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Dec 16, 2008

Low Productivity Sinks Detroit Auto Makers

Detroit’s Downturn: It’s the Productivity, Stupid
12/16/08 - PajamasMedia by Rand Simberg

Union work rules make it almost impossible for the Big Three to keep up with foreign competitors.

[edited] As a former supervisor of UAW workers at a GM facility, I will say that poor management and union malpractice made the Detroit Three uncompetitive long before the government sent in their arsonists.

To put it bluntly, the UAW takes the hard-earned money of the best workers and spends it defending the very worst workers while tying up the industry with thousands of pages of work rules that make it impossible to be competitive. And the spineless management often makes short-sighted decisions to satisfy the union and maximize immediate benefits over long-term sustainability.

The strength of the union and the weakness of management made it impossible to conduct business properly at any level.

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