While management possibly played a role in the demise of the company, it is hard to argue unions didn't either.
I am not aware of the benefits package of their employees, but if it is anything like people had in the 50s-70's... that is, middle class status, high wages, etc. then yes it does hurt the company.
stagflation in the 70's was due to the 'high quality model', a translation of high costs(wages, benefits), low labor flexibility. companies like GM exemplified this model, especially from i am aware of historically. no way, with he expenditures can companies being tied down by regulation and unions can compete it today's highly globalized market.
the only way to deal with current globalization is by deregulation and especially of those programs created under the new deal that set us up for later failure. the reagan administration was famous for the deregulation. it is the new 'high volume model' exemplified by companies like walmart. that is, no benefits, low wages, high labor flexibility that will allow us to compete and have success. at this point, the company can compete globally and will have to be the government's job to give assistance to those people without necessarily benefits.
now if you'll excuse me i actually have a paper due tomorrow on the these 2 models
