Chapters 26-27 Summary and Analysis

In terms of labor unions, Iacocca sees the problem as fringe benefits, not wages. The three problem areas are cradle-to-grave medical benefits, unlimited cost-of-living allowances (COLA) and 'thirty-and-out'. COLAs were written into contracts to safeguard against inflation, but then actually help create inflation. 'Thirty-and-out' gives the worker the right to retire after thirty years of work, no matter what his age. He can collect a full pension equal to sixty percent of his salary. As for medical benefits, Iacocca says that when he first came to Chrysler, Blue Cross/Blue Shied was their biggest supplier with billings bigger than those for steel and rubber.

Iacocca did not know Walter Reuther, the founder of the UAW, but he discusses the man and his views and how they negotiate with the auto makers. Strikes are devastating to the auto industry.

Chapter...