No Auto Bailout
Stupid stunts as the politics of finance.
Of the very thin specifics of Ford’s plan in the linked article, they are all salary cuts or freezes for management. When it comes to what the UAW will sacrifice, there is a vague sentence about “cost cutting.”
No bailout. Email your senators. The Great Depression was caused in part by an administration that pressured industry to keep wages unaffordably high until mass layoffs resulted. The UAW will do the same if given half a chance–except they will milk the government trough for all it’s worth for as long as they can possibly avoid the layoffs. Taxpayers will be paying the artificially high wages of uncompetitive workers. This is not economically sound.
The U.S. auto industry is not competitive with overseas makers. They can either become competitive through realistic cost cuts, including wages, or die.
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Amen! I cannot believe that executives showed up to the first meeting in D.C. in their private jets and have the nerve to ask for taxpayer money. Sell your jet! Drive your Ford! If the government does a Detroit bailout, I will be furious.
Comment by thelmajoy — December 2, 2008 @ 2:40 pm
I was about to say “amen,” but I see my big sis already took care of that for me. We just did a chapter on unions in my HR class today, and I presented an article on this asinine EFCA that our democratic government will probably pass in the near future. I’m sure we can look forward to more of this craziness in other industries besides auto once that happens; God help us.
Comment by Bumble — December 3, 2008 @ 1:19 pm
One of my clients told me today that the average operating cost of foreign motor vehicle production is $48/hour and the american equivalent is $78/hour. You nailed it on the head, Anwyn. American automakers need to cut costs to get competitive.
Comment by thelmajoy — December 3, 2008 @ 2:22 pm
A huge reason why this mess came about was that the liberal illuminati allowed the UAW to become huge. I think the first step should be to take some power away from them now.
Comment by ew — December 6, 2008 @ 11:59 am