So Ford and the United Auto Workers (UAW) have hammered-out a new deal. Our fave sage Daniel Howes over at The Detroit News hailed the tentative agreement with the usual rhetoric: new paradigms, inflection points, fresh thinking, transformation and general bullishness. Yes, well, as over ten thousand Chrysler union workers recently discovered, there’s many a pink slip between the cup and the lip. Make no mistake: there are details bedeviling this Ford agreement. And the union rank and file are heading into the ratification process with their eyes wide open.
Obviously, job guarantees are job one as far as Ford’s UAW members are concerned. Post-Chrysler bloodbath, UAW president Ron Gettelfinger declared that he didn't know the Three-Headed Dog's chew toy would lay off some twelve thousand workers immediately after his members ratified their contract, and mumbled something about recovering lost shifts when “other products” arrive. Whether Big Ron’s lying or not doesn’t matter. If he didn’t know, he should have. If he did, he should have told his members. Meanwhile, Ford’s UAW members can be heard muttering “fool me once…”
Let’s be clear (even if the union isn’t): the new Ford contract does not, can not include iron-clad job guarantees. Post partum, Gettelfinger pointed to a two-page list of specific product and investment commitments to 19 Ford facilities and declared "This is one of our proudest moments right here in our negotiations." The papers in hand were an executive summary; the document the UAW boss will submit to his members for their consideration. Could the actual contract afford Ford the opportunity to do a Chrysler, trim model deadwood and cut shifts/factories? Well, duh.
Any union member laboring under the impression that Ford will keep building its current product line-up at the current pace at its current factories even as it sheds market share, burns cash and heads for Chapter 11 is dictionary delusional. One way or another, everything’s going over the side of this sinking ship: blue collar workers, white collar workers, plants, shift, models, brands, the lot. If Ford agreed to a contract with an iron-clad guarantee to maintain even three-quarters of its UAW workforce, you wouldn’t call that document a contract. You’d call it a suicide note.
UAW Supremo Ron Gettelfinger knows this. But rather than read his members the riot act and send the most vulnerable to the lifeboats (again), he’s chosen to pretend that Ford is on an even keel. In fact, Big Ron's minions have negotiated a seat on Ford’s Manufacturing Operating Committee, the ever-so-successful secret society that makes decisions about Ford’s future products. Like that’s going to help secure anything other than Big Ron’s power within the union.
But wait! There’s less! The contract has other “issues.”
In truth, the automakers’ multi-billion dollar payments into the union-controlled (i.e. lootable) VEBA health care superfund have been the engine of the UAW’s capitulation. GM and Chrysler got something of a discount on the deal (cash in vs. expected members’ health care liabilities). But Ford got a genuine bargain; they’re “contributing” just $13.2b (from God knows where) into the union-run “trust” to cover the Ford UAW members’ estimated $22b liability. In other words, Ford’s paying 60 cents on the dollar.
But union members don’t pay 60 cent dollars down at the doctor’s office. How will the UAW make up the difference between what they’re getting from Ford and what it costs to keep their Ford members healthy? Well, either they’ll invest the VEBA money wisely (as trade unions always do) and increase their members’ nest egg by 40 percent just in time for their old age or… they won’t. In that case, UAW members will face larger co-pays, health care cut backs, restricted doctor choice, etc. Occam’s razor anyone?
To soften this inevitable hit on union members’ health care, as part of the agreement, the Blue Oval Boyz have agreed to spend the money they WOULD HAVE given to the VEBA on modernizing their factories by transforming them into flexible manufacturing facilities (multiple vehicles, one factory). The clear implication: the UAW took a hit for the team to “help” Ford invest in securing UAW jobs.
First, this assumes that flexible manufacturing is the key to FoMoCo’s future. Ford doesn’t even have ONE mega-hot product– never mind multiple variations (and let’s not talk about the company’s miserable history of badge engineering). Second, it assumes Ford has the money. If it does, it belongs to someone else; the company is mortgaged up to its logo. And third, it assumes that Ford’s signed an iron-clad guarantee in this regard. What are the chances?
More to the point, what are the chances the Ford rank and file will ratify this new contract– or at least get close enough to ratification that the UAW can throw the vote? It’s hard to say. But this is not a done deal.
If anyone believes Big Ron did not know about the 12000 layoffs I have a bridge to sell. Anyone care to wager how many North American jobs will be going overseas to build Fusions and other imported cars?
