GM And UAW Sparring Over Foreign Production Continues

The battle between GM and the UAW over where the company’s cars are going to be built drags on. In a previous post I noted that GM was considering importing a number of cars it manufactures in China which was royally ticking off the union. Things still appear to be rocky.

The NYT reports that the company and union are still engaged in negotiations over the extent of plant closings and permanent layoffs and the importation of cars from Asia, Mexico and other low wage countries. GM argues that this is the road that will get it back to profitability and the union naturally resents that being done on the backs of their members.

The Obama administration, at least publicly, says that it is maintaining a hands-off policy with regard to this debate. The party line is that they want to avoid appearing to be fostering an industrial policy and that their goal is to see GM back on its feet as soon as possible. 

This is the opening act in what will likely become a soap opera we’ll see played out many times. Once the union has its piece of the company and the government its as well, we shall see how non-interventionist it is. That policy will most likely warp to fit future political realities not business goals.

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