According to the financial website “Financial Community”, the “Big Three” have been occupied the main market share of the automotive market all over the world. However, as the spreading of the financial crisis, the GM company has shown a deficit of 15.5 billion dollar during the second quarter of 2008, which set a new record for the automotive industry’s quarter deficit in the world; the Ford company has shown a deficit of 15.3 billion dollar during the past two years; and the same terrible continuous losses also appeared in the Chrysler company.
Even if under this situation, the auto industry workers refuse to reduce their salary and welfare. According to the Investor’s Business Daily, “Initial contract negotiations between the United Automobile Workers (UAW) and the Big Three auto companies - Chrysler, Ford, and General Motors -began June 10 in Dearborn, Michigan. The current three-year contract expires September 14”(UAW faces battle from auto giants, para. 1) and “It will begin with a gentlemanly handshake, but the Big Three automakers and the United Autoworkers Union could end up butting heads before it's all over” (UAW faces battle from auto giants, para. 2). The managers of the “Big 3” want to reduce their huge expense for the workers which includes salary, pension and health insurance. But the workers refused to reduce their income to recuperate the company’s losses, because the UAW think the responsibility of helping the “Big 3” should be belonged to the government since the results of the “Big 3’s” bankruptcy is terrible to the society. According to the Economic Populist, it is reported that a total collapse of the Big Three would result in the loss of 3 million jobs and $554.6 billion in economic losses which is 4% of US GDP ( EPI, para. 1). However, the UAW’s actions are not reasonable completely. According to CBC’S news, wage of American auto industry workers is $30 more than that of the American branch of Japanese auto company (GM wage comparision, para. 1). After the continuous failure of requesting reinforcements to the United States government, the GM company began considering about bankruptcy and the Chrysler company chose to stop production and wait for help. So what happened to the “Big 3” who have been the kings of the automotive industry of the world?
There are no gainsaying General Motors Company have some problems. It is because the General Motors Company the management layer has lots of problem. It causes the General Motors Company meet the serious trouble. General Motors Companys leadership problem is the root. There is not only have the product problem for the General Motors Company, but also have problem in the micro-environment and macro-environmental. During the financial crisis which was caused by Subprime crisis, the “Big Three”, which refers to the three largest automotive producers in North America: General Motors, Ford and Chrysler, is on the verge of bankruptcy. Although it is generally believed that the internal management problems and the marketing strategy problems are the main reasons of their bankruptcy, it is also no doubt that the Unions’ strong position is also an important reason. Originally, the Unions should struggle for the benefits for the employees, however, the employees of American auto industry are facing the possibility of losing job, and the American auto industry is facing the possibility of bankruptcy. Through this paper, I would talk about whether the UAW does good or bad to the American auto industry and my recommendations to the development of UAW through these research, so that the UAW and the “ Big 3” can improve their development each other. The case of the “Big 3” in the background part has already reminded us how powerful the UAW was. So what is a Union? According to the official website of the International Union of Operating Engineers, “A union is workers joining together
