Please explain…

Perhaps I am missing something, so I am going to lay out the auto industry story in my words, and let you share your take on it.

After reading the paper, here is how I understand the current situation:

– The Big Three went to Congress asking for a bailout.

– The Big Three were humiliated because they flew in private planes.

– The Big Three came back to Congress with plans and commitments on how they would use the bailout money, if granted.

– The House approved the bailout.

– The Senate ended up shutting down the talks and not approving the bailout because the UAW would not agree to decreases in wages, that would bring wages in line with what Toyota pays it’s employees ($48/hr).

So, as I understand it, the UAW shot themselves in the foot by killing the deal over their wages, but now may not have jobs at all, if a new agreement cannot be reached.

Please explain?

UPDATE:  Washington thinking of loaning some money.

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Susan

Susan Cellura is a marketing communications professional with over 20 years of experience. She is a dynamic communications professional and enthusiastic team-builder, with a progressive history of success in designing and implementing communications programs for global organizations. A strategic thinker with the ability to understand the needs of multiple audiences and deliver solutions, Susan is a results-oriented problem-solver with exceptional interpersonal and negotiation abilities. Having worked in a variety of global industries, she has grown business communications in her current position via a strong mixture of strategic resources, including social media.

2 thoughts on “Please explain…”

  1. I think unions have outlived their usefulness and purpose. The union bosses pad their pockets and fatten their bellies while giving the union workers false hope and promises. Hmmm, sounds like the fat cats in Washington. There’s a lot wrong with the bailout of the banks, auto industry, credit card companies. Where will it end and why are we paying for it and putting up with it? Time to email your congressman/woman or Senator and tell them to do their jobs.

  2. While I am not a union fan either, and I agree that the auto union leadership have become as politically motivated as most politicians, and certainly, they are making decisions in the current situation that will affect the lives of thousands of dues paying members, based on short-sightedness and arrogance. That said, there are are still some areas where unions actually do protect workers who would otherwise have no recourse, in particular skilled-trades-people like plumbers, electicians etc.

    If I were a UAW member, I think I’d be sending emails to my steward and making it clear that I’d rather make less money and keep my job than stand on principle while standing on the unemployment line and asking if perhaps the union is planning to make my mortgage payments if the industry goes under because they were too busy being righteous to accept necessary concessions to save my job.

    As far as the contention that there’s a lot wrong with these bailouts, I agree with that too. Unfortunately, there would be more fallout on a heck of a lot more people if the government were to just step back and tell all these industries who employ tens of thousands of Americans: “Gee, sorry, you made your bed and now you’ll just have to lie in it, we’re not helping you at all. Good luck!”

    The US economy is dependent on these industries continuing to run, and these workers continuing to spend money and buy things. There are just too many people potentially affected to do nothing.

    That doesn’t mean, of course that these industries asking for bailout money shouldn’t be forced to prepare, present and be able to defend a legitimate plan for how they plan to use any bailout money to effectively support and re-build their businesses (something the banks were NOT required to do, I might add) but you can’t just leave these industries swinging in the wind, because it will negatively affect every American if they do, like it or not.

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