Friday, December 12, 2008

HOORAY!! Finally some IQ points make an appearance!!

The Senate announced this morning that the Auto Industry Bailout failed last night. The UAW refused to accept pay cuts that would put them in the same pay scale comparable to other auto workers in non-union plants. The pay cuts would be necessary for the Big Three to remain competitive; however, the UAW disagreed. UAW President Ron UAW President Ron Gettelfinger seems to be in denial of the situation and actually stated that bankruptcy for the Big Three "is not an option".

The fact of the matter is that not only is it an option - it is the only one left absent an agreement from the UAW to accept a pay cut. Apparently Gettelfinger does not understand that the Big Three are not ABLE to pay those exaggerated wages. THERE IS NO MONEY LEFT IN THE TILL.

I think the Big Three should each file bankruptcy and relocate to the Southern States where you can hire as many people as you need to work for one-third the salary. Areas north of Dallas have had other industries close and the area has plenty of people willing to work. I am sure that the other Southern States have similar issues - I am from Texas and simply know about the situation there first hand. Do a little research and find a handful of areas not run by the out-of-control unions and put plants there. Get a fresh start and out from under the grandiose union contracts.

I believe this can actually be a good thing for the Big Three - perhaps they can attain the level of superior workmanship and reputaion they once held. I am not sure they can do it with the current leadership; so far, I do not hear of any expected changes. If they get someone in there that knows how to run a profitable business - they will rise again.

1 comment:

Anonymous said...

bankruptcy is my vote, but I think Bushy is going to slip them a fiver or so.