Fiat says chance of Chrysler deal 50%, up to UAW
Yet again, the fate of one of the big three is to some extent in the hands of the UAW. Last time around, they refused to cut costs and almost cost GM its govt. bailout.
This time around, Fiat is saying it has no desire to buy up Chrysler unless the UAW and counterpart CAW agree to cut their labor costs.
This is bad news: the last time that the UAW actually acted in the best interest of one its members (wouldn't it be awesome if the best sales year GM ever had was not 1972... and they cut costs, and stayed competetive for the last 40 years?) was well... as far as I can tell... actually I cant think of a single instance. Everything they seem to do is for the short-term benefit of current members, in which case they may not agree to cutting costs further.
Basically, at this point, if I were Fiat I would consider taking over the Chrysler plants and going Maggie Thatcher on them: break the unions and bring in new workers/those who cross the line.
This time around, Fiat is saying it has no desire to buy up Chrysler unless the UAW and counterpart CAW agree to cut their labor costs.
This is bad news: the last time that the UAW actually acted in the best interest of one its members (wouldn't it be awesome if the best sales year GM ever had was not 1972... and they cut costs, and stayed competetive for the last 40 years?) was well... as far as I can tell... actually I cant think of a single instance. Everything they seem to do is for the short-term benefit of current members, in which case they may not agree to cutting costs further.
Basically, at this point, if I were Fiat I would consider taking over the Chrysler plants and going Maggie Thatcher on them: break the unions and bring in new workers/those who cross the line.
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