BuckeyeBlog

Over at NaugBlog, Matt takes apart Governor Strickland’s claim that President Bush is to blame for the GM plant closings in Ohio. To build on his analysis, it’s interesting to read an editorial in Investor’s Business Daily that points out how unions in Ohio (and elsewhere) are a large reason why car manufacturing jobs are shrinking in the upper Midwest:

It’s tempting to blame automakers for [moving jobs to Mexico]. Indeed, they do deserve a big chunk of the blame for poor management decisions. And by far, their worst decisions yet came when they agreed to company-destroying labor pacts with the United Auto Workers union that practically guaranteed Big Auto’s demise.

We don’t fault workers for trying to get more in labor negotiations. But the fact is, past UAW deals have saddled U.S. companies with such high costs that they can no longer make cars here and compete on a global market. So they make cars elsewhere.

Like a coyote caught in a trap, U.S. automakers have been desperately gnawing off a leg to escape certain death. They’re closing plants and slashing jobs in Michigan, Ohio and other U.S. union havens, in favor of non-union, foreign places. Like Mexico and China.

Meanwhile, foreign companies have no problem making cars here. They do it in the non-union South, where the UAW is weak.

Though little noted, last year was a watershed for U.S. carmakers. For the first time, foreign producers in the U.S. made more cars — 54% of the total — than the former Big Three. As recently as the 1980s, Ford, Chrysler and GM made 73% of all cars here.

Why is this? U.S. carmakers pay their workers an average of about $73 an hour in wages and benefits — way more than others.

According to the Center for Automotive Research, there’s a $16.15 per hour gap between what Detroit’s Big 3 pay workers and what Toyota pays workers in the U.S. Add to that a $5 billion a year difference in health care and other retirement costs, totaling thousands of dollars in extra costs on every car sold, and U.S. automakers operate at about a $12 billion a year disadvantage.

It doesn’t take an MBA to understand this is an industry in peril.

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We read with disappointment the progress of teacher (and nurse, and janitor, and lunchroom employee) union contract negotiations in Hilliard, Ohio which concluded earlier this month. 

The Hilliard union employed the usual tactics of industrial era labor conflict including ’work-to-rule’ and filing harrassing unfair-labor-practices charges, all of which only reinforce how obsolete and obstructionist teacher unions are in the 21st Century. (more…)

Interesting Detroit News piece here on Saul Anuzis, the Republican Party Chairman in Michigan who is standing firm on, well, Republican values. He’s aggressively urging legislative Republicans up north to not give in to Democrats’ calls for new taxes.

Saul is angering some GOP legislators who want to bargain away the principles for which the people elected them in exchange for the accolades of the editorial boards and the chattering classes who love to spend other people’s money on their own wants and wishes.

My bet is that if Anuzis succeeds in his efforts, Michigan will beat Ohio — in being the first state to get a Republican governor, that is.

The selection of State Representative Kevin DeWine as the future chair of the Ohio Republican Party brings intelligence, new vigor and strong skills in political tactics to the position.

Let’s hope that, like Anuzis, DeWine also brings to the job the recognition of the principles of limited government, economic freedom and personal responsibility as the bonds that create Republican majorities.