Originally posted by Asher
I think the only leverage GM has is the threat of the company going under (which the union clearly doesn't care about).
I think the only leverage GM has is the threat of the company going under (which the union clearly doesn't care about).
Though I'm sure the union cares about whether GM goes under or not. Their livelyhoods are at stake here. They may not realize how their actions would impact them, though even that I wouldn't be too sure about. Going into negotiations you generally always ask for more, then bargain towards a more reasonable settlement. Judging what each side thinks it can get based on initial offers/demands is foolhardy.
I'd add that GM has other divisions besides their US operations, and cash reserves (~$20billion), which they can rely upon to try to wait out the union. The union has it's own reserves as well. I wouldn't try to judge who can wait the longest, but they both have leverage in that area, and it is being exerted now.
I'd also say the upper management has a safety net, their own financial holdings outside GM, even if the whole thing goes under. On the other hand, for the most part union workers are seriously ****ed if that happens.
I wish they'd just fire the whole ****ing union and be done with it, though.
Both sides could use some modernization in this case.
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