Auto Bailot Just Failed!

lovethesea

Active Member
also the job bank....Car companies fed 900 million into it in 2 years? So people can get 95% of their pay to do nothing. Some folks had been at the "bank" for up to 4 years? Sign me up.
It is going to have to work both ways here.
 

darthtang aw

Active Member
Crimzy, maybe you should read this article released in 2005 before you start defending the validaty of some of these jobs. Keep in mnd the schooling and money YOU had to dish out to make the pay you do. Then compare that to the GED holding wages these guys earn.
National Review:
Massive job cuts at General Motors, America's largest carmaker — coupled with the bankruptcy of Delphi, America's biggest autoparts maker — have provoked predictable handwringing from liberal pundits who worry that America is "losing its manufacturing base." But the wrenching change now buffeting the auto industry defies the usual press formulas. Just listen to Steve Miller a turnaround specialist who is steering Delphi's restructuring process. He exploded the myth of America's "endangered" union manufacturing jobs at his October press conference announcing Delphi's move into Chapter 11: "We cannot continue to pay $65 an hour for someone to cut the grass and remain competitive."
Take grass cutting. As defined by the current United Auto Worker contract negotiated with the "Big Five" (GM, Ford, Chrysler, and top parts makers Delphi and Visteon), an auto "production worker" is a job description that covers anything from mowing grass to cleaning the toilets. In the real world, these jobs would be outsourced to $8 an hour, no-benefit wage earners, but on Planet Big Five, these jobs get the same wages as any auto line-worker: an average $26 an hour ($60,000 a year) plus benefits that bring the company's total cost per worker to a staggering $65 an hour.
But at least the grass cutters are working for their pay. The UAW contract also guarantees that 12,000 autoworkers get full wage for doing nothing. On the heels of Miller's straight-talk, the Detroit News reported that "12,000 American autoworkers, instead of bending sheet metal, spend their days counting the hours in a jobs bank." These aren't jobs. And they certainly aren't being "lost" to China.
"We just go in (to Ford's Michigan Truck Plant) and play crossword puzzles, watch videos that someone brings in or read the newspaper," The News quoted one UAW worker as saying. "Otherwise, I've just sat."
The coming months will be painful for many American autoworkers. Accustomed to a certain lifestyle, they will see their wages cut in half, jeopardizing second homes, college tuitions, and car payments. One blue-collar Delphi worker interviewed by the Detroit News makes $103,000 a year operating a forklift and fears the consequences if his pay is drastically reduced. But many Americans will ask how a forklift operator felt entitled to a six-figure income in the first place (according to Bureau of Labor Statistics, the average forklift operator wage in the U.S. is $26,000).
It is an opportune time for political leadership to step to the plate and speak with candor, but the signs are not encouraging.
- November 29, 2005, Labor Pains, Detroit needs to play by market rules. By Henry Payne
Source(s):
The Indianapolis Star and the National Review
 

stdreb27

Active Member
Originally Posted by Bang Guy
http:///forum/post/2873370
What's unemployment? $400 a week? You're saying they would rather make $400 a week with unemployment instead of $40 an hour to "show them"? If that's their attitude then yeah,

[hr]
'em. I'm not convinced it's the average working stiff making this decision though.
If it's just the UAW flexing muscle and they're not actually speaking for the average Joe then the UAW isn't really helping the workers anymore.
not under a UAW contract...
 

crimzy

Active Member
Originally Posted by Darthtang AW
http:///forum/post/2873397
Crimzy, maybe you should read this article released in 2005 before you start defending the validaty of some of these jobs. Keep in mnd the schooling and money YOU had to dish out to make the pay you do. Then compare that to the GED holding wages these guys earn.
National Review:
Massive job cuts at General Motors, America's largest carmaker — coupled with the bankruptcy of Delphi, America's biggest autoparts maker — have provoked predictable handwringing from liberal pundits who worry that America is "losing its manufacturing base." But the wrenching change now buffeting the auto industry defies the usual press formulas. Just listen to Steve Miller a turnaround specialist who is steering Delphi's restructuring process. He exploded the myth of America's "endangered" union manufacturing jobs at his October press conference announcing Delphi's move into Chapter 11: "We cannot continue to pay $65 an hour for someone to cut the grass and remain competitive."
Take grass cutting. As defined by the current United Auto Worker contract negotiated with the "Big Five" (GM, Ford, Chrysler, and top parts makers Delphi and Visteon), an auto "production worker" is a job description that covers anything from mowing grass to cleaning the toilets. In the real world, these jobs would be outsourced to $8 an hour, no-benefit wage earners, but on Planet Big Five, these jobs get the same wages as any auto line-worker: an average $26 an hour ($60,000 a year) plus benefits that bring the company's total cost per worker to a staggering $65 an hour.
But at least the grass cutters are working for their pay. The UAW contract also guarantees that 12,000 autoworkers get full wage for doing nothing. On the heels of Miller's straight-talk, the Detroit News reported that "12,000 American autoworkers, instead of bending sheet metal, spend their days counting the hours in a jobs bank." These aren't jobs. And they certainly aren't being "lost" to China.
"We just go in (to Ford's Michigan Truck Plant) and play crossword puzzles, watch videos that someone brings in or read the newspaper," The News quoted one UAW worker as saying. "Otherwise, I've just sat."
The coming months will be painful for many American autoworkers. Accustomed to a certain lifestyle, they will see their wages cut in half, jeopardizing second homes, college tuitions, and car payments. One blue-collar Delphi worker interviewed by the Detroit News makes $103,000 a year operating a forklift and fears the consequences if his pay is drastically reduced. But many Americans will ask how a forklift operator felt entitled to a six-figure income in the first place (according to Bureau of Labor Statistics, the average forklift operator wage in the U.S. is $26,000).
It is an opportune time for political leadership to step to the plate and speak with candor, but the signs are not encouraging.
- November 29, 2005, Labor Pains, Detroit needs to play by market rules. By Henry Payne
Source(s):
The Indianapolis Star and the National Review