They have to ratify the contract, any strike at Ford will destroy the company beyond any repair. Bankruptcy won’t even help.
Off topic: in case Viagra is no longer covered under the new UAW contract, here’s a tip: ask your doctor to prescribe the maximum dose and cut it in half or quarters, as the pills are all priced the same.
Per drugstore.com, Viagra is barely cheaper per pill ($1.08) than Levitra (1.09), Cialis (1.27) lasts longer than the other two. Big chains put a big surcharge, so it pays to shop around. ED drug sales have been flat lately because the market is, uh, saturated, but that’s better than the D2.801 are doing this year.
We all new it would be hard to get the necessary concessions from the UAW. When reporting on these delicate negotions I think we should be very careful that we don’t fan the flames and become part of the problem.
Yes, memebers will lose there jobs. So will management and subs. The important thing is that there will be a Ford tomorrow. One that can rehire the lost labor force with popular and competitive products.
Wiggle Room, I’ll show you wiggle room!
Sorry, I can’t resist linking this even though it is off topic (but still car related). A dealership chain in NC, Johnson Automotive has new ads from the ad agency that created the Geico gecko ads. Grady the Badger is hilarious. Reminds me very much of some of the salesmen I’ve known.
“Wiggle Room! I’ll show you wiggle room! Wiggle Wiggle Wah!, Wiggle Wiggle Wah!, Wiggle Wiggle Ooh Wah Ooh!”
The VEBA mess is merely a deferred government bailout; I’m a bit pissed that Congress couldn’t see that and intervene. Medicare is gonna get stomped at some point, yet nobody wants to think that far ahead.
So, the Union pretty much sold their members down the river? The UAW members have to accept lower wages for “greater job security” (Quote: bbc.co.uk). So basically, Ford could, in theory, use the UAW lower wages to propel themselves into profitablity, then when Ford’s management are in a stronger position, they could threaten the staff to work longer hours, flexible hours, do jobs which aren’t their remit etc, with the threat of moving jobs abroad?
Let’s face it, Ford’s market share in the US is shrinking fast whilst other markets are expanding, so it could plausible for Ford to export jobs to Mexico, because the US is now a secondary market with little potentional fall out.
Either way you slice it, the staff come out of it pretty poor. Still look on the bright side, at least Mark Fields and Alan Mulally have bankruptcy proof pensions! That should give the staff some comfort…….!
But Ford got a genuine bargain; they’re “contributing” just $13.2b (from God knows where) into the union-run “trust” to cover the Ford UAW members’ estimated $22b liability. In other words, Ford’s paying 60 cents on the dollar.
I don’t see why you’re making a big deal over this funding. Considering the time value of money and that every trust fund (except government trust funds) is invested in something with the intent to grow, of course Ford isn’t going to fully fund up-front a liability that will be occurring over the next 70 years. That would be worse than stupid, it would be an actionable misappropriation of funds.
Now, of course the union will steal the money and screw its members, but you can’t expect Ford to fund that theft.
katie “So, the Union pretty much sold their members down the river? The UAW members have to accept lower wages for “greater job security” (Quote: bbc.co.uk). So basically, Ford could, in theory, use the UAW lower wages to propel themselves into profitablity, then when Ford’s management are in a stronger position, they could threaten the staff to work longer hours, flexible hours, do jobs which aren’t their remit etc, with the threat of moving jobs abroad?” The existing members get the same pay. New hires up to 20% will be lower wage. This isn’t going to “propel” that quickly unfortunately. Also, they can’t force longer hours of the UAW without paying overtime, and can’t just move the jobs at whim. Unfortunately for domestic manufacturing employees, this is a global market and Ford has to compete with people using a global manuf base, so location of jobs will vary, but there will never be a shipping of all jobs overseaes as some zealots theorize. We could keep all those jobs here of course if the gov’t wanted to add proposterous tarriffs to imports. It works for Japan/China. Katie “Either way you slice it, the staff come out of it pretty poor. Still look on the bright side, at least Mark Fields and Alan Mulally have bankruptcy proof pensions! That should give the staff some comfort…….! ” Mulally’s compensation is to a great deal simply “reimbursing” what he forfeited by leaving Boeing early. It’s just scary that that is the “going rate” of executives.
Doom and Gloom… Doom and Gloom… It gets old.
The union has finally figured out that reduced jobs, pay and benefits are better than no jobs at all.
