I have said it before and I’ll say it again. Unions just don’t work. If you want proof positive, look no further than Honda’s new plant in Indiana. The plant is primed to start pumping out Civics that will back the big three even further into their corner, or if you would prefer another analogy…push them deeper into their coffin. The freepress is reporting:

“The Honda plant is the other side of the bailout story,” Chaison said. “These are companies which are still expanding and which have lower cost structures. They are also facing the world financial crisis, but they are in much better shape.”

Under a new, two-tier UAW contract signed in 2007, the average base wage rate for existing workers at each of the Detroit Three is about $28 per hour, and new workers will be hired at base wage rates of $14 to $16.23 per hour.

“So much of the costs faced by GM and Ford are costs to workers who are no longer working anymore,” Chaison said. “Essentially, Honda is paying workers who make cars, and GM, Ford and Chrysler are paying workers that made cars.”

Detroit needs a total revision. Michigan has extremely high unemployment currently, and this is due in no small part to them having one of the highest unionization rates in the country. If you unions don’t go, the companies will. Why don’t people understand this?

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