"Vic Smith" wrote in message
...

On Wed, 17 Dec 2008 19:07:58 -0500, "Eisboch"
wrote:


"Boater" wrote in message
...

Chrysler says to shut down all production for month
Wed Dec 17, 2008 6:27pm EST


Just heard that. The primary reason is because of inflated inventory of
unsold cars.

Interestingly, union workers will still be paid while they stay home, per
their contract.

Somebody on another group said that UAW workers put 65 cents an hour
into the "VEBA" which is used to fund this pay.
Don't know if it's true, and it's getting to where I don't believe a
thing *anybody* says.

--Vic

That's not how the news of the shutdown was reported, and that was the point
of my comment on Harry's cut and paste post. The problem is not that
Chrysler has run out of money ... yet. They simply don't have anyplace to
dump the cars being manufactured. That's the reason for the temporary, 30
day shutdown.
It was specifically stated that union employees will continue to be paid by
the company during the shutdown. I have no problem with that ... it's part
of their contract.

The problem in my mind is having to pay employees not to work for extended
periods of time, having to keep idle manufacturing facilities staffed and
operational, not being able to sell off those assets during a period of
downsizing, etc., all due to poorly negotiated contracts.

This is why a Chapter 11 reorganization where everything is on the table is
better than a Carte blanche bailout, IMO.

Eisboch