Detroit News writer Henry Payne has an excellent columnon the planned buy-out of Chrysler by the private equity firm Cerebrus.
Saving Chrysler is a difficult undertaking for two reasons. First, new federal regulations on fuel economy are apt to do much more damage to the smallest of “the big three.” The other problem is the continuing stranglehold by the United Auto Workers. The UAW became the federally certified bargaining agent for Chrysler workers more than 60 years ago. None of the workers who were there then are still employed there, and the ownership of the company has changed. Nevertheless, due to federal law, the UAW remains entrenched. It’s as if you bought a new house and one day a lawn service crew shows up, does some work, and then demands payment. You reply, “But I didn’t agree to anything with you.” The head of the crew responds, “Tough. The previous owners had a contract with us and the law doesn’t allow you to change it. We’ll be doing your lawn in the future. Deal with it.”
Killing freedom of contract through political maneuvering is one way for interest groups to protect their power. That’s exactly what Big Labor has managed to do.
