Latest UAW Deal Makes Solyndra Deal Look Like A Winner.
Go ahead and put me on the Attack Watch site. The UAW has just gamed you…., me and the rest of the U.S. taxpayers. The latest deal negotiated by the UAW and General Motors is far worse for the tax payer than the Solyndra deal. So much for “baseball, hot dogs, apple pie, and Chevrolet.
The Solyndra loan was for roughly $500 million dollars. This was a bad bet driven by the need to win political favor, create or retain jobs, and show a demonstrative model for a successful green business.
This deal between GM and the UAW is a bet as well, and is founded upon an outstanding $15 billion dollar loan (bailout funds that have yet to be repaid). Further, it is designed to create or save jobs, win political favor, and demonstrate a model for success with a green product (the Chevy Vault which at this point in time is an abject failure).
You and I own 500 million shares of GM stock which has lost half its market value ($40 down to $20 per share) since January of this year. How is it possible that a company that is performing so poorly against its primary metric able to reward its new employees with raises, existing employees with $5000 bonuses, and all of them with platinum benefits packages? Sure the members will ratify the deal, but what about the owners; you and me?
GM will become a domestic failure. Toyota, Nissan, and Honda are ramping back up post-earthquake and tsunami. Hyundai, Volkswagen, are gobbling up market share, and the overall new vehicle market is contracting in concert with the macro economy. While this is occurring, GM’s sales in China are up 70%, and they have established a successful research center as part of their palatial corporate campus in Shanghai to develop ‘gasoline-hybrid cars, electric vehicles and alternative fuels.
What is truly sad is that when GM fails us this time, they will not be too big to fail and the UAW will need to look no further than the mirror and say “pigs get fat, and hogs get slaughtered.”
Posted on September 22, 2011, in HR Management & Leadership., Labor Relations and tagged $5000, auto, bailout, bonus, general, gm, motors, uaw, united, workers. Bookmark the permalink. Leave a comment.