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Default Bridge loan to nowhere..


"Boater" wrote in message
...
Vic Smith wrote:
On Sat, 06 Dec 2008 09:39:04 -0500, Boater
wrote:

Eisboch wrote:
wrote in message
t...
On Sat, 06 Dec 2008 08:38:52 -0500, D.Duck wrote:


You just want to see what some bankruptcy judge would do to union
contracts.
Direct labor costs are only @10% of the cost of building a car. If
you
want to cut costs, labor isn't the place to start.

Someone outside and disconnected from management and the labor unions
needs to review and determine that.

What if your fixed labor costs are based on selling 18 million cars a
year but you only sold 10 million last year?

Eisboch

Then you have massive layoffs, of course.,


UAW has sub-pay, or whatever they're calling it now.
When I was UAW at IH the senior guys went first on a layoff.
95% pay for fishing. I think they got unemployment comp then
the company made up the rest. Never saw a layoff, but heard what happens
when we got close once.
That's one of the things Corker was hammering the union guy about.
I don't think I ever heard a straight answer.
But that's one of the contract provisions that should have to go as a
condition of a taxpayer loan.
The only way to make it work is the UAW gives up a lot.

--Vic




The UAW already has proposed massive givebacks. Congress acknowledged
that.


If you notice, every House or Senate member goes out of their way to
acknowledge and commend the UAW president for the concessions they have
made. And they have. But, the *major* concession was the recent
willingness to eliminate the 95% pay for staying home because there's no
work deal. At first it was to be temporary, then, sensing the wind, it was
changed to "will consider making it permanent". For non-union workers,
that isn't really a concession, it's reality.

Both sides, management and the UAW president are being very careful about
what they say and what they are willing to do to get some money. In the
case of Chrysler, I think he sees the handwriting on the wall. I suspect we
are witnessing the last gasps of breath for that company.


Eisboch




 
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