Valuetainment - UAW Strike Fallout： Are Unions Destroying Jobs & Losing Credibility

00:00:00.000 It seems like this is a season where everybody's going on a strike. We know what's going on with

00:00:03.200 writers and actors guild. We saw what UPS got, big negotiation, and now the union auto workers.

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00:01:34.300 Workers went on a strike after their union leaders couldn't bridge a massive gap between themselves

00:01:40.120 and the three top automakers in America. We're talking GM, Ford, and Stellantis, aka Chrysler.

00:01:45.940 A massive gap. Here's what it looks like. GM and Ford offered 20% increase in their salary

00:01:51.760 and Stellantis offered 17 and a half. Guess what the union leaders asked for? No. We want a 36%

00:01:57.700 increase. Studies are showing right now that this could cost the economy billions of dollars every

00:02:04.060 day while they're on a strike. And on top of that, 50,000 jobs. It is a mess, folks. But I think they

00:02:10.040 watch what's going on with the strike with UPS. And they said, hey, maybe we can get paid. We're going

00:02:15.760 to talk about that today. So if you get value out of this video, give it a thumbs up and subscribe

00:02:19.880 to the channel. Let's get right into it. So what's really happening, these 13,000 auto workers go on

00:02:24.080 a strike. The strike began at a General Motors assembly plant in Wentzville, Missouri, a Ford

00:02:29.660 factory in Wayne, Michigan, near Detroit, and a Stellantis G plant in Toledo, Ohio. It is the first time

00:02:35.700 in the union's 88-year history that these three different companies were targeted simultaneously.

00:02:42.880 So what are the union's demands? As I told you earlier, they want a 36% wage increase over four

00:02:48.220 years. The union is also asking restoration of cost of living, pay raises, and into varying tiers of

00:02:53.820 wages for factory jobs. And you ready? On top of that, they want to work only four days. They want

00:02:59.940 to work 32 hours a week, but they want to get paid at 40 hours a week is what they're asking for. And by

00:03:05.440 the way, Bernie Sanders just said yesterday, we ought to consider going to a four-week model. That's what we

00:03:10.420 ought to be thinking about doing. So guess what this union is asking for? Exactly that. And on top

00:03:14.600 of that, the restoration of traditional defined benefit pensions for new hires who now receive

00:03:18.700 only 401k style retirement plans, pension increases for retirees and other items. So what are the

00:03:24.120 automakers' positions? GM and Ford, as I said earlier, offer 20% increase. Stellantis, Jeep, Chrysler

00:03:29.700 offered 17.5% increase. Automakers say they're facing unprecedented demands as they develop and build new

00:03:35.640 electric vehicles while at the same time making gas-powered cars, SUVs, and trucks to pay the

00:03:40.380 bills. They're worried labor costs will rise so much that they'll have to price their cars above

00:03:45.160 those sold by foreign automakers with U.S. factories, which means who's going to be paying a price for

00:03:50.920 that? You, the person buying the car. So now, what are the potential impacts of the strike? The strike

00:03:56.400 could push vehicle prices higher and strain on the economy already bruised by inflation. Also, walkouts may

00:04:03.160 even become a factor in next year's presidential election, testing Joe Biden's commitment because

00:04:07.540 he said, no presidential candidate has ever been more pro-union than me. So this could pressure

00:04:12.820 President Biden to come out and have to defend these union leaders. The strike could also last

00:04:17.360 longer than previous work stoppages, such as a 40-day strike against GM in 2019. You ever wonder why

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00:05:23.100 masterworks.art forward slash value attainment. Once again, masterworks.art forward slash value

00:05:28.320 attainment or click on the link below. Here's what we have to consider. Don't forget that there is a

00:05:31.920 current strike going on with Writers Guild of America and actors. Writers started in May. This

00:05:37.100 is why Jimmy Fallon, Jimmy Kimmel haven't done a show, and they started a podcast together called,

00:05:41.240 I think, The Strike Force or something like that. And actors went on strike in July. Nothing's been

