MILNET Opinion Not All Automakers Are In Trouble, November 2008
While everyone is sick and worried about failing financial institutions and
the big three automakers are whining about their inability to survive without
a massive bailout, the real story seems to go largely untold.
There are automakers in the U.S. that are doing just fine, thank you. In fact,
unlike other businesses at the moment, they are actually hiring.
Why? That's easy. No it's not foreign investment, although there is
certainly a foreign link. And no, they don't manufacture their own
money.
The do, however offer automobiles at lower costs and yes, they pay their
workers a little less than those in Detroit. How can they do this? The
one common feature of the "successful" automakers is that they have
rejected Unionization.
That's right. For once in our history, the effects of the 1930s experiment
in Unionization is stark and clear, and right here in our own country.
Take several automakers in South Carolina for instance. The Governor there
proudly trumpeted their success on Fox News the other afternoon, proposing
the question that could very well spell the doom of the overreaching Union
socialist crawl.
You see, the problem is more than just workers getting fair pay. No one
wishes that someone should get unfair pay. The problem is that automaker's
feed the biggest Unions with the biggest pay hikes and lucrative benefit
packages in the world -- in the world, not just the U.S.
If you compare their pay including benefit packages to equally educated and
experienced workers in the rest of the world, the dichotomy is frightening.
And who pays for these compensation packages. The consumer of course, in
the form of the automobile price offered by U.S. manufacturers. And why
are the big 3 in such dire straits? Sales are down and they are willing to
admit its competition. Not unfair competition from subsidized foreign
auto manufacturers -- although it is easy to believe that is part of the
problem.
Foreign automakers offshore produce autos at a much lower price because their workers
get far less in pay and compensation, that is true. Yet they are able to import
the cars by shipping them half way around the world. With equal or better quality,
and huge shipping costs...how can they manage still, to beat out Detroit.
It's unions again.
It goes deeper. Another financial expert is saying that the Democrats want
to bail out the big three because they will save jobs. Well, that is probably
right, but the reason the companies are in dire straits is just not sales due
to competitive pricing.
This summer's gas price explosion above $4.00 gallon pointed out that Detroit is
still stuck a decade behind their competitors -- for at least the second time
in Detroit's history.
But is competition the big killer? Not entirely. The other factor is that
benefit package alluded to earlier. The financial experts point to Detroit's
pending capital outlay that will require them to pay billions of dollars to
re-capitalize their health care and other benefit systems in 2010. That's right.
If we hand them billions now to "bail them out", we are actually helping them
survive long enough to pay out billions in health care and other benefits to
their employees. Never mind that the bill isn't due until 2010, we are helping
them survive.
But it does not take a brain surgeon to figure out that unless the big three
recover substantially and somehow change their automobile features and cost
structures, they are going to need another bailout just to meet their benefit's
package payment in 2010.
All of this pay and benefit nonsense comes from Unions overreaching and getting
over the top pay for Detroit workers -- sharing the wealth, so to speak. And
for the first time, you, the American taxpayer, get to help the big three
keep the Union train running on time.
It's time to finally recognize the problem and shut down this Union
driven overreaching system. Is Congress on board? Not
everyone. Big Unions love the Democrats. By electing a heavy
majority of Democrats into Congress, we have pretty much guaranteed the
end will come much faster for the big three because Congress will
eventually do whatever it takes to make THEIR LARGEST VOTING BLOCK
happy, the members of the Unions. Unions are driving lower
competitivity and higher cost structures and unless we control their
continued push to spread the wealth by using your dollars, U.S.
industry will be doomed.
Not just the automakers? Surely not you think?
Wrong. There is now a move to allow Unions to get into other U.S.
businesses by having damn near public voting. This way, everyone
can intimidate anyone who does not wish to Unionize. How's that
work? Pretty simple really. The rules today require an
organization to Unionize only if a majority of the employees vote to go
Union. Unfortunately for the Unions, and this is key, the vote is
secret.
The Democratic Congress has a new bill that will certainly be the first new
piece of business, or it may be snuck into the bailout package extensions
being discussed, which include the big three automakers.
The new law would make it possible for Unions to simply pass around cards
that employees "check" to indicate their preference. Anyone collecting the
cards will be able to see who voted for or against Unions. So much for
secret balloting. The whole idea of the secret ballot goes back to the
basic freedom of voting in the first place. To be able to make your major
choices in full and complete privacy. Woman can choose if or which birth
control method they wish to use without everyone in the office knowing
anything about it. Men can order Viagra if they want without anyone knowing
about it except for their doctor.
But making a job choice that could destroy your company's profit
margins, desttory your ability to compete and eventually may mean loss
of your job is somehow less important and less private. That is
pure B.S. and clearly points out the Union's share the wealth mantra
that takes more of the Corporate profit and puts it into the hands of
the workers.
Of course many Americans don't understand the origins of the Unions or
the mantras of the fierce proponents. Most Americans, due to an education
system that hates Capitalism and quietly and efficiently proposes a more
Socialistic system, also tends to demonize one and soft peddle the other. Can
you guess which receives the best treatment today?
My father's generation clearly recognized "Workers Unite" and "Fair
Pay" for all. What these slogans have evolved into is "Workers Unite To
Enable Union Control" and "Fair Pay higher than any other". Oh,
add on "with benefits package that even a Corporate executive would
love to have." Last time I checked, I did not sign up to help
Detroit pay for their overpaid employees, their healthcare and
retirement packages. I seem to remember another socialist wonder
that is about to got of business called Social Security. So what
Congress wants us to do is continue to pay into Social Security as well
as do a lump sum donation to the Big Three Detroit retirement and
healthcare fund? I don't think so!
So while Capitol Hill tries to pull the "we really have no choice"
trikc on this next round of bailout packages, remember who the taxpayer
is
bailing out. The failed experiment called the Unionization of the
Amerika. Power to the People. UP with Marx, Down with
Capitalism! Vote for Stalin's friend Putin in 2012! Nancy Pelosi,
Harry Reid and Barney Franks are your friends, Really!
