Unions Fight Continued Erosion of Jobs, Wages
General Motors Corp.’s plan to cut 30,000 manufacturing jobs is the latest in a string of actions that have chipped away at auto unions’ power this year. Unions are digging in their heels, trying to figure out how to counter increasing competition from foreign competitors and investors demanding even more drastic cuts.
“This is a real shock, and my problem is, this is not the end,” Canadian Auto Workers President Buzz Hargrove said Tuesday. “This is a cancer that will kill if it’s not stopped.”
GM said Monday it plans to cut the jobs - which represent a quarter of its North American hourly workforce - and close 12 facilities by 2008 as part of a restructuring plan. It plans to offer early-retirement buyouts to some workers and have others leave through attrition.