00:05:45.660 happening. Drew Barrymore wanted to bring back her show. She got destroyed by fans. Bill Maher was going to

00:05:50.480 bring back. He got destroyed by fans. Imagine how long these guys haven't been working. That

00:05:54.320 started in May. It's September already. That's a long time. Then you got UPS. Now you got this to

00:05:59.460 be looking at. So we looked at it and said, hey, are numbers for unions, number of members for union

00:06:04.480 increasing, meaning are people wanting more union in private sector or they want to get away from

00:06:10.420 unions? Here's what the numbers look like if you look at from 1972 till today. 1972, 24.2% of private

00:06:17.360 sector memberships, they had unions. Today, 6%. You know what America is saying? We don't like the

00:06:22.540 union private sector. Keep it in the public, but stay away from it in the private sector. And if you

00:06:27.640 like union, go work for the public sector, not the private sector. So what is the impact on America?

00:06:32.460 Because when you think about these three automakers, Ford, GM, and Chrysler or Stellantis, what percentage

00:06:38.080 of the cars in America do they produce? 40%. That's why this is a big deal. The strike is expected to lead

00:06:43.800 to production cuts at the big three automakers, which could lead to job losses. The strike is

00:06:47.940 also expected to disrupt the supply chain for the automotive industry, which could lead to higher

00:06:51.920 prices for cars and trucks. Now here's also why this is bad news. Do you remember during COVID,

00:06:55.800 what was going on with used car prices? It's a $20,000 car selling for $38,000. What's going on

00:07:00.400 over here? Because they couldn't find the chips. Do you remember sometimes even used car prices were

00:07:03.740 selling more than new car prices? Some people are selling their cars. Look at the chart right here.

00:07:07.840 This is what it tells us on what's happened with used car prices from 1960 to today. If you look

00:07:14.540 at the chart to the top right, that's during COVID. It's not as if prices are already skyrocketing.

00:07:20.280 Every other article you read, what is the average car payment? It's the most it's ever been in history

00:07:25.120 in America. On top of that, add the strike with a 36% demand that they're asking for, not realizing

00:07:32.580 who's going to pay the price for it, the consumer you. So now who is UAW? Who's the United Auto

00:07:37.480 Workers? It's a union that was founded in 1935. Walter Reuter was a president of the union from

00:07:43.400 1946 till 1970, some 24 years. Two times there was an attempted assassination on him. This guy,

00:07:49.600 Walter, he was so powerful at one point that John F. Kennedy sent him to go to Cuba to negotiate for

00:07:55.020 a hostage. And on top of that, LBJ used him regularly for many different things. And when Nixon was running,

00:08:01.300 Nixon called him the guy that John F. Kennedy would have never gotten elected without this man. He was

00:08:06.940 so powerful that even later on, Bill Clinton gave him a medal of honor, I believe in 1995. This is

00:08:11.180 a heavyweight. Like before there was Jimmy Hoffa, there was Walter Reuter. They should make a movie

00:08:15.420 about this guy. Very interesting guy. So the UAW was instrumental in organizing an auto industry and

00:08:20.440 winning major gain for workers, such as higher wages, better benefits, and safer working conditions.

00:08:25.020 It was also involved in political activism and supported candidates who supported labor unions.

00:08:30.320 So now the question becomes, imagine you're the company, you're Ford, you're GM,

00:08:33.220 you're Stellantis, you're having a boardroom meeting with all your board members and saying,

00:08:37.140 what can we do about this? 36% increase. We offer them 20%. We offer them 17 and a half percent.

00:08:43.180 One person says, I think we need to let go of 10% of our employees. Well, it's the old school of 0.98

00:08:47.540 fixing this. What do you think, Johnny? One guy says, 29 years old, just came out of MIT.

00:08:52.460 He says, we need to double down on robots and we need to double down on AI. What a great idea.

00:08:57.260 What'll happen if we do that? We can fire half of our employees and we can still build these cars

00:09:01.140 without them. And we don't even need to deal with the unions if we let them go. That's not a bad idea.

