UAW

Enemy of the State

by Bill O'Connell on August 6, 2009

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Just when you thought this administration had gone about as far as it could go in turning America into the old Soviet Union another subtle clue is revealed.  When you craft legislation that is over a thousand pages long and you try to slam it through before anyone can read it, all kinds of creepy things come crawling out when you turn the lights on.  This is from the White House’s blog:

“There is a lot of disinformation about health insurance reform out there, spanning from control of personal finances to end of life care.  These rumors often travel just below the surface via chain emails or through casual conversation.  Since we can’t keep track of all of them here at the White House, we’re asking for your help. If you get an email or see something on the web about health insurance reform that seems fishy, send it to flag@whitehouse.gov.”

Turn in your neighbor?  Does this not sound like Cuban block watchers in Castro’s worker’s paradise?  Is your name in their database?  If you apply for a government job, do you think you might run into a “problem”?  Will the IRS come knocking on your door to audit you?  If this doesn’t send chills up your spine, you are made of sterner stuff than me.

What’s really Fishy?

To be fair, everything this administration has said about health care, or is it health insurance, seems fishy?  So should all Americans be writing to the White House to complain?  Be careful, I am sure they are taking the names on both sides of the e-mail.  This Administration wants the First Amendment only to apply to the titan of the teleprompter.  But if you criticize the state, you are Astroturf, an unruly mob, crazed right-wing plants.  When do they send the goons in to break up the crowd and beat a few participants to send them a lesson.

Be Careful Before You Take a Bite Out of that Apple

The administration is touting the Cash for Clunkers program as a great success.  But as the auto dealers file for the rebates they are faced with this {emphasis added}:

“This application provides access to the DoT CARS system. When logged on to the CARS system, your computer is considered a Federal computer system and is the property of the U.S. Government. Any or all uses of this system and all files on this system may be intercepted, monitored, recorded, copied, audited, inspected, and disclosed to authorized CARS, Dot, and law enforcement personnel, as well as authorized officials of other agencies, both domestic and foreign.”

This was widely reported by Glenn Beck and immediately the statists came forth to attack him as a right wing fanatic.  I also saw some insipid posts saying, “well how are they going to be able to do that?  I’ll smack anyone who tries to touch my laptop; that web site is only for the dealers, not for consumers, etc., etc.”  To that I say, read it for yourself and decide.  Perhaps, as some suggest, it was some overly aggressive government lawyer who was trying to protect…  Protect what?  Rebates?

The pattern is shocking and the pattern is clear.  If the government gives you TARP money, the government sets your salary.  If the government bails out and then takes over the car companies, the government will decide what kind of cars it will build and if it loses money for years (Amtrak, the Postal Service), the government can decide to keep them afloat to achieve their agenda.  Keeping all those UAW members on the government teat, will keep their votes in the Democratic column.  Now if you want a rebate, the government owns your computer.  Let’s see, is there any disparaging information about the Obama administration on there?  No rebates for your dealership and we’ll fire off an e-mail to flag@whitehouse.gov to boot.  And what about that reference to foreign agencies?

Barack Obama is a disciple of Saul Alinsky and he knows a thing or two organizing and defeating his opponents, not by logic or reason, but by attack and disinformation.  That is how dictators grab power.  Will we be able to do as our Founding Fathers did and stop the spread of this tyranny?  The recent town hall meetings with our legislators give me reason to hope that Americans are paying close attention and do not like what they see.

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GM, Chrysler — You Just Can’t Make This Up

by Bill O'Connell on April 29, 2009

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Our once proud automobile industry

The government institutes regulations such as CAFE that force the automobile companies to build many cars they can’t sell at a profit for each car they can.  The unions negotiate contracts that pay people who have been let go 90% of their salary and give retirees extremely generous packages.  The automobile companies stagger under this load to the brink of bankruptcy and what happens?  The CEO of GM gets booted out and the government and the unions end up owning the car companies.  In the case of Chrysler the UAW will end up owning 55% of the company if the government’s plan is approved.

Had the automobile companies gone into bankruptcy before the bailout, as this author advocated, the union contracts could have been voided and a new workable deal struck.  But the government said bankruptcy was bad. The government said we had to give the car companies billions of our tax dollars.  The government said, if you automobiles companies don’t accept our deal, you will be forced into bankruptcy.  Huh?

So tell us again, Mr. Obama, how this is not socialism.

