Strike is unplanned blow to US economy

[Omaha Steve]

http://blog.mlive.com/citpat_opinion/2008/04/strike_is_unplanned_blow_to_ec.html

Posted by Jackson Citizen Patriot April 03, 2008 09:54AM
Categories: Editorial

The following is the Jackson Citizen Patriot's editorial for April 3:

Textbook writers looking for an example of how interconnected the U.S. economy has become someday will bring up the case of American Axle & Manufacturing. A strike that began Feb. 26 at plants in Detroit and New York today has led General Motors to close all or parts of 29 vehicle-assembly plants and might push the economy in a recession.

It also has affected many in the Jackson area, where GM suppliers like Michigan Automotive Compressor Inc. and Elm Plating have cut production. It's a credit to these two companies that they don't rely only on GM for business. Still, their and others' plight should drive home a lesson to striking American Axle workers: Get back to work. You're not the only one who has it bad.

The curiosity of the strike is why it is happening. The United Auto Workers played hardball with GM, Ford and Chrysler last year before finally reaching landmark labor deals that reduced hourly wages and pension costs, and cut back on the absurd practice of paying employees not to work. It's almost as though the UAW couldn't stand to see its workers' companies do too well. It's refusing to make concessions that echo other labor deals.

What's clear is that the impact of the union's actions have cascaded over the economy quickly. GM has not lacked sales-room inventory, but production has stopped at plants all over the country, several of them in Michigan.

Now, Elm Plating has laid off 13 workers and cut its third shift, largely blaming the American Axle strike. Leslie-based Len Industries has laid off 40. MACI has not issued pink slips, but it felt the loss of GM work. Workers can take unpaid days off, or are asked to do other work.

It's some consolation that many auto suppliers in this area have learned to diversify. One client alone does not account for most of their production. It's that fact that may keep these companies — and their workers — from greater financial stress.

FULL opinion at link.

Why didn't the company bring the balance sheet info to the union long before the strike?

And this from the opinion piece.

Issue

Five-week-old strike at American Axle & Manufacturing affects the national economy — including Jackson auto suppliers.

Our Say

It's amazing how one relatively small strike can affect so many. The United Auto Workers must get its members back on the job.

[JDPriestly]

1. So the company could not afford to meet its future pension obligations

or pay agreed wages under existing contracts. It attempted to basically lower the pay and perks of its employees and is now complaining because the employees went on strike. And, what is more, it is blaming its inability to sell its products on the strike. I don't think so. Strikes are rare in the U.S. these days. I remember a time when strikes were a much more common event. The editorial makes no sense. The newspaper is just trying to cater to advertisers. Ridiculous. Bravo to the striking workers. It's about time American workers stood up and made the economy stand still. A few moments of quiet for the workers being crushed by the greed of overpaid CEOS is in order.