Please keep in mind I'm not for people losing their jobs, but there is a tipping scale for everything. In business you have to be competitive and sometimes that means people (all people: works, management, upper management, etc.) have to make sacrifices to make sure their job and company is around tomorrow. Detroit has entered a phase of its life where it needs to be cleansed. Detroit pays its works way to much money, benefits are out of control, and bonuses based on the wrong numbers have skyrocketed.
I watched a TV show the other night about GM. I cannot believe how much money a general laborer makes at GM. Hell, why go to college if you can make $35 and hour right out of high school. Are you kidding me! The unions are holding Detroit captive. The unions when they were first born did what they were supposed to. Make sure people were treated fair, but in todays business they have overstepped their boundaries.
Don't get me wrong there needs to be fair wages and benefits but it needs to be inline with competitors, cost of goods, manufacturing cost, and so on. If you are paying you employees 50% more then the competition, and your product can not sell for that much more you are going no where fast. You will be bankrupted before you know it. Welcome to Detroit!
I have been saying from the beginning of this bailout crap that some businesses just need to fail and be rebuilt. I have attached an article from Mitt Romney who I feel knows business and I believe in most of what he is saying in this article. Once again our Government can not spend us out of the problem. Something is going to have to give and the sooner it happens the sooner we can get back on track.
One more thing, I heard an interview with a guy from GM that was retired. He was complaining how he might have to get a part time job because of everything going on with possible pension issues. After a few more minutes of talking the guy mentions he is 54 years old. Wow…you can be retired from Detroit at 54 years old? That’s awesome if that can happen, but it obviously cannot!
http://www.nytimes.com/2008/11/19/opinion/19romney.html?_r=2&th&emc=th
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$35 an hour? That's close to what I make, after ten years and a computer science degree. Let's not even mention the quality of their workmanship. Geesh!
Yep, hence why GM and others are in the sinking boat.
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