Over the last couple of days, the media has devoted considerable print and airtime to a proposed bailout of the so-called Big Three -- the Detroit-based car giants GM, Ford, and Chrysler.
"Big Labor Three" is more like it.
What really separates the Detroit automakers from the "foreign" automakers (who also make hundreds of thousands of cars in the U.S.) is compulsory unionism. Foreign manufacturers like Toyota, Honda and Nissan have U.S. plants that are free from monopoly bargaining, and they produce cars largely in Right to Work states, where forced dues are prohibited.
Some of the bailout coverage has addressed the destructive effects of the United Auto Workers union's monopoly bargaining privileges (who can forget the $31/hour paid to over 12,000 UAW members to do crossword puzzles?) which have run these once-great companies into the ground and costing tens of thousands of jobs.
While the proposal is, at a minimum, an indirect bailout of the UAW and forced unionism in general, it appears the union bosses have a direct bailout in mind as well. The Washington Post explains,
The $25 billion would come on top of $25 billion in low-interest loans Congress approved in September for the car companies to retool factories to produce more fuel-efficient vehicles. And the United Auto Workers plans to press next year for an additional $15 billion in public funds to cover the first payment the three companies are due to make into a new independent entity that will fund retiree pensions and health benefits.
After the UAW's two-day strike against GM last year led to the creation of union-administered trusts to handle health and pension obligations to union retirees, CNN noted this amazing statistic:
Today, the number of UAW retirees and surviving spouses collecting benefits from the big three automakers - about 540,000 - outnumbers active members working at the three automakers by three to one.
If this sounds like a pyramid scheme, don't be surprised to learn that this is exactly where the bailout money -- tens of billions of taxpayer dollars -- will be going. The Big Three simply won't be able to afford payments to the union-boss-run trusts, and now they want all Americans to pay for them.
What has sadly gone unreported in this fiasco is the nature of union-administred trust funds. The National Right to Work Foundation has previously revealed the lack of accountability in union pensions, which have often been used by union bosses as slush funds. As we told you last month, despite new federal reporting requirements, union and trust fund officials can choose to hide any trust expenditures they wish from their members. Can we really expect the new administration to ensure that union trusts aren't misusing their funds?
It seems unlikely that Americans will tolerate a bailout of the UAW bosses.
Comments
Big 3 Bailout
Thank God for Unions and our American jobs that haven't been shipped overseas by the greedy & selfserving ones who you should direct your effort towards. Your hatred towards Americans who are improving their lives really gets old. You don't want your fellow Americans to even have a piece of the pie, just the crumbs from the trickle down theory.
Remember, our States are a Union!
UAW
There is nothing wrong with Unions, its the abuse by any organization that ticks everyone off. Most people have no idea the the American Government is truly to blame for this Detroit 3 mess. They forced on the Detroit 3 that the UAW is the only union allowed to represent the American Auto Workers. What happened to Free Enterprise and friendly competition? If the Federal Government had not forced this MONOPOLY other unions could have been involved in the mix and made beneifits realistic. I know a guy who works for GM that with all his holiday pays, sick days, etc actually takes 4 months off each year to sit on his boat by Lake Erie and sip on Gin & Tonics all day; now tell me that's right!!
unions
Unions and labor have made this country great. Too bad union history is not taught in elementary as well as jr. and sr. high schools. The truth is not being told.
RTW vs Non RTW state job loss and foreclosures.
Common guys, this is the time. Federal mandates for RTW,antitrust, etc. will change this whole economic mess.
Foreclosures and job losses in rtw states are coming heavily from company headquarters in non rtw states. (Verify with hotpads.com and online newspapers.)
90% Michigan residents hate union leaders who brainwash the members into thinking we can afford their demands. We want them stopped. They stop the rtw ballot measure every time! Uncontrolled corruption by representing state treasury and paying for their one time attorney to be our governor. They've picked the state dry and the state laws (lobbied by them) allow it. Most of the members agree at this point but they are silenced with fear tactics and bullying has turned in on itself.
It needs national attention immediately!
