TODAY IN 1975
UAW “WINS” ANOTHER CONTRACT DISPUTE
BACKGROUND
The United Auto Workers union proved to be the most effective union in America winning concession after concession from the Detroit auto makers. The big 3 made the biggest stylish cars so although they didn’t love these concessions, they had so much market share that they gave in. Toyota and Datsun made fuel efficient cars, but they didn’t have Lexus or Infiniti or anything hip to complete with in those days.
RESULTS
U.S. automakers are still bound to contracts that make them pay full wages to employees they lay off. So althought they have some car plants now in non-union states, it's still impossible for them to compete against Asian cars without tariff help. They have to skimp somewhere so it’s usually quality standards. Cars either look cheap, drive cheap or break down sooner than the rivals. At least their trucks and SUVs were making money, but that took a hit when gas prices rose in the last few years. The only asset they have left is patriotism – buy American.
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