Originally posted by: Zack
Originally posted by: boomerang
Originally posted by: Zack
No, the unions need to be done away with and until they go chap 11 this will never happen. Let them crash and burn.
Chapter 11 does not affect the unions. Mindless bashing does nothing for your position.
Chap 11 hopefully will give them the ability to erase their union contracts and start fresh, and how is this mindless bashing? if it weren't for union deals the costs for the companies would be much much less, sure corporate made some questionable product decisions but the reality is that things need to change, and dumping the unions is a smart move.
Honestly I am surprised so many are ready and willing to bail out these failed companies, as others have said this is only a band aid solution that will prolong the inevitable.
I only had a minute to post there. I apologize, because it certainly didn't make my thoughts clear. From your reply, I think you might know what I was alluding to which is that under Chapter 11, there is no guarantee that union contracts will be voided. It's a possible scenario is all.
IMO, Chapter 11 is not an option for them for several reasons;
Chapter 11 requires investors willing to put big bucks on the line to finance the pullout. In the economy we're in, who
has that money or who is
willing to commit that money? Nobody but the government. We've already seen that the banks are cherry-picking whom they're lending to. The government doesn't have the money either but is willing to lend it. But ......
I just don't see people buying cars from a bankrupt company. Who's going to service it? Where are the parts coming from? Etc., etc.
I've read figures as high as 10 to 12 million unemployed as the effects ripple out across the country. I've read that this would occur within 60 days of a bankruptcy filing. How long do you want this recession to go on? Do you want a full-blown depression? How long are you willing to wait for your 401K to start recovering? 3 years - does 10 sound better?
How long before the unemployment runs out for the millions that lose their jobs? How long before they lose their homes, their cars? College dreams just evaporated for their children. Their health care gone, how much more crowded will the emergency rooms become? This is health care that is paid for by the taxpayers. Do we really want all this?
These loans were originally intended for the entire auto industry and their suppliers. Everyone concentrates on GM and their need is the most urgent. I'll go with that.
Rick Wagner is the CEO of GM. His background is in bean counting. He's a financial guy. He's been at the helm for approximately 8 years. So, what can we determine from these facts?
He's not very good at his job. He's got to go. The BoD supported him all these years - they've got to go. The bottom line is new management is needed.
The UAW has made major concessions lately. They're going to take over the health care of their members, no pensions for new hires, $14 hr. for new hires, just to hit the highlights. Do they need to give more - yes. They should be required to make some sacrifices the same as mangement should.
There are a number of well thought out opinions in this thread. And there are the typical mindless posts, those with an ax to grind. Those that want millions out of work at the worst possible time in recent history.
We have to consider the whole big picture, not what will put a grin on the face of the disgruntled.
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