Bush Speaks about Auto Bailout

MattW · Dec 19, 2008

Summarizing live comments. Links will follow later.

Ordinary times would require government to allow companies to fail, and the role of government should not be to interfere too much in free enterprise.

Current economy will not make Chapter 11 a viable option (parts and warranties may no longer be available). Option to restructure outside of chapter 11 in a short window, and federal loans, but Congress adjourned before a consensus could be reached.

Loans will be offered by the Executive Branch, with conditions similar to congressional plans discussed. Collapse of the auto industry will exacerbate current job market issues.

3 months to put plans together for restructuring. Loans will draw from financial rescue plan to allow time to restructure or file Chapter 11 in an orderly fashion.

Loans must be repaid, and plans put in place prove viability by March.

All parties must make sacrifices - including management and labor. Jets, exec compensation, etc. Compensation and wages of a employees must be brought in line with foreign manufacturers with US operations.

donroc · Dec 19, 2008

Can we expect the AWU to threaten a strike if they are asked to make some sacrifices?

MattW · Dec 19, 2008

donroc said:
Can we expect the AWU to threaten a strike if they are asked to make some sacrifices?

They are used to sacrificing goats, they should be able to step up to humans...

William Haskins · Dec 20, 2008

.

Phoebe H · Dec 20, 2008

donroc said:
Can we expect the AWU to threaten a strike if they are asked to make some sacrifices?

The UAW was willing to agree to some sacrifices. There are others that they weren't willing to agree to. So it likely depends on exactly what sacrifices they are asked to make.

Personally, I think if they ask the workers to work for the same wages & benefits that the Japanese autoworkers make in the US (which I believe was the final sticking point), that they should ask management to work for the same salaries and benefits that the Japanese managers make.

robeiae · Dec 20, 2008

That's not fair. The Japanese managers are doing a better job.

blacbird · Dec 20, 2008

robeiae said:
The Japanese managers are doing a better job.

Arguably yes. Now, compare the salaries, benefits, perks and separation packages Japanese managers are getting compared to those of the Detroit Big Three. Did any Japanese auto company managers fly to D.C. in private jets to beg for money?

caw

astonwest · Dec 21, 2008

blacbird said:
Did any Japanese auto company managers fly to D.C. in private jets to beg for money?

Nope, they (at least Honda and Toyota) formed their own aircraft companies...

robeiae · Dec 21, 2008

blacbird said:
Arguably yes. Now, compare the salaries, benefits, perks and separation packages Japanese managers are getting compared to those of the Detroit Big Three. Did any Japanese auto company managers fly to D.C. in private jets to beg for money?

caw

Huh? WTF are you talking about?

Phoebe H · Dec 21, 2008

robeiae said:
Huh? WTF are you talking about?

He's saying that the Japanese do not pay their managers anywhere close to what American management is usually paid.

I work at the american subsidiary of a Japanese company. Our Japanese executives make good money. But they don't make anywhere close to what executives at American companies make in the same industry.

As a culture, we Americans have gotten used to scandalously overpaying our executives. By any rational measure of economic worth, they aren't worth their compensation. It's always amazed me how we can be so obsessed with productivity and efficiency when it comes to line workers, but not when it comes to management.

robeiae · Dec 21, 2008

Phoebe H said:
He's saying that the Japanese do not pay their managers anywhere close to what American management is usually paid.

I work at the american subsidiary of a Japanese company. Our Japanese executives make good money. But they don't make anywhere close to what executives at American companies make in the same industry.

As a culture, we Americans have gotten used to scandalously overpaying our executives. By any rational measure of economic worth, they aren't worth their compensation. It's always amazed me how we can be so obsessed with productivity and efficiency when it comes to line workers, but not when it comes to management.

What's going on here? Am I trapped in some sort of alternate universe?

Look, you noted this:

Personally, I think if they ask the workers to work for the same wages & benefits that the Japanese autoworkers make in the US (which I believe was the final sticking point), that they should ask management to work for the same salaries and benefits that the Japanese managers make.

To which I replied:

That's not fair. The Japanese managers are doing a better job.

Now, I thought my meaning was pretty clear. To whit: the Detroit bosses should be making EVEN LESS than than those in the Japanese firms. It wouldn't be FAIR to pay the Detritot bosses the same because they are doing a crappy job.

This wasn't clear?

Bush Speaks about Auto Bailout

MattW

Company Man

donroc

Historicals and Horror rule

MattW

Company Man

William Haskins

poet

Phoebe H

robeiae

Touch and go

blacbird

astonwest

2 WIP? A glutton for punishment

robeiae

Touch and go

Phoebe H

robeiae

Touch and go