Posted September 26, 2007 | 12:17 AM (EST)
Here's what you need to know about the United Auto Workers (UAW) strike against General Motors. The strike is about two things: labor arbitrage and health care.
In 1990, GM's workforce was over 350,000 strong. Today it is 73,000. Much production has been off-shored or spun off. (Delphi, for example, was spun off to supply car parts.) The spun-off workers have taken it on the chin in terms of wages, with Delphi workers going from $27 an hour to a maximum of $18.50."
Meanwhile, the union says the strike is primarily about labor arbitrage, to whit:
The UAW wants assurance of future production at U.S. manufacturing plants.
But the Detroit Three -- GM, Ford and Chrysler -- have threatened to close plants and cut jobs to try to stay afloat....
...The union is holding out for job guarantees for the GM's 73,000-strong workforce -- which is now just a fifth as large at it was as recently as 1990.
In other words, GM workers don't want what jobs are left in the US to be outsourced, off-shored, or spun off.
http://www.huffingtonpost.com/ian-welsh/outsourcing-and-the-uaw-s_b_65877.html