Monday, March 30, 2009

Did I Call It, Or WHAT!?

Back in December 2008, I said, “The fact is, that there are ONLY TWO possible solutions to America’s domestic auto crisis; (1) either the UAW shops have to be coerced into working for the same $50/hour wage, health and pension package as the non-Union Toyota, Nissan, and BMW shops, OR, (2) all those non-Union shops have to be either coerced OR tariffed/taxed into paying the same amount for THEIR labor. OTHERWISE the UAW shops will NEVER be able to compete.”


The Obama administration apparently agrees as the AP reported earlier today; “President Barack Obama refused further long-term federal bailouts for General Motors and Chrysler, saying more concessions were needed from unions, creditors and others before they could be approved. He raised the possibility Monday of controlled bankruptcy for one or both of the beleaguered auto giants...

“...Obama said he is committed to the survival of an auto industry — on terms that will allow it to compete internationally.”

That doesn’t sound exactly pro-Union, does it?

I mean, in the first part of that statement they’re acknowledging that America’s UAW shops can’t compete due to “poor decision making” (apparently capitulating to unsustainable Union demands) by their Executive Boards and is now demanding concessions (in pay and benefits) to get those shops in-line with their non-UAW competitors.

It’s the RIGHT path, though NOT necessarily the “pro-Union” one.


pela68 said...

$50/ hour?! WHUT! How much does the union workers make?

Or have I missunderstood you?

If not- my god!

Here an auto shop worker makes maybe $20/h - including pension and then there's taxes aswell (helth care taxes, income taxes and excise taxes) giving us the next highest total tax preasure in the world of about 50% (something I'm sure is a thorn in the eye with the Social Democrates, we have been leading the leauge for so long now that I'm positively sure that they would rize taxes just in spite, not to let the Danes be at the top, something they actually have promised to do if they win the 2010 elections).

Going on a vacation this summer? Go to Sweden! We actually have quite nice climate here in the south, stunning nature in the north and the free fall of the Swedish krona WILL make you feel like a millionare (as long as you don't buy American that is).

JMK said...

"$50/ hour?! WHUT! How much does the union workers make?

"Or have I missunderstood you?

"If not- my god!" (Pela68)
Actually it's WORSE than you think, Pela! As that $50/hour is the cost of those workers at our NON-Union shops ("America's working auto industry" - the Toyota, BMW, Nissan and Saturn plants)...and that does include both salary + health insurance costs.

The total cost of a UAW worker is appx $70/hour of salary + healthcare costs.

America did a very dumb thing with its auto industry. It let foreign competitors into the country and allowed them to be exempt from the UAW yolk that had saddled our own industry with excessive costs for decades!

Actually, it's amazing that the American auto industry has survived THIS long.

You'd think the ONLY logical step would be an "ALL or NOTHING" approach - either all car makers in the U.S. deal with those same UAW costs or NONE do.

Right now, America seems to be on a very bad path, we're following up on a crisis brought about by Keynesianism (MORE government spending and regulation) with even MORE Keynesianism!

American Ideas Click Here!