The Big 3 are in trouble. Of that there is no doubt. Should be bail them out - HELL NO. They got here through their own decisions. They entered into stupid union contracts. My favorite concession is the jobs bank. This is where you pay thousands of workers to sit all day and do NOTHING.
It is by design - you pay them to do nothing. It has its roots in the days when the company was automating jobs once done by humans. As a sop to the unions, they company agreed to keep people on the payroll, just in case they were needed. They are never needed. My best friend is losing his job at the end of November as a contract engineer for GM. He works at the GM Technical Center - this is a one-mile square collection of GM buildings. In one of the buildings, 150 union 'workers' show up everyday - and do nothing. Apparently, they used to be janitorial workers - but GM outsourced that function years ago. While these guys sit and do nothing, my friend is losing his job - at which he has worked hard for 15+ years. Great system.
So, I say - let them go into Chapter 11. It will give the companies a chance to re-organize and re-emerge with a competitive cost structure. Giving them a $25Billion bale-out does nothing to fix the fundamental problem. It simply prolongs the agony. Companies in Chapter 11 keep on running, people keep going to work, products keep being built.
But, the Democrats in congress are crying for a bailout. Why? Because, in Chapter 11, the courts will impose new contract terms with the union. That is the big rub for the Democrats. The unions HATE that. The court will simply remove ridiculous provisions like the jobs bank, having your birthday as a paid holiday, and not allowing an electrician to sweep a floor. In my mind, if the unions hate it - it must be a good thing.
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I agree with your opinions on this excessive GM bailout. But could you give some data (sources) to back it up please?
I am not sure what data you want references for exactly. The 150 comes from someone I know who works at GM. Most of the rest is historical understanding. Companies operating through Chapter 11 is observational from watching, say, the airlines. The point about the unions - my observation - plus my opinion.
Where have you been???
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