, since it is always well seen to be on the side of the worker. Furthermore, they are more workers than shareholders who can exercise their popular vote in the future to boost these politicians in their careers. Ordinary citizens also greatly note their support for the union.
The strike and Ford, General Motors and Stellantis
I, watching the battle from afar, disagree with the union’s requests, the way they try to exercise them and the justifications they give for requesting them. For example, they comment that it is the workers who manufacture the cars that ultimately allow these companies to generate billions of dollars in profits in recent years; that, therefore, it is the workers who must “share” these profits in the form of higher salaries and benefits, and reducing their weekly working hours from 40 to 32.
It should be noted that workers at American automakers receive salaries and benefits well above the average of other workers who work around their factories, but apparently that has not been enough. Not only that, but there is a cyclical moment in the automotive industry due to the transition from internal combustion cars to electric motorization, and this situation already anticipated a probable defeat of the “Big 3” even before the strike and the work problems.
Will the “Big 3” survive?
So if they give in to union pressures, which demand pay and benefits up to 40% above their current salaries, they most likely will not survive. If this happens, tens of thousands of workers could lose their jobs; the same ones who now fight for increases outside the market, and who, if they do not agree with the salaries, are completely free to look for work in other automotive companies or in other industries. Elon Musk himself has predicted that giving in to these pressures from the Big 3 would imply a slide to bankruptcy.
When this happens, and the bankruptcy of Ford, GM and Stellanits is imminent, the loss will be the shareholders’. Workers will lose their jobs, true, but due to a situation generated by themselves. Just as the workers demanded that the large profits be shared among them in good times because according to them they were entitled to them, I don’t think they also want to capitalize on their bankrupt company in bad times. And of course, requiring them to do so would be completely irrational, workers should not bear the losses of the company in which they work, and although they should be paid a fair salary, they should not demand out-of-market increases simply because of recent profits. of these companies.