Or else...
Posted on 11/15/2008 2:52:01 PM PST by 2ndDivisionVet
Even as Detroit's Big Three teeter on collapse, United Auto Workers President Ron Gettelfinger said Saturday that workers will not make any more concessions and that getting the automakers back on their feet means figuring out a way to turn around the slumping economy.
"The focus has to be on the economy as a whole as opposed to a UAW contract," Gettelfinger told reporters on a conference call, noting the labor costs now make up 8 percent to 10 percent of the cost of a vehicle. "We have made dramatic, dramatic changes and the UAW was applauded for that," he said.
Instead, Gettelfinger blamed the problems the auto industry is suffering from on things beyond its control _ the housing slump, the credit crunch that has made financing a vehicle tough and the 1.2 million jobs that have been lost in the past year. "We're here not because of what the auto industry has done," he said. "We're here because of what has happened to the economy."
Gettelfinger also called on Congress to act quickly on a bailout plan for the auto industry, saying action is necessary before President-elect Barack Obama takes office in January. He said if one automaker were to file for bankruptcy, the others may follow. He said the automakers would find it difficult to restructure under bankruptcy laws and instead could end up out of business. "Would you buy a car from a bankrupt automaker?" he asked.
(Excerpt) Read more at napavalleyregister.com ...
I hope they stick to their guns. What do they have to lose, the union vote?
**Republicans are going to filibuster the bill!**
Not holding my breath on that one... I might not believe it, even if they DO IT!!
Can you imagine if they don’t get the bailout and have to take a pay cut? The vehicles won’t be worth buying either.
** The vehicles won’t be worth buying either.**
Ah yes, back to the FIESTA, VEGA, and the CHEVETTE
GOD Help US all!!
Or else...
Yes, I am sure as far as any plant owned by the Big 3 goes. Toyota was not part of the compact signed back in the 1930’s.
Here is a link to the UAW’s version of how things went down
http://www.uawlocal1999.org/UAWHistory/default.asp
The spin is nauseating but the basic facts are correct. If you want a non-union American car company you have to build one from the ground up. Ford, GM and Chrysler are fair caught in the union web.
>>>>>>They never talk about using wages, insurance and benefits when talking about other professions.<<<<<
All companies did and do in finance/accounting departments of Silicon Valley hi tech non-union industries I’ve worked in. Also, professions like CPA firms certainly need to know the direct costs like Ins, retirement etc as well as training, conferences, staff meetings & other non-chargeable items like idle time to make sure billing covers all the employee costs for the qtr or the budget year.
The smaller the company the less formal the analysis needs to be but I’m willing to bet that in any on-going company somebody in sr mgmt has a good handle on total employee costs beyond just the direct costs.
“”Would you buy a car from a bankrupt automaker?” he asked.”
I can tell you I am not buying a car from an automaker who pays people to stay home and then wants my tax dollars to keep them home.
NO way, NO how.
Thank you for the gratuitous insult, it makes your point so much more compelling.
To answer your other question, I have worked in computer consulting, but not as a consultant; I was a recruiter who placed consultants and some of our clients were high tech manufacturers like Hamilton Sundstrand.
That said, my answer to you is not based on my time there, but on common sense. Maybe there's some Econ 201 in here, but mostly it's just seeing the forest and the trees. Sorry to put it that way, but that's the way it is.
There are three--and only three--things that are going to happen here:
1. Detroit will be bailed out, and the companies will be right back where they are now in short order. Maybe not today, maybe not tomorrow, but soon. Maybe before the end of the Obama administration. If you doubt me, see "Chrysler, bailout of."
2. Detroit will not be bailed out, the union will continue to refuse to deal with economic reality, and the companies will enter bankruptcy.
3. Detroit will not be bailed out, the union will get a grip on reality, and the companies will fumble, mumble and stumble but eventually make their way out of this mess.
Now, if these companies go bankrupt it's possible it could lead to liquidation, but I don't buy it. Remember how we were told that the Wall Street bailout was necessary to get frozen credit markets moving, or none of us would be able to buy cars or get home loans? Guess what? Paulson's going to use it to buy stock instead. Fool me once, shame on you and all that.
What is far, far more likely is that they'll work something out with their creditors if they go into bankruptcy, as has happened over and over again when large corps go bankrupt. But let's look at your scenario. What would have to happen for it to come to fruition?
1. Every investment group (either existing now or that could be formed to do the deal) ignores the chance to own all the great things these companies embody. None of them are interested in the trillions in potential profits these companies offer if they can get back on track.
2. The UAW refuses to budge even when it's clear the very reason for their existence is about to disappear.
3. Liquidation happens and the assets are only bought by companies that have no interest in designing, building or testing cars in the U.S., i.e., non-car companies or foreign car companies. Note that this would require that this wouuld require that the foreign car companies who bought the stuff to use it only for their own designs and flush all of Detroit's intellectual capital down the toilet.
4. Even though the United States has a shortage of engineers, all the guys and gals who make up the knowledge base of these companies move to Japan, Germany, Korea, Sweden and Italy.
To say that chain of events strikes me as unlikely is to understate.
The good news is that I have a new idea to save the car companies that you'll like very much. I'll ping you when I post it.
I’m not sure if it’s the same plant, but I recall reading an article about a steel plant in the Southwest that was hurting. I can’t remember if this place got rid of the union completely or just forced a change in relationship. One thing I do remember vividly is that (under the old way of doing things) if a lightbulb burned out they had to call immediately call in a union electrician to change it.
Once they did away with stupid crap like that and the point of the compensation plan was to pay a man a day’s wages for a day’s work, the plant became a solid profit operation. Gee, what a surprise.
The retirement plan will disappear with the Corporation. Did they think of that?
Interestingly, in the newspaper (I use that as a source for the left wing media) this a.m., it seems the unions are going to fight their way into Texas and other right to work states.
Seems there is some legislation in the works to make their job easier.
1. The card check process would replace the secret ballot.
2. An arbitrator would impose a contract if union and management can’t agree on terms within 120 days of of the union’s creation. There is no deadline at this time.
What a lousy time for the ‘Pubs to be in the minority.
“F**k you!”
Nice. Do you kiss your mother, (or daughter) with that mouth?
Let the UAW buy the Big three. That will solve there problem......................
Then the rest of the US tax payer won’t get screwed over buy the unions......
Worse than that, they have a huge resort facility in Michigan a lodge for the “Working Man” Glof Course etc. I think they are trying to unload it.
**I guess $72/hour is just barely enough to put food on the table these days.**
To BE FAIR, about half of that $72/hr is actually Gross Paycheck..
/sarc
FAIR MY A**, that’s still 2 to 3 times the Average American paycheck..
UAW .. YOU BAIL OUT GM ..with YOUR OWN DAMN MONEY!!
Naw, not amazing at all.
I watched the meat cutter union force Safeway Grocery chain in the Dallas / Ft Worth area close 141 stores in 1987 let go of several thousand employees because they did not want to pay a higher percentage of the medical premiums even with a small pay increase. Net overall it would have cost the union thugs about a > 2% decrease in pay.They were making at the time $15.00 hr. with free medical bennies
Every person employed by Safeway I spoke to (I was a vendor calling on them) never thought the union would force them out of jobs.
Most were very shocked when they were out on their ass
The saddest part is most of the stores were bought up and rehired many of the same people but at a much lower pay scale
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