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Originally Posted by Darthtang AW
http:///forum/post/2873403
another one for you crimzy the breaks down a few more things.
http://www.dailyestimate.com/article...darticle=17042
I don't really see where we disagree on anything here. The UAW and labor costs are a major problem that has caused the Big 3 to be unable to compete. The UAW and its control within the Big 3 must be restructured. These companies cannot compete with their current costs. I don't disagree here.
My main issue is with the celebration of the prospect of the failure of 1 or more of the Big 3. The Big 3 need to change their ways... no doubt about that. But to laugh, mock or hope that any of these companies go under...
That's just ignorance of the impact of something like that, or simply a lack of caring. Anybody who would laugh or mock the Big 3's failure... I would laugh my a$$ off when the provider in your family loses his/her job. It's not so funny when it happens to you.
 

spanko

Active Member
But Crimzy are you looking at short term good? Wouldn't chapter 11 be a necessary evil to get them to long term stability, so that the workers get back to long term stability?
 

t316

Active Member
I don't "celebrate" the bankruptcy of one or more of these co.'s, quite the opposite. I agree with your description of the repercussions. However, I don't agree to a Gov. bailout, especially when there is a union still involved calling all the shots. I hope all three are able to pull thru, but I would like to see the UAW dissolved and co's being held responsible for their performance, vs. standing there with their hand out.
 

spanko

Active Member
And what about the argument that the airlines went into chapter 11 and came out better for it. They never stopped flying. I don't think the Big three or as they now call them on the news here the Detroit three are gonna go away even if they do go into chapter 11. So that said how many jobs are gonna be affected in all reality?
And don't get me started on the Union and their demands. Look at what is gonna come up with our government now. They are talking about automatic CPI increases in the minimum wage. Let's see how much more we can make the U.S. companies outsource because wages are getting higher here.
 

crimzy

Active Member
Originally Posted by spanko
http:///forum/post/2873417
But Crimzy are you looking at short term good? Wouldn't chapter 11 be a necessary evil to get them to long term stability, so that the workers get back to long term stability?
But there's no guarantee that this would end up with a feel-good Chapter 11, where they are able to reorganize and come back strong (like K-Mart). I think there is just as likely the potential that we are simply looking at mass closures and losses. You could also be looking at simple liquidation. You are from this area... you know what has been going on here for the past 2-3 years. Can you imagine the impact in this area of the failure of these companies? This is beyond the simple cyclical nature of the economy.
I have been involved with too many receiverships, bankruptcies, etc. I have seen the collapse of construction, m-ortgage, real estate industries in this state.... even large retail names are going under here. The rest of the country has no idea what's going on in this state.
 

spanko

Active Member
But there's no guarantee that this would end up with a feel-good Chapter 11
So doesn't that kind of say that there is no guarantee the bailout, bridge loan, whatever is going to only be a band aid. That it will probably be inevitable that they simply won't last long term without the restructuring necessitated by chapter 11. Shouldn't they do it while they still have some control over it instead of waiting for it to become a must do?
 

darthtang aw

Active Member
Originally Posted by crimzy
http:///forum/post/2873414
My main issue is with the celebration of the prospect of the failure of 1 or more of the Big 3. The Big 3 need to change their ways... no doubt about that. But to laugh, mock or hope that any of these companies go under...
That's just ignorance of the impact of something like that, or simply a lack of caring. Anybody who would laugh or mock the Big 3's failure... I would laugh my a$$ off when the provider in your family loses his/her job. It's not so funny when it happens to you.

