Reply #1: Can Unions Run A Company?

[KharmaTrain]

A serious question. I've seen a few where the employees took over and with mixed results. This happened to United Airlines in the 90's (after they nearly went bankrupt) and the union was forced to cut salaries and eventually the company was sold, again, to private interests.

Some will cite that one of the union's biggest failures over the past 40 years has been getting too cozy to management. By making the unions the masters you're putting the recovery on their shoulders and with little room to failure. Also, remember, that market cap isn't cash on hand, that's the value of the company...much of that "wealth" is sitting in back lots rusting with no buyers.

I'd rather take that money and give grants to smaller companies, predicated on them having union representation that would help seed a brand new and more competitive and vibrant auto industry. Bigger isn't better, no matter who owns or runs the company.

Cheers...