American auto industry low on fuel and popular support

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Why no optiuon for guarantee funds after chapter 11.

I am 100% for this option. The unions have given some ground, postpone a couple of payments and suspend laid off pay for 2 years, but it does nothing. If I was president Bush, I would make on of my last statements this one.

"If the companies do have to go Chapter 11, we will be there to guarantee funds for operation and for when they emerge lean and ready for the future".

It lays the groundwork that they WILL survive, and despite Nancy and Harry wanting to desperately save the union, it squarely forces all the current contracts to die.

Here is a pre-packaged bankruptcy for you.
1) Pension fund for existing retired workers is passed on as it is going to be.
2) Any worker 50 or younger company match 401K (with conversion of existing pension to 401K). 50 and above, they get the choice.
3) 35% reduction in overall benefits.
4) 25% reduction in pay.

This brings the cost/hour down to $52/hour, only 10 more than foreign companies.

In the meantime, I would enforce the same CAFE standards on foreign vehicles since they get around the taxes selling the fuel efficient ones here.

Harry and Nancy can choke on it, too bad so sad.

$74/hour
$33 wage, reduced to $25/hour
$41 benefits, reduced to $27/hour.

They can massage that any way they want, earn $33/hour, reduce benefits even more, but anything that doesn't result in $50/hour all in cost, no way they survive.

TripleII

Posted by: TripleII   Posted on: 12/04/08 You are currently: a Guest | Members login | Terms of Use

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