Friday, November 14, 2008

Jennifer Granholm: Big Three Woes Not Their Fault

Gov. Jennifer Granholm on the real reason the Big Three need help from the U.S. taxpayer:

"The reason why the autos are in this challenge is because of the meltdown in the financial market," said Michigan Gov. Jennifer Granholm. "They were on a restructuring path -- yes, they were challenged -- but this has utterly kicked them in the gut and is strangling them because they can't borrow money."

Me: Hmmm ...something is missing here. Can't quite place my finger on it. I think it rhymes with "shmunions."


Intrade said...

UnionsCostEveryConsumerDearly said :

    The parasite has overcome its host. Fortunately Dr. Big Govt will step in to resuscitate the host.

Intrade said...

Lucien said :

    The unions never got anything they weren't granted by management through negotiations. This "crisis" was created 100% by arrogant, short-sighted and weak management.

Intrade said...

mspilker said :

    Bankrupcy report can revive these dinosaurs. Management & the UAW fear they will lose there perogatives & gold plated benefits if they go that route.

Intrade said...

Damon said :

    Me thinks that James is a ......Can't quite place my finger on it. I think it rhymes with "boronic ouchebag."

Intrade said...

KarmaBeliever said :

    Also having trouble placing my finger on what James is, but I think it rhymes with "Pelubrican phycosant."

Intrade said...

Older than dirt said :

    James is 100% correct.Karma,Damon can't quite put
my finger on it. It doesn't rhyme with any thing,
just ignorant of the facts.

Intrade said...

armando99 said :

    hmmm. the credit crisis is worldwide, yet only the Big 3 are facing immediate bankruptcy. For the last 20+ years GM/Ford/Chrysler haven't earned their cost of capital ie they have been unprofitable for decades. Me thinks that this 'crisis' is just another manifestation of a long-time dying industry (in America)

Intrade said...

johnnycatt said :

    Unions don't negotiate... they blackmail and extort! As a former supplier to a large Steel mill who's union refused to sign a contract and put the mill out of business, I am all to aware of what the union bosses will sacrifice if they don't get their way. 5000 Jobs in Gadsden, Alabama disappeared in 2000.

Intrade said...

Nick said :

    BMW has a union and it makes money.

When was the American Middle Class at its peak? 50's and 60's - when union density was much higher than it was today.

Btw - its not the unions that are hurting the big 3. Its the legacy costs -- like health care for retirees.

Saying 'unions' as if unions are completely at fault is really dogmatic and, frankly, ignorant.

The real problems were poor planing and management, mixed with systemic (i.e., political) problems in how this country allocates is resources.

If management can organize into a corporate hierarchy, why can't the workers unionize?

Intrade said...

Boredwithlies said :

    Cause: US Auto industry makes crap designed to disintegrate within 75K miles. Americans (not stupid) elect to purchase foreign cars NOT designed to self-destruct after 5 years =s Why foreign cars are better. Blaming unions is exactly the sort of self-defeating thinking that has brought the Big 3 to the beggars gate. So quick to stick it to the consumer and so quick to claim "victim status". Pffffft.

Intrade said...

Mikep said :

    Nick Said "Btw - its not the unions that are hurting the big 3. Its the legacy costs -- like health care for "

One of the major reasons those legacy costs are as high as they are is union? How could you possibly not realize this?

I have benefited greatly from unions, in fact, the UAW helped pay for my college degree, but let's not be ignorant to their role in this recession, and the failure of the US Auto industry.

Intrade said...

nancygeorge said :

    I am so sick and tired of all the bitching and moaning about unions. So, their members get a living wage, enough to buy a house and a car, have quality health care, send their kids to college, take a vacation once a year, and have a secure retirement. Just tell me what is wrong with that! In my opinion, it's just what every American who works hard all their lives is entitled to, and just what, unfortunately, most Americans do not ever have! I've been retired for four years, but would still be working if I hadn't been lucky enough to buy a house at the bottom of the bubble and sell it at the top! I worked hard for what I have, but without the housing bubble, I wouldn't have anything! In this "richest country in the world" (not any longer I guess) people's futures should be in the thrall of the vagaries of fortune. What good is capitalism if it can't benefit the decent, hardworking people of our country? Obama should legislate a living wage provision for all. If employers can't provide a living wage to their workers, they shouldn't be in business. It's just not right for the rich to keep getting richer on the backs of workers. If that's socialism, then I guess I'm a socialist!

Intrade said...

hello said :

    I too am indifferent to the condition of working people.

Intrade said...

golf chicago said :

    capitalism is the problem. growing up we are taught its the greatest economy in the world and we learn to associate other forms of economy with evil. there are really only two sides to capitalism; the rich and the poor. overtime the middle class will dissapear. its like physics; newtons law, for every action there is an equal and opposite reaction. everytime 100 million dollars is gained, 100 million dollars is lost. the wealthy sit on there money and don't pump it back into the system. eventually, once the middle class is gone completely, our curreny will be worthless and rich will no longer be rich.

Intrade said...

bailey said :

    I am not testifying before Congress today to request that American taxpayers loan Detroit automakers 25 billion dollars so they can close factories and permanently layoff thousands of workers. I am not here to support the Detroit automakers’ intention to import half the vehicles they sell in the United States as do foreign competitors like Toyota, Honda, Kia, Nissan, Volkswagen, and Mercedes. I am not here to advocate that American workers compete for the lowest wages in the world. Quite the opposite. I think we should compete for the highest.

