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First of all let me say that I am not against all Unions. Some of
them have done what they needed to, to ensure safe and secure working environment for members. But others, over the
years, have become an anchor, dragging down corporations and strong arming them into making bad business decisions who
are now asking us to bail them out. But is this the fix all or just another chapter in a tail with a not so happy ending.
President Bush and President elect Obama both along with our US Congress think they know how to spend
our tax dollars better than we do. One of these is the Automobile industry bailout, mainly for General Motors. I believe
this not to be a bailout but instead payback for votes. I say this because I see no purpose for these companies not to follow
standard procedures for companies with financial problems and yes I am talking about Chapter 11 reorganization, which is the
only legal venue for these companies to renegotiate existing contracts with the Unions and others. To start with the UAW did a wonderful job in getting auto workers better work environments
and fair pay for the work performed but then it happened, they kept pushing for more! Over the past few decades the UAW pushed
for higher pay, Gold Plated Health Care, more vacation time, more sick days, sooner retirement and higher payed benefits for
retirees. The list goes on because like a child when they know they can get away with it they keep pushing the limits.
Now that they have almost sucked these companies dry our government wants to use our tax dollars to help these companies out
without negotiation with the UAW or anyone else. Thanks for the votes says Jeff Merkley who ran ads against the bailouts during
his senate campaign but then voted yes after elected for the TARP (Troubled Asset Relief Program). Thats right he was
elected because the people of the US are against these bailouts. Almost every poll shows 60% or more people are against any
bailouts, and the Government doesn't care. Lets look at the UAW
for a minute and how our tax dollars will be spent after it gets payed through Union dues. Do you like to golf? Well
according to unionreports.gov the UAW does. In 2007 from May thru November they spent more than $110,000 in executive meetings and golf outings at
over 10 different courses. The UAW also owns and operates the Black Lake Golf Course and an educational center. The Detroit
Free Press reported earlier this year that the golf course (valued at $6 million) and education center (valued at $27 million)
have together lost $23 million over the past five years. While membership in the union has plummeted, the UAW retains assets worth $1.2 billion. The UAW
also invested $14.7 million into Pro Air, a start-up airline that never got off the ground. Then invested $5 million in United Broadcasting Network, a left-wing station that the UAW hoped to use to spread its propaganda. They spent over $2 million on a state
of the art studio in Detroit and incurred years of losses of a reported $75,000 a month before closing the network down in 2003. I really don't want these guys getting tax
dollars. From everything I have heard
the Auto Bailout is set with a price tag to tax payers of $17.4 Billion. Let me just ask a simple question, why does a non-union
carpenter building the house down the street make $25 per hour but a factory worker at GM deserve $79 per hour including benefits?
Why do these factory workers need 5 weeks of vacation and 17 Holiday days? Do they need the Gold Plated Health insurance for
workers and retirees that includes things such as free Lasic surgery and other cosmetic surgeries? Why? Because these
companies have been blackmailed and now are stuck with the bill. Without Chapter 11 reorganization they can not
negotiate to get labor contract costs in line or retired benefits etc. Without Chapter 11 there is no way the UAW will give.
They actually have given on the labor costs quite a bit already but in my opinion this is kicking a dead horse. The decisions
made by these companies have finally caught up to them and is in a downward spiral. They are buying out employees with seniority
for thousands of dollars and they still get full retirement to replace them with a new cheaper workforce because they hope
it will save them money. Problem is that GM like others have almost 4 times more retired employees and spouses of employees
collecting retirement and benefits than are actively working in the factories! GM just payed $700 in year-end inflation
adjustments to each of its 284,000 hourly retirees with an additional 73,000 surviving spouses receiving as much as $455 each,
the total cost to GM will be more than $200 million just in inflation adjustments! My calculator doesn't have
enough numbers to figure out the cost in retirement benefits for the year to GM. Most of these employees retire in their 50's
and they or spouses collect until they die! Many are retired as many years as they worked and still collecting benefits. Here
are some numbers. Employer | Active members | Retired members | Surviving
spouses | Totals | Chrysler* | 48,927 | 55,183
| 23,252 | 127,362 | Ford** | 58,300 | 94,824 | 28,183 | 181,307 | General Motors | 73,454 | 269,614 | 69,288 | 412,356 | Totals | 180,681
| 419,621 | 120,723 | 721,025
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Source: United Auto Workers based on company data. Figures are
for the end of the first quarter 2007
The biggest crime besides
the bailout itself is committed by the CEO's of these companies. In 2007 GM's CEO Rick Wagoner earned about $15.7
million (including $1.6 million in salary, plus non-equity incentive compensation, benefits and other expenses), a jump of
64 percent compared to 2006. Ford’s CEO Alan Mulally's total compensation in 2007 was $21.7 million, including a
$2 million base salary. Both of these while companies losing money! Last year Toyota paid its entire 37-member
leadership team only $22 million. This is just 2 CEO's out of dozens of the them for the big 3. Where is the
air sickness bag? Compensation for a job poorly done! Is this the new American way? It
doesn't look as if congress cares about the laws already in place for these companies. People hear bankruptcy and think
how cruel that would be and how many thousands of people will be out of work. Well the truth is, giving them the bailout now
which is only a temporary fix is the more cruel thing to do. It takes time for restructuring. This band-aid is not going to
fix the problems with the big 3 but rather postpone the inevitable! The only way for them to compete price with
other companies is to go back to cheaper labor, less retirement benefits, dump the union, renegotiate contracts and/or by
substandard materials, etc! While the bailout delays this, these companies assets are being eaten up. Once the assets
are gone they may go belly up. Lets put this in perspective. You have seen the charts. More employees collecting retirement
than working, overpaying for factory workers, car sales are down, over-payed CEO's and we are in a bad economic time with
no end in sight. So how will this bailout help? Its going to ensure bonuses get payed to auto manufacturer CEO's,
get more votes from the Unions next election(because without Chapter 11, where a court of law decides the final agreement
not a picket line, they don't have to negotiate or be eradicated), more campaign contributions next election(same) and
will waste tax payer dollars! What it won't do is, create a demand for new cars, lower the cost of cars, lower the cost
of manufacturing cars, lower the factory labor costs and benefits, allow contracts to be renegotiated, improve the quality
of cars, it won't allow for new car companies to start up by keeping these old ones afloat and it won't make the people
of the US who are against it very happy which is most. This is going to be the administration of political debt so hold on
to your wallets! Who knows who needs a bailout next?
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