Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Joe NYC who wrote (438288)	12/5/2008 12:38:30 PM
From: tejek	Read Replies (1) \| Respond to of 1574054

Call it legacy costs, call it administrative costs.....but these people no longer work at GM. Every hour a UAW worker works accrues more of the same liabilities. That is because if you agree in a contract, that you promise to pay these benefits in the future, your cost per that hour of labor is increased by the value of that promise. This is why you don't understand why the the hourly labor cost is so lobsidedly high. Look....you are blaming the union for GM's administrative costs, pretending that they are labor costs when they are not. Actual and current labor costs are only slightly higher than those at TM. However, administrative costs at GM are much higher than TM because of legacy costs. That's not the union's fault.......that's mgmt's fault. Now mgmt got something out of the deal when they agreed to those legacy costs back in the 1980s, or they were simply stupid and incompetent Republicans......I mean men. Take your pick. In any case, GM's labor today can't be blamed for mgmt's past mistakes.