00:09:06.160 Does anybody else agree with them? Mary over here that jumps in and says, I do too. I went to work

00:09:10.220 in business school and here's what I think I need to be doing. Boom. Who ends up paying a price?

00:09:14.600 These union leaders are fighting for these people. Those people thinking these union leaders are

00:09:19.080 doing good for them are going to be replaced by robots. Let me give you some more crazy facts about

00:09:24.020 what this could possibly impact. The strike is expected to cost the big three automakers

00:09:28.580 billions of dollars in revenue. Now people on the other side will say they can afford it.

00:09:33.720 Look how much profit they're making. It's on the backs of the labor. It's on the backs of all these

00:09:38.140 people. They can afford to give a 36% raise. When companies like this lose billions of dollars,

00:09:44.580 the way they get that money back is through you by raising their prices. That's what they do. That's

00:09:50.500 how basic economy works and capitalism works. On top of that, GM, Ford, and Stellantis announced

00:09:56.620 idle plants in the US and Canada. The strike has also led to the cancellation of shifts at many

00:10:02.060 other automotive plants. So what could be some of the possible outcomes with the strike? Because

00:10:05.880 it just happened the 15th of September, right? So let's take a look. One, a quick settlement. The UAW

00:10:11.600 and the big three automakers could reach a quick settlement, ending the strike within days,

00:10:15.260 if not weeks. This would be the best case scenario for both sides as it would minimize the economic

00:10:19.700 damage caused by the strike. Number two, a long and protracted strike. Number three,

00:10:23.800 a strike that ends in a lockout. The big three automakers could lock out the UAW workers,

00:10:29.520 forcing them to return to work without a new contract. This would be a major victory for the

00:10:34.260 automakers, but it would also be a major setback for the UAW and its members. Number four, a strike

00:10:39.560 that ends in a strike breaking. The automakers could hire replacement workers to break the strike. This

00:10:44.940 would be a last resort for automakers as it would be highly disruptive and could damage their

00:10:49.860 reputations. And last but not least, a strike that ends in a government intervention. And remember,

00:10:54.880 this is possible because President Biden claimed he is the biggest pro-union president of all time.

00:11:01.280 The federal government could intervene in a strike either by mediating a settlement or by taking other

00:11:06.300 steps to end the strike. This is a possibility, but it is unlikely as the government has traditionally

00:11:11.280 been reluctant to intervene in labor disputes. So here's some of the factors that could influence the

00:11:16.640 outcome of this strike. Number one, the bargaining position of the two sides. The UAW and the big three

00:11:20.780 automakers have different goals in the negotiation. UAW is seeking higher wages, better benefits, and job

00:11:25.420 security for its members. The big three are seeking to reduce costs and improve their competitiveness.

00:11:30.880 The bargaining position of the two sides will be a major factor in determining the outcome of the strike.

00:11:36.220 Number two, the level of public support for the strike. The public's perception of the strike will also be a

00:11:41.700 factor in the outcome. If the public supports the strike, it will put pressure on the automakers

00:11:46.340 to reach a settlement. If the public opposes the strike, it will make it more difficult for the UAW

00:11:51.960 to win its demands. And last but not least, the intervention of the federal government, as we

00:11:55.520 talked about earlier. So you know what's the great thing about this sometimes? Because, you know,

00:11:59.100 we did a case study on, you know, Social Security did a work. Well, it was only supposed to help a

00:12:03.240 couple thousand people. Now we're realizing we can't afford Social Security. We can't afford Medicare. We can't

00:12:07.300 afford many of these different programs. The entitlement programs, we cannot afford it

00:12:11.400 and people are starting to realize America's getting more and more and more in debt. We've

00:12:15.680 tested unions. How have they worked? They start off very coming from a place of wanting to help

00:12:21.420 you out. Do you know what union leaders, in-laws, and lawyers have in common? Let me explain.

