Feb 21, 2011
Unheard of in past decades, the auto companies have been able to be profitable in a bad economy.
Ford reported a 6.6 billion profit. GM is expected to report a profit of more than 5 billion. Chrysler reported an operating profit of $763 million.
Auto sales were 12 million in 2010 – remaining down from the decade long 16 million yearly average.
How is it possible that these companies are so profitable when sales are way down? Only one thing has made these previously unheard of profits possible – the depth of concessions stolen from workers!
Workers getting half wages of $14 an hour have barely started to figure into current profits. Once sales increase, and the numbers working at $14 an hour increase, the auto companies will be even more extremely profitable.
They have no intention for workers to regain what was lost. According to Sean McAlinden, of the Center for Automotive Research, the bonuses are an “incentive to convince workers to eliminate cost-of-living adjustments and ... [raises.]”
If workers want a chance to regain what was stolen – by collusion between the auto companies, the federal government, and top UAW officials – they will have to discuss what needs to be regained and prepare those around them for the fight which is coming.