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On Thu, 13 Nov 2008 08:12:13 -0500, Jim wrote:


Busting the unions should be a requisite part of any bailout plan.
Otherwise they will be back again in a few years looking for another
handout. It's time we earn from our mistakes and stop repeating them.

Busting unions is a waste of time. Total labor cost of a new vehicle is
less that 10% of the price of that vehicle. If you are looking for cost
cutting, I would suggest you look elsewhere.

http://www.uaw.org/barg/07fact/fact02.php

I'd also point out, that in the last contract, the UAW made considerable
concessions, including assuming health care costs via a trust, setting up
a two-tiered wage scale, and a freeze on wages.

http://www.usatoday.com/money/autos/...-uaw-wed_N.htm


I read the first link several times, but could not determine if the 10%
"labor cost" figure includes funding retired members health plans.

The second link gives a clue. I don't think it does. The negotiated trust
fund at GM requires GM to put up an initial 20 something billion dollars in
the trust, plus make up to 20 additional payments of 160 million each to
keep it solvent.

Also, look at the distribution of people getting benefits. Retired
employees make up the bulk of the costs, by far.

The auto industry has identified retired health plan benefits payments as a
major, singular reason for the current financial problems.

I have a little bit of a problem understanding the concept that "everyone is
entitled to free healthcare". Please note the word "free" in that
statement. I believe everyone should be entitled and have access to health
care at a cost that is affordable for them. Health care is a basic human
need, just like food and housing, but it's not a freebie that one gets
simply because they exist. I have no problem paying more for my health plan
if I can afford to in order to give access to health care for someone else
who can't afford it, but I don't think making it "free" for everybody will
work. There is no such thing as "free".

Eisboch