Robots From China Don’t Strike
24th September 2023
The United Auto Workers (UAW) went on strike on Sept. 15. The strike affected the “big three” in Detroit—General Motors, Ford, and Stellantis, maker of the Jeep. The union wants to increase average labor costs from $65 per hour, including benefits, which is already above market rates. Nonunionized Tesla, for example, pays “just” $45 per hour in labor, considering the cost of benefits.
The UAW’s demands would roughly double labor costs and, according to management, make the companies unviable. Where will the workers go when the automakers go bankrupt, further mechanize their assembly lines, or move yet more production to China?
Many workers in these companies who aren’t on strike are already getting fired. Striking unions attempt to inflict maximum pain on their own companies with as little effort and expenditure as possible. The companies are forced to let go of misguided workers, who they can’t keep busy because other misguided workers on whom they depend are striking. All the strikers and fired UAW workers are getting paid from union funds that came from dues imposed on workers, whether they like it or not. They’re getting paid by the union to halt production.
This ludicrous practice introduces massive inefficiencies into U.S. manufacturing, yet Americans over the decades have gotten used to the deadweight it attaches to the economy.