Sunday, November 30, 2008

Bailouts: Union Chief/Democrats Do Not Understand

Apparently the democratic Congress feigned indignation over the behavior of the Big Three automakers just to make the American public believe they were really looking out for the taxpayer. Today, Senator Claire McCaskill said "we need to behave like a bank". McCaskill wants to ensure the Big Three is a "good investment for the taxpayer". Additionally, the President (Ron Gettlefinger) of the United Auto Workers (UAW) begged for a bailout. According to Gettlefinger "we can not afford to see these companies fail" and that the proposed $25 billion dollar bailout "is not a bailout but a bridge". Honestly, nothing could be further from the truth. Take a look at this video of an outsourced Ford plant:

Our most advanced auto plants are located overseas. Bailing out the auto industry only promotes mismanagement and Union abuses. Currently, UAW members receive an average of $73 per hour of compensation (pay and benefits). Non union workers for foreign manufacturers in the US receive on average $43 per hour in compensation. Yet Gettlefinger says "We're prepared to go back to the table" but quickly added "Based on the changes we've made to our contracts, we are competitive". Really, if UAW is so competitive on labor rates why would the big three be paying on average $30 per hour in compensation more than their competition.

The COngress wants to further tie the hands of auto manufacturers by tying any bailout money to increasing fuel efficiency. Never do the democrats ever talk about correcting the failed practices of paying workers to do absolutely nothing ( a union benefit). The democrats are not looking out for the taxpayers in general, no they are just looking after their over-bloated union jobs.

Any bailout should be aimed at restructuring the business practices of the Big Three auto makers. That includes union contracts and technology investments to bring the American auto industry into the new century. Without plants similar to the one shown in the video the bailout will just delay the inevitable failure of these auto makers. Real change must come to these companies. Our Congress must demand restructuring of the industry. Anything short of a massive restructuring will end up in massive failure. Our Congress should not be the nations banker. The democrats again were caught just grandstanding when they sent the CEO's home empty handed. Everyone knows that this feigned indignation was just pandering to the voting public. In reality the Congress sent the CEO's home with a wink and a nod. The bailout is going to happen. Our Congress will demand the management changes but leave unions alone. The unions will bankrupt the companies and we will yet again be asked to come to their aid. Tell Congress no to the bailout without real reform. Tell the UAW they must renegotiate or be placed out of work. Only a massive restructuring will save the industry.

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