Maybe They Should Have Invited Congress To Play Golf
by Big Dog on Dec 28, 2008 at 23:11 Political
The Big Three automakers went to Washington to ask for bridge loans so they could make ends meet. There are quite a few Americans who do not want to lend this money to them and the left is bonkers over the idea that the Big Three could fail. There are a lot of union workers at the auto companies and the Democrats are indebted to them.
The UAW would not make immediate concessions and opted to give in a few years from now. This put an end to the deal from Congress but President Bush helped them out with some of the bailout money. The UAW figures it only needs enough to get by until Obama takes office and there are bigger majorities in the House and Senate. Then they will start cashing in IOUs.
The Big Three have shut down operations for various amounts of time to help get rid of existing inventory and to defer costs. The union employees will be paid 95% of their salaries to stay home so they got a paid vacation through the Christmas holiday season.
The union made sure to keep the deed to its $6 million golf course which is part of a $33 million retreat in Michigan. Too bad they were told to stay home with pay during the winter or they could have gotten some time in on the golf course. Hell, they should have invited the members of Congress to play a few rounds and maybe they would have gotten their handout.
Is it any wonder why the companies are doing badly? UAW members pay dues and the UAW uses them to buy golf courses. Truth be told, it is probably not the rank and file that gets to use it on a regular basis. But they are getting 95% of their pay to do nothing so it is not all bad for them.
The companies are taking it on the chin but this is what happens when they enter into contracts that give the world to the workers.
My friend Don Surber mentioned that Toyota posted a loss for the first time in its history and then asked if it meant that they make crappy cars that no one will buy. That has not been the issue with the Big Three and if anyone thinks that then they are mistaken.
For the most part the American companies make good cars. The labor costs to build them are higher and that is why it is hard for them to compete.
Maybe they could sell that golf course and use the money to offset the labor costs associated with the cars. Perhaps they could turn it into a profit maker (they lose money on it now) and use that money to pay employees who are not working.
Whatever happens, it is hard to have sympathy for CEOs who fly in on private jets to beg for money for workers whose union owns a $6 million golf course.
I guess they won’t have to worry for long. Obama owes the union so that golf course will probably be his new Summer retreat. He can sign the papers giving them the money right from the 19th hole.
Source:
Fox News
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Tags: bailout, bridge loan, golf course, uaw