00:12:27.460 Lawyers. When a husband and wife is sitting there, happily married, say they want to set up a nuptial

00:12:33.880 agreement or a prenuptial agreement. Lawyers come in, husband and wife, we love each other. We just kind

00:12:38.720 of want to put this in place that in case something happens later on in life, we're protected. She's

00:12:42.520 protected. We're all protected. Right? No problem. You know what the lawyer's job is to make more money?

00:12:46.900 To create feud between the two spouses. Her lawyer and his lawyer are actually on the same page.

00:12:54.140 They're on the same team. Not their team. They're not representing the spouse and this one over here.

00:12:59.940 They sit there and say, let's create a fight. Let's create another 20 hours of fees times 500 bucks.

00:13:06.300 So let's create a little bit of division. I don't think that's fair. She should get more.

00:13:09.920 I don't think that's fair. He should get more. And the wife is like, yes, he's right. I should get

00:13:14.340 the miles. So I worked my ass off 22 years for those miles executive. No, but it's not fair.

00:13:19.500 And then all of a sudden, two weeks later, here's a bill. How much? $13,800. It was only supposed to

00:13:24.620 cost $3,000 because they knew what they wanted. What do in-laws do? You know what? I noticed your

00:13:29.200 husband, he doesn't work as hard as such and such as husband. Did you notice your sister's husband

00:13:33.940 works very hard? He doesn't work that hard. And if I was you, and if I, I would make him do this.

00:13:39.300 And the next thing you know, the husband comes home. What does that daughter do? The daughter's 1.00

00:13:43.900 like, you don't work as hard as Mary's husband. And you don't, and the husband's like, what the

00:13:47.860 F just happened right now? I just came from work. What are you talking about right now? Well,

00:13:51.940 that's because you're not a good husband. I'm confused right now. What he doesn't realize

00:13:56.660 is there was an instigator, a union leader called an in-law. You know how I know this? I was a kid

00:14:03.080 and I watched my parents go through two divorces when the in-laws were the union leaders. So you

00:14:07.920 know what the union leaders do? Here we go. We're here to protect the employees. We're here for you,

00:14:13.860 the union leaders, for only a little membership that you pay every month. But we're here for you.

00:14:18.820 Really? Yeah, we're here for you. And writers, we're here for you. Dude, I haven't worked for four

00:14:23.080 months, but we're here for you. Make sure you pay your membership, but we're here for you. And by

00:14:26.600 the way, we can't work and do anything else, but we're here for you. What are you talking about here?

00:14:29.940 You know what I'm starting to realize? Who pays the price? The employee, the consumer,

00:14:35.140 everybody pays the price. And you know who wins? The union wins. And based on the membership we're

00:14:41.000 seeing, more and more people are saying, go help public. We don't want a part of union, man.

00:14:46.700 We appreciate your help. We're going to figure out how we're going to make our relationships work.

00:14:50.500 We're going to figure out how we, the employees and the employers are going to get along. Because

00:14:54.980 if Ford doesn't take care of us, we'll go to GM. If GM doesn't take care of us, we'll go to,

00:15:00.420 you know, a Jeep, Chrysler. If they don't take care of us, we'll go to Tesla. That's what

00:15:04.700 competition is for. And people go to a different place. At the end of the day, capitalism wins,

00:15:10.860 competition wins, and the people that are willing to improve and offer a better opportunity,

00:15:15.160 that's who ends up winning. So if you got value out of this video, give it a thumbs up,

00:15:18.660 subscribe to the channel. If you're arguing, debating with your relatives, even better.

00:15:21.860 That's the purpose of this. Keep debating the points and see who makes the best point.

00:15:25.680 But if you want to watch another video on unions, to fall in love with unions even more,

00:15:30.320 we did a video on unions, what these Writers Guild and Actors Guild are doing. If you've never seen

00:15:35.960 it, click here to watch it. Take care, everybody. Bye-bye, bye-bye.

Valuetainment - September 25, 2023

UAW Strike Fallout： Are Unions Destroying Jobs & Losing Credibility

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