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G6er
Lv 6
G6er asked in News & EventsCurrent Events · 1 decade ago

Why would UAW refuse deal? something better than nothing?

Why would the UAW refuse the cuts that were required for the bailout to pass? Wouldn't less pay still be better than no pay at all? Seems kinda greedy to me! Also, why does the government not just give a tax deduction for domestic cars? It would cost less for the government, no debt to service for the business and it would help people and the economy by promoting domestic car sales! (plus it would make cars more affordable for people in tough times) Why does that not seem to be an option?

Update:

Does anyone have an opinion on the no sales tax option as a possible fix? wouldn't that be better than giving them a debt?

As a business owner, when you are given the option to pay your employees too much or have them not work, it's obvious that your hands are tied, so i don't really blame GM for paying too much.

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  • 1 decade ago
    Favorite Answer

    Greed ! This is the grave UAW has been digging for themselves for a long, long ... time. It's time to have themselves buried once for all.

    P.S. Detroit is a dead city because it is choosen by its corrupted mayor and politicians. State of Michigan is also a dying state with no chance to recover as long as that Democratic governor is still in the office. As a result, UAW is to be buried with no chance to survive.

    If Detroit and Michigan would have a chance to recover, it should have had it 30 years ago.

  • 1 decade ago

    Greed. Nothing more than greed.

    I believe the auto company and city officials should work together to fix the problem. This problem occurred inside the company and the cities, so the problem needs to be corrected from within. The U.S. taxpayers are not responsible for fixing their mistakes.

    If the taxpayers are to bail out this company, why not bail out every other U.S. company that made bad decisions, turned out a below standard product, and paid their employees too much?

    If the bailout should come back and pass... I have a company that sells slightly "blown" light bulbs that is not doing so well. My employees refuse to improve our efficiency and our product, but I want to keep paying them too much for the job they half do and I want to give them at least 7 weeks vacation per year. Then I am going to get angry because the guys in the south are making light bulbs that actually work and they are making them for less.

    Greed, nothing more than greed.

    Additional comment

    I agree with the fact that the banks should not have been bailed out. They made the mistakes, and we are paying to fix it. I pay the bank every month, and now my tax dollars are paying the bank.

    As for the plight of the auto industry, I am not here to argue with anyone, I believe there is another way.

    I have worked in a factory. I was there for 17 years when the company had to make a decision on how to compete with imports. If the company could not find a way to cut domestic costs, they would have to shut the U.S. Operations down and move the operations to Mexico.

    We, the employees, actually devised a plan to reduce our pay if the city would help us with our cost of living. Our plan was to take a 20% cut in salary and not receive cost of living raises for 3 years, if the local business would give a discount of 20% to our employees.

    A true discount on all items, not raise their prices and then discount 20% from the inflated price. This ranged from restaurants, beauty salons, groceries, hardware, etc. The city realized that our manufacturing and distribution operation was a huge source of revenue, so talks were under way with the city officials.

    The bottom line came down to the Mexican wage was too low, and 20% was not enough. The combined Mexican labor and transportation was still less than 1/2 of our average salary. No one could take that cut and the city businesses could not take that kind of cut.

    The average wage in the auto industry is what $70 per hour with benefits. The average pay at my company was $15 per hour. 20% of 70 is much more than 20% of 15 and there is a lot more left over.

    I believe with the right planning, there is a way that the auto workers can correct this problem. It will have to involve sacrifices from all involved, the employees and the cities.

    I do not believe the American people should have to pay for these peoples lifestyles. If they are bailed out, we all will pay while they are still making $70 dollars an hour and if you want a new domestic car, you will pay again.

  • 1 decade ago

    There are hundreds of thousands of UAW retirees. Detroit dies in a month, a year, or five years but it does die. No, the UAW does not see the logic your comments regarding "less pay ...is better than no pay at all." Normal business people would think like you. But, these people just know one view and that is "we are entitled." Let the Michigan legislature cut them a check.

  • 1 decade ago

    So I ask all of you, if your job was on the line and they told you.. "job will stay yours if you take half the pay for the same amount of work.. " would you? Have any of you ever been in a factory? And seen what they have to do for the money? I bet most of you would say no as well, especially if the person asking you has never voted themselves a pay cut only raises and didn't ask the banks to make the same concessions for bad decisions on their part.

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  • Anonymous
    1 decade ago

    greed, maybe they can go on strike till they get a better deal.

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