I get the feeling Ford has communicated to its employees the importance of the contract to the survival of the company. I’m sure the workers get it too…
Sometimes it seems like people WANT these companies to fail. And if it does we ALL get to support the union’s pension- with our tax dollars…
Kevin,
I am not sure how they calculated the liability, but I suspect the 22 billion is already in net dollars today. I assume that because they called it a liability, and an accountant would certainly figure the number that way.
What we don’t know is how they might account for rising cost of healthcare vs. normal inflation. If you could sell a bond with an after tax return pegged to the increase in healthcare costs you could sell them faster than you could print them.
The bottom line is that the UAW has ZERO intentions of that money being used that way. They will attempt to buy off politicians to get Hillary care so they can pocket the dough without anyone noticing, but if that fails, it will still disappear like free donuts. Mark your calender out ten years or so and check the news. The real crime hear is that you and I will end up paying for these idiots’ medical bills one way or the other while the crooks at the union get the benefits.
maybe you should change the title of the series to UAW DEATH WATCH…
Maybe I missed soemthing. I have read and re-read thi editorial and I am not sure whether the author is pro or con the agreement, pro or con union. I know he is not happy with Ford management.
I have been visiting TTAC for over a year now and have read many times how the UAW is overpaid underemployed and that the old US auto companies needed to do something about it. Now there are significant changes and it looks like the companies are taking it ot those poor (now)over worked UAW members.
This is a good contract for the companies. Maybe not what they would want in the final analysis.
Negotitations take time. Only a dictator can change 50 years of evolution over night. The Iron Curtain is gone, but totalitarianism rules still in “free’ Russia.
The new UAW contracts will help Detroit lose less money. They will not get profitable until they can produce cars that the consumers will buy.
I’m assuming with the magnitude of their liabilities, Detroit is already using offshore captive insurance companies for the tax savings. That would explain the 30-40% VEBA discounts we’ve been hearing since that’s roughly the tax benefit that would be lost from no longer having the captive. Ford might have a higher effective tax rate than GM and Chrysler so they needed the higher discount to work.
In the long run, the improved balanced sheet and higher credit ratings will help, but I wouldn’t be surprised if the 30%-40% cost reduction from the VEBA’s simply get replaced by tax expense. So operating income increases but net income ends up the same.
Anyway, surely there’s an expert on insurance captives and taxes that can weigh in.
starlightmica, I hate to break it to you but the “(in)famous” story about viagara droopy-ding-aling medicine that the UAW members were all getting for free? It was being sold on the black market, not used by them!!!
I mean, come on – common sense says that if EVERY guy in the plant needs help with droopy, then there must be something seriously wrong here – but of course, there IS no common sense in these plants – nobody had any common sense in demanding that Viagara be prescribed for free, and nobody had any common sense in agreeing to such! Kind of a microcosm of the whole UAW / Detroit 2.801 thing, really.
As for Ford, well… despite not having any places in the TTAC Ten Worst cars, I think that Ford is likely in the worst possible situation, closely followed by Chrysler. At this point, I have to wonder if General Messup might be the only Detroit contender standing by this time next year…. (Chrysler will be sold to Carlos Ghosn or the Chinese – what’s left of it, I mean).
Mr RLJ676, “Katie “Either way you slice it, the staff come out of it pretty poor. Still look on the bright side, at least Mark Fields and Alan Mulally have bankruptcy proof pensions! That should give the staff some comfort…….! ” Mulally’s compensation is to a great deal simply “reimbursing” what he forfeited by leaving Boeing early. It’s just scary that that is the “going rate” of executives. “ My point (which you convniently missed) was that the rank and file still, after talks, don’t have job guarantees and live with an uncertain future. Whereas Mr Fields, who partially got Ford in this mess, has a cast iron guarantee of financial security. Hardly seems fair, does it? An don’t give me all that “Market rates” rubbish with Mr Mulally, because all these Ford Managers could take a leaf out of Carlos Ghosn’s book where he said he’d resign if he didn’t get Nissan back to health. Mr Ghosn’s rationale was “how can I expect the rank and file to follow me if I don’t show that I’m in the same boat?”. Which I totally agree with. I don’t like Mr Ghosn’s leadership of Nissan post turnaround, but he did do a bloody good job bringing Nissan back to health.
