Thursday, December 4, 2008

Automotive Bailout

Here is the thing with this whole deal, I am glad to see that the management is promising some stuff to reduce costs, but until the UAW actually renegotiates their contracts they shouldn't get a dime of federal money. Why should be pay for UAW benefits that most of us do not enjoy as hardworking taxpayers. Until these negotiations are complete the Big 3 need to stop asking for a federal handout and if they can't make it then file for bankruptcy protection.

$34 billion is just going to be a band aid and until the labor issues are fixed there is no hope for a turn around for any of the Big 3. I want to see what the Big 3 and UAW can do before we provide them more money to throw down the drain. If the UAW gives up a whole bunch of over the top goodies, then maybe the Big 3 no longer need a federal bailout or it might be a whole lot less. Plus, the 61% of taxpayers that are against a bailout right now might soften their opposition if they thought that UAW workers were not getting over on the rest of us.

So, until a new contract with major concessions is signed not a dime of federal money. I don't work on promises and wishful thinking because as soon as the money is doled out there is zero incentive to make real and lasting change. If you don't agree let me hear it and let me know what you think should happen.

2 comments:

  1. I wish that even one of the American auto companies had some chance of success. They don't.

    Probably the best solution would be to merge them all into a single, subsidized entity and begin the process of technological modernization and the gutting of the featherbedding employment situation.

    The retirement entitlements of the UAW alone, make it impossible for any of the big three to survive. Neither the Executives nor the workers in the industry live in the real world. Many others in this country do not either.

    The real world is coming to all of us, real soon.

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  2. I agree, if they don't do some serious restructuring they are all doomed regardless of how much money the government pays in. It all goes back to solving health care and government spending.

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