Reply #12: There's another way to look at it

[Psephos]

besides the Evil Corporation/Greedy Union dichotomy. I hear that stuff and I think about Bush and his Axis of Evil. Ideology does not improve one's ability to comprehend complexity and intertwining interests.

GM provided a solid middle class life to millions of people for many decades. UAW provided a reliable, skilled bank of labor to GM for many decades. Both have a common interest in a working relationship that allows GM to produce cars for costs on par with their competitors.

If GM's labor allocation continues to cost it $2000 more per car its competitors, it will go the way of Xerox and Polaroid and RCA. Its CEO could be paid $1 per year and it wouldn't make a lick of difference on the way to the dustbin. I realize this is an emotional issue, and an important one, but on the ledger sheet, medical costs are the bank buster.

One new car plant costs about $3-5 billion dollars. GM is obligated for more than $50 billion in medical costs for families and retirees. The system was good when people bought lots of American cars, but now many buy cars from other companies without these obligations to their workers. Something has to give. GM funds new plants out of profits. No profits, no new plants. That's the way it works.

I come from a GM family, btw.