ajmccarrell

On Automakers' Deathbed Unions Finally Make Concessions

The problem with your argument is that is ignores marginal revenue. The non-union automakers have marginal revenue sufficient enough to pay for these additional benefits (and no, they are US domiciled companies with US benefits, not foreign benefits for US workers, look it up bozo) by virtue of the volume discount by selling more cars. IE more profits equals more benefits.

On Dec 05 07:01 AM tjirish34 wrote:

> 2 POINTS: #1 The union agreed to dissolve the 95% pay for layed off
> workers which I agree is silly. HOWEVER the union got this pay by
> making concessions to GM back in the 80's. So GM agreed to this because
> they recieved concessions from union in 80's. Was this a good idea?
> Maybe union should have used concession for something else? Obviously
> yes. But their are reasons why these agreements are in place and
> it's not because GM was being a nice guy. #2 Your often repeated
> comment on cost of producing car versus Toyota because of health
> care costs is true. BUT and it's a big BUT... Toyota being in Japan.
> The company's healthcare costs are not as high because Japan like
> other foreign companies health care costs are lower because the governments
> of these companies have some kind of national health care system
> in place that takes the burden of healthcare costs off of their companies
> backs! Kinda sours that argument doesn't it. Maybe all companies
> in the USofA would benefit if this country would reform it's healthcare
> would they not? I see 61% poll which I just don't think Americans
> understand. Hey I don't like the buyouts either but what did banks
> do with their buyout money so far? People (human beings_ in millions
> will be out of work if these auto companies go under. I work in print/advertising
> industry and advertising in print and online will all be lost. Jobs
> not directly related to auto industry will all be lost. From AD agencies,
> suppliers to a bartender/waitress at a neighboring bar. These are
> people who need to eat. They will fill the unemployment rolls of
> States costing states money there. Yes in pure economic capitalistic
> theory. Auto makes should file chapter 11. But this country has never
> been purely capitalistic. That's why we have social security and
> other programs to help. This is a trying time brought on by wall
> street greed and government alseep at the switch. Automakers and
> unions seem to finally be seeing the light. Hopefully something can
> be worked out. But work something out don't walk away.