- The Big Three US automakers are asking for many billions
from the American taxpayer. This is a logical outcome of the "give
away the store" policies of the outgoing Bush Administration in response
to the Crash of 2008. A few billion here, a few billion there, oh what
the hell, a few hundred billion here and a few hundred billion there. Currently,
the total "bailout" amount is in the $5 TRILLION range and climbing.
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- The truth is that adding those trillions in debt to the
American economy is the worst thing that could be done and nothing that
a really responsible government would do. Finally many in Congress are
beginning to revolt against the greatest ripoff in human history. The plan
to "bailout" GM, Ford, and Chrysler is going nowhere and that
is good.
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- The problem that the Big Three automakers have is not
just the current recession. The problem is that in times of plenty the
Big Three caved into truly excessive demands from the United Autoworkers
Union during multiple contract negotiations. The Big Three pay retirees
and those on lay-off almost as much as they pay working members of the
United Autoworkers. The pension and bloated health care costs to current
and retired workers add many thousands of dollars to the cost of every
car sold by Detroit. You have retired assembly line plant workers and current
plant workers making near one hundred thousand per year levels in wages
and benefits. It has gotten so bad that the Big Three are simply not competitive
or profitable anymore.
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- American federal bankruptcy courts have broad authority
to rewrite union contracts and pension arrangements. It is well past time
to allow the Big Three to declare bankruptcy to clean out the deadwood
that is chocking to death the most powerful industry in America. When the
courts have restructured the overhead to a reasonable level, then and only
then should Washington even consider any loans to the auto manufactures.
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- Please do not mistake this brief article as some anti-union
tirade. I worked three summers in Whirlpool Corporation manufacturing plants
when I was in my undergraduate years in my university days. I understand
how necessary union protection is for many factory workers. I not only
am not against unions, I am pro-union. But there are reasonable limits.
In the case of the Big Three automakers the reasonable limits were crossed
years ago and now, in the current recession, something has to be done to
adjust the union contracts to save the millions of jobs at risk.
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- Stirling
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- Blog: Europe
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