Auto Makers Arrogance

[GTO Man]

The idiots at the helm of the big three auto makers flew into town on their company jets. If we the taxpayers end up lending GM, Ford and Chrysler any money, a requirement should be that the current management is out the door. They are the ones who made the decisions that put them in the position they are in.

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[jonmandude]

So the senate rejected the bailout. This time is was the UAW greed that ended it. The republicans in the senate asked for two things, for the wages be lowered to what the “foreign” automakers in the US pay, and for a date when changes in the automakers will happen by, They said “any date in 2009”. The UAW did want to agree to be “equal” to non-union workers.

The automakers couldn’t give a date. Which sounds to me like they aren’t actually going to change anything after they have the bailout money.

[GTO Man]

I think is is probably good the UAW stood their ground. They had already negotiated that new employees starting in 2009 or 2010 would start at $14 per hour. At some point workers in this country have to make a stand. The field I am in, computer consulting has been feeling downward pressure on wages since they have allowed all the foreign workers in this country. They aren’t citizens, they usually don’t have a green card, most have H1B visas. I basically haven’t had a salary increase in 6 years. The foreign workers are like whores, with their companies and the companies that use them the pimps.

The plant in Chicago is a good example. Republic moved the work to Iowa where they hired non-union workers at half the wage. The Illinois workers needed to occupy the plant.

Republicans have been trying to break unions since that simpleton Reagan was in office. His best days were when he was acting in Bedtime for Bonzo. And Bonzo stole the show.

[jonmandude]

I agree to an extent. I have worked in union and non-union shops in the envelope business. I have worked with both good and bad unions. Good unions try to work with the business to get what is the best deal for the employees. Bad unions only want money, they do not care if the company suffers or if the employees end up losing when the company goes out of business. As long as the union gets it’s dues while it can. In most fields I would agree with workers needing to make a stand and get compensated, but not with the UAW. Workers in the “foreign” automakers plants are getting good wages, many over $30+/hour. There are too many stories of the $70+/hour wages in the UAW out there. While I have no problem with people getting what they are worth, if your business is failing you must make concessions. Call me crazy but $30/hour sounds a hell of a lot better than looking for a job because your company went out of business trying to pay you more.

I feel bad for the workers because they WILL end up taking the hit. The UAW making a stand will not prevent the hit from coming. My problem is not with the automakers, they are just the first of what I expect to be a long line of industries hitting major financial downturns. The middle class in this country has been getting less and less pay increases every year since the 80’s, while everything is going up in cost. The CEO’s in this country have been getting their increases and bonuses. It has to stop. If it takes the automakers to collapse to make it happen, so be it. Sometimes you have to go back to move forward.

[GTO Man]

I agree the UAW has gone off the deep end as far as wages and benefits. Like you say there are good and bad. The UAW wasn’t looking out for the good of the business along with the employees. The companies are partially at fault for letting the union get wanted. The UAW has placed unrealistic demands on the auto companies. As usual the workers will feel the effects.

[Garibaldi]

http://www.youtube.com/watch?v=duaIpNq_lZM

What I’d like to point out from the above clip is the following statements:
– before 1981, the U.S. was the top exporter of manufactured goods, importing the most raw materials, and was the biggest creditor (lending other countries the most)
– after Reagan, G.H Bush, Clinton, and G.W. Bush, the U.S. is now the top importer of manufactured goods, top exporter of raw materials, and has the biggest debt

This shift (beginning with Reganomics) away from a focus on manufactured goods – as Thom pointedly notes was outlined by Alexander Hamilton – is extremely obvious in our failing auto industry. The auto industry needs to be competitive again by providing affordable, efficient, and quality vehicles to compete with foreign automakers and help bring manufacturing back to America

[jonmandude]

Well the loss of production in this country is directly reflective of Clinton’s administration and why I say he was the worst President in our country’s history. When NAFTA came across his desk the republicans warned him that signing it would open the door for many industries in the US to move their business offshore. Although NAFTA was created to simplify trucks crossing the border from Mexico, it lessened the taxes on importing goods and made it cheaper for businesses to produce elsewhere and import here. Before NAFTA the taxes on importing goods made it economically better to produce at here. That combined with Reagan’s trickle down economics and Bush’s tax cuts to the rich have killed the industry and crippled the middle class. Now it is coming back to hurt the wealthy and they always cushion the blow by throwing the “lower” classes under the bus first.

[GTO Man]

Government to loan GM and Chrysler $13.4 billion from Wall Street bailout fund so that the embattled auto firms don’t run out of cash.

I wonder if it will make a difference in the long run. Won’t help the people already laid off.

[jonmandude]

I don’t see it as doing anything but allowing the top brass and shareholders to get what they can before it falls. GM’s top brass already have said that they see nothing wrong in their compensation and so has the UAW. Until the realization hits that the sales aren’t supporting the spending, there will be nothing but the inevitable failure.

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