Mish's Global Economic Trend Analysis: UAW Workers Vote 457 to 96 to Close Plant Instead of Reducing Salaries

With Indiana unemployment rate at 10.1% one might think that jobs that pay more than double the minimum wage would be in demand. Actually, such jobs are in demand, but ironically not from some of those who have them.

via globaleconomicanalysis.blogspot.com

Here's the economics of this one: GM wants to shut down a stamping plant in Indianapolis sometime next year unless they can sell it to someone. In this case, there was buyer who would have purchased the plant on the condition that the workers would accept a lower salary—in some cases up to a 47% decrease.

So let me get this straight: in an economy where there are 5 unemployed people for every unfilled job, instead of voting to guarantee yourself a job (albeit at a lower salary), you vote to shut it down. Smart, UAW members, real smart.

Labor unions had their time and place. Now is not it.