According to the Wall Street Journal, the United Auto Workers don’t want to get ahead of themselves and agree to too much in the way of concessions on compensation:
Although the UAW has said it is ready to negotiate, UAW President Ron Gettelfinger said Monday it is unclear what kind of reductions it will have to agree to. The Treasury Department has said GM must have a plan by March to become “viable” and have “positive net value.”
“We are still trying to figure out what that means,” Mr. Gettelfinger said in an interview. He added the union has heard little from the Treasury on what is expected. “We have no documents, no contact with the federal government,” he said.
Gettelfinger doesn’t sound as if he’s motivated by a sense of urgency to help fix what’s broken at GM. Rather, he sounds like he expects another multi-billion dollar federal lifeline. If he really believed that the jobs of thousands of his constituents depended on a viability plan, he would be negotiating.
Gettelfinger is no dummy; he understands that it’s basically impossible to get clear policy guidances during a presidential transition — particularly one from a Republican president to a Democrat. The new Treasury Secretary hasn’t been confirmed yet, and all the senior policymakers at Treasury are about to be replaced by a new team. Given those circumstances, it might be wise to err on the side of doing too much to help GM, rather than too little.
At the very least, the UAW and GM could work together to produce a plan that makes objective sense, rather than await some prescriptive formula that won’t be prepared for months. But for what it’s worth, it sounds like GM’s management is just as nonchalant about the company’s future:
But, Mr. Wagoner said, GM could be forced to ask for additional loans after March 31. He said he hopes he doesn’t have to return to Washington on a regular basis to ask for more money.
He hopes? How about some action, instead.
Via Mickey Kaus
Steve Maley
Neil Stevens
I think going out of business
izoneguy (Diary) Wednesday, January 14th at 2:42PM EST (link)would not even change their minds.
I guess they don’t understand the law
of supply & demand.
Car sales will be way off in 2009.
I don’t think GM will increase it’s
marketshare with the world’s
economy going down the toilet.
Even if the UAW worked for FREE
it would be too little too late.
The point cannot be made often enough: Modern liberalism, as embodied in the Obama presidency, is the defender of the status quo. And the status quo is a road to economic ruin. Political forces cannot redistribute the wealth that the economic system does not produce.
Just gotta wait for card check and repeal of RTW
Achance (Diary) Wednesday, January 14th at 2:43PM EST (link)to take care of the Big 3′s competitive disadvantage. Put the Southern plants under the UAW master and let them pay the benefits for the guy that built Edsels.
In Vino Veritas
Classic union solution to a union problem
izoneguy (Diary) Wednesday, January 14th at 3:01PM EST (link)Classic union solution to a union problem… “We cost too much, how can we fix it… I know, make our competitors charge more!”
Unionize the transplants and watch their plants – and their jobs – move to other countries. Wonderful, we will have Hondas built in Mexico instead of Ohio. They will take the tooling and leave in a heartbeat, as they have very little tied up in the facilities – the taxpayers footed the bills for most of these places.
The point cannot be made often enough: Modern liberalism, as embodied in the Obama presidency, is the defender of the status quo. And the status quo is a road to economic ruin. Political forces cannot redistribute the wealth that the economic system does not produce.
Simple solution to that move back offshore thing:
Achance (Diary) Wednesday, January 14th at 3:24PM EST (link)Just start talking about fair trade and the sweatshop working conditions in those places. I’ll guarantee you, I know the cant well enough from hearing it for all those years that I could give a union organizing speach that would have a tear in your eye and your pen poised over an authorization card.
In Vino Veritas
Not just Honda
LoveThatConstitution Wednesday, January 14th at 11:35PM EST (link)The big three are having their biggest expansion outside the US.
Not outside the scope of imagination that they may someday be a foreign automaker, leaving the UAW sitting in Detroit with no employer:
http://info.detnews.com/video/index.cfm?id=1189
Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.
- Ronald Reagan
Let's play make believe ...
10ksnooker (Diary) Wednesday, January 14th at 3:04PM EST (link)A company known for retirement and healthcare should have a car assembly plant or two so they don’t look like they are just a company of retirement and healthcare.
Was there anyone who didn’t know that if the demands of the host company were too high, the host company dies? Unions have lost their usefulness in a modern society.
Bankruptcy. It’s the only solution for businesses that are no longer going concerns.
Comments from Gettelfinger the tapeworm
tankertodd (Diary) Wednesday, January 14th at 3:06PM EST (link)Listening to Gettelfinger comment on UAW contract negotiations is like listening to the tapeworm discuss its plan on how much sustenance to rob from its host. You don’t want to kill your host but then again you don’t want to pass up an opportunity to get fat at someone else’s expense. The host exists for your benefit. The UAW is nothing more than a parasite upon the firm. A punishment for a bad choice that never, ever leaves you.
The UAW is bad for America and it needs to be gone. That is on my top ten list of executive actions should I ever be elected generalissimo of this country.
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The way to stop discrimination on the basis of race is to stop discriminating on the basis of race – Chief Justice Roberts
Tom Sowell summed it up perfectly
bk (Diary) Wednesday, January 14th at 3:25PM EST (link)Ref: Townhall column last December
The UAW continues to treat the Big Three as prey, with the Dems continually supplying the ammunition.
Why should the UAW (or the clueless two of the big three) do ANYTHING!
General_Confusion (Diary) Wednesday, January 14th at 3:07PM EST (link)I seems quite clear to me that they pretty much have a never ending series of blank checks, er I mean economic stimulus infrastructure payments coming.
Business as usual
zuiko (Diary) Wednesday, January 14th at 3:11PM EST (link)The only thing saved by the bailout was the status quo.
Underlying most arguments against the free market is a lack of belief in freedom itself. – Milton Friedman
Evidently the Detroit bailout...
roscopico (Diary) Wednesday, January 14th at 7:14PM EST (link)was only intended as a placeholder until the socialists gain the power to fully nationalize the Detroit Jobs Program.
I suppose further gifts will then count toward both “jobs saved” and increased GNP (as gummint spending figures in the cals’s)
Dear Lord, why didn’t I join the union?
Im Himmel gibt’s kein Bier…
He said he hopes he doesn’t have to return to Washington on a regular basis to ask for more money
zuiko (Diary) Wednesday, January 14th at 3:29PM EST (link)Well how could you go wrong with genius moves like this:
So GM thinks it’s a good idea to build a new plant — in Michigan of all places… filled with UAW employees, no doubt — to build battery packs for its $40k subcompact car, which is certain to be a huge hit. Will they even make any money on them at $40k a pop? Or is this another one of those things they have to sell at a loss (like the EV-1) to show how green they are?
Underlying most arguments against the free market is a lack of belief in freedom itself. – Milton Friedman
yes, he hopes...
LoveThatConstitution Wednesday, January 14th at 11:36PM EST (link)…its all about hope and change.
Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.
- Ronald Reagan
"We have no contact with the federal government”
roxer Wednesday, January 14th at 5:01PM EST (link)‘“We have no documents, no contact with the federal government,” he said.’
That’s because the money goes to the CAR company you WORK for, not the union that makes nothing without an EMPLOYER…
“Where I stand does not depend on where I’m standing.”
–Fred D. Thompson, 2008