Posted on 11/11/2008 5:04:58 PM PST by Fred
Remember when Democrats lamented the growing budget deficit and spoke of the burden our children and grandchildren would face if we didn't put our fiscal house in order? That was when Republicans ran the federal government and Democrats opposed tax cuts. Now that Democrats are about to be in charge, concern about the deficit has disappeared and spending plans proliferate, even though the national debt passed $10 trillion in September and we added another $500 billion last month.
The latest, but by no means the last supplicant at the public trough, is the auto industry, which wants a bailout to save jobs because its cars are not selling. There is a reason for that and it can be summed up in five words: The United Auto Workers Union (UAW).
Half of the $50 billion the auto industry wants is for health care for its current and retired employees. This is the result of increasing UAW demands, strikes and threats of strikes unless health care and pension benefits were regularly increased. While in the past UAW settled for some benefit decreases while bargaining with the Big Three U.S. automakers, according to the Wall Street Journal in September of 2006, "on average, GM pays $81.18 an hour in wages and benefits to its U.S. hourly workers." Those increased costs, including the cost of health care, were passed along to consumers, adding $1,600 to the price of every vehicle GM produced. In February 2008, after General Motors offered buyouts to 74,000 employees, the Center for Automotive Research estimated the average wage, including benefits, for current GM workers had dropped to $78.21 an hour. New hires pulled down a paltry $26.65. GM, now facing a head-on collision with reality, has taken an important first step toward fiscal
(Excerpt) Read more at jewishworldreview.com ...
Just give everyone $100K and be done with it!
The answer would be a resounding “Yes we can!”, and it will begin with a $25 Billion Dollar deposit from Uncle Sam directly into the coffers of the UAW.
The top of the slippery slope...
Yeah, give me 100K and I’ll buy a new vehicle.
Bailout the unions? Kick them out to either Canada or Mexico.
“on average, GM pays $81.18 an hour in wages and benefits to its U.S. hourly workers.”
And we taxpayers, who make a fraction of that outrageous wage, are supposed to pick up their fat health care and retirement tab. Why didn’t these cretins save some of their extravagant paychecks for their own health care and their retirement? Every politician who votes for this scandalous bailout should be tarred and feathered.
It’s not the unions in Washington begging for help. Also, it was Henry Ford that started the higher wage format for workers, not the unions.
In spite of the MSM’s portrayal of workers, it has not always been, and many jobs are not, easy. Standing in one spot for 8-12 hours per day is rough on the body.
Hey, Obama is just paying off his “debts”. Quid pro quo.
Sounds like trickle down to me. Didn't think Dems believed in trickledown.
NO!!!
You probably were trying to make a funny when you wrote that; but, in the long run it would be more profitable to simply buyout the GM workforce and start all over. That presumes that the rank and file are as ignorant as they seem to be.
GM has great cars and trucks...
but if they sell out to the government, there is absolutely no way I will ever buy one.
That goes for any bank or other private enterprise now to be owned by the government.
I refuse to participate in Socialism.
Sounds like trickle down to me. Didn't think Dems believed in trickledown.
Sounds like trickle down to me. Didn't think Dems believed in trickledown.
Unions will eventually destroy the U.S. auto industry. The auto workers unrealistic wage and benefits demands have already crippled their companies abilities to be competitive.
I am firmly against any bailout of the big three.
I grew up in P’burgh, my Dad worked in a steel mill for 40 plus years. This was also tedious work and their reward is that most of the mills are gone. The answer seems clear, figure it out, move the plant or shutdown.
Interesting article on the woes of the Big 3.
click here for full article.
Transformational UAW Deal? Accept Professors' Pay
According to Forbes:
Labor cost per hour, wages and benefits for hourly workers, 2006.
Ford: $70.51 ($141,020 per year)
GM: $73.26 ($146,520 per year)
Chrysler: $75.86 ($151,720 per year)
Toyota, Honda, Nissan (in U.S.): $48.00 ($96,000 per year)
According to AAUP and IES, the average annual compensation for a college professor in 2006 was $92,973 (average salary nationally of $73,207 + 27% benefits).
Bottom Line: The average UAW worker with a high school degree earns 57.6% more compensation than the average university professor with a Ph.D. (see graph above, click to enlarge), and 52.6% more than the average worker at Toyota, Honda or Nissan.
Many industry analysts say the Detroit Three, and especially Ford, must be on par with Toyota and Honda to survive. This year's contract, they say, must be "transformational" in reducing pension and health care costs. What would "transformational" mean? One way to think about: "transformational" would mean that UAW workers, most with a high school degree, would have to accept compensation equal to that of the average university professor with a Ph.D.
“The answer seems clear, figure it out, move the plant or shutdown.
I would like to see them survive. But they need to dump the unions, which is probably impossible.
I just can’t believe that we can’t build a better car than Japan. By we, I mean GM/Ford, as we all know that many Japanese brands are built here. But they are still Japanese brands with profits going there.
Where did I hear the question that why can’t GM make a proft in America but they do overseas? And why can Toyota, Honda and Nissan build cars in America but they don’t need a bailout? We need to be asking Pelosi and her ilk these questions.
I agree. Anything America wants to build and engineer well is the best. Sub, Airplanes, Spacecraft and many other precision products. I know this stuff all costs a lot, but why can’t their models and processes be used in the Auto Industry?
I have a friend who was the union rep at a steel mill until the union priced the mill out of business. When it shut down he had to go get a real job.
Make all of them illegal as far as i’m concerned!
Having been signed to contracts with 5 unions for over 40 years, serving 8 years on a joint adjustments board and 10 years on the apprenticship boatd I hate their guts!!!!
100K would be a huge pay cut for someone making $81 per hour. Are you being cruel to the poor oppressed union thugs who have to make do with 162,000 per year? They’d have to give up one of their boats.
So than I assume you would be all for the feds sending checks to all of us out here whose retirement investments went in the toilet and which we will never recoup. Some of us dummies who were self employed even have to pay for our own health insurance. Being on call 24/7 is quit tiring as well. There are a hell of a lot of us out here who were hurt by what happened and will never be made whole. Why should any of us give a shit about the unions?
Could not have said that any better. Right now as a business owner I’m having to shop my healthcare and ALL insurance costs to try and save money...my SEP and my investments sinking like the GOP. Whinny Union thugs can kiss my azz!
You are correct, from what I understand about the comparative costs from foreign firms doing business in the US. I am all for a employee making a good wage but I would rather make less but have a job than make a bundle but be out of work.
Henry paid more to get the best labor force he could. He vehemently hated unions.
They don’t stand in one spot 8-12 hrs. a day, I have worked in a Ford plant and know that is unadulteraded BS.
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