Bad News From Ford

Neil Boortz has a great column up regarding the bad news for Ford workers that came out yesterday. He lists several reasons, but to me the most obvious is this:

Have you been around a major union auto plant lately? Look at the bumper stickers on the cars. You'll see many more bumper stickers that say "UAW" than you will that say "Ford." Watch the workers as they arrive or leave on a chilly day. They're wearing UAW jackets, not Ford or Chevy jackets. Many of these people have far more loyalty to their union than they do to the company that is actually writing their paychecks. The financial burden that has been on these automakers by inflated union contracts has been crippling. Many years ago the UAW developed a game plan for bleeding the automakers dry. They would pick one of the big-three, either Ford, Chrysler or General Motors. They would then hit the target automaker with a demand for huge pay and benefit increases. That automaker would balk, and the UAW would go out on strike. Finally, after huge loses, the automaker would cave. A new contract would be signed, and the unions would then force that contract on the other automakers. Over the years these contracts created a burden on the automakers that could not be sustained. In some cases these automakers can't even lay off employees without having to continue their paychecks years into the future.

Another big reason is the terrible tax bite that corporations must absorb. Read the whole article, it's a good one.