Detroit Wins At Least Once This Weekend

Guess I just can't get past commenting on federal financing for the Big 2.5. There's plenty to say and plenty of time to say it, but here's the money quote (from Rep. John Dingell, D-MI):
While I applaud President Bush's decision to provide short term loans to the domestic automakers, I have strong concerns about some of the conditions that were placed on these loans. We all want to see the Big 3 restructure and be competitive in the future, but it is irresponsible during a time of economic crisis for the White House to insist that workers take further wage cuts on top of the historic concessions they have already made. I strongly urge President-elect Obama to revisit this issue as his first priority upon being sworn in, and to ensure that assistance to the automakers is provided in a way that is fair to working Americans.
Two points:
  1. Employee compensation either fits into a business' cost structure or it doesn't. Paying people (management or labor) based on their needs and not the organization's is a guaranteed way to go out of business.
  2. If Rep Dingell were at all honest on this topic the last sentence would say: "I'm looking forward to President-elect Obama's inauguration, when his first priority will be to renegotiate this assistance to the automakers so that members of the UAW can get paid more, irrespective of the automakers needs or the employees alternatives."
Have a great weekend.

1 comment:

Rational said...

I can't listen to it anymore, I just can't. My household income in 2009 will be about 1/3 what it was in 2008 and now my taxes have to go to support the outsized wages and pensions and life long healthcare benefits (I don't get etiher of those last two items, by the way)of 400,000+ unproductive retirees?

Of course, what should one expect from a man that belongs to an institution (Congress, in case there was any uncertainty about that) that will see its annual pay raise uneffected by the dismal economy and collapsing tax receipts.

I'm moving to Cuba. At least I can play golf year round there (and a little bird tells me they have a great healthcare plan).