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Politics : BuSab
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To: Jorj X Mckie who wrote (16)2/18/2009 10:03:47 AM
From: Oral Roberts1 Recommendation  Read Replies (2) of 23934
 
I think the auto industry has a strategic importance and so I favor bankruptcy and reorganization. Big steel and the USW followed this exact same path. Management was buying airplanes and golf courses during the good times partly because they couldn't modernize their plants due to union work rules and job protection crap. Eventually there was competition and they couldn't compete. The union would not budge and big steel was flushed into history and they all lost their jobs. Now we again have a thriving and competitive mainly non union steel industry. I expect the same outcome from a reorganization of the auto industry.

Toyota and GM sold virtually identical number of units last year. Toyota made money, GM lost a huge amount of money. Toyota needs 34 people to build a car, GM needs 75. GM due to retiree obligations and such insures more people then live in the state of PA. GM can't even save money by closing plants and laying people off because by union contract they need to make up the difference between their normal pay and their unemployment. Insanity. Until all that changes GM is bankrupt it's only a matter of when they admit it. Giving them money does not change the fact that they are screwed via union contract.
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