Thursday, June 18, 2009

GM needs fresh start from UAW, too

In March of this year, GM President Rick Wagoner was forced to resign at the insistence of the Obama administration. That Ron Gettelfinger, Wagoner's counterpart at the UAW, has clung to his own position is an injustice, but one that could easily be remedied with some pressure from Deese. Continuing to invite Gettelfinger to the table for restructuring talks makes as much sense as tapping Bernie Madoff to reform the Securities and Exchange Commission.

Gettelfinger oversaw the implementation of a UAW contract that runs to more than 1,110 pages, nearly five times larger than the nimble non-union contract Toyota works with. While GM bled $70 billion during the past two years, Gettelfinger resisted all significant cost-savings measures while loudly trumpeting trivial concessions like eliminating Viagra from the UAW health plan and giving up the Easter Monday holiday.

GM's workforce has seen countless layoffs and plant closures caused by deep-rooted union legacy costs and head-in-the-sand denial. When GM made a last-ditch attempt at viability by trying to restructure in 2007, the union instigated a futile 41-hour "shot across the bow" strike that in many ways sealed the automaker's fate.

The UAW has failed its members, and GM will never be competitive with the UAW's noose around its neck. The American public is set to become 60 percent shareholders, so we've all got a stake in Brian Deese's performance. We the shareholders can only hope that President Obama's fledgling car czar will exceed expectations, make the tough call, and sever the union cord for good.

The UAW had a good run, but it's time to go...

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