Over the last several months we’ve all heard how the automakers are hurting, and both the US and Canadian governments have given loans and bailouts to keep them going in the interm but with restrictions.

The economic situation is not looking good, with only days left for GM and Chrysler to implement their respective plans in order to meet the obligations set out by the Canadian government.

One of the hurdles GM faces is that they realize they have to slash labour in order to remain competitive with Honda and Toyota.  I believe the figure GM was looking at was $19/hour. 

The autoworkers, on average, make around $76/hour.  I don’t know if that includes benefits or not.  Now that is, in my opinion, pretty rich by any standard.  But, the CAW seems unwilling to move much on the wage reduction and that GM can find other ways to cut costs.

Now to me, the CAW and it’s members have two very distinct choices:

1. Accept the wage reduction and keep people employed.
2. Refuse the offer, close the plants and everyone can go on EI.

Now granted, no one wants to take a pay cut.  In my industry many companies have implemented pay cuts.  The company I work for very well may do the same… although I’m hoping they don’t.

One thing is for sure:  I won’t like the prospect of taking a pay cut, but there are little alternatives, so I’ll have to suck it up.

Maybe it’s time the CAW did the same.

Your thoughts?