Auto Bailout ‘Laugh, Cry, Or Bang Your Head?’ Moments Ensue
I suspect the two items I will cite here represent just the beginning of things that will cause readers to wonder they should laugh, cry, or bang their heads against a wall.
Home Depot Ruiner Thanks America, Separately Says He’s Coming Back for More
Here’s a banner ad I saw today at another site:
Well, that’s nice. But just when I was ready to begin thinking about cutting Home Depot ruiner Bob Nardelli (previous posts here, here, here, and here) a break, I saw this at the beginning of a December 19 press release (yellow underline is mine):
He’s comin’ back for more, and he’s blithely assuming he’ll get it.
My prediction on Friday that readers could “expect the ‘it’s not enough’ chorus to begin shortly” had already come true before I wrote it.
UAW: “Concessions, Conschmessions”
UAW Prez Ron “Middle Finger” Gettelfinger said this last week (date of item per Google News is December 17):
United Auto Workers Union President Ron Gettelfinger has said if union members were asked to make additional concessions, then his members should be given an equity stake in the company.
In the bailout deal, they’ve been asked (HT Michelle Malkin):
Most of the terms of the loans were based on a failed legislative effort to give Detroit $14 billion in aid.
But the provision that requires the car companies to match wages at their Japanese rivals was inserted by the White House when it took over the effort to prevent a collapse of GM and Chrysler.
Of course Gettelfinger knew this was in there and had to have signalled to GM and Chrysler that it was okay to take the deal on that basis.
But now that the deal is done, his union is already going back on it:
The nation’s automakers are preparing to ask for wage and benefits concessions from their workers in early January to meet the conditions of a $17.4 billion federal aid package, but labor officials say they will seek to renegotiate the terms of the bailout rather than make those sacrifices.
….. Gettelfinger said that what is being asked of the autoworkers — who agreed to concessions in 2003, 2005 and 2007 — is “unrealistic.” He has said he wants to work with President-elect Barack Obama to remove the wage provision.
This is why bankruptcy courts should be sorting all of this out.
With each passing day, this looks more and more like a bottomless money pit.
I’m a life insurance agent. About 17 or 18 years ago I got a call from agency that an “orphan policyholder” living in Amelia needed an agent to talk to about his life policy. I went to see him, straightened out his problem and answered his questions to his satisfaction. Then he told me he had been laid off from the assembly line at the Sharonville Ford plant for over 1 1/2 years. I commented that he must be holding his budget cards close to his vest. He looked surprised and said no, he was receiving 95% of his regular pay plus benefits for whatever time he was laid off. Then it was my turn to be surprised, altho I did not show it. At that moment I remember thinking, “The American auto industry has had it. It’s just a matter of time until it falls. You can’t pay idle workers compensation plus benefits for any appreciable length of time and expect to run a profitable (i.e. viable) business.” It took $4.00/gallon gas and the environmental whacko movement hand in hand with the parasitic UAW to finally push the American manufacturers off the cliff, and it’s happening right before our eyes. IMHO, the bailout billions will simply serve as an expensive way to postpone the inevitable pain. Better to face it now and get it over with.
Comment by Excelsior — December 24, 2008 @ 1:11 pm