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Originally Posted by tw
How did Iacocca turn Chrysler from record losses to repaying all bank loans (there were no government loans) in only four years? He started innovating immediately.
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Actually, by the time Chrysler asked the government to insure those bank loans, they had already started innovating and were ready to go into production with the K car. Remember they showed one to Congress, to prove they had a viable business plan deserving of government support.
Quite unlike the asshats that appeared before Congress recently.
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Originally Posted by Undertoad
For a YEAR. What an amazing deal.
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That deal was negotiated when GM was bragging about the bazzillions of dollars they were making to the Wall Street analysts.
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Of course, in a market, everything is connected. The other side here is that GM is motivated to close the plant *sooner*, so they don't have to pay for nothing for too long. With gas prices dropping like a rock, perhaps there is life for the line after all. But GM can't risk it.
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It's a pretty safe bet that gas prices will rebound. I figure they will settle out around $3 a gallon.
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There is always the other side to these deals. The union negotiates a higher salary and greater benefits. The company must then lay people off wholesale, when the tough times come, instead of keeping more people and saving money on salary and benefits.
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Historically GM, and the rest, lay off/recall production line workers as needed. They have never shown any loyalty to their workers, which is why in good times the UAW has pushed for benefits like the "job bank" and sub-pay.
[caution, opinion ahead]
I think the UAW leadership is just as out of touch as the board of directors. They've seen many boom/bust cycles over the years and figure this is just another one, instead of realizing that the world and market are (have been) going through profound changes.
Probably it's that "just another one" mentality making the union leadership reticent to make any concessions, thinking the business will rebound and it would take years, if not decades, to regain those hard won benefits.
I applaud the UAW for the precedent setting strides they've made in workplace safety and a fair share of profits for the workers. I'm sure the non-union auto plants, as well as other industries, would not be as fair to their workers if it were not for that precedent.
But that said, I don't think the present leadership is doing the right thing. I fear the future without unions would lead to an even bigger have/havenot gap in this country. Rather than throwing out the baby with the bath water, I'd like to see more responsible leadership. The fly in the ointment is the union leadership is elected by the members, and voters being voters, as we've seen in politics, vote for the candidate promising the most.
[end opinion]