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Why We Shouldn’t Bail Out Auto Industry

with one comment

UPDATE: Charles Krauthammer on the Democrats opportunity to nationalize the auto industry. No wonder Liberals wanted Obama to win – nationalize the country for the sake of jobs.

Saving Detroit means saving it from bankruptcy. As we have seen with the airlines, bankruptcy can allow operations to continue while helping shed fatally unsupportable obligations. For Detroit, this means release from ruinous wage deals with their astronomical benefits (the hourly cost of a Big Three worker: $73; of an American worker for Toyota: $48), massive pension obligations, and unworkable work rules such as “job banks,” a euphemism for paying vast numbers of employees not to work.

~~~~~~~~~~~Auto industry workers know the scoop. Until the American taxpayer can rid themselves of corrupt unions like the UAW – we have no business giving them money to dispose of as they wish.

Michelle Malkin’s post from an auto industry worker talks about the cancerous decline of a business that should go bankrupt.

A few years ago I was in Warren Assembly, in (Warren, County, (sic) [Macomb County,] Michigan. Two plants side by side make the Ford Focus and the Ford Expedition. As you drive from [Dearborn] to Warren County, every abandoned shopping center parking lot was full of vehicles. A friend of mine was then the HR Manager for Ford Truck and I asked him why they were still building.

His answer astounded me. UAW Labor is paid company wages whether they work or not. America has to wake up concerning this. Until we can get organizations like the UAW to understand the only missing ingredient to creating a level playing field is getting the cost of labor to a realistic level, domestic car makers will never be successful.

Labor Tiptoes Around Job Banks

Job Banks Costing Auto Industry Billions Of Dollars

Declan McCullagh Says Bankruptcy Better Deal For America Than Bailout

Sma’ Talk posted on the incredulous greed of unions and job banks in 2006.

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Written by smalltalkwitht

November 14, 2008 at 1:20 am

One Response

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  1. The American auto industry has known for years that the world automakers were slowly producing better built, less expensive and more inovative automobiles. Since the 1970’s when gas prices, long lines predicted the future of the industry here in America(some 35 years later)the top three companies in America refused to bite the bullet,reorganize, embrace the American consumer, the environment and a limited resource (known back then too) as other foreign auto companies did through the years. For 35 years union corruption left unchecked and ineptitude of management have directly impacted America’s economy, security and the welfare of workers and has been a driving force contributing to the economic crisis. For my money allow all three auto makers to file bankruptcy forcing restructure. New management and a wake up call to unions and workers is what is needed now not a bail out. We have laws on the books no additional control by government is necessary. Same holds true for any corporation who cannot make sound management decisions to increase profits of a company. Prudence dictates that the shareholders of all these companies be held responsibile also for not demanding these challenges be met all these years. If congress allows this bailout the “job bank” in this country will become a household word. No work, get paid and laugh all the way to the bank….oh excuse me if there are any left not government owned….

    Lynn Di.

    November 17, 2008 at 11:05 pm


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