Montag, Mai 18, 2009

Conflict of Interest That Nobody Seems to Notice...

So, let me get this straight: the United Auto Workers, the UAW, has turned its political support of President Obama effectively into majority ownership of both GM and Chrysler (the devil is in the details, but it's obvious what is going to happen...).

Now, there are two conflicts of interest here.

1) The UAW represents both employer and employees. How's that one going to work?

2) The UAW also represents employees at Ford, which is avoiding bankruptcy and hence control by the UAW. How can there not be a conflict of interest in having the largest shareholder of both main rivals to Ford represent the workers at Ford?

That the MSM hasn't picked up on this is just another indicator that they are indeed asleep at the wheel after having drunk the Kool-Aide.

The first conflict of interest can be gotten around by selling UAW's equity share in both GM and Chrysler.

The second then becomes moot.

If the first does not happen, the second one will destroy Ford.

I expect that Ford will see not a small amount of industrial action at the first sign that it will become successful after restructuring efforts and when it is able to outshine both GM and Chrysler. Otherwise Ford's refusal to take government money will be seen as the basis for its success - and it well may be simply reduced to that - and that would, for the unholy trinity of GM, the UAW and the Democratic Party, simply be intolerable. Their legacy will be determined by the success that GM and Chrysler have after "restructuring", and we can expect that any threat to that legacy will be met with swift industrial action, be it strikes or be it protectionist actions by the government to keep others at bay.

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