Heritage to Chrysler: Support Right To Work to Help Michigan

Heritage to Chrysler: Support Right To Work to Help Michigan

From the Heritage Foundation an endorsement of Right To Work Freedoms for Michigan: Did you know that there are no Volkswagen manufacturing plants in the Detroit area? Or Mercedes-Benz? Or Kia? Or Hyundai? Or BMW, for that matter? Apart from having their cars assembled in Michigan, it turns out that those three companies have something else in common: the United Auto Workers union (UAW). It also turns out that every other car manufacturer has something in common, too: not wanting the UAW to do to them what it did to the Big Three. Today, President Obama will address the UAW, and he should receive a rousing welcome. After all, his terms of the auto bailout richly rewarded his union allies at the expense of non-union employees and private investors, giving them, among other prizes, a very large stake of ownership in Chrysler. And together, they stand adamantly opposed to "right-to-work" laws that would empower the nation's unemployed to find economic security with a non-union job. They claim they want to protect "the American auto industry," but this is not about "American cars." The controlling interest of Chrysler is Italy-based Fiat and previously was Germany's Daimler-Benz between 1997 and 2008. This is simply about protecting union fortunes. Chrysler can hire actors in Louisiana to play the part of Detroit workers, and it can produce cinematically brilliant television ads. But wouldn't Detroiters have more pride in a job than a commercial? Chrysler and the UAW must drop its opposition to Michigan's right-to-work legislation if it wants to pretend it cares. Right-to-work legislation protects employees from being fired for not paying union dues. Without that protection, workers are forced to support a union financially even if they'd rather spend their hard earned dollars at home, if the union contract harms them, or if they're opposed to the union's agenda. And if they don't, they lose their jobs. Obviously, when given the freedom of choice, many workers choose not to unionize.
Don't Forget the Lights

Don't Forget the Lights

Will the last person living in Detroit, please turn out the lights. It may be a bad joke, but it is quickly become sad reality. Detroit is dying thanks to the greed, power and corruption of the labor union bosses and the politicians who did their bidding. An Investors Business Daily editorial asks: Who Killed Detroit? Poor Detroit. It hasn't had any good news for decades, and now, despite a $77 billion bailout of the auto industry, its population continues to implode. The No. 1 reason: the United Auto Workers union. Census data released Tuesday show Detroit's population has plunged 25% since 2000 to just 713,777 souls — the same as 100 years ago, before the auto industry's heyday. As recently as the 1970s, Detroit had 1.8 million people. What's happening is no secret: Detroiters are fleeing an economic disaster, the irreversible decline of the Big Three automakers. In his now-famous Super Bowl commercial for Chrysler, rapper Eminem drives up to a theater in a sleek new 200 model and says, "This is the Motor City. And this is what we do." But, sadly, that's no longer the case. Detroit's decline has been shocking. Sure, a lot of the blame goes to a generation of bad management. But the main reason for Detroit's decline is the greed of the industry's main union, the UAW, which priced the Big Three out of the market. As recently as 2008, GM, Ford and Chrysler paid their employees on average more than $73 an hour in total compensation. The 12 foreign transplants, operating in nonunion states mostly in the South and Midwest, averaged about $42 an hour. Guess which manufacturers are healthiest and expanding their market today? In 2008, the Big Three still made 59% of all cars in the U.S. But, according to recent estimates, their market share is now 46% — with foreign companies selling the bulk of all U.S. cars. So Detroit's loss has been the South's and Midwest's gain. Behind this is the gold-plated benefits package once guaranteed to UAW workers. We're not against workers getting what they deserve, but total pay and benefits for a full-time worker for the Big Three until recently averaged about $140,000 a year.
Don't Forget the Lights

Don't Forget the Lights

Will the last person living in Detroit, please turn out the lights. It may be a bad joke, but it is quickly become sad reality. Detroit is dying thanks to the greed, power and corruption of the labor union bosses and the politicians who did their bidding. An Investors Business Daily editorial asks: Who Killed Detroit? Poor Detroit. It hasn't had any good news for decades, and now, despite a $77 billion bailout of the auto industry, its population continues to implode. The No. 1 reason: the United Auto Workers union. Census data released Tuesday show Detroit's population has plunged 25% since 2000 to just 713,777 souls — the same as 100 years ago, before the auto industry's heyday. As recently as the 1970s, Detroit had 1.8 million people. What's happening is no secret: Detroiters are fleeing an economic disaster, the irreversible decline of the Big Three automakers. In his now-famous Super Bowl commercial for Chrysler, rapper Eminem drives up to a theater in a sleek new 200 model and says, "This is the Motor City. And this is what we do." But, sadly, that's no longer the case. Detroit's decline has been shocking. Sure, a lot of the blame goes to a generation of bad management. But the main reason for Detroit's decline is the greed of the industry's main union, the UAW, which priced the Big Three out of the market. As recently as 2008, GM, Ford and Chrysler paid their employees on average more than $73 an hour in total compensation. The 12 foreign transplants, operating in nonunion states mostly in the South and Midwest, averaged about $42 an hour. Guess which manufacturers are healthiest and expanding their market today? In 2008, the Big Three still made 59% of all cars in the U.S. But, according to recent estimates, their market share is now 46% — with foreign companies selling the bulk of all U.S. cars. So Detroit's loss has been the South's and Midwest's gain. Behind this is the gold-plated benefits package once guaranteed to UAW workers. We're not against workers getting what they deserve, but total pay and benefits for a full-time worker for the Big Three until recently averaged about $140,000 a year.