Quote:
Originally Posted by Dragoneye
I don't believe the money would go to the UAW...it's a loan to the company. It has nothing to do with the union workers.
The original intent of the 25 Bil LOAN. was to help fund R and D as it related to the CAFE requirements. I don't know if GM can use that money how ever they choose. Bottom line, it will obviously free up cash and it will help them pay other bills.
 You absolutely sure about that? Last time I checked, the workers in a Toyota plant somewhere out west wanted to unionize because Toyota was shafting them all...
Don't underestimate the Unions thirst for power. I'll never say that Toyota is an ethical company, and what they can get away with in Japan won't fly here. But that is prime real estate for the Unions to move in on. If I were a business developer for the UAW, that would be my low hanging fruit.
They have achieved a competitive contract with the union...everyone here seems to be forgetting the contract signed between the Big three and the UAW last year...(if memory serves) New hires have to start at HALF of what they used to, and GM's bought a real good chunk of the older people (highest paid due to seniority) out into retirement already. Then there was the PRIMARY issue...the REAL issue that caused the UAW to have such a negative effect on GM: HEALTHCARE. Low and behold, that issue will be resolved in 2010, when the UAW takes over the healthcare costs. I agree with you; wait until 2010; and watch GM's losses get less...bad.
Still...I don't understand how the Union is to blame for what's going on right now.  Is this simply a scapegoat to take out fustration of GM's poor outlook on? The fact that they're selling nearly 40% LESS vehicles...and almost all of them are the profitable ones...simply DWARFS any issues they have with the union workers....:( |
GM's financial trouble began as a result of paying unions triple what their global competitors were paying factory workers. Yes, health care, pensions, are huge contributors to GM's overhead. But the UAW has held GM over a barrel for years. While the competition was streamlining GM was getting overcharged. The straw that broke the camels back was gas prices and the economy.
Now, I completely agree that the new deal with the union is "fair" But, I don't see the need for union any more. With Federal and State HR laws what they are today. Employees have all the protection they need. Unions for the most part are inefficient and top heavy. Based on my experience in working with them routinely.