We the tax payer, gets screwed again.
The CEO's and the unions are playing us for fools.
Really? Do you think that the companies agreed to this situation because they thought it was a nifty idea? As I've said before, the law allows the unions unparalleled power in negotiations to shut an automaker down during a strike. The company has two choices: endure a strike that could cripple the company, or pay the ransom demanded by the union.
Couple this to the fact that all three automakers are forcibly represented by the same union, the concept of pattern bargaining gives another unfair advantage to the unions. If you are not familiar with this concept, essentially the union targets the automaker that can least afford a strike and forces them to accept demands. Once the demand is settled, the union takes this demand to the other automakers and forces it upon them. If you recall the dire economic situation back in 1984 when this provision was included, not one of the automakers was able to survive a strike.
I'm sure that if you were to ask any of the Big 3's CEOs if they would prefer a bailout instead of what I am going to suggest, they will take my offer. First, break up the UAW and allow Ford, Chrysler and GM to be represented by separate, unconnected and competing unions. End the process of pattern bargaining (i.e. organized extortion). Legislatively roll back the undue benefits of decades of forced concessions by the automakers and force the unions to negotiate without the threat of a strike except in certain, limited cases.
Second, force Japan into a binding bilateral trade accord that allows American products into Japan. If Japan continues it's
de facto embargo of American cars in it's market, then the U.S. should apply all the trade regulations and sanctions against Japanese imports that Japan applies to ours. Also, since current law forces the automakers to keep unions, then unionize all the import transplant factories here to level the playing field.
Third, let the market determine relevant fuel economy standards, not Federal or California state legislators. In fact, let the market determine the market. Current legislation is forcing automakers to spend billions on R&D to meet artificial demands for fuel economy based on non-existent technology.
Fourth, lower the corporate tax rate from all sources, federal, state and municipal. Government's greed over the decades has taken billions from the auto companies. That's billions that could have been used to maintain profitability and development of products.
These are steps suggested to offset the governments own culpability in the automakers current situation. The Big 3's management have not had a free hand in the operation of their businesses and I stand by my mantra the it's the governments mess, they should fix it.
