Posted by: rotenochsen | November 21, 2008

THE REAL REASON FOR THE DETROIT BAIL OUT!





THE EXECUTIVES WHO TRAVELED TO WASHINGTON TO PLEAD FOR BILLIONS OF TAX PAYERS DOLLARS TO AVOID BANKRUPTCY , FLEW IN PRIVATE MULTI-MILLION DOLLAR JETS!

The executives of the Big Three auto makers had the guts to tell the Congressional committee that they testified before. That they could not declare bankruptcy because no one would buy a car from a company that went bankrupt.

The real reason these fat cats will not declare bankruptcy is that to do so they would have to reorganize and make drastic cuts in Union pay and benefits, as well as restructuring executive pay and perks! Easier to go with hat in hand to Washington and try to sell the American public that if they go bankrupt the z”sky will fall” on the already fragile economy!

It appears these high paid “stuffed shirts” think the public is stupid enough to have forgotten what the Airline industry went through during the 70’s, 80’s and 1990’s.
In 2003 American Airlines went through bankruptcy during which the flight attendants had to work 47% more hour at a pay reduction of 33%. The airline pilots also agreed to pay cuts. In 2006 Northwest Airlines went bankrupt and re-organized. Then there was United Airlines and Continental, and in 2007 delta airlines bankruptcy was approved.

All of these companies had to restructure their union pay scale and benefits, and their salaried employees all took cuts to satisfy bankruptcy judges. They had to present a plan for the re-organization, but the Auto giants came to Washington without a plan”B” if the Congress failed to cave in to their demands!

When people get paid $73 an hour to supervise computers that make the cars, and can retire at age 50 with full benefits and a generous medical and dental plan. There has to be some room for re-negotiation.

Question of the day –

“So why can’t GM be allowed to go into bankruptcy?”

Seems to me that United Airlines and half a dozen other companies I can name have gone into bankruptcy without also going out of business. GM goes into bankruptcy it gets relief on some of its debt but gets “reorganized” which can’t be a bad thing if you ask me.

Might it have a little something to do with the juicy union contracts that would become toast in bankruptcy court and thus the political drive to “do something”?

Having GM shed a dozen asinine contracts and unjustifiably expensive health and benefit plans would seem to me to be a good thing for everyone. I dont have a problem giving GM money, but like any investor I want to see the business plan that goes with it before the dollars cross my desk. So far the business plan seems to be to keep doing the same moronic things they have been doing only on a whole new class of investors dollars. Since when did working at GM become an entitlement?

Just say no to the Auto bail out! The airlines are still flying and passengers are buying tickets to fly them! source: The Pajamas Media

 

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