Workers at GM walked off the job yesterday to demonstrate their opposition to talks that General Motors may be moving U.S. auto-making jobs overseas. So, basically, thousands of members of the United Auto Workers union left their jobs in an effort to secure their jobs. I’m completely uninformed when it comes to the machinations of unions, but it seems that something is wrong with the concept of a work stoppage designed to increase job security.

Why wouldn’t General Motors aggressively start transitioning their workforce overseas where labor is cheaper and there are fewer government regulations? Or why not start recruiting domestic immigrants and workers who would be more than happy to provide at least the same level of production for less wages and fewer benefits? I’m not anti-union and I definitely think that workers must be protected and able to work in safe conditions at all times. But problems seem to arise when the economic policies of union labor are imposed upon a free market system.

“Michigan has been in recession for nearly four years already, and that was in the context of national growth and no labor stoppages” said Dana Johnson, chief economist of Comerica Bank in Detroit. “It would intensify the local, one-state recession we’ve already been in. That’s the last thing you would want to happen if you live in Michigan.”

How has Michigan been in a one-state recession for nearly four years during a period of national growth? I’m sure the auto industry is at the heart of the problem, but how much of an impact does union labor have on the situation? I certainly have no idea, but I’m guessing that there are far-reaching implications to having artificially structured wage minimums for auto workers and other types of unionized labor. There are real benefits of organized labor, but it would be hard to say that there are not significant drawbacks as well.

Tags: auto industry jobs, general motors jobs, job security, union labor, united auto workers

Share This | Posted in Workplace, Blue Collar, Economics | No Comments