Cao Dewang, the shackle of Chengmeis manufacturing industry

category:Finance
 Cao Dewang, the shackle of Chengmeis manufacturing industry


In many peoples eyes, the current independent trade union system in the United States is the shackle of the development of the American automobile industry and even the entire manufacturing industry. The existence of trade union system and the tension between employers and employees hinder the development of American manufacturing industry, which is a difficult problem to deal with. Cao Dewang, chairman of Fuyao Groups board of directors, pointed out in a recent media interview that the current labor union system is a major problem that must be solved if the United States is to restore its status as a manufacturing power.

It is worth noting that in the face of such a large-scale strike, GMs attitude is stronger than ever. Now, in the face of closing factories or compromise, GM CEO Mary Bola seems to prefer the former.

Is the reason for the strike really a labor dispute?

According to GM employees familiar with Detroits labor relations, The UAW-led strike did not go to the streets entirely. According to the size of the 150,000 people represented by the UAW, only one third of the unions have been launched at present.

In the eyes of many local people, the direct fuse of the strike is the high-level corruption of UAW. On August 28, 2019, the current and former chairmen of UAW were searched by federal law enforcement officers for alleged corruption of membership fees. Nine other members of the organization were charged with corruption, money laundering, mail and wire fraud.

UAW has its own purpose. They hope to put pressure on the government and enterprises at this time point. As UAW executives have been facing corruption scandals since the second half of last year, they launched a large-scale strike, which not only catered to the anxiety of workers within the trade union, but also quickly diverted their attention by putting pressure on automobile companies. The person familiar with the situation said.

The reason for choosing the current time node is that before the strike, GM had released the bargaining chips ahead of time. If the negotiations were successful, the problems of UAWs top management would be put on the table by the American media, and UAW could not organize large-scale action. Therefore, when the negotiations were not yet finalized, the contradiction between labor and capital would be exploded as a whole. The inevitable choice of UAW is given.

Fueling trade frictions

The All-American Federation of Automobile Workers is just a knife in GMs heart. The American President Trumps request for GM to move its factories back to the United States is another pain in Detroits heart.

At the end of last year, in view of the rising trend of the U.S. economy, GM intends to take advantage of the good operating conditions to actively change its business thinking and shut down high-cost factories in the U.S. and Canada. At that time, the specific plan was to shut down four factories and lay off nearly 15,000 workers. If this plan was implemented, it would save $4.5 billion in costs. But then Trump rashly set off Sino-US trade frictions, and declared that shut down the factories in China, I want to see new factories in Ohio as soon as possible.

GM is certainly not satisfied with Trumps words and deeds. Apart from relying on the Chinese market, GMs bankruptcy last time was due to the timely assistance and capital injection of its Chinese partner SAIC Group. Trumps requisite relocation plan is a complete reversal for GM. Rationale.

It was under the dual pressure of Trump and American Industrial Transport that GM dragged the negotiations to this year. It can be said that GMs domestic operations in the United States are actually suffering from the splint between the president and the trade union, but it has been delayed.

Whos Kidnapping Unity

Cao Dewang, chairman of Fuyao Group, who has encountered similar problems with GM CEO Mary Bola, has recently attracted much media attention for the documentary American Factory. CCTV2 Dialogue takes the opportunity of the documentary American Factory to invite a program produced by Cao Dewang to broadcast on September 15. During the 2008 financial crisis, GM shut down a factory in Ohio, USA, which was acquired by Fuyao in 2015 and transformed into an automotive glass manufacturer. Cao Dewang bluntly said in the program: General Motors is dead in the trade union!

In the United States, as long as there are trade unions, there will be no improvement in factory productivity, he lamented. In the documentary American Factory, Cao Dewang also had strong objections to the establishment of trade unions in factories, and more directly said If trade unions come in, I will quit. At the end of the film, the workers opposed the establishment of trade unions by 868:444 votes, and Fuyao successfully blocked UAW by raising wages, lobbying workers, dismissing workers who supported trade unions, and using anti-trade union organization LRI.

Admittedly, GMs Mary cant completely copy Cao Dewangs approach, but judging from a series of actions such as her firm closure of factories and layoffs, UAWs influence seems to have weakened in the hearts of these American auto giants. In the face of the once-in-a-century great change in the global automotive industry, cost reduction for survival has become a major key task for major automotive enterprises. At the same time, the proposition of who is kidnapping and uniting seems to have become a problem that the American automobile industry must think about and solve at present. At present, UAW, an organization that has been developing in the United States for 84 years, is unlikely to draw a clear line with American automotive companies and parts companies for a while. But now that the automotive industry must require more efficient and precise management, this inefficient organization is facing more and more resistance. Source: Responsible Editor of China Times: Wang Xiaowu_NF

Admittedly, GMs Mary cant completely copy Cao Dewangs approach, but judging from a series of actions such as her firm closure of factories and layoffs, UAWs influence seems to have weakened in the hearts of these American auto giants.

In the face of the once-in-a-century great change in the global automotive industry, cost reduction for survival has become a major key task for major automotive enterprises.

At the same time, the proposition of who is kidnapping and uniting seems to have become a problem that the American automobile industry must think about and solve at present. At present, UAW, an organization that has been developing in the United States for 84 years, is unlikely to draw a clear line with American automotive companies and parts companies for a while. But now that the automotive industry must require more efficient and precise management, this inefficient organization is facing more and more resistance.