Ford and GM Threaten to Walk Away From US; Union May Strike. Or Not.
It's a media truism: when the principles are tight-lipped about a big story, speculate away! Case in point: The UK's Observer quotes unnamed inside sources who say Ford and General Motors have threatened to "leave Detroit and take their car manufacturing operations overseas" if unions "don't agree to a massive pay cut for hourly paid workers." First, why would GM and Ford spend hundreds of millions on relocation expenses just to make a point to the UAW? Second, no one expects a massive pay cut for the union's hourly workers. Third, Ford and GM have already moved large chunks of their car manufacturing operations overseas. To suggest that Ford and GM could/would go nuclear– shutting down mission critical U.S. operations in response to union intransigence– is just plain silly (even for a New York City-based reporter). Building on this imaginary doomsday scenario, BloggingStocks goes one step further. They postulate that the UAW will strike if they can't get a sufficiently large union-controlled health care fund from GM and Ford (of Chrysler we hear nothing). Sorry guys, but it's the bus you don't see that kills you.