Thursday, December 11, 2008

The AutoMaker Bailout

hmmmmm I just don't know where I stand on this.

Having worked for a subsidiary of one of the Big Three, Ford Credit, in the 90's, I saw first hand the waste, and the largess that a powerful union has on a company. I didn't pay anything for my monthly benefits, actually got some money back. Had 5 weeks paid vacation each year, 3 weeks of 100% paid sick days. I had a $550 yearly out of pocket maximum on my medical insurance, which was the type where you could go anywhere, to any Dr without any referrals or participating providers, anything.

I paid $5 each month for fertility drug prescriptions that ran $5000 to $7000 for those who had to pay out of pocket for them.

No wonder Fords were so expensive to buy. Oh wait, no they weren't, not for me and the majority of my family members.

And we wonder now why they're going broke. Or they've gone broke. When the union strangles your company and requires that you give that kind of a benefit package to your NON-UNION employees, it just can't be sustained forever. The rumors of the wages for the autoworkers were probably inflated, but not by much.

So, on one hand, maybe Detroit needs to tough it out and if one or two or three of them go belly up, so be it.

But on the other hand, I've got two aging yet paid for GM vehicles in my driveway. I fear the scarcity of parts will force us to one day buy a Honda, which is made about 30 miles away from my home. Hmmm, would I still be buying American at that point?

1 comment:

GoHskrs said...

Hon, whose aging yet paid for GM vehicle is in the driveway at 2:39pm besides yours? Do we need to talk? 8^)