Unions exist solely for one purpose: to obtain above-market wages and benefits for their members through the cartelization of labor. All of the other consequences flow from this fact, most of which are severely negative to the enterprise upon which they prey and its competitiveness in the global marketplace.
Whether or not GM executives are poor or not, the fact is that the legacy costs of the Big Three are due to the absurd labor contracts the companies have carried for decades. As David Thompson said, these costs alone make competitiveness extremely difficult–even with good products, market strategy and so forth.
What a proper bankruptcy would have done for Chrysler and GM–but which has prevented by the administration–is to cleanse these companies of significant legacy health care and post-retirement benefits so they can continue without that anvil around their necks.
Ultimately, the companies will still probably sink, only with massive taxpayer expenditures drifting to the bottom with them. Thanks a heap, Zero. You are now officially the worst president in history and you still have 1,326 days left to make your feat untouchable.
