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Money For Nothing (Labor union sickness on an unimaginable scale)
Wall Street Journal ^ | May 2006 | Jeffrey McCracken

Posted on 11/13/2008 7:25:40 AM PST by Monsieur Poirot

In his 34 years working for General Motors, one of Jerry Mellon's toughest assignments came this January.

He spent a week in the "rubber room."

The room is a windowless old storage shed in Flint, Mich. It is filled with long tables, Mr. Mellon says, and has space for about 400 employees. They must arrive at 6 a.m. each day and stay until 2:30 p.m., with 45 minutes off for lunch. A supervisor roams the aisles, signing people out when they want to use the bathroom.

Their job: to do nothing.

This is the Jobs Bank, a two-decade-old program in which nearly 15,000 auto workers continue to get paid after their companies stop needing them. To earn wages and benefits that often top $100,000 a year, the workers must perform some company-approved activity. Many volunteer or go back to school. The rest clock time in the rubber room or something like it.

It is called the rubber room, Mr. Mellon says, because "a few days in there makes you go crazy."

The Jobs Bank at GM and other U.S. auto companies including Ford Motor is likely to cost around $1.4 billion to $2 billion this year. The programs, which are up for renewal next year when union contracts expire, have become a symbol of why Detroit struggles even as Japanese auto makers with big U.S. operations prosper.


TOPICS: Business/Economy
KEYWORDS: bailout; generalmotors; unioncorruption; unions
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To: randog
Uhh... to have an opportunity to get out o their situation?
21 posted on 11/13/2008 7:36:47 AM PST by Tempest (Obama is not my president.)
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To: Dr. Sivana

amazing. Depressing.


22 posted on 11/13/2008 7:36:59 AM PST by IGOTMINE (1911s FOREVER!)
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To: Monsieur Poirot
The room is a windowless old storage shed

The Japanese auto makers have a similar building where you go in by yourself and find a knife laying on the floor.

23 posted on 11/13/2008 7:37:50 AM PST by Dixie Yooper (Ephesians 6:11)
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To: anniegetyourgun

“How demeaning to the human spirit.”

BINGO!!!!!!!!!!!!!!! Working a job like that comes with a certain dehumanizing aspect to it already (trying not to overstate it), but take the job and add a union that does all your negotiating for you, tells you that you are oppressed and would be chewed up w/out them, tells you that you’d have nothing but for them, and you’ve got a real recipe for disaster.


24 posted on 11/13/2008 7:38:05 AM PST by Monsieur Poirot
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To: AU72

In the USAF they have a thing called “Casual”. It is when you are between assignments. You paint things, clean things, answer phones and just do grunt work.
Why aren’t these people doing something like washing windows, cutting grass, answering phones, etc...


25 posted on 11/13/2008 7:38:13 AM PST by Holicheese (Get up Tom Brady, get up! PLEASE!!)
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To: Monsieur Poirot

This is one of the reasons the GM bailout is another nail in our coffin.

As Rush has said, GM is really nothing more than a health care provider that makes cars on the side. We all heard the numbers yesterday: it cost GM over $70/man-hour to produce a car, while it costs Toyota less the $50/man-hour, and most others companies much less. Guess why.

A bailout of GM is nothing more than a bailout of the UAW.


26 posted on 11/13/2008 7:38:47 AM PST by StatenIsland (The '08 Election: It's about the survival of our country, not making a point...)
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To: Nathan Zachary
I’m not going to pay for this crap.

You're already paying for AIG's luxury resort getaways, so why not for this crap too?

Get ready for the $100,000 bill...

27 posted on 11/13/2008 7:42:21 AM PST by mvpel (Michael Pelletier)
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To: anniegetyourgun
How demeaning to the human spirit

Right you are.

In my business, we sometimes suffer through slow periods where there isn't much to do. Drives me CRAZY. While I try to find other things to do that need to be done, I'd rather be working. Just sitting around is nuts.
28 posted on 11/13/2008 7:43:02 AM PST by reagan_fanatic (Obama, you are NOT my President!)
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To: Monsieur Poirot

When we lived in DC, we constantly heard rumors re similiar situations with fed so called employees being hid and paid in similiar situations.


29 posted on 11/13/2008 7:43:08 AM PST by Grampa Dave (Do we trust 0W0N$PENDALOT, Pelo$i, Barnie, Dodd & Reid to leave our 401k's/IRA's alone?)
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To: Monsieur Poirot
My Father worked for Curtiss Wright Corp from 1934 until his retirement in 1981. The shop was unionized when he was hired. The union destroyed this company, and many others, due to their inability to forsee changes.

When my dad began work he operated a vertical lathe and machined the cylinder sleeves for the new generation Wright engine, which replace the one that had taken Lindbergh to Paris. the strict rules regarding workload were maintained by the Union, (UAW) and by the early 50s the engine that powered the B-17 and then B-29 were their main products. Dad's productivity and his fellow workers had improved over those years to the point where their quota for the week was completed by end of shift on Wednesday.

What did they do? They brought their water pistols to work and staged these magnificent battles, (this is where I learned of and became very proficient in water pistol battles). Curtis Wright went from a full feature Aerospace Industry that built aircraft and engines and all the other stuff to today where they are an aerospace "parts" company!

Another triumph fro the UAW. Maybe they should provide water pistols for the occupants of the rubber room!

