On Fri, 12 Dec 2008 10:45:04 -0500, Reginald P. Smithers III, Esq. wrote:


One of the first steps any company needs to insure it's long term
viability is that it's cost structure is competitive. Since labor is
about 10% of the cost of the car, it makes sense for labor to agree to a
competitive salary to keep their jobs for the long term. It looks to me
that the UAW and the Senate are not playing Russian Roulette, it is more
like "Chicken" in a auto, to see who will swerve.

Of course labor has to be part of any long term solution, but it's quite
interesting that Corker wanted to concentrate on labor's 10% and forget
about the other 90%. Regardless, when this economy is in such perilous
condition, letting GM and Chrysler go out of business, is quite counter-
productive. As I have said before, under normal circumstances, if the
economy was healthy, I would agree to let GM take it's chances with
bankruptcy.

As it stands, both GM and Chrysler, have hired bankruptcy lawyers. I
don't think the next several years are going to be pretty.