I think the UAW should be commended for making concessions. When has that ever happened before? And how many predicted they actually would? I’m not sure it puts the 2.8 on par with their competition, but it is a start. Unfortunately, I don’t see Mullaly and Mullet slashing and burning the company as aggressively as Chryslerebus will, wich is what they need to do to have even a shred of a chance.
katie “My point (which you convniently missed) was that the rank and file still, after talks, don’t have job guarantees and live with an uncertain future. Whereas Mr Fields, who partially got Ford in this mess, has a cast iron guarantee of financial security. Hardly seems fair, does it?”
There ARE job garauntees though, to what extent is to be seen when it’s published.
Further, you seemed to miss that Mulally’s compensation was mostly to cover what he gave up at Boeing. He is not going to give up money to take on a monumental challenge he didn’t create.
If Mr Mulally doesn’t show to the rank and file that he is serious about turning around, then how can he expect them to have a) any faith in him and b) listen to him say things like “We must make sacrifices” whilst pocketing a golden parachute? Like I said, with Mr Fields, he’s partially responsible for the situation that Ford is in, yet he can walk away scot free if it all goes wrong. The rank and file can’t.
Mr Ghosn left Renault to go to Nissan and put everything on the line. In fact, Renault only bought a stake in Nissan on the firm understanding that only Mr Ghosn would be CEO and Nissan wouldn’t allow Renault to buy a stake unless Mr Ghosn was CEO. If he cocked Nissan up that was his career over. Needless to say, all of Nissan’s staff got behind him because he meant business and he had unions and profitability issues, too!
My personal feeling with management is that when you are in a situation like that, you MUST show the rank and file that you’re serious. That we’re ALL in the same boat. That’s my personal belief to management.
Please, believe me when I say all this with the utmost respect. I have no intentions to cause a war (see: In the defence of: American Manufacturers thread!)
My personal feeling with management is that when you are in a situation like that, you MUST show the rank and file that you’re serious. That we’re ALL in the same boat. That’s my personal belief to management.
Katie, its a great blog comment but until America gets sick of overcompensated executives, this is the environment Ford (and Mulally) must operate in. Its just another failed cog in a broken system.
I can’t blame Mulally for taking the money, he’s not a Dearborn Man who’ll fall on his sword…he’s a gifted CEO that specializes in turnarounds.
Dare I say it, we need more Iacocca’s in this world. Our value system is totally FUBAR.
I don’t think anyone on this site should be bashing the contracts between the automakers and the UAW. After all, for years this site has constantly called for reform in labor relations between the UAW and the auto industry and now that a very large step has been made in that direction the UAW and Ford, GM, and Chrysler should all be praised.
I think that going into these negociations Gettelfinger knew a lot of jobs would be gone in the next few months. I also think he knew that at least Ford and maybe Chrysler would risk chapter 11 rather then give any consessions to the UAW. That is why he went after GM first because they had the most money and the most to risk if they went into chapter 11.
Consider this. At $14.00/hour that is $29,120 per year. If memory serves me correctly the adverage price of a car these days is in the range of $30,000. More then the annual wage of these new UAW members.
Using prudent financial planning a person should not purchase a home that is more then 3 times their income and should not purchase a vehical that is more then 1/3 their income. Based on that how many homes are there for sale in Detroit for $87,360 and how many vehicals have a sale price of $9,609? Scarry future for the UAW.
The problem with Ford is their cars are too European for the BUY AMERICAN! domestic appeasers but too American for the import fundamentalists.
I work in a union plant and there are surprisingly few Ford cars in the lot. Plenty of Pontiacs and Chevys but almost no Fords save the ever present F-150.
And on a completely unrelated topic, why are pickups like the F-150 still referred to as half ton when their payload capacity exceeds 3/4 ton and approaches a full ton?
