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Originally Posted by FusionSVT

I know why Wagoner and other CEOs have been hesitant to go against the UAW/CAW in the past and future. The beauty of the UAW/CAW is that they work together and control run almost every Big 3 North American plant (aside from the mexican plants) so if they dont get what they want they can shut down the companies factories, suppliers, and competition. Wagoner needs to realize that his business will continue to post losses even if he does sell assets and that unless he addresses the core issue of fixed costs and either files for chapter 11 or lets the unions strike it out then he will continue to lose market share in the long term.

Im not normally a short term thinker, but in this case a short term solution of allowing the unions to strike it out will have far greater long term effects. By going on strike the workers are forfeiting their pay so GM will not have to pay the 95% salary rule.

The question that Wagoner should seriously be considering is how long the average worker will go on strike for? If a worker is without work for 3 months, 5 months, or 8 months will he go back to work? Is the short term loss outweighing the long term gain? How long will it take to hire replacement workers on a lower pay scale? During the strike can we close plants?

GM has one resource that will aid them greatly if a long strike is to occur and that is its large inventory of unsold vehicles. GM currently has a 101 day supply of unsold vehicles, more then enough to last for multiple months. GM also has the incentives which can aid them in controlling selling rates. If the strike lasts longer then 2 months they can begin to roll back the incentives effectively extending the day supply and increasing profit per vehicle sold.

As mentioned earlier there are companies dedicated to replacing workers on strike. If the UAW/CAW was to go on strike it would realistically take less then 3 months to train and hire a new workforce on a lower pay scale. At that point in time if former workers wanted to hire back in they would have to accept the current system. GM also doesnt need as many workers to hire back either since they were already over-producing before the strike so the hiring process wouldnt take nearly as long as it may seem. There is also plenty of managers in canada and in the united states who are young and would be willing to work in these plants. Effectively youd be transforming an old workforce for a more youthful workforce. During this time some of GMs more experienced plant mangers who moved up in the ranks of GM could work with the younger plant managers at the GM plants to gain experience and ensure quality is up to standard.

If anyone see's a problem with this idea please speak up.

If they did strike and i was the president of GM N. A. I would be saying this right now. "Well since you UAW are on strike, YOURE ALL FIRED!!!!