Sunday, April 26, 2009

Chrysler Wins Union Concessions





The United Auto Workers announced Sunday that it has reached a tentative agreement on concessions in its contract with Chrysler LLC -- a key step in final efforts to help the automaker avoid bankruptcy.

Looks like there finally may be some hope for the troubling automaker. But i have a hunch that any tentative agreements will not last long. Unions are to blame for many of the problems. When a union demands something, depending on demands a company may or may not agree depending on profits. If it is not profitable then there is no incentive to accept demands but instead to decline. during union strikes there is always heavy losses to both sides depending on which side has the least losses determines who has the upper hand. If every major corporation was unionized there would be major problems. Of course Unions would want more benefits and companies want more profits. Because of this there will be constant gridlock and nothing would get done. chances are many things we take for granted would not be available anymore. That is why counties without unions do better and are more competitive.

No comments: