GM asks gov to Buy Chrysler ******
#31
11-12-2008, 11:22 AM
Big 3 Bailout? Not So Fast.
One of the best reasons why Detroit automakers should not receive a bailout can be found in a General Motors "Jobs Bank" program that, bizarrely, pays employees not to work.
A beneficiary of that program was someone named Jerry Mellon, who worked for GM until his division merged with another in 2000 and he was no longer needed. Except for a brief period in 2001, Mellon received his full salary for not working, which reached $64,500 a year by 2006. Include benefits, and the annual cost to GM exceeds $100,000.
To earn his pay, Mellon was given the formidable task of showing up in a windowless shed, sitting at a table, and doing nothing for eight hours a day for six years, according to a profile in the Wall Street Journal. Jobs Bank employees have the option of attending classes teaching such important manufacturing skills as dealing blackjack and poker. Mellon spent part of his time reading Reader's Digest, learning how to play Trivial Pursuit, napping on a makeshift bed of chairs pushed together, or simply staring at the wall for hours at a time.
During those six years, Toyota surpassed GM as the world's largest car manufacturer, thanks to innovations like the fuel-sipping Prius. Nissan developed the GT-R, a technological marvel with a 0 to 60 time of 3.2 seconds and a lower sticker price than the Corvette ZR1. Honda kept its focus on smaller cars such as the Civic and Accord, and saw its sales continue to increase this summer while GM, Ford, and Chrysler have slid.
A beneficiary of that program was someone named Jerry Mellon, who worked for GM until his division merged with another in 2000 and he was no longer needed. Except for a brief period in 2001, Mellon received his full salary for not working, which reached $64,500 a year by 2006. Include benefits, and the annual cost to GM exceeds $100,000.
To earn his pay, Mellon was given the formidable task of showing up in a windowless shed, sitting at a table, and doing nothing for eight hours a day for six years, according to a profile in the Wall Street Journal. Jobs Bank employees have the option of attending classes teaching such important manufacturing skills as dealing blackjack and poker. Mellon spent part of his time reading Reader's Digest, learning how to play Trivial Pursuit, napping on a makeshift bed of chairs pushed together, or simply staring at the wall for hours at a time.
During those six years, Toyota surpassed GM as the world's largest car manufacturer, thanks to innovations like the fuel-sipping Prius. Nissan developed the GT-R, a technological marvel with a 0 to 60 time of 3.2 seconds and a lower sticker price than the Corvette ZR1. Honda kept its focus on smaller cars such as the Civic and Accord, and saw its sales continue to increase this summer while GM, Ford, and Chrysler have slid.
#32
11-12-2008, 06:29 PM
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#33
11-12-2008, 07:28 PM
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Grunge, I agree with you 100% BTW, I didn't realize there was anyone else on earth who knew the truth about freon-v-r134. Anyway, I would add that the average Union employee has seen a net loss in income in the last 20 years. The UAW has made concessions every economic downturn. Yes they make alot of money, but the working union employees are NOT the problem. They have given and given to keep the big three going. It is the retirement and healthcare cost that is the problem. I am anti-union, I believe in free enterprise, but I also am a realist. When the average auto worker made $32/hour in 1987 and now it is a little over $27/hour, I can't believe a net loss in wages for them is the culprit. We (the American people and car companies) asked them to take less to save the car companies in 1987, 1990 and 2000. I honestly think it would be immoral to ask them to give up anymore. Now, if you want to talk about the retirement issue...
#34
11-14-2008, 08:41 PM
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Mantis, youre absolutely right. I forgot to point out that its not the union WORKER who's the problem but the unions themselves. The thing with the retirement issues is, the automakers and airlines both went and made these huge promises about how they'd take care of their workers after they left the company. Now those guys put into the company all these years and theyre depending on it now. So what's the answer there? I couldnt tell you. Its a catch 22, since the retirees have already done their part, but the big 3 cant continue to support people who arent contributing anymore.
Job bank is one if the main things that needs to be stopped right now. That, and if you follow the logic in what's going on with potential government bailouts here's the general message: We make laws that kill the industry by mandating useless garbage, making laws that contradict innovation, set impossible fuel mileage goals, and eat up R&D dollars since you have to do as we say or get shut down. When you're on the verge of bankruptcy, we'll bail you out with the money we stole from you and every citizen but there'll be strings attached in the form of more control which will mean more of the same. Wanna play again?
All I can say is if you work in a Toyota plant here in America there is no union. You work, you do your job well, you get rewarded. Your retirement is a straight up 401K, you contribut X amount of dollars, they match that up to a point. Once you leave the company, you draw on that. You arent still costing the company any money when youre not putting anything in and thats the way it SHOULD be. And look at any other country where the emissions, mpg, and safety laws are much more relaxed. A european Ford Focus coupe has a much more powerful engine, is more efficient, and dollar for dollar is cheaper to buy then the castrated version we get. So there ya go.
Job bank is one if the main things that needs to be stopped right now. That, and if you follow the logic in what's going on with potential government bailouts here's the general message: We make laws that kill the industry by mandating useless garbage, making laws that contradict innovation, set impossible fuel mileage goals, and eat up R&D dollars since you have to do as we say or get shut down. When you're on the verge of bankruptcy, we'll bail you out with the money we stole from you and every citizen but there'll be strings attached in the form of more control which will mean more of the same. Wanna play again?
All I can say is if you work in a Toyota plant here in America there is no union. You work, you do your job well, you get rewarded. Your retirement is a straight up 401K, you contribut X amount of dollars, they match that up to a point. Once you leave the company, you draw on that. You arent still costing the company any money when youre not putting anything in and thats the way it SHOULD be. And look at any other country where the emissions, mpg, and safety laws are much more relaxed. A european Ford Focus coupe has a much more powerful engine, is more efficient, and dollar for dollar is cheaper to buy then the castrated version we get. So there ya go.
