Posted By: John Handforth  on Friday, November 14, 2008

I was watching the news today and the man in charge of the bailout was trying to defend the way that they were distributing money to only the larger banks.  They are not easing credit, though.  They are buying the smaller banks that did not receive any Federal largesse.  You are correct: there is definitely a sour citrus smell to the whole thing.

In reference to the auto industry, that is a real conundrum.  If one, or more, of the Big Three automakers declares bankruptcy, every one of their unsold cars will be just about unsellable.  Why?  Because there could be no effective warranty on any of them and parts could become a real problem.  The dealerships would fall like dominoes, even the ones that also sell foreign cars such as Honda or Toyota.  People would stop buying new cars.  Period.

I've worked in a union environment for most of my life.  I carry a bronze card the size of a credit card that announces that fact.  I was a union steward for several years and managed to uphold the union work rules most of the time.  I did find, though, that I represented the same 20% of employees 80% of the time.

Unions were a necessity when management and supervisors cheated and abused the workforce.  That same type of treatment is still applied to many illegal workers today.  They have no choice or representation.  When the majority of the people followed union mandates, they were a viable force to be reckoned with.

There was a need for the unions in the 20's, 30's, late 40's, 50's and 60's.  During WW2, we became Americans, chipped in and got the job done, for the most part.  By the end of the 60's, technology had made great strides in many areas, reducing the need of so many people.  The pendulum had swung the other way.  Unions were no longer fighting for survival, they were fighting to keep their membership.  Roosevelt had initially supported the unions to get their votes.  The unions had always voted Democrat, so they turned to the Democrats for support again.  They got it and the unions reciprocated with Political Action Committees.  They got me for at least $20 at every union meeting.

I had a friend that worked on a Ford assembly line.  His job one day, (they rotated tasks for fairness and flexibility) was putting in front passenger windows.  He found a cracked window on his pile.  He installed it in a car.  An inspector down the line kicked that car out of line and had someone else replace the window.  They brought the bad one back to my friend and put it on his pile of windows so that he would see it.  He saw it, then put it in another car.  After the third car, they didn't bring the window back.  He was wrong, but he was untouchable.  He was solid UAW.  Creating false work kept someone else employed.

Sadly, the pendulum has to swing back.  Yes, bankruptcy of any automaker will be devastating to the economy, with tax revenue lost in the billions.  The problem is that both management and the unions are way overpaid in that industry.  My own union gave up large wage increases for various benefits, such as health care.  At the end of my career, upper management was trying to reduce our healthcare coverage, and they succeeded to some degree.  My own healthcare costs my former employer $8800 a year, while I pay another $1200 a year for medicare.  That is more than twice my starting wage in 1964.

Bankruptcy is the only thing that will make the UAW see the light.  As a former union member, I hate to say it, but we've been hoist upon our own petard.

Posted By: geoff  on Saturday, November 15, 2008

John: you're blaming the unions? or the fact Detroit continued making crappy cars, not bothering to follow the lead set by the rest of the world? You also have the paradox of the "Big 3" pushing the Feds to give you Canadian-style health care, because it would have saved them so much money.

I'd also like to suggest that, in a world where working conditions seem to be following those at WalMart (McJobs with no benefits or security), we need unions now as much as ever.

Posted By: John Handforth  on Saturday, November 15, 2008

Geoff -

I am blaming management and unions together.  The unions demanded some rediculous provisions, such as having to pay workers 95% of their wage to stay home, instead of being laid off, if an assembly line shut down.  They should have some form of security, but not 95% to do nothing.

Management capitulated too often and just passed the additional costs on to the consumer.  Upper management in the auto industry didn't skimp on their own salaries, either, which added further costs to each vehicle.  They are no longer competitive, especially when they are making too many large trucks and SUV's.  The high end vehicles produced more profit when they sold, but they are no longer selling.

I can remember other tales from the auto assembly line such as putting an empty Coke can inside of a passenger door, causing a muffled rattle.  It would drive drivers and dealer mechanics crazy.  These were pranks that cost money and good will.

Unions are necessary in certain industries, but the UAW has worn out its welcome.

Posted By: Eric P. von Wiegen  on Saturday, November 15, 2008

It is nieve to think that consumers are going to gain confidence through watching our government throw hundreds of billions of dollars at the same old group of rich cronies of the elected officials while 99.9% of the population is excluded from receiving money to help jumpstart the economy.



Givine every single American 1 million dollars would costs $305 million dollars. Legislation could be tailored to require each person to pay off one half of their mortgage on residences and businesses. In fact, the money could be paid directly to the mortgage holders. Legislation could require the purchase of one automobile from one of the big three. This would insure spending on domestic products (which of course are mostly made overseas thanks to the foresight of our government).



The cost is less than a fraction of what the den of thieves in Washington have already given away without strings attached. The money given ordinary citizens would be spent and circulate back into the channels of commerce and eventually right back into the hands of that exclusive club of super rich who run this puppet government because ordinary Americans have needs that must be met so they would have to spend the money on food, clothing, college educations etc. but the McCorporations and rich individuals do not they just have the greedy desire to continue to amass billions of dollars for thier own exclusive use.



Even Obama, whom I have tremendous respect and  hope for will overlook the obvious; confidence does not develop from being excluded from the process, it develops from being part of the process and knowing that your participation isn't just one of economic slavery. Eric

Posted By: Richard  on Saturday, November 15, 2008

Eric, I have, in the past made the same error in arithmetic that you have made in your post. The reality is that if you gave every person in the U.S. ONE dollar(assuming the population is 305 million)  that would add up to 305 Million  dollars. Or, if there were only 305 people in the U.S. and you gave each person a million dollars, that would add up to 305 milliond. If, however, you gave each person one million dollars that would add up to 305 TRILLION dollars.Richard

Posted By: geoff  on Sunday, November 16, 2008

John: are you saying only union workers would put cans into car doors? Whereas Walmart workers are always courteous, competent, etc.?

The problem is that US car-makers are dinosaurs, fighting progress every step of the way. Nader told them the way to go years ago: smaller, safer, fuel-efficient. Quality. That's why the Japanese took over the market, remember? They have unionised workers, too, don't they? And last I heard, Toyota wasn't hurting particularly badly. Neither was Volkswagen, for that matter...

Posted By: John Handforth  on Sunday, November 16, 2008

Geoff:  You are correct about the American automotive product line.  For years they catered to the people that wanted some serious metal around them, in the event of an accident.  Those big cars were never fuel efficient, but fuel wasn't always a problem for us, like it has been for the last four years.  Now the cars are mostly plastic, so that is becoming a moot point.

Management has been a major contributor to the problem, but the UAW doesn't qualify for a halo, either.

Comparing factory workers and Walmart workers is like the old story about comparing apples and oranges.  Most Walmart workers have to deal with the public, which is not always pleasant.  It can also test your patience.  Factory workers, on the other hand, almost never have any contact with the public in their job capacity.  As humans, we are not perfect, but the worst that I've had a Walmart employee do to me was tell me that he fixed my tire (on warranty), only to have me find out that it was flat again when I remounted it on my van.  I will bring it back again tomorrow.  It is a 55 mile round trip, so I am annoyed.  I am so far out in the farmland, that the Dairy Queen down the road is our best restaurant.

Posted By: Troy from Pasadena Ca.  on Sunday, November 16, 2008

Another interesting article from Charles Krauthammer.

I always enjoy the allstar panel on Fox's Special Report.