Gm Bargaining Power

Bargaining power is the measure of capacity of one party to influence another and whichever party has the higher bargaining power can control their circumstance to strike more desirable deals with others. Whether is it gigantic or tiny, all parties have their own bargaining power of different persuading strategies.

The labor unions are severely affected during an economic recession to include loss of stable leadership, decline in membership, and change in the thrust of union ship. With the reduction of union membership, the union’s bargaining power is also reduced and as a result the management out concessions on the labor wages and other benefits. The situation will speak for itself, in a recession people are in need of what the superiors

are willing to give or part with as opposed to what a person can sit down and settle with. In a recession the role of unions becomes deteriorated due to most unions lose membership and the trust of union ship is lost; its like survival of the fittest and everyone is trying to service during this period. Management tries to reduce wages and cut down on other facilities during the hard times; but without a suitable bargaining power of unions it tries to make a profit with concessions. This solution isn’t always the best because the income is difference and unequal distribution of income takes place; the income difference leads to making the fewer management members more richer and large labor class workers poorer.
United Automobile Workers also known as the UAW, is a combination of the “Big Three” Ford, General Motors(GM), and Chrysler.

The union has more than 391,000 active members and more than 580,000 retired members in over 600 local unions; it currently has 1,150 contracts with some 1,600 employers. (https://en.wikipedia.org/wiki/United_Automobile_Workers#World_War_II) Demanding a superior voice in management GM went on strike for 113 days in 1945 after WWII. GM would pay higher wages but didn’t want to power share, but the union eventually agreed with a wage increase. The UAW decided to go along the GM decisions in return for an ever-increasing bundle of incomes and benefits climbs through collective bargaining, without any sort of help from the

government.
The steel industry was drastically affect by the recession in 2008, with production decreasing by 37% along with the auto production and financial crisis. Everything had taken a toll for the worst, one in five steel jobs were loss and percentages declined to include raw steel production domestic light vehicles, and other major steel using industries. Diminishing output in these major steels using industries describe part, but by no means all, of the domestic steel industry’s complications.
After the Spanish-American War, the coal market improved due to high demand.

In May 1898 the United Mine Workers in Alabama (UMWA) rebuilt its district and had more than 1,000 members, which led to operators signing contractors with union for the improved benefits. In the early 1900 a strike occurred, and a fiercer one in 1908 which included 20,000 miners attempting to overturn the challenge for lower wages. After World War I, the demand for coal was no longer needed, but the labor unions ignored the conditions because they wanted their pay increase that was never given to them because of the war. UMWA decided to go on strike in 1920 and 1921 and replacement miners took their jobs, but they resurfaced during the Great Depression in the

1930s.
In my opinion the worst automobile party was the most effected, the Great Depression was the worst economic downfall in the United States history. Everything associated with this era had a negative effect and unemployment can leave lasting damaging impacts. The automobile industry had a roll over effect with other industries to include the steel industry mentioned as other industry damage by the Great Depression. Unemployment is very stressful and can damage the person’s morale, and even health. Areas of high unemployment tend to experience more community issues, and increased unemployment can be factors in creating social unpredictability such as riots. This domino effect of Mass unemployment can threaten the social fabric of the countries.