The reality of the situation is not so simple. The big 3 were profitable this year, in the first quarter. High gas prices drove folks to quit buying SUV's, on top of that, they got caught in the bank meltdown (thank you, irresponsible, greedy bankers) So the working man needs to pony up and take it in the azz for the good ole investors and execs, right?
No it isn't. My old firm did consulting work for Ford and one of the projects we did was a comparison of the benefits of direct labor costs from the Japanese plants in the south to the union plants. The total compensation package for union workers was nearly double that of the Japanese plants. You are talking about a very small pool and a very large pool. The Big 3 CEOs are going to work for a dollar next year, and it will amount to a rounding error on the financial statements. I am not saying that executive pay isn't out of hand, I am just saying that it isn't even material to the numbers we are talking.
So the "CEO" type of employees don't work? Most of those guys worked a hell of a lot harder during their lifetime which is why they get payed more.
I really find these threads comical. Once again CEO's are blamed for all the problems. I'm starting to think that anyone who blames CEO's for problems actually are government employees or members of unions themselves. One thing about going back and forth on this board is that no one else knows where one is totally coming from or why they could be bias. Yep, blame the CEO's yet congress and politicians make all kinds of money, legal and illegal and no one gives a damn. Why don't we hold politicians to the same standard that they try and hold everyone else? I hope they give themselves a big fat pay raise once again for doing nothing or screwing up the country at best. I'm sure congress will fix the big 3 for a few years then they will be back for more money! We will be having this same argument in a few months or years btw, its not going to change anytime in the future with Congress telling the big 3 what to do and holding money over their heads!
Not according to this. http://mjperry.blogspot.com/2008/11/more-on-total-hourly-labor-costs-gm-vs.html But that's still $9 more than the $53 per hour that GM estimated Toyota now pays in the United States GM says its total hourly labor costs dropped 6% this year from $73.26 in 2006 to around $69 per hour. The new cost includes wages of $29.78 per hour, plus benefits, pensions and the cost of providing health care to more than 432,000 GM retirees The remaining difference largely is due to "legacy" costs, the cost of a 100-year-old company paying its retiree pensions, Sapienza said. "While legacy seems to be a dirty word of late, it also means we support hundreds of thousands of people via pensions, health care and good jobs," he said.
It's both and the bailout package addresses both, it seems. The union workers will make concessions, the executives will accept compensation limits and corporate perks will disappear until and unless the companies start being profitable again. Adios corporate jets and resort meeetings.
Just remember that this is the beginning and not the end. The UAW and the big 3 will need another bailout in a few months. This is why I'm opposed to all bailouts. Henry Paulson scares me, he almost has as much power as the president since he is czar over the economy! The floodgates are opening now since we are becoming a socialist society. Others will want bailouts now, lets just nationalize everything and get it over with. It is clear that this country is headed in that direction including socialized medicine. http://www.msnbc.msn.com/id/28313411 Btw, I want some free money too. Anyone who can spare a little, email me!:insane:
