Monday, November 17, 2008

The UAW has already bought their Bailout

Bailing out the big 3 automakers is nothing more than kicking the can down the road and that road is headed over a cliff. 

Will the ruling party stand up and make the hard choice, the unpopular, but necessary decision to force these companies to declare bankruptcy?   Bankruptcy would allow these unwieldy, behemoths to restructure, reorganize, streamline and break the juggernaut of the unions. That is the key - No industry can survive paying an average of $73 per hour to low skilled labor.

The unions seem to be trying to stop time by refusing to adapt and change with new technology (robotics).  They are so consumed with preserving their old, outdated jobs that they are willing to kill the mothership, herself.  

Bankruptcy is not the end.  Many companies emerge stronger, leaner and more competitive. Frankly, there is not much chance of this happening since the unions own the president elect. Can you imagine the outcry if BHO doesn't give these folks everything they demand?


  1. Thanks Kristin. The video from the Ford plant in Brazil was so good I had to watch it twice. You're right about the UAW (and the President-elect) on all counts. I agree that bankruptcy is not the end for the big three. However I think the timing just sucks right now with the housing and credit crisis happening at the same time. I don't like throwing good money after bad but too much surgery at one time may 'kill' the patient (economy) here. What really bothers me beyond these bailouts is the lack of accountability of exactly how the money is being spent by the banks that have accepted our money to date. I think I heard on the news lately that a congressional oversight committee (and I use that term loosely) only was aware of which banks received money and how much. We are witnessing a dysfunctional government. It's as simple as that.

  2. In all fairness (I'm not sympathetic at all toward the UAW), the technology is not so much what they oppose (though to some extent I understand they do)... the big difference with that Brazil plant is that they house suppliers and their employees under the same roof as the full-timers. Especially in the plant shown in that video - I've never heard of suppliers actually assembling the car for Team Members.