The Structural Shift in Labor is Continuing

Labor in this country is continuing to undergo tremendous changes as the new economic environment is weakening the hand of the union. Some say this has been going on since the airlines and steel companies first began their domino fall into backruptcy, but no one predicted that the auto makers would be giving such buyouts...


Now their suppliers are following suit. Nobody wants to be left with a bloated labor structure and cost as the industry restructures. This is just more short term bad news for Detroit economy, but more good news for the long term outlook of the city. Its time to shift priorities.

Crain's Detroit broke the story, that you can read if you click here.

“The unprecedented, yet necessary, structural transformation of the domestic automotive industry is continuing at a rapid pace,” said American Axle Chairman and CEO Richard E. Dauch. “(American Axle’s) special attrition program is necessary at this time to realign our workforce with actual and projected production and market conditions.”

Let's pray that the US automakers stop losing market share and start making money on the cars and trucks they sell, Detroit sure needs it, and they can't blame it completely on labor anymore...