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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (438081)	12/4/2008 11:27:19 AM
From: michael97123	2 Recommendations Read Replies (4) \| Respond to of 1573888

Killing the unions might be the most productive thing you can do. And i say that not as someone without admiration for the american worker and some of the things unions have accomplished. The model in the auto industry failed in the face of foreign competition. I suspect that for the US to be competitive again, union model wont work much in any industry. Worlwide competition too strong so if we want to play we will need lower wages plus govt help where necessary in industries considered critical. . I see nothing inherently evil with $49/hour wage rate in autos that the japanese use successfully. What do the euros do when building cars in-country? Do they have unions? If so, is it that their unions are less aggressive or that they make higher end cars. Anyone know??

To: Road Walker who wrote (438081)	12/4/2008 12:14:46 PM
From: i-node	Read Replies (1) \| Respond to of 1573888

In the case of car companies, operating without revenue is not an option. Unless it was a very structured chapter 11, probably with more support than the $34B number, they would never make it out and would progress to chapter 7. Chapter 11 doesn't involve "operating without revenue". A company isn't even a candidate for 11 unless they can show viability. It is the first thing you do in the process. If you can't show viability (i.e., how revenue can exceed expenses) then it is tossed out of court for the creditors to have a feeding frenzy over. The bankruptcy court will toss out, or at least, substantially curtail, the labor contracts that are making it impossible for GM to compete. This will happen quickly, because it is obvious to anyone who understands the subject that these are the core problem GM faces. When this is done, the company is viable even with a lesser market share. There is no way we would see a liquidation. You may have PORTIONS of the company liquidated to generate cash, but not the company as a whole.