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To Go Bankrupt or Not to Go Bankrupt That Is the Question

by Bill O'Connell on November 26, 2008

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The battle lines are being drawn and the factions are jockeying for position.

  • The UAW is standing firm that they are not contributing anything more (but the taxpayers should)
  • Rick Wagoner, CEO of GM, says they are not even planning for bankruptcy (but recently news has come out that the board is now considering it, if they can’t get the taxpayers to step up)
  • Congress wants a plan from the automakers before showing the money (they want to make sure that the auto companies adopt a green agenda and build a lot more cars that they can’t sell at a profit, and palm it off on the taxpayers)
  • Some pundits are claiming that 3 million jobs will be lost if we don’t bail them out (but fail to finish the thought and tell us who is going to build the cars that the market demands but GM, Ford, and Chrysler won’t be building if they completely shut down as some predict)

The louder the hue and cry against bankruptcy and the need to empty my wallet, the more confident I feel that bankruptcy is the right thing to do.  Without fundamental management change, union change, and structural change, no amount of taxpayer funding and bailout upon bailout, will enable the Big Three to crawl off their death bed and once again be giants of American Industry.  Bankruptcy is bitter medicine, but without wrenching change that bankruptcy protection can provide, with a trustee making hard decisions and getting concessions from all sides, this patient on life support will die.

A Sad but True Parody

I came across this excellent joke on Evolving Excellence that was making the rounds a few years ago, but seems sadly relevant today.  As I said it is a few years old, so don’t look too closely at the financials:

A Modern Parable.

A Japanese company ( Toyota ) and an American company (Ford Motors) decided to have a canoe race on the Missouri River Both teams practiced long and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 7 people steering and 2 people rowing.

Feeling a deeper study was in order; American management hired a consulting company and paid them a large amount of money for a second opinion.

They advised, of course, that too many people were steering the boat, while not enough people were rowing.

Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team’s management structure was totally reorganized to 4 steering supervisors, 2 area steering superintendents and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 2 people rowing the boat greater incentive to work harder. It was called the ‘Rowing Team Quality First Program,’ with meetings, dinners and free pens for the rowers. There was discussion of getting new paddles, canoes and other equipment, extra vacation days for practices and bonuses. The pension program was trimmed to ‘equal the competition’ and some of the resultant savings were channeled into morale boosting programs and teamwork posters.

The next year the Japanese won by two miles.

Humiliated, the American management laid-off one rower, halted development of a new canoe, sold all the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses.

The next year, try as he might, the lone designated rower was unable to even finish the race (having no paddles,) so he was laid off for unacceptable performance, all canoe equipment was sold and the next year’s racing team was out-sourced to India.

Sadly, the End.

Here’s something else to think about: Ford has spent the last thirty years moving all its factories out of the US , claiming they can’t make money paying American wages. TOYOTA has spent the last thirty years building more than a dozen plants inside the US. The last quarter’s results:

TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.

Ford folks are still scratching their heads, and collecting bonuses…

IF THIS WEREN’T SO TRUE IT MIGHT BE FUNNY

It will be interesting to see when the auto executives go back to Washington, will they fly in three separate corporate jets? will they “jetpool”? will they fly first class?  will they fly coach? or will they drive one of their excellent products to ask for a bailout?  How much trunk space do you need to carry $25 billion?  Remember that’s 25,000 million.

A Modest Proposal

About every three years when the labor contracts between the unions and the auto companies come up for renewal, a target company, Ford, GM or Chrysler is typically chosen.  The purpose is to threaten a strike on that company while allowing UAW members to keep working at the other two (and still pay union dues), rather than striking against all three.

Here’s my proposal.  Since GM seems to be in the worst shape, they should go Chapter 11 right away.  Let Ford and Chrysler stand back and watch the result.  If it works and GM successfully restructures, you can bet Ford and Chrysler will be scrambling to go Chapter 11 to get their houses in order.  If it is a bust, then one of three things can happen.  One, they can learn what GM did wrong in the process and perhaps craft a better and maybe even “prepackaged” Chapter 11 filing.  Two, they can go back to Washington and try again, but at least they would have a stronger case for why bankruptcy is a bad idea.  Three, they can wake up and get all the parties together including management, unions, retirees, suppliers, banks, bondholders, local governments, Congress and make the changes voluntarily that would otherwise be made under a bankruptcy.

What do you think?

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