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Corporate Progressivism Sets its Sites on the South

Posted By Conn Carroll On November 24, 2008 @ 11:13 am In Economics | Comments Disabled

A major reason the Big Three auto makers can’t turn a profit as they are currently organized is due to the generous union contracts they signed years ago. As you can see below, the Big Three are paying about $25 more per hour than their domestic competitors:

unionwages.jpg [1]

So what happens if Congress refuses to write a big check for the Big Three? don’t worry, they have a Plan B. MSNBC [2] reports:

But what if the UAW could more easily organize workers at Honda and Hyundai? UAW-represented workers at Honda and Hyundai could then bargain for higher wages.

The Employee Free Choice Act, passed by the House of Representatives last year, but stymied n the Senate, aims to make unionization easier by allowing workers to join a union by signing a card rather than by going through a secret-ballot election. The bill is called “card check” for short.

The shrinkage of GM, partly due to competition from Honda, Hyundai, and other plants in Alabama and other states, has decimated the UAW.

A UAW ally, Rep. Tim Ryan, D- Ohio, said enactment of the Employee Free Choice Act “would level the playing field. Each facility would be competing on the same playing field.”

Got that? The left wants to do for the newly successful manufacturing states what the Big Three and unions did for Michigan. Oh, and by the way, MSNBC also reports:

The UAW’s political action committee spent $11.5 million to help Democratic candidates this year.

Now that’s some change you can pay for.


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URL to article: http://blog.heritage.org/2008/11/24/corporate-progressivism-sets-its-sites-on-the-south/

URLs in this post:

[1] Image: http://www.foundry.org/wp-content/uploads/2008/11/unionwages.jpg

[2] MSNBC: http://www.msnbc.msn.com/id/27836262/page/2/

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