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Megan McArdle Takes the UAW Down a Notch December 14, 2008

Posted by A Texan In Grad School in Unions.
Tags: , ,

McArdle explains the different cost structures of banks and car companies.  Before this, she has quite a good response about the failure of the automotive bailout:

I’m hearing the truly bizarre argument that the UAW didn’t scuttle the negotiations; it was the Republicans unreasonable insistence that they cut their wages to levels comparable to that of their competition.  After all, the UAW was perfectly willing to negotiate their compensation package–in 2011, when their current contract expires.

And I think that’s perfectly reasonable.  We’ll just wait until 2011 to give them the money, then.

Real Clear Markets has a good chart to keep in mind during these discussions.