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The only thing which will save the General and the Pentagram in the long run is a Chptr.11, disolution of the UAW and Job Bank and a restructuring of their Healthcare and Pension programs.
These two companies have annual union payrolls of about $14B. But they have combined contributions to Healthcare of about $60B, and Pension pymnts. of about $14B (or almost 5 times more than actual payroll itself). The Job Bank, setup in the past to resolve a union arbitration, provides that if any UAW employee is permanently laid off, they receive 85% of their former salary for life (with COLAs!!!), regardless if they ever find other work! The Union is NEVER going to make these concessions voluntarily. Under a restructuring, they won't have much choice.
All these costs are either passed to you each time you buy their products, or as has more been the case, stifles their R&D committments. This has been the reason, much more than alleged stodgy thinking in the Boardroom, that has allowed so many foreign car makers to sieze their market share over the years.
Last edited by Lil bastard; 02-20-2009 at 09:12 AM.
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