UAW Bailout
I agree that the unions have an adverse affect on the US Auto industry but the problem can't be squarely on their shoulders alone; management has given the unions all of this stuff, rather than stand and fight, the companies surrendered. Short term profit became more important than long term prosperity and over the years the culmination of all of the benefits have broken the bank. The latest Big 3 offer to let the unions manage their own 'pension funds' was a start to get the companies out of the unions' business but because of the high price of gas and the economic meltdown, it's almost certain that some money from somewhere is going to be needed to shore up the industry. I think there is so much profit in the automotive industry that many sins get covered up, on both sides, Union and Management, mismanagement is the major reason for the predicament we're in today.
Unions should be a choice - Abortions are
This is a standard Pro-Union argument and one that does not hold water. Management manages the flow of labor to the shipping bays from where the product goes to market.
Unions need to go to hell and stop taking our money and when we have a gripe, walk away because "we feel that we cannot win this dispute..." Go away and get a job yourselves!
I say no!
I opposed all of the bailouts.
This one will only prolong the agony. Bailing out the UAW, a major cause of the problem, is like asking the arsonist who set your house on fire to come put it out.
NO TO BANKRUPTCY, BUT THIS IS A TIME TO OVERHAUL DETROIT
Here is the type of plan Congress should consider...
http://pacificgatepost.blogspot.com/2008/11/solution-for-detroit-gm-frie...
Toyota and Honda also depend on the same suppliers who feed GM and FORD. No need to let “Detroit” disappear.
There is also much creative talent hidden inside the U.S. Big 3 that has been smothered by mismanagement and the UAW. ... and they actually "make" something, .... unlike Wall Street.
It seems unlikely that
It seems unlikely that Americans will tolerate a bailout of the UAW bosses.
The Americans are infuriated that the Republican Paulson is handing $700 BILLION to the very corporate officers of financial corporations who killed our economy.
They ought to be in prison for life, and have all the money they stole from us returned to the taxpayers who are the victims of their schemes.
Our economy is in deep
Our economy is in deep trouble because of the very people who are still in power...the corrupt democrats. The billions of dollars in bad loans... forced by ACORN and thier cronies...Jaime Guerelic (remember the wall? 911)... now at Fannie Mae and Freddie Mac...having done much more damage there and her allies on capitol hill...Christoper Dodd and Barney Frank...well that just made it complete. Do your homework...look all this up! Wise up!
forcing
Why not? If the financial corporations that stole trillions of our dollars can get bailed out, why not General Motors?
I must say I would rather all those fraudulent, greedy, irresponsible corporate officers should be forced to hand over all the money they stole from us and be sent to prison.
Your type of populist idiocy
Your type of populist idiocy is what led to the bailout in the first place. No GM, Ford and Chrylser, the UAW, and the Detroit corruption machine can all go pound sand. When they go bankrupt, reorganize, streamline and tell the UAW bosses and their lazy, overpaid employees where they can go and what they can do with themselves the US auto industry will be the better for it.
Your type of populist idiocy
One broad brush and all people who work with the UAW representing them are lazy and overpaid. My Dad spent 27 1/2 years working at GM and he was the hardest working man I new, outside of work as well. No less then 4 other family members worked at one time for GM or Ford and I'd put any of them vs you as far as work ethic goes. Your hate is really not good for you. Life is too short for you to spend in such negative thought. I hope some day you realize it, as this country as a whole has wrapped itself in this veil of hate for too long.
socialism
Unions are at the heart of socilism and will destroy this country. That is a fact. We must stop unions and their populist, i deserve mine from the blood and sweat of the taxpayer's, lunacy. Unions are evil organizations at their core.
Early in the last century
Early in the last century many people were injured because they had no civil rights. A worker would be fired on the spot because the company had no use for a one armed man for example even though the company was at fault. Small children were worked around the clock. Some people were chained to their work place. Your paycheck is where it is today because others braved bought thugs to beat you into a pulp if you stood up for yourself or others. People were simply discarded. Many people starved to death. Maybe you should learn how to spell socialism before you expound on it. Unions forever!!!