Crimzy, I don't think anyone is laughing or mocking them. I know I am not. The reason I am glad it did not pass is several.
1. The potential appointment of a "cr czar" to oversea some of these companies. This is a pointless job and would cost tax payers. What does this czar do? Nothing except what the current ceo's and such are doing already by ensuring they are following certain epa and mileage guidelines. also they would be able to step in and make decisions regarding the company. This is structured as a loan, to be pid back. When I take cash loan I am not given a "czar" to oversee myself till it is paid back. I see this as another way for government to dip their hands into pockets and gain tighter control.
2. the loan/bailout does NOT adress the causeof the problem. It is not crappy manufacturing, poor marketing, or tariffs on goods when shipped to other countries. The big three sell roughly the same amount of vehicles as the japanese companies. The root of the problem is the union and their demands and the stranglehold they have on the big three. How does this bailout/loan, prevent this from occurring again in the near future. If GM is losing 35.5 billion a year how does this loan offset that? Since it does not address the operating cost.
3. I support the

[hr]
/financial bailout, and yet I do not. Especially when that bill had 150 billion dollars of pork added to it....That 150 billion of pork left a bad taste in my mouth considerably, and I see this ending up the same....I understand why it was a necessary evil, but at the same point the CEOS of those companies and the companies themselves learned nothing. So to save the many, we are rewarding the few. And the few can do the same thing again without reprecussions as CEOs still collect huge bonuses that are not merit based.
4. You give me a loan/bailout that forces the union to relenquish a few things to help the big three cut costs then I will support it. Because no matter what is done, if the big three can not cut cost and remain competative with the other automakers in the world turning a profit, this loan will be lost and not solve anything, and our children will be paying it back.
5. If you were a bank with the power to give loans would you give the big three a loan yourself based off the present situation? Knowing if things that don't look like they can be changed are not changed you will lose your loan..
4.
 

stdreb27

Active Member
Originally Posted by crimzy
http:///forum/post/2873414
I don't really see where we disagree on anything here. The UAW and labor costs are a major problem that has caused the Big 3 to be unable to compete. The UAW and its control within the Big 3 must be restructured. These companies cannot compete with their current costs. I don't disagree here.
My main issue is with the celebration of the prospect of the failure of 1 or more of the Big 3. The Big 3 need to change their ways... no doubt about that. But to laugh, mock or hope that any of these companies go under...
That's just ignorance of the impact of something like that, or simply a lack of caring. Anybody who would laugh or mock the Big 3's failure... I would laugh my a$$ off when the provider in your family loses his/her job. It's not so funny when it happens to you.

I love how libs suddenly take a supply side view of economics when it comes to this...
 

1journeyman

Active Member
I'm looking in vain for a thread where many of the posters on this thread were in support of the financial institution bailout?

The Unions killed Detroit. Plain and simple.
 

fish master

Member
iam undecided about the bailout. imo, this is about to brake the unions. but what people dont realize when the union wages and retirements go down, so is everyone elses.
 

1journeyman

Active Member
Originally Posted by fish master
http:///forum/post/2873496
iam undecided about the bailout. imo, this is about to brake the unions. but what people dont realize when the union wages and retirements go down, so is everyone elses.
Are there any statistics or studies to back this up? I'd seriously like to see those. (not sarcasm. If there is proof I'd like to see it)
What people seem to be overlooking is that the Auto Industry, in its present form, is doomed. We float them 14 billion dollars and 2 years from now they will be back asking for more handouts...
Folks, we live in the 21st century. The world is one giant, interconnected, marketplace. If your business is not competitive it will fail. If your employer is not competitive you need to start bettering yourself for a career move.
 

bang guy

Moderator
Originally Posted by 1journeyman
http:///forum/post/2873511
What people seem to be overlooking is that the Auto Industry, in its present form, is doomed. We float them 14 billion dollars and 2 years from now they will be back asking for more handouts.
By my calculations, a $14 Billion loan will last 4.5 months in the hands of GM and Chrysler unless they can get away from the jobs bank concept.
 

fish master

Member
like i said ,iam undecided. i agree with you jorney, they will be back. the problem is when they get they money, they are still not going to sell cars. with the way the economy is, people still arent going to buy cars. but if we dont help somehow there is going to be lots of job losses, not just the big 3, where i live there are several places that make parts for the auto industry, they will all lose their jobs. every day on tv there is companies closing. more job losses at this point is not going to be good. iam sure there is studies on that, but it is known that union wages has brought up all wages. if a non union company bids on state jobs or union jobs,they have to pay their employees union wages (prevailing wage)
 
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