Roger Lowenstein in a recent Wash Post editorial suggested that GM’s financial woes are largely the fault of labor unions……for asking for generous pension and healthcare packages. Apparently GM did not correctly calculate the rising costs of health care and are now overburdened with a huge pension liability. But how is that the fault of the unions? Should the unions have anticipated higher costs and then ask for less? “Well, future payouts will probably increase, so let’s not ask for generous pensions because it might hurt GM.” Absurd.
GM is entirely responsible for the pickle it’s in now. The reason GM market share has dropped is because other car companies make better products, not because of the UAW. If GM made a better more fuel efficient car then the increased market share from sales would carry them through the rough times ahead until we get universal healthcare.