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The cars are still built here and in Canada also so it was not all out sourced to Mexico...
No they aren't all outsourced to Mexico...yet...because the job bank was used as scope protection. The UAW wanted a scope clause but GM wouldn't agree to it, so they instead compromised on the job bank program.
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I remember a couple of years ago on the news about American union made cars costing $1,600.00 more than a Japanese car made in the southern states by non union members just to pay for the health insurance for retirees.
Maybe that's why they kept making the big SUV's , more money to pay out benefits... We'll probably never know for sure.
That may be, I am not sure, I didn't see that. However you must understand that Japan has a type of socialized health care in that the Government sets the prices of procedures, drugs, etc. so those costs aren't entirely born by automakers like they are in the States. In addition the reason Japanese companies have very little retiree health care costs here in the states is because they have quite literally a handful of retired people. Their costs will grow in the future.
You're essentially comparing a legacy airlines' cost structure to a brand new startup, like Skybus. In some ways you can say it's the same as an illegal worker coming into the United States to work for 1/3 of what an American could work for.
If the solution is to "get rid" of retiree health care like the Japanese model than the Government would have to step in and provide low cost health care insurance to those people.
Then shut up and stop blaming the UAW. If you don't care why are you blaming the middle class workers?
I am upset too. But I am upset at the inept management, not the workers. They did nothing wrong.
Your trying to claim that the union had no blame? Please, give it a break, I heard another poster on cd crying because they are a union worker, they have several homes and this means they might need to sell one.
Dont give me your boo hoo hoo, middle class not to blame because the union employees that bankrupted GM were overpaid and almost bankrupted the company ages ago with their threats of walkouts and holding the management by the throat until they got what they wanted..
Your trying to claim that the union had no blame? Please, give it a break, I heard another poster on cd crying because they are a union worker, they have several homes and this means they might need to sell one.
Dont give me your boo hoo hoo, middle class not to blame because the union employees that bankrupted GM were overpaid and almost bankrupted the company ages ago with their threats of walkouts and holding the management by the throat until they got what they wanted..
Your trying to claim that the union had no blame? Please, give it a break, I heard another poster on cd crying because they are a union worker, they have several homes and this means they might need to sell one.
Dont give me your boo hoo hoo, middle class not to blame because the union employees that bankrupted GM were overpaid and almost bankrupted the company ages ago with their threats of walkouts and holding the management by the throat until they got what they wanted..
Except that under a more lucrative contract GM was making money hand over fist. GM management got themselves in the situation of relying on selling SUV's. Their small car line up was pitiful. Quality? What quality? They designed the cheapest cars and put the cheapest materials in them.
If GM hadn't of paid them, they would've spent the money on upper management. At least this way $$ went to the workers. Executive pay here in the States is so far out of whack with what the average employee earns it's crazy.
Except that under a more lucrative contract GM was making money hand over fist. GM management got themselves in the situation of relying on selling SUV's. Their small car line up was pitiful. Quality? What quality? They designed the cheapest cars and put the cheapest materials in them.
If GM hadn't of paid them, they would've spent the money on upper management. At least this way $$ went to the workers. Executive pay here in the States is so far out of whack with what the average employee earns it's crazy.
The fact that they were making money hand over fist shows that unions benefit when there are profits, they have to suffer when there are losses.
Have you not read the papers? The new contract starts at $14/hr.
Not to mention, why is it that labor has to subsidize managements failures? It happened in the airline industry too.
Yeah, I read the papers, and as an individual who held 4% of ALL GM $1 stock insurance last month, I very much know what was going on. Dont kid yourself, the $14 an hour is TO LATE. And dont give me crap about labor subsidizing management failure. Taxpayers are the ones subsidizing while the union walks away with 17%+ of GM while investors like myself get crap. Sure, you take your $14 an hour job, but dont forget about the money the unions stole from the investors, and the taxpayers with their grab of ownership control using the government as leverage.
PS: Unions have to subsidize managements failures because thats where the money is, how else is a company supposed to become profitable if they dont cut their costs?
Yeah, I read the papers, and as an individual who held 4% of ALL GM $1 stock insurance last month, I very much know what was going on. Dont kid yourself, the $14 an hour is TO LATE. And dont give me crap about labor subsidizing management failure. Taxpayers are the ones subsidizing while the union walks away with 17%+ of GM while investors like myself get crap. Sure, you take your $14 an hour job, but dont forget about the money the unions stole from the investors, and the taxpayers with their grab of ownership control using the government as leverage.
PS: Unions have to subsidize managements failures because thats where the money is, how else is a company supposed to become profitable if they dont cut their costs?
I agree! Cry me a river, $14 an hour is about $5 an hour more than most people around here make. I guess what we all need to do is form some sort of union and then hold the companies hostage by threatening to shut 'em down if they don't treat us as gods.
As a bondholder I'm baffled by how the UAW has a better place at the BK table and is promised a larger share than the people who LEGALLY are at the head of the line and in fact at this point don't even have a seat at the table.
I guess if all the retail bondholders had raised millions of $$$ and votes for the admin we'd be sittting at the table eating caviar too.
I also don't see (if this stands) how anyone will buy corporate bonds in any unionized company (nor their cars for that matter) ever again. I know I won't.
I agree! Cry me a river, $14 an hour is about $5 an hour more than most people around here make. I guess what we all need to do is form some sort of union and then hold the companies hostage by threatening to shut 'em down if they don't treat us as gods.
As a bondholder I'm baffled by how the UAW has a better place at the BK table and is promised a larger share than the people who LEGALLY are at the head of the line and in fact at this point don't even have a seat at the table.
I guess if all the retail bondholders had raised millions of $$$ and votes for the admin we'd be sittting at the table eating caviar too.
I also don't see (if this stands) how anyone will buy corporate bonds in any unionized company (nor their cars for that matter) ever again. I know I won't.
That is because this administration is playing fast and loose with established bankruptcy law. From what I can see, the only reason bondholders are going along with it is because they would get even less money if the government were not stumping up the $50 billion.
it looks like GM is still spreading goodwill wherever it goes:
Automotive News [sub] reports that GM will force its remaining dealers to sign “participation agreements” requiring them to complete any upgrades GM requires. If they don’t sign on the dotted line by mid-June they face having their franchise agreements “yanked” says GM’s Mark LaNeve.
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