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I'm not pro union, and I agree that the UAW needs to make some concessions. Some of their benefits are no longer sustainable or realsitic. It is my understanding they do not even contribute to their own pension plan; if that is true, it's rediculous. I worked for the Federal Government for 25 years and I contributed to my own pension plan. Free yearly legal fees, if this really is a benefit, is another example of a benefit that needs to go.
However I don't believe a reduction of $19.00 per hour is realistic. The majority of these added costs are just legacy fees. I think Chrysler is making demands they hope to get, but don't expect to get. Are they going to shut down all their Canadian plants if they don't? I doubt it; first of all they will have to repay the Canadian Government the money they owe, or have their Canadian plants seized.
I read a summary of a statement the head of the CAW allegedly made, and I must admit it made sense. Why would the UAW agree to the concessions Chrysler management are demanding, only to have the company go into Chapter 11 bankruptcy. The first thing the Courts and the Canadian Government will demand is the UAW make further cuts. Let's get real.
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