Thursday, December 04, 2008

Regarding Bailouts for the Auto Industry, and other industries that have failed us.

This week - especially today - the Tweedle Dee, Tweedle Dumb, and Tweedle Dumber of what used to be the U.S. auto industry, will be appearing before a Congressional committee that holds their respective company's futures in their hands................Pardon me, but isn't this like the Three Stooges pleading their case before the Keystone Cops?? And if I hear one screaming Lib say we have to do this because this is "a hand up - instead of a handout," I think I'll blow lunch! To quote Steve Martin, "Puuuull-lleeeesssseeee!"

You're going to be giving my tax dollars to someone else, because they aren't smart enough to run their business profitably - - that's a handout!! Does Congress think we're still that stupid? What hurts worse is that Congress is couching it as "loans." What guarantee is there that any of these "three blind mice of auto-stupidity" will ever be able to pay back one penny?

And what hurts the most is that Congress thinks nothing of "BETTING" your and my tax dollars (a.k.a. my retirement dollars) that this will be the saving grace our auto industry needs - just this one last time -this time they'll really change - (just like the last time with Iacocca and Chrysler "taught" them so much).

It's like listening to a drug addict tell you s/he's going to kick the habit this time (as they're looking out the window across the street to where the pusher just walked up to the corner! OR, it's like listening to Congress tell us during election time that Washington has to change - and they're just the candidates to do it!!!!

(Let's see....what's that definition of "insanity" again? Doing the same thing over and over and expecting a different result.)

Personally, I'm all for letting the three of them go into bankruptcy. This is the only way the American people can be sure they'll change. Because they'll be forced to. For me, bankruptcy brings with it the added benefit of giving each of the three the ability to break the UAW "strangle-hold" on the industry. Don't get me wrong, I know the UAW has been important in the lives of it's members, but lets face it, in the past companies having bargaining unit employees in the UAW (and other unions) have had to close because the Unions made the "cost of doing business" too high.

I know this personally, because I was the chief labor negotiator for one of those company's during the early '90's. And even though we flat out told the UAW (and the IBEW) that unless they lowered their wage and benefit demands the company would be forced to leave New Jersey, they didn't care. They kept demanding higher hourly wages and a dollar more per employee into the union "war chest." Then they screamed with "righteous anger" when we announced the plant closing, packed up and left for Florida!

What happened? Well, most importantly 600 great New Jersey employees lost the jobs many of them had worked hard at for 8 - 15 years. The company restructured, and moved to the Gulf Coast of Florida into a brand new facility. I trained & hired 500 part-time "sno-bird" employees who only wanted to work 20 hrs a week, paid them about half of the $18-20 per hour the New Jersey employees were making.....and the UAW lost yet another bargaining unit.

You see, there are two things UNIONS never tell their bargaining unit members.

First, as a union employee you can no longer walk into a managers office and talk to them about your job or your efforts. Conversely, management can't come out to you and say, "man what a great job you're doing, here's $50." As part of the bargaining unit, the "individual" goes away.

Second, and most importantly...no union can ever force a company to stay open. If "the Union" makes it too expensive for a company to continue producing product....the company can call it quits. PERIOD.

A few weeks ago when I heard the head of the UAW take the hard line and say on television....No concessions! I thought, gee - there's a gauntlet being thrown down. I wonder how this is going to end? I guess we'll have to see.

I'd love to see no $$$$ go to any company - the Insurance industry, the finance industry, or Detroit. This is NOT what government is for. However, in the same vein - neither is government to be a bottomless tax collector, nor should government strive ONLY to get bigger. At some point.... and based upon Mr. Obama's campaign promises this may be the perfect starting point...... both the U.S. auto industry and the U.S. government MUST change.

For this American tax payer, "change" is spelled "S H R I N K."
(Is that too harsh?)

Dum Spiro Spero!!

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