Let’s start with a discussion of two labor strikes that affect my life.
The General Motors strike that may be in its final stages is less about money than it is about control. GM and the UAW seemingly agreed on the basic pay issues before the strike even started. What GM President Mary Barra and the GM Board were really concerned about was the ability to make key decisions such as closing a factory or moving work to Mexico without the UAW having veto power. Indication of that is workers at the Spring Hill, Tennessee, plant voting against the settlement because they see it as an opportunity for GM to continue to use a significant number of temporary workers to staff the factory. GM is offering $60,000 buyouts to older workers. The strategy of GM is to hire younger, cheaper employees. To younger factory workers it appears the union is selling them out. There appears to be a power struggle between younger and older workers for control of the UAW.
Another factor involved in the GM approach is the comparative financial weakness of Ford and Fiat Chrysler. The UAW has little power in most foreign builders’ plants but still has a strong grip on Ford and FAC workers. The GM-UAW settlement will be very difficult for these companies to accept in a weakening vehicle market requiring potentially massive changeover costs to electric vehicles.
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The Chicago Teachers Union strike is also about power and control, not so much about wages.
Chicago has a new mayor, Lori Lightfoot. She is an unusual political newcomer to Chicago. She is an African-American lawyer and Yale graduate from Massillon, Ohio, with no ties to the Democratic machine which has run Chicago for 60 years. She trounced the machine candidate Toni Preckwinkle 3 to 1, winning every single ward in the city. Preckwinkle was backed by the Teachers Union and other city unions, and the strike is their attempt at revenge. If the union “wins” it will strangle the city, which is already in desperate financial shape, by forcing more borrowing at 10% or more and essentially bankrupting Chicago. Preckwinkle and the Union apparently think they can pick up the pieces of a failed Lightfoot tenure. Meanwhile, the kids are out of school, the schools are half empty when in session because many are in poor repute, and wages and benefits are already among the highest in the country.
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The World Series and the NBA season both start tonight (when I’m writing this).
Houston and Washington in Major League Baseball are shockingly similar teams. Both have two potential Hall of Fame starters and excellent third starters who played for the Arizona Diamondbacks last season. In Alex Bregman and Anthony Rendon at third base, respectively, they have likely MVPs at the hot corner. Both have outstanding outfields, decent bullpens, and good defensive catchers. The one clear edge goes to Houston where Jose Altuve plays for the Astros. The 5’6” Altuve is the most charismatic player in baseball and perhaps the best all-around star in the game.
The NBA is hard to figure in October with 82 games and the playoffs lasting into June. LeBron is with the Lakers, and Anthony Davis joins him. Kawhi Leonard has moved to the LA Clippers to team with an overrated Paul George who is already injured.
The Golden State Warriors still possess Steph Curry and Klay Thompson, but Thompson is recovering from a torn ACL. Kevin Durant is gone so Steph needs to score 46 points a game.
In the East the Boston Celtics will probably be better without the selfish Kyrie Irving. Milwaukee has the unpronounceable “Greek Freak,” and Philly boasts the brute, Joel Embiid, and Ben Simmons who can’t shoot at all.
And finally, Houston still has James Harden and his step-back jumper that nobody else can do nearly as well as he can.
The NBA will be fun again in April.
Question: Is salary the first thing you look at when considering a job offer?
