Call it the return of big labor. I read with interest a post by John Kay in the Financial Times about how labour's (Brit spelling) love affair with big business got us into this mess. Of course, being the ugly American, it took me a few lines to realize he's referring to the Labour Party. Democrats in this country could never be accused of the same thing — until now.
Despite dismal private sector membership numbers for decades, unions are more powerful than ever. Word comes that U.S. Government and the United Auto Workers will have a combined 90 percent stake in General Motors. Granted the UAW will have a minority stake — only 40 percent. But it gets better with Chrysler, where they'll own 55 percent. According to the Wall Street Journal, there is nothing in the current union contracts that demands, or requires, this kind of largesse. Apparently, it's the Administration's gift to its loyal supporters. What about mutual funds, pensions, individual investors who purchased company bonds? Forget it.
