Saturday, October 31, 2009

Ford is punished for staying solvent

Well, moral hazard has raised its ugly head again. The UAW workers at Ford Motor have rejected contract changes to cut labor costs.
Ford sought the deal to bring its labor costs in line with Detroit rivals Chrysler Group and General Motors, both of which won concessions from the union as they headed into bankruptcy protection earlier this year.
Tough luck, guys. Next time get your fat government bailout.

Related - From The Truth About Cars, we'll find that Cash for Clunkers was a big success, General Motors is on the pathway to solvency, and both those statements are untrue.

1 comment:

Dan - Israeli Uncensored News said...

Repealing the antitrust exemption for trade unions is long overdue. If they don't want wage cuts, let them seek other jobs.