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A Sadder, Wiser Union; Carmaking in America
Article from Bulletin/Magazine
The Economist (http://search.proquest.com/) vol. 400 no. 8752 (Sep. 2011)
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On September 20th, as the United Auto Workers union (UAW) and General Motors (GM) unveiled a remarkably modest four-year pay agreement, union bosses stressed their commitment to helping GM prosper. Some union members will complain loudly about the new deal. But the UAW's leaders can boast of some achievements. After what seemed like endless rounds of job cuts, GM is now hiring again. The road ahead for GM and the other American carmakers is still potholed and slippery. If sales continue to recover, they can hire more workers and still make profits. But if recession returns, forget it. GM has plenty of cash to help it weather passing storms, and its repeated cost-cutting has made it lean enough to make profits even if it produces fewer cars. But its fight for survival is far from over--and the same applies to the union it has locked horns with for 75 years.
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