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UAW in Financial Trouble

The UAW, which purchased among other things, a golf course with members dues money, appears to be hitting the financial skids. The Truth About Cars reports that the union is down to its savings and is running on fumes: A bloated management, run-away costs, declining market share, imploding volume, a sell-off of assets and investments, headquartered in Detroit – what is it? No, it’s none of the Detroit automakers. It is their former nemesis and current co-owner, the United Auto Workers. “Two years after the wrenching restructuring of the U.S. auto industry and the bankruptcies that remade General Motors and Chrysler, the UAW is facing its own financial reckoning. America’s richest union has been living beyond its means and running down its savings, an analysis of its financial records shows. Unless King and other officials succeed with a turnaround plan still taking shape, the next financial crisis in Detroit may not be at one of the automakers but at the UAW itself.” This is the beginning of a special report written by the best in the reporting business, by Deepa Seetharaman and her boss, Kevin Krolicki, Chief of the Detroit Bureau of Reuters, with the help of their team of combat reporters from the Detroit front-lines. “The UAW might have three to five years before its budget difficulties forced a financial crunch, absent changes. The “hand-grenade” math of the projection gave the union less than a five-year window of opportunity to turn things around by winning new membership at foreign-run auto plants, said the person who saw the internal forecast and asked not to be named because of its sensitivity.”
NLRB Costing Jobs

NLRB Costing Jobs

House Majority Whip Kevin McCarthy and Rep. Tim Scott recognize the devastating impact the NLRB and it's pro-big labor policies are having on job creation in the United States in an oped in Politico: The federal government’s attempt to shutter a new Boeing manufacturing plant in South Carolina will have a profoundly negative impact on thousands of hardworking Americans — and the state’s entire economy. Right now, South Carolina’s unemployment rate is 10.9 percent. This action also has broader implications about the role the Obama administration believes the federal government should play in private enterprise. The National Labor Relations Board is alleging that Boeing violated labor laws by locating its new 787 Dreamliner facility in North Charleston, S.C. For years, Boeing has operated predominantly in Washington state, where it has invested billions of dollars and created thousands of jobs. Now, one of the largest U.S. companies — which just invested nearly $1 billion and created more than 1,000 well-paying jobs in South Carolina — is entangled in what is sure to be a drawn-out legal process. They are being punished for investing in America. Boeing’s expansion to the Palmetto State did not cost a single union job back in Washington state. In fact, Boeing has added 2,000 jobs in Washington since opening its North Charleston facility. At a time when 14 million Americans are out of work, the federal government should be commending this private company for creating jobs — not punishing it. The NLRB’s action defies logic. This one case has the potential to disrupt the creation of more than 11,000 jobs (Boeing estimates 4,000 direct jobs and South Carolina estimates two created indirectly for every direct job) in South Carolina — which could support families and help pay mortgages.