Comments on: Auto Bail Out explanation please

By: Heidi Rafferty

Heidi Rafferty — Wed, 17 Dec 2008 04:40:36 +0000

This is a great discussion — thanks for the insight, everyone. Like Kelly I have been in the dark on the whole thing.
All I know is that a lot of families will be hurting. Does anyone know if the upper echelon of these companies will be insulated from the fallout from this whole thing?
Glad you brought up the topic, Kelly, and I’m looking forward to checking back for more comments from your readers!
Heidi Rafferty
Harrodsburg, Kentucky

By: JayMonster

JayMonster — Tue, 16 Dec 2008 17:19:42 +0000

Did you even look at the concessions that the UAW already made? They are actually making LESS in some cases than Toyota workers.

But remember, that the majority of Toyota is NOT in this country, and their Japanese workers get their healthcare from the government, something we still insist on the companies paying for here.

And the union didn’t refuse to new concessions until 2012, they refused to new concession until 2012 unless EVERYBODY (including management) took concessions as well, but since this is a union busting exercise, the GOP is not going after management, only the unions.

The simple math seems to be these days, those with White Collars get bailed out with no strings attached, while Blue Collars get the blame.

Remember, Detroit already has a history of having taken a loan from the government, and paid it back… early. Wall Street has not done so well.

Much like the argument that we weren’t in a recession, it seems your “sources” are only giving you half a picture.

By: kellys

kellys — Mon, 15 Dec 2008 19:07:27 +0000

That is why I don’t get it. If UAW sees this coming, why don’t they give real concessions? This whole “we won’t negotiate new contracts until they are up in 2011″ is STUPID. 2011 might not come for them.
Even I know that if my job is in jeopardy, I would rather take a pay cut than to take a job loss.

By: MInTheGap

MInTheGap — Mon, 15 Dec 2008 15:32:38 +0000

What michelle said is how I see the problem. The profit for the company is not the same because the price has quite the markup for benefits promised when times were really good, and the difficulty with negotiating with a union.

The UAW is caught between a rock and a hard place. It may die if all of the auto workers are out of a job, or it will be significantly less powerful through concessions.

By: michelle

michelle — Mon, 15 Dec 2008 01:32:12 +0000

Their are various reasons why Toyota can turn a profit and GM can’t. The UAW is a big reason. They have given up some consessions in the last contract, mainly they are going to manage their own retirement funds. Also, the cost of labor is now two tiered (new employees are not paid at the same rate as those grandfathered in) GM along with the others have to provide billions to fund the pension and healthcare. Toyota does not have a union nor do they have 100 years of operation, hence, retirement, benefits, etc. to pay. They don’t have those carrying costs.

Also, the sentiment behind not wanting bankruptcy is that people won’t buy cars from a bankrupt company. Remember what happened to Daewoo? The company went bankrupt and then the consumer was stuck with a vehicle and no warranty.

I don’t know if that helped clarifiy your question.

By: I might loose my part time job as well

I might loose my part time job as well — Sat, 13 Dec 2008 17:57:29 +0000

[...] what I mean? Why does the big 3 auto makers not get that? In the meanwhile, I will do my best to cut corners and keep my family afloat. I [...]