The root of the cancer is the UAW with an enabling auto management. This story emphasizes the stupidity and ridiculousness of US auto companies. They need to declare bankruptcy and restructure to throw out the union thugs which have been holding a gun to their heads for decades now.

Anyone who knows people who work at one of the US auto companies hears the stories of workers who go into work and crawl into some cubby hole and sleep for the day. Spring Hill, Tn has a GM plant for Saturn and the stories abound with these union workers. Personally, I’d be sorry to see the Saturn plant go because I’ve gotten to know a few people who work at the plant. But the union has to go!

From the WSJ – Money for Nothing

This is the Jobs Bank, a two-decade-old program in which nearly 15,000 auto workers continue to get paid after their companies stop needing them. To earn wages and benefits that often top $100,000 a year, the workers must perform some company-approved activity. Many volunteer or go back to school. The rest clock time in the rubber room or something like it.

It is called the rubber room, Mr. Mellon says, because “a few days in there makes you go crazy.”

The Jobs Bank at GM and other U.S. auto companies including Ford Motor is likely to cost around $1.4 billion to $2 billion this year. The programs, which are up for renewal next year when union contracts expire, have become a symbol of why Detroit struggles even as Japanese auto makers with big U.S. operations prosper.

Michelle Malkin has an email from someone in the auto industry. According to this person this bailout will do nothing to solve the problem it will just push the inevitable down the road a bit. This isn’t something new, the US auto companies have been facing this collapse for quite a few years now with the UAW doing nothing to help solve the problem unless demanding better benefits, pay etc. is what you would call a solution.

It is now known 4 X’s that amount will not cure the root cause of the problem., but only buy them 4 X’s the amount of time.

When a cancer is identified inside a person, it is immediately removed if possible. The Big 3 has a cancer that needs to be removed. It doesn’t take a rocket scientist to understand why they cannot compete profitability. They have parity on supply costs, materials, and energy with Honda and Toyota. So why can’t they compete? It is clearly the cost of labor.

I’m now wondering if perhaps Republican legislators have learned anything yet? Will they all jump in to bailout the automakers? We ought to be suing every single one of them to stealing money from taxpayers to give to private industry.

auto bailout, rubber room, big 3 auto, UAW, union stupidity

2 Responses to “Sympton of US Auto Company’s Cancer”