Thread regarding General Motors layoffs

Labor cost is much higher than 3%. I would love to see a credible source for that.
It's a red herring to focus solely on the labor cost to determine some kind of greed or not getting "MY FAIR SHARE". There are many other significant costs involved with manufacturing an automobile.
Raw materials, supplier parts, overhead, marketing, design, the cost of Plant Property and Equipment, energy, etc.

GM's Net Margin is 6.34. They must report this to the public.
Here is a source for that:
https://www.wsj.com/market-data/quotes/GM/financials

That's 6.34% actual income after all expenses and taxes.
When the UAW asks for "MY FAIR SHARE" it would be subtracted from that 6.34%. Unless that is they expect GM to not pay shareholders, creditors, suppliers, etc.

If your apocalyptic vision comes to pass, companies won't be locked into higher pay rates, they'll just lay people off.

Like they're doing now in high tech. Google, Facebook, Amazon.

Labor is actually less than 3%. But that doesn't discount the idea that there is too much money floating around the economy chasing goods, and greed on top of it all. All of this creates a self perpetual cycle of inflation until something breaks, and break it will.

At some point in time soon, people won't be worrying about inflation, but a temporary bout of deflation, perhaps crushing deflation. Probably worse than 2008. The only difference is all these corporations will be locked into the new higher payrates, at a time that is financially devastating to operate. When this arrives, the magnitude of this hit is going to be a sight to see across the economy.

Your post about $10 loaves of bread relies on the fantasy that labor costs are the main expense in the production of goods.

Labor is only 5% of the cost of a new car.

So even if you double the cost of labor it won't result in a Bolt costing $200,000.

Lots of ignorance in this post.

First, worked with UAW workers across multiple jobs. My experience is that most are sound individuals, but there are the eff ups that make people take notice and turn a cheek. On the opposite hand, worked in hourly and salary the other half of my career, and the sh*t these people do, such as quiet quitting and taking two hour lunches/sleep breaks, brings shame to the game. There are equal opportunity eff ups on both sides, and good quality people on both sides. I've seen it first hand over a career from both sides. I have no ill will towards the union, as my last simultaneous job offer landed on the same week, spanning three job offers. One contract, one salary, one UAW at a prestigious organization, the pinnacle of what would be considered union. Yes, these do exist, and they are paid extremely well over and above what you know as UAW.

Instead of looking at the tree in front of you, look at the forest. It's NOT just this UAW negotiation that matters. Look at the UPS workers before. Look at all the strikes across the nation from different sectors, from those seeking more money. It's a battle of those that can, and those that can't. For salary and hourly, are you getting a 20%-40% raise? Of course not. For hourly, you might be lucky to not get furloughed this year for Christmas. But, here's the rub. IF everyone is seeking a grand raise due to cost of inflation, then when will it ever tame inflation or level out? That loaf of bread becomes $5, in which becomes $10, in which becomes $20. $100 at the grocery store buys nearly nothing today. At what point does it all break? Raising interest rates is not going to tame inflation, it's simply going to steal more from you. HIGH housing prices and high mortgage rates are opposite of a healthy environment. It's backwards.

I'll tell you where this goes....

Like the grand run up prior to 2008, inflation was a thing until it suddenly wasn't. As interest rates rose quickly, during the "scare event", they were magically run up, and then cut in half. What does a world look like when everyone secures their "raise" mandates, and then economy takes a dump? It looks like 2008 on steroids. Corporations that can't sustain the agreed upon concessions. Then came recession, great recession, the next piece in the puzzle is Depression. Those that are earning more, at a time when times are tough, will be finding themselves battling keeping their jobs, or renegotiating and giving up concessions due to tough environmental factors. Mark it, it's coming. The playbook has been exposed.

The stock charts for the automotive field, among others, isn't looking good at all. Some have already broken support, and we expect new lows in the charts. GM is toast. Ford is testing. Stellantis is still good, but they are a wildcat with very extreme moves. Gaps exist all the way down to the March 2020 lows for all, and usually gaps are filled, and price often falls much lower than anticipated.

It's only exciting if you are shorting this market. Like those that didn't see all of 2022 as a decline, they won't see this decline either. It's going to be biblical. Some people, might own nothing and be happy, because they've lost it all in their 401ks. It's not like the information wasn't available for those with the eyes to see, and the ears to listen.

I just want to earn a living. It shouldn’t be a hardship for suppliers every time the UAW extorts the big 3. But we end up with furloughs and layoffs. No press for us. We do all the work and pay the price. UAW act like the victims. As their plants close, I won’t feel sorry for them.

If you work in the auto industry you know how long the Big 3 contracts last and know that strikes are a possibility when they expire.

If you want to work in this industry, you have to expect it and accept it and if you're smart you start saving your money a year before expiration.

So far 20% of the auto industry’s supplier staff have been laid off due to the UAW strikes.
Suppliers have also lost $1.6 billion so far.
By the time the strike is over, the USW will have destroyed the livelihoods of thousands of Michigan families.
“But ma fair share”
Do you think people will view the UAW positively?

We need to nationalize the big three now in the name of democracy and social justice. The government can run the big three more efficiently than the private sector.

I hope the OEMs get rid of the UAW greed. I've worked with them in the past and a majority of them are lazy team members who take advantage of the system every time they can.

Why do they deserve more than their wage? That is the whole point of capitalism. They have every ability to start their own business and live that dream. They all want that dream without putting in the work or the sacrifice.

Other unions here are just showing up at the site, bringing food , offering support and actually walking the picket line in solidarity .

I will pay half a million to UAW if they request current leaders in OEMs to resign in their contracts because it has been proving they are liars and bad luck for the whole auto industry. They stick to their positions JUST for money and destroying the auto industry in the us.

I will donate $100000 to UAW if they guarantee to strike at least 1 year.

No one cares about the families of the suppliers.

UAW stands in for the little people when companies hog the money or do not care about safety until forced. Wish all companies would do what is right but some cannot be trusted and have to be forced into fairness. Be thankful if you are Union and not an "employee at will" with no rights and can be fired without any reason or cause.

Why would you want to? They have jobs to go to the just choose to not to in an effort to nickel and dime these companies. UAW is a cancer

All of my friends at suppliers were furloughed during the strike, so they are broke and can't donate. It's weird that no one cares about their well being. They are probably looking at a Christmas layoff.

Plenty of folks not working due to strike somebody will tend to this Monday or next week likely.

They should have made this easier. Many might want to donate.

Go to UAW org. shows about 9+ regions. Lists states within region. No simple listing or breakdown that brings it all together though. Auto workers are scattered in many states. It is confusing for the average donator who wants to give to their own local neighbors.

Remember to also get a roll of drawing tickets from Walm.(2000 tickets usually 15.00). This way the union hall can make the gift cards fair to everyone who wants to draw for one. No one feels cheated or left out.

With an organized list people can call that union hall directly to get permission and a time to drop of gift cards for food,etc.

Yes, many other unions that are not connected to this strike would like to offer their support in some way.