I stand before you to advocate for a National Industrial Policy that supports and sustains the expansion rather than the destruction of the middle class. I stand before you to advocate for an industrial policy that strengthens our economy, strengthens our national security, and makes the American Dream of a higher standard of living attainable for an ever expanding number of citizens. I am here to advocate that Congress recognize that the working class is the backbone of this nation, that the success of our nation as a whole depends on the health and well being of our most valuable natural resource, the American worker.

In the last thirty-five years the income of American workers has declined precipitously while prices for health care, education, housing, food, and energy have steadily increased. Americans are working more hours with fewer vacation days than any other modern industrialized nation. Even though we are working longer and harder, our incomes are not keeping up with inflation. Fewer and fewer American workers have pensions or health insurance. America, once known as a nation that took pride in its expanding middle class, today, has a reputation for degrading workers and pursuing a competitive race to the bottom.

Some members of Congress propose that the best solution for the Detroit automakers is bankruptcy. They propose that the automakers should dispose of their obligations to retirees, as if retirees were somehow unworthy of the deferred compensation they earned with steadfast loyalty and honest labor. If Congress sanctions the refusal to honor contracts, it will become a defining moment in the history of our nation, a moment of legislative infamy.

Civil societies rely on trust not treachery. Civil societies rely on government to restrain predatory capitalists and to mediate class conflict. If the highest legislative body in the nation endorses contempt for contractual commitments, where will it end, and who can be held accountable? Such a precedent will not stop with autoworkers. Every retiree and every working person who hopes to retire will feel threatened by the willful destruction of contractual agreements.

Historically, unions have had a positive impact on our society and our economy. When unions negotiated improved wages and benefits, they expanded the middle class and set a standard that lifted all workers. The expansion of the middle class created a vibrant economy that benefited business and government. Business reaped the rewards of an upwardly mobile workforce. In turn a growing economy enriched the tax base and allowed government to lower tax rates for businesses and wealthy investors.

When unions negotiated pensions and health care for retirees, it was considered deferred compensation. Workers sacrificed higher wages in return for a secure retirement. The companies passed the cost on to consumers, but the companies’ didn’t invest those higher profits in a trust that would provide for retiree health care. Instead they indulged themselves and their shareholders. Corporate malfeasance should not be rewarded with a Congressional pardon.

If companies are allowed to break contracts, the debt will be passed on to taxpayers in the form of social welfare. If government assumes responsibility for all or part of those expenses, it will, in effect, charge the consumer twice. Once, when he purchased the car, and a second time, when he is taxed to compensate for the companies’ misappropriation. CEOs should not be allowed to justify increased prices as an incumbent expense of a union contract, then pass on the cost to taxpayers when the bill comes due.

I am a UAW member, but I would be remiss if I did not speak up for our brothers and sisters at Toyota and the other transplants. The workers at foreign transplants in the United States do not have a defined pension. They have a 401-k. They have seen the value of their retirement savings destroyed by unscrupulous and irresponsible financial policies, or the lack thereof, through no fault of their own. Workers at the transplants do not have health insurance in retirement. They will be forced out of work by injury or company policy before they are eligible for Medicare. They too deserve a national industrial policy that respects their service.

Foreign automakers have the advantage of national health care for workers in their home countries, but in the United States they treat workers like disposable commodities. They work them till they hurt them, then they throw them out the door.

My advocacy for a national industrial policy that insures retirement in dignity is not limited to union members. All American workers deserve health care and security in retirement equal to or better than that enjoyed by workers in Europe and Japan. The United States should raise the standard, not pursue a race to the bottom.

I am not here to ask Congress for a handout, but rather a well deserved hand up. It is imperative that we rescue the flagship industry of our manufacturing base. Our economic health and our national security are at stake. But it is not fair to bailout the privileged and neglect the plight of the average worker. Medicare for All as advocated in John Conyer’s bill HR-676 is the one remedy that would unilaterally address the unfair competition that plagues manufacturing in the United States. HR-676 would help all employers, all workers, and all consumers. []

Furthermore, any bailout that is not contingent on job creation would damage our economy. America needs a vibrant middle class and a revitalized industrial base to stabilize our economy and strengthen our national security. Any bailout that supports the innovative malaise in our industrial sector or rewards companies for investing overseas while simultaneously breaking contracts with American workers is tantamount to sabotage.

I am not here to apologize for workers who constitute the backbone of America. We have never failed. I am not here to beg on behalf of the men and women who fought the wars, built the roads and bridges, manufactured the goods, delivered the services, and transported every conceivable product from its origin to its destination. I am here to demand the respect and dignity we deserve.

For too long Congress has legislated in favor of capital over labor. The preference has not served our national interests. As Abraham Lincoln said in his first annual message to Congress in 1861, "Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration."

The Detroit automakers need a bridge loan to survive the current credit crisis. But another bailout that neglects the working class would be a fatal mistake. We will not survive the world wide recession afflicting our economic security if we fail to defend the people who have never failed their nation.

Stay Solid, Gregg Shotwell

Intrade said...

bailey said :

    When unions negotiated pensions and health care for retirees, it was considered deferred compensation. Workers sacrificed higher wages in return for a secure retirement. The companies passed the cost on to consumers, but the companies’ didn’t invest those higher profits in a trust that would provide for retiree health care. Instead they indulged themselves and their shareholders

Intrade said...

dr461 said :

    BULLSHIT--simple one line response. The big three make crappy cars.

Intrade said...

Pkoco said :

    GOD is coming back soon...HE is NOT gonna be happy!