Unions
Unions have made it possible for the people of this country to make an honest living and work 40 hour work weeks. If we do not bail out our "big three" it would be devistating for our economy. Just think of the thousands of jobless we'll have to support and absorb into our already over-burdened economy. All of our good jobs have already "cut and run" out of the country. All we have left is service jobs and if we continue to decline like we are we'll all be working for minimum wages soon. Who cvan afford to live on that? No, I'm afraid it it wasn't for unions we would not be making a decent living.
40 hour work week
That is Pure Fiction, the 40 hour Work week came about as a Reaction to Train Accidents
It was found that People working 60 to 70 hours per week where not as Alert as 40.
So the U.S. Congress passed the 40 hour work week.
It happened before unions where well organized or had much influence, It also came about with out any Union advocy.
But I often hear Union Apologist try to take credit for it.
But lets Grant your Fiction, What has the Union done for the American Public in the Past 50 year?
I now work for a Non-Union Company, I get paid better, have better Health insurance, Better Retirement benefits and a Much better working condition than I did when I worked for a Company where I was FORCED to join the Union.
I also have better job security, for this company is doing well and values it’s Employees.
When I worked for the Union Company, the Union Reps would say things like you. “Oh, if it where not for the every one would be working 70 hour work weeks.
That Union members get paid better,. That you must Thank the Union for your Great Health Insurance…..It was all Lies.
Unions
Time for us all to say GOOD BYE to UNIONS. Unions today are not what they were when Unions were formed. Today Unions are BIG business just as any other business. Please if the union can dish out over 3 million bucks for one ad in this past elections to fight agains the GOP, they have more money then the auto companies combine. It's time all of us Union people go after the Unions and their bosses to get our hard earn money back from them, instead of the hands that feed us. Who needs Union telling us who to vote for, what we can do and not do....Take a look at your union reps now. How many of them do work? Who's paying for them to do union business, meetings, dinners out of state conventions (so they say)....wise up people, if you don't, then you get what you deserve with no one to blame but yourself.....
Unionized Labor Engenders Inability to Compete Globally
Unions are detrimental to our ability to compete globally. They promote socialist principals similar to Europe, notably France. Individuals have their own voices and can understand their individual rights without collective bargaining. Collective bargaining places an unnecessary, uncompetitive burden on American businesses.
The government's protection of the inflated cost structure created by the Big Three's inability to adapt is unfortunate, inappropriate and, most importantly, deters innovation. This protectionism begets disincentive for innovators (both individuals & companies) of "game-changing" technologies that can enhance production efficiency (i.e. fewer union employees to produce the same vehicle) and may require a completely different assembly process (i.e. different facility in different location with different production processes and competencies).
The Big Three could have made the strategic changes anytime in the last 50 years to produce autos competitively.
The interested group unrepresented in this discussion is CONSUMERS (i.e. buyers of new autos). Consumers are burdened with the premium cost structure of the Big Three through HIGHER PRICES FOR AUTOS.
It's time for America to entrench ourselves in our free market system ideology that has differentiated the American economy from Europe for the last century. We must allow these cycles to promote efficiency and innovation, not stagnation (i.e. "status quo") - an economic condition benefitting no group other than the UAW.
The mid- to long-term consequence of a Big Three/UAW bailout is the continued evaporation of the U.S. manufacturing sector. Companies owned and managed by Americans cannot survive with the cost premium resulting from the UAW and other labor unions.
It's time to support the CONSUMER (ultimately, the sustainability of the American economy), not UAW.
Bail out
NO no more bail outs but don't just blame the Republicans the
Democrats had a big hand in that.. THe Congress gets paid too much for what they do.................
The unions have bled this
The unions have bled this country dry. Uaw was based and founded on the principal teachings of Karl Marx who is a communist. Unions care only for themselves and nobody else. They wrap themselves in the American flag with no care for any neighbor who is not a member. What have they ever done to help anyone in need? Now they ask for everyday Americans to pay for there second homes payment, second and third car payment, and to pay off their credit card bills in which has a plasma T.V. for every room included in the bill. And don't even get me going on the fact that they strategically lay workers off in waves. What are they doing during those waves? Geting paid more than most of us working while they are laid off. Oh, and than the fact that they all work under the table avoiding paying taxes and taking work away from people who can't find any.