Thanks for the kind words, Chris. Right back at you.
I find myself in an awkward position at work. I'm an outspoken advocate of free markets living in a socialist nation doing a union job. I see the fundamental flaws in the system but there is no way that I can make people around me see that it is an unsustainable economic model. We all know we're the last generation of autoworker as we know it, but most people with my seniority are just hoping (probably in vain) to make retirement. So far, we've given up a lot in our last couple of contracts. We're in a wage freeze right now for the next three years, including cost of living, lost a weeks vacation, given up many non-production jobs to outsourcing (transport drivers, quality inspection, janitors, etc.), reduced job classifications, consolidated skilled trades specialties, and more. Our wages have not met inflation for years. Yet I still don't think that's enough. I think we should actively lower our wages but the union does our negotiating and they do not agree. I would rather have a decent, secure job than no job at all.
If the automakers were to go under, I would rather see it happen after the economy regains some strength so that the labor market can employ as many displaced workers as possible. A healthier economy has a better chance of providing gainful employment or entrepreneurship to these workers than what is possible now. I would think it's better these people move into other jobs than land on the entitlement rolls of the government further draining the economy.
Hey Dave, I was talking to an analyst yesterday who thinks the likely scenario will be a structured bankruptcy where everything will be predetermined. That's what he thought anyway and in my mind would be the very best scenario. I think it will allow and force the auto makers to redefine their contracts and business metics. You know, part of the problem is that around 10 years ago things started heading south fairly quickly and not a whole lot changed. The market, really what it can bear in both volume, compensation, and many other aspects, ultimately has to dictate the course of action When you artificially prop things up, you will suddenly find yourself on borrowed time.
I think in the end, what we can really hope for is an industry that can better adapt. Efficiency builds momentum... that how you succeed. I believe downrange, we'll be far more formidable as an industry.
IN a lot of ways, we struggle with some of the same issues, but obviously to a much lesser degree. We have long-timers here who keep getting increases year after year after year who far outpace their coworker just because of the time they've put in. In one of the division I oversee, we have two ladies who have been here for 20+ years. Both recently got college degrees, one just a couple of years ago, the other maybe five years ago. They've been doing the same job, or at least the same level job forever. There's no interest in doing anything more or less. It's clerical work and they're both very satisfied to stay put. I think that's fine and I have no problem with that, but our concern is that they literally make almost twice what the kids who work next to them make. It's a struggle between what's a job worth vs what's a person worth and what happens when those diverge.
I mean we could get rid of both of them and hire two new folks for less than one of their salaries.. not to mention the thousands of dollars we spend on their education which they chose not to use in any way at our office. I don't mind investing in that, if it's to better yourself and reach out for new oportunity. But how do I justify paying them that much for what they do? It's tough. What really bugs me though is that they feel entitled. They do no more than any of the other workers and rreally add not extra value to the process, yet they get paid twice as much just because they've worked here for so long. We're going to have a conversation soon telling them that they will not longer be eligible for increases at their current level for the current job they're doing. I'm sure it won't go well.
And when I think about that, it makes me have even more respect for you that you're willing to acknowledge the changes that may be needed... even to your own personal detriment. That's brave and give a lot of insight into your character my friend. I'm sure if things continue the way they are, the CEO will start looking at my salary and wonder if I'm worth it or not. Hopefully he does, but at the same time, they'll suffer the incovenience of not having me around if they need to.
We're all in the same boat to one degree or another. Take care!
