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IWETHEY Home / IWETHEY Board / Money, Financials, and Economics Forum / Unions are only part of the problem
Post #299,537
by jay
11/12/08 1:44:45 PM
Reply
New Unions are only part of the problem
Over powered unions and badly written union contracts are only part of the problem. And bad union contracts are partially management's problem.

The management for the big three where too quick to sign contracts that minimized costs that year but setup the company for long term problems. High retirement benefits, big health care, and rigid staffing levels in exchange for reductions in salary. It makes this quarter profits look better, but those expenses accumulate down the road, and eventually the company ends up hosed.

Jay
Post #299,539
by boxley
11/12/08 1:48:02 PM
Reply
New employer supplied healthcare, what were they thinking
Post #299,544
by jay
11/12/08 2:10:00 PM
Reply
New It isn't employer health care per se
It isn't employer health care per se that is the problem.

The problem is that they traded lower salary now for higher long term health benefits.

Essentially what they said is that we will take x% of your salary now and increase your health benefits coverage. They did this knowing full well that health benefit costs where going up far faster then inflation. They had to know it would cost more in the long run, but it does look better for this years expenses, because the salary reduction reduces costs now, while health care only costs years down the road.

Jay
Post #299,548
by Andrew Grygus
Picture of Andrew Grygus
11/12/08 3:41:08 PM
Reply
New Yes, but those executives didn't plan . . .
. . to still be there by time it came due.
     GM situation gets progressively worse - (jay) - (20) - Nov. 11, 2008, 04:24:50 PM EST
         Of course Obama urges Bush to do this . . . - (Andrew Grygus) - (2) - Nov. 11, 2008, 05:25:51 PM EST
             Should be popular, that scheme - - (Ashton) - (1) - Nov. 11, 2008, 06:26:22 PM EST
                 may all those UAW pensioners camp in yer living room -NT - (boxley) - Nov. 11, 2008, 07:30:07 PM EST
         Re: GM situation gets progressively worse - (beepster) - (15) - Nov. 11, 2008, 06:09:10 PM EST
             Agreed - (malraux) - Nov. 11, 2008, 06:27:05 PM EST
             Yes, but they're too big to fail. - (Another Scott) - (13) - Nov. 11, 2008, 06:58:04 PM EST
                 Remember Chapter 11 bankruptcy is NOT the same as... - (a6l6e6x) - (1) - Nov. 11, 2008, 09:32:26 PM EST
                     The Bloomberg story says Chapter 11 is not an option. - (Another Scott) - Nov. 11, 2008, 09:45:59 PM EST
                 Which is a good argument for breaking it up - (jay) - (10) - Nov. 12, 2008, 10:06:54 AM EST
                     What part of General Motors... - (folkert) - (9) - Nov. 12, 2008, 11:41:22 AM EST
                         Hush now - (beepster) - (3) - Nov. 12, 2008, 01:24:36 PM EST
                             No, they're bad for business - (jake123) - (2) - Nov. 12, 2008, 01:39:13 PM EST
                                 If GM goes under - (beepster) - (1) - Nov. 12, 2008, 01:53:27 PM EST
                                     GM isn't going under because of their unions - (jake123) - Nov. 12, 2008, 02:07:44 PM EST
                         Unions are only part of the problem - (jay) - (3) - Nov. 12, 2008, 01:44:45 PM EST
                             employer supplied healthcare, what were they thinking -NT - (boxley) - (1) - Nov. 12, 2008, 01:48:02 PM EST
                                 It isn't employer health care per se - (jay) - Nov. 12, 2008, 02:10:00 PM EST
                             Yes, but those executives didn't plan . . . - (Andrew Grygus) - Nov. 12, 2008, 03:41:08 PM EST
                         +5, Informative -NT - (static) - Nov. 12, 2008, 06:09:01 PM EST
         The White House has denied the Colombia stipulation. - (a6l6e6x) - Nov. 11, 2008, 09:16:24 PM EST

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