30 posted on 11/13/2008 7:44:40 AM PST by Young Werther (Julius Caesar (Quae Cum Ita Sunt. Since these things are so.))
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To: Monsieur Poirot

The sad part of this is the extent to which it entices the next generation to try to join the gravy train. Why behave in school, try to get academic scholarships, or even graduate when you can make more money than many, if not most, college graduates? Why pay for your kid’s higher education when you could get him hired on by your union? The problem is, this is an unsustainable balloon that is deflating right now, if not popping. Any job which does not require education will always be vulnerable to competition from other uneducated people or nations. (And, frankly, I believe the best thing we can do for some third world countries is to ship such jobs over to them, let them get an economy in place where its citizens will demand education and opportunities. I am not talking about wholesale exporting of jobs, don’t misunderstand me. There will always be people here who can’t get higher education and there are many jobs that undergird our own economy and defense, but I think it would be better to do this than send billions of dollars to governments in those countries.) That competition requires the unions to distort the free market to protect itself and thus distorts the entire capitalist system, just to sustain the union members and their union fees. Those fees are then used to ensure the government continues to prop up the unions. It is past time to wean the industry from its unrealistic expectations but the sooner it is done, the less pain for everyone.


31 posted on 11/13/2008 7:44:43 AM PST by caseinpoint (Don't get thickly involved in thin things)
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To: StatenIsland

I have a good friend that works in the GM plant in Moraine, OH that has been announced to close. He got laid off in April 2008, and when I spoke with him about a month ago he told me was still getting paid 95% of his salary - even though he was laid off and the plant was closing! He has no incentive to go find another job because 95% of what he is getting for doing nothing is more than what he could get at any other job. So he sits around all day doing nothing.


32 posted on 11/13/2008 7:45:00 AM PST by Free America52
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To: Holicheese
Why aren’t these people doing something like washing windows, cutting grass, answering phones, etc...

Union rules. Other people are paid to do those tasks.

33 posted on 11/13/2008 7:45:21 AM PST by Onelifetogive (I'm gonna drop talk radio in favor of some audio books. Gotta lower my blood pressure.)
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To: messierhunter

That’s how a union shop works. it’s not the young ambitious go getter that gets the advance to a better position, it’s the laziest slack @ss that has the most seniority.

Young new employee soon learn “the ropes” however, about a day after their probation is over.

This is why cars are increasingly more and more expensive, while the actual material content cost keeps going down.

Imports from Japan, Korea and China, (not so much Europe becaue they have the same union problems) have to be heavily duty taxed. Otherwize you could by them for $1200 or so for a brand new crap box equal or better than anything GM, Ford, Chrysler makes thats comparable.

Think how much money the Joe public could save and spend on other stuff if they didn’t have to take out a mortgage for a car every 5 years.

The Auto worker unions have been a leach on the American economy for decades now. Sucking more and more blood while getting fatter and fatter.

It’s time to salt them off.

NO BAIL OUT


34 posted on 11/13/2008 7:46:19 AM PST by Nathan Zachary
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To: Holicheese
Why aren’t these people doing something like washing windows, cutting grass, answering phones, etc...

Union work rules, of course.

35 posted on 11/13/2008 7:47:04 AM PST by Paine in the Neck (Nepolean fries the idea powder)
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To: Monsieur Poirot

Let them file for bankruptcy and then renegotiate all these ludicrous union contracts!


36 posted on 11/13/2008 7:48:07 AM PST by AngelesCrestHighway
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To: Paine in the Neck

Like I could not have answered my own question!!
There was a time when unions had their place. I think that time has passed!


37 posted on 11/13/2008 7:50:32 AM PST by Holicheese (Get up Tom Brady, get up! PLEASE!!)
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To: mvpel

I’m not paying for AIG luxury resort getaways. AIG was given a LOAN, not a bail out. A very short term one at that.

Plus i don’t deal with that company anyway, so not even my insurance premiums pay for them


38 posted on 11/13/2008 7:50:57 AM PST by Nathan Zachary
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To: Monsieur Poirot
This was documented years ago on a radio program, which I have forgotten. They had interviews with these union members. They were essentially laughing at the system. They would go to these places and watch TV, play cards or checkers all day and get full pay. They were employees of GM.
39 posted on 11/13/2008 7:52:55 AM PST by Red_Devil 232 (VietVet - USMC All Ready On The Right? All Ready On The Left? All Ready On The Firing Line!)
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To: Holicheese

The navy had something similiar.

The ship I was assigned too went on a long cruise about 20 days before I would finished my active duty assignment.

So I was assigned to a temp duty in Little Creek. After a couple of days there, the XO, made some calls to the DC area where we were moving after I got out. I opted out of a similiar do nothing situation for my final active duty days.

He got me a temp assignment in the Navy Yard in DC, so we moved early. My wife started her nursing job early, and the hospital and she were happy. We got into a great apartment ahead of time.

After about a week there, the CO and XO of the Reserve unit, I would be attached to after my active duty was over came in for a couple days, and we were introduced. I worked with them for that time. The next thing I knew, I was transferred to the Reserve station to finish my active duty. It worked out well for them and me.


40 posted on 11/13/2008 7:55:59 AM PST by Grampa Dave (Do we trust 0W0N$PENDALOT, Pelo$i, Barnie, Dodd & Reid to leave our 401k's/IRA's alone?)
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