Auto labour costs and auto industry recovery
I was recently invited to speak to the annual management briefing conference sponsored in Michigan by the Center for Automotive Research, a fine outfit which does the best research work in the continent on auto employment, workers, and skills. My slides are available here.
My panel was addressing the current UAW negotiations with the Detroit Three automakers -- the first big contract talks since the meltdown and bailouts of 2009. I was diplomatic enough as a visitor to the U.S. not to make any direct comment on the UAW talks (the "host" union), but rather addressed the broader economic issue about the North American auto industry's painful recovery, and what role -- if any -- labour costs have played.
Auto crisis debate: 'New thinking' stuck in old neo-liberal frame
Before I even read Alice Klein’s two rabble.ca columns on auto collective bargaining issues I was inundated with calls from friends and colleagues to respond. Most were really angry at what they considered to be criticisms of autoworkers and the CAW that were “beyond the pale,” coming from progressive sources.
Cloudy forecast
It's been a bad political week for the tar sands. Publicly, the Tories are still clinging to the cupid face they pulled on when U.S. President Barack Obama touched down in Ottawa this winter, but they've just pulled out the big, fat arrows and are aiming low.
As U.S. climate initiatives rev into real action, it shamefully ain't our love that we Canucks are sending stateside.
On Tuesday, May 19, Obama announced historic new rules for reducing auto emissions that will meet the stringent standard set by California's low-carbon fuel regulations. The nationwide standard will take effect in 2012 and is expected to produce a 40 per cent cleaner and more fuel-efficient car and truck fleet in the U.S., averaging 35.5 miles per gallon by 2016.
Airlines, autos: You can't cut your way out of crisis
From autos to airlines, desperate executives are wielding a mighty axe in an effort to survive the devastating consequences of the global recession. The common assumption is that "getting viable" is synonymous with "getting much smaller." In wildly swinging the axe as a solution to corporate woe, the downsizers are felling many trees -- but missing the forest.
Consider last week's stunning events at two of Canada's largest employers: General Motors and Air Canada.
Jesus, Chrysler
Like Obama, I feel the anger choking my throat, only it's Chrysler's latest that has me fuming here in Canada. The old-style auto industry is on a highway to hell, and it's taking us down with it, one way or another.
While a lot of people would like to pin the blame on auto workers' wages or pensions (or both), the price point of American cars isn't really the main business issue the companies face.
The facts are that the drop in demand isn't going away, the companies haven't kept up, the market is over-saturated, and we aren't impressed with the cars. The recession has made it worse, but it's largely bad management that's created an unsustainable auto sector.
Roadmap to a better economy
This is not the 1930s. We are not reliving the world depression. There is a crisis, because financial capitalism has reached a dead end. As a result, economic life is likely to get worse in Canada, and elsewhere.
Right now there is a lot of talk about what it would take for things to get better. The hidden question is what does better mean?