Skip to main content

Originally Posted by The Propagandist:
Originally Posted by lexum:

The union way, two cars in the garage and two chickens in every pot.

 

As opposed to the Wall Street pirate way: 4 houses, 20 cars, and personal chef and valet that travel with you on your private jet and yacht between visits to each house at least once a year, if only to make sure it's still there.

Didn't FDR have all that, except a prop plane instead of a jet? While he manipulated the economy to extend the Great Depression for years? But thanks to his radio propaganda, he kept the sheeple in the Democrats fold for three terms. 

Originally Posted by The Propagandist:
Originally Posted by Extra-260:
 

---------------------------------------------------------------------------------------------------------

Ventor,

 Unions typically negotiate contracts from the standpoint of using executive compensation as the baseline for workers pay. Corporations like GM, Ford, Chrysler are not any different than any other corp. They are managed for the purpose of making money for those at the top with little regard for those at the bottom.

  The more executives are compensated, the more the union demands. If a company makes a lot of money, they don't lower the price of the cars, and they don't give the extra money to the workers, they pay themselves big bonuses. So if you have a problem with union pay, don't blame the union, it is the corp. executives who abuse the system. You can't blame a hard working family man for wanting the piece of the pie produced by his labor.

  Remember, "Without the strength of oxen, there is no increase". 

 

 

More charts on income inequality at:

http://www.businessinsider.com...y-about-2011-10?op=1


I read this statistic in the Wall Street Journal sometime in the summer of 1984, and it has stuck with me ever since. Paraphrasing:

 

Since 1979, at General Motors ...

 

Employment has dropped 5%;

 

Labor costs have increased 3%;

 

Productivity per worker has increased 15%;

 

And prices of new cars has increased 25%.

 

 

Which means that, making up a hypothetical example, if GM had in 1979 1,000 workers producing 1000 cars per day at a labor cost of $100 per worker per day (total = $100,000), and sold those cars for $10,000 each (total = $10,000,000), and excluding all other expenses, the profit would be a hypothetical $9,900,000.

 

By 1984 950 workers were producing 1150 cars at a labor cost of $103 per worker per day (total = $97,850), and sold those cars for $12,500 each (14,375,000), and excluding all other expenses, the profit would be a hypothetical $14,277,150.

 

That is a profit increase of around 68% ($4,375,000), of which 50 fewer workers (-$5000) were receiving an increase of 3% ($97,850). The company paid an extra $92,850 to its employees to make an extra $4,375,000 to pay out in bonuses.

 

 

Also, in 1981 General Motors lost money for the first time in its history. Alarm bells went off, and the company asked the union for a special 2-year contract with concessions from workers worth $3.5 billion to help overcome the crisis.

 

GM agreed to link wage concessions to reductions in the price of its vehicles,[21] but this was not part of the eventual agreement.[25] The contract concessions were (at the time) the largest ever made to GM.[25] The workers agreed to forgo an annual 3 percent wage increase, eliminated nine paid holidays over the next two years, deferred cost of living adjustments in the first three months of the contract to the final three quarters of the contract, established a wage tier that paid new employees 20 percent less, and implemented fines for chronic absenteeism.[25] The union also agreed to negotiate over work rules at the local level.[25] In return, GM agreed to keep four plants open which it had planned to close, agreed to a two-year moratorium on plant closings, established profit sharing, established a prepaid legal service program for its employees, and promised that if it laid off workers with 15 years or more of job experience it would pay them 50 percent of their annual salary.[25] The pact was only narrowly approved, however (114,468 for and 105,090 against), even though UAW members at Ford Motor Company had approved a similar pact by a 3-to-1 margin.[25]

 http://en.wikipedia.org/wiki/O...r#cite_note-Bonus-25

 

[Then, after the contract with $3.5 billion of concessions was approved, the executive board wanted a special meeting of the board of directors to approve big bonuses – for saving the company a lot ofmoney!]

 

Implementing the contract proved troublesome, however. Just days after the pact was approved by UAW members, GM attempted to give its executives large pay bonuses.[26] Bieber angrily denounced the pay plan,[26] and GM backed off the proposal just two days later.[27] The damage was done, however. Bieber began local bargaining over the work rules, but angry workers refused to negotiate any changes and bargaining ended in July 1982 with no changes.

http://en.wikipedia.org/wiki/O...r#cite_note-Bonus-25 

 Propie,

 

As I stated, the big three have failed because of a confederacy of dunces in management and the union.  Your post enforces what I stated.  As to GM, most of their increase in business is from overseas business.  Without the government bailout, they would be bankrupt and split up. 

 

 

Add Reply

Post

Untitled Document
×
×
×
×
Link copied to your clipboard.
×