Should The Government Bailout GM?

[Slingin Sammy 33]

Originally Posted by saden1

Blame everything on the unions...I have never bought an American car, if you're going to blame the unions might as well blame me as well. People act like the unions want to see these companies go out of business...like they're not willing to concede perks such as having union members flown on private jets.

Certainly the unions can do things better but lets not act like they're to blame for all that is ill in Detroit. When they're selling cars and making money everything is great, when they're not it's blame the union time. What's really killing these companies are 1) bad product, 2) health care costs, 3) the completion.

Certainly the unions are not the only ones to blame, but they have played a major part in this problem. A $ 25 per hour disparity from Detroit to competitors in labor costs are largely the unions doing. If you read the very bottom of the article you linked to one of the last paragraphs sums up the union's blame pretty good.

Health care costs outside of things negotiated by the union are not an issue, as Toyota, Honda etc. have the same health care overhead with their US plants. Product and competition play a large role, as well as incredible mismanagement and executive compensation that is way out of line. If I was in Congress and found out these CEOs came to beg for $ 25B but were stupid enough to fly in on $ 20K per flight private jets, I would pull the rug on any bail-out on that principle alone.

Restructure under bankruptcy and independent oversight (negotiated hopefully, if not court-appointed) seems like the best way out. $25B is just a band-aid on a severed artery IMO.