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December 9, 2008

Auto Company Competitiveness Problem

-- by Dave Johnson

The big cost problem with the American car companies is that Japan, Germany and other countries provide health insurance and good pensions, while the United States does not. This means that the American auto companies have to try to compete while providing these benefits to their workers against companies that do not provide those benefits.

Republicans say that the cure is for companies to stop providing these benefits. And the way to get that is to break the unions. That is their beef with the auto loan discussion. They want to break unions across the board, and stop companies from providing any benefits. (Remember that McCain's health care plan was to stop companies from providing health care benefits.)

So, who is our economy for? And are we going to continue to make things in this country?

Posted by Dave Johnson at December 9, 2008 4:06 PM


Comments

No, the big cost problem is that the cost of a labor-hour to the company (which includes: wages, health insurance, pension costs, union dues, payroll taxes, and money paid to laid off workers to keep them from getting a new job) which is different than what the worker makes in wages and benefits, is $70. This is caused by Big Union and the Fat-cat union bosses and the wussy execs who let the unions walk all over them.

Solution? make the execs take $1/year salary until the loan is paid off and they are in the black and break the unions. That way they can give each worker a $40 package which includes wages and benefits and make a profit.

Posted by: Scorpius at December 10, 2008 11:01 AM

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