Oak Ridge
UKC Forum Member
Registered: Aug 2003
Location: Indiana
Posts: 6168 |
Sheepster,
Having talked with you on the phone before, and being one of the few folks on this message board that can say I've looked you straight in the eye....I don't believe that you are the uber goober that you are portraying here.
I've come to realize that you have a very limited view of the world, and having that limited view, I certainly understand your way of thinking. However, as I frequently tell you, all is not as it seems to be, or there is "more to it" than what you are considering.
I'm not sure what job you hold today, but if memory serves me, you used to work in a carpet manufacturing facility. You are wanting to punish the 3 CEO's of the auto manufacturing industry, and just for giggles, the to 10% of all of the upper management that have "excessive" salaries.
I don't disagree with you that there are large levels of waste in auto manufacturing. On that we agree...however, allowing them to "crash and burn" would have far reaching consequences.
That carpet that you made...who purchased that? Sure the 1,000 or so people that work in auto manufacturing management made it, and if they lost their jobs...no negative effect would be felt in Rockmart GA.... However, if the big 3 "crash and burn"....how man of those UAW employees are going to lose their jobs? How many of them would buy carpet manufactured in Rockmart?
Certain you can't think that the companies themselves are "getting rich" on the poor man's back....they are looking for a bailout. Why? Because they are LOSING money.
Currently, the cost to these automaker by UAW (the union) benefits is a major causitive factor. For every UAW worker, in every UAW factory, the cost to the automakers per hour is $73.62 per hour. Now that does not mean that everyone is making that wage....fact is that those "fat and lazy" UAW employees are averaging 28.02 per hour (assembly) and $32.43 per hour (skilled trades). If you factor in overtime, holidays, vacation, shift premiums...the average hourly wage comes out to $39.68.
Where does the rest go? Well $33.58 per hour (46% of the total compensation paid out by the auto makers) goes for
Hospital, surgical, and prescription drub benefits
Dental and vision benefits
Group life insurance
Supplemental unemployment benefits (SUB Pay)
Pension benefits
Unemployment compensation
Payroll taxes (employers share)
Now my friend, if you look at all of these...someone's going to be affected if the big 3 "crash and burn". With a MAJOR decrease in insurance pools, insurance costs for you and me rise, lessening pension benefits cause a further drain on the public "pension" fund...social security. Decreases in payroll taxes mean that someone has to foot the bill for government spending.....that means you and I.
Lets look at some of these...let's take the SUB pay. Do you know that the UAW negotiated with the big 3 to pay into a fund that supplements unemployment? Do you know that for a period of time, UAW employees, if laid off get Unemployment beneifts PLUS sub-pay....which usually equates in combination to 85 to 90% of what they would be making without sub pay? Now that's what I call a benefit!
But wait...it goes further than that. What about all of the older retired UAW workers? Do you know that the employer still has financial liabilities to them as well?
UAW employees enjoy the same health care benefits after they retire as they did when they were activley working. In 2006, GM paid out 4.9 Billion (with a B) in UAW negotiated retirement health benefits for 291,000 retired employees and surviving spouses.... I ask you...if you let them "crash and burn"...who's gonna pick up those peices?
The simple fact is that none of this is simple. As elvis mentioned, this is not the first time that the government has come to the aid of a private label. Chrysler was given a loan, and under the leadership of one man....paid the money back. Unfortunatly, that company has been bought, sold, bought again, and sold again since that time....each time stripping cash out of it's infrastructure...reducing it to ruins.
The UNION must share some of the blame for the state of affairs. I agree that there are excesses at every turn....but every three years there are union negotiations...and the company is held hostage for fear of a strike, if benefits, that are driving up the cost of the product, are not held at current levels, and/or INCREASED....despite the cost. I'm not saying that the Union does not have a place, but how is it that the Union is making money, but the company is losing money? Does the UNION share in some of the blame for the state things are in? What is the UNION prepared to do to save the industry?
It's a whole lot more complicated than allowing them to "crash and burn".
__________________
Joe Newlin
UKC Cur Advocate
Home of Oak Ridge Kennels
Last edited by Oak Ridge on 12-09-2008 at 08:25 PM
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