I understand and apologize for the confusion re: my take on the union agreements with The Big 2.8. Allow me to clarify a few points… It’s certainly true that the United Auto Workers’ contracts with Detroit were too expensive/unwieldy for the automakers to compete with their non-union rivals. There is no question whatsoever that the UAW’s wage and benefit structure (especially health care provisions) needed to be brought into line with Toyota, Honda, Nissan, etc. That said, it was the spirit of the agreements rather than the details that needed critical attention. GM, Ford and Chrysler are all being driven to Chapter 11 by a corporate culture of blame. The union says why should we take a hit? We didn’t design this piece of **** that doesn’t sell. The management says, well, it wouldn't be a piece of **** if your wages, benefits and health care didn’t cost so damn much. Both sides are right. Neither side takes any responsibility. What was needed here– above and beyond any immediate financial modification to the UAW’s contract (e.g. a two-tier wage system)– was a fundamental recognition that the whole system is FUBAR. That the blame game and traditional demarcation between “us” and “them” needs to be destroyed. Both sides needed to face the (uncertain) future with honesty, integrity and accountability. TOGETHER. This they didn’t do, in spectacular fashion. The union management couldn’t care less about The Big 2.8’s survival, or their members' best interests. They’ve got the Mother of All Payoffs: a $50b plus union-controlled health care fund. That’s more money than ANY of the automakers are worth. It will be looted and that’s that. The carmakers acquiesced to this money grab for the same reason they’ve always pandered to the UAW: to maintain the status quo. A state of affairs that puts tens of millions into their own pockets, no matter how their employer fares in the commercial marketplace. Think about it. In the main, these contracts don’t change the basics of how, why, when or where these companies will build cars using their union workforce. So, in the main, they are useless. As you might tell from this ed, I feel the most for the workers. They are the ones whose future has been sold out. If the UAW and the automakers had said to them unless we REALLY change things here, we are ALL totally SOL, the rank and file would have responded. But no, the union AND the automakers continue to lie to the guys and gals screwing the cars together. So I'm not anti or pro-union OR automaker per se. As always, I stand for the truth.
It will be hard for Ford to ratify the agreement after Chrysler torpedoed 12000 workers. And, I’m not sure it matters to the rank and file that Ford needs this agreement to even hope to live another day:
http://www.futureoftheunion.com/
I don’t know how many hours a Ford factory worker puts in each year, but the starting wage of $28.75 + plus paid vacation, sick leave and health/dental visits is ridiculous.
Also, that the UAW members think they’re entitled to the Jobs Bank program is another example of why they get absolutely no sympathy from me.
Lichtronamo : Ford will ratify no problem,Future of the Union is a radical oposition group.Any democracy needs an oposition no matter how irelevant.
For your information the job banks program was changed hugely.
R.F : Good piece,but your post hit it right on the head.
We on the floor are painfully aware of the lies coming from both sides,and your right, the us and them aint going away.
I don’t think the big 2.8 in Canada can last till Sept 08.
Me thinks Buzzes phone is ringing{watch this story unfold}
Mikey:
I know the jobs bank program was changed radically so that it is eventually eliminated – its the UAW member comments regarding the continuation of the jobs bank to which I was referring.
IMO, Chrysler’s moves after their contract was ratified will make the Ford vote that much closer.
I agree that it would take one of the Diminishing-3 going Chapter 11 to convince the more radical elements of the UAW and rank/file the need for emergency action to save these companies. However, even THAT might not be enough.
You would be shocked Lich to know just how well informed the rank and file is.The media portrays us,as bunch of beer swilling iliterates.In some cases its true but not the rule.
A small example: Back in 96 we were on strike for about 3 weeks.The Canadian media was all over us.Lots of TV crews doing interviews I myself was interviewed some great comments were made.A lot of the guys and girls are articulate,well groomed and well dressed. A minority are drunken, disheveled slobs that cannot say 3 words without using a profainity.Guess who gets on the 11 o’clock news.
In 84 we broke away from the UAW to form the CAW,during the 2 week strike a group of 10 or 12 guys got filmed urinating on the GM south main office All in plain view of the female office workers.Most of us were disgusted.
That footage made every news outlet in North America.
My 70 year old mother called me to say”Michael if thats you in that film,I’ll box your ears”
Is it any wonder people have such a low opinion of us,or for that matter any sympathy?
How come gettelfinger has a weird white ‘tache but dark hair? similar to to john bonkers bolton – Bushs’s temp ambassador to the UN. One wonders if they are related.
Even if the “jobs bank” sinecure will eventually be eliminated, doesn’t the Ford/UAW deal look darn good for those who will keep their jobs? Oh, maybe Viagra will no longer be free. (Dunno; I haven’t seen anything about changes in health care or retirement benefits.) But Reuters says bonuses and cost of living increases will give the average worker $12,904 more over the next four years. So, for the survivors, it appears their compensation will continue to make them the envy of the blue collar world.
A lot of the guys and girls are articulate,well groomed and well dressed. A minority are drunken, disheveled slobs that cannot say 3 words without using a profainity.Guess who gets on the 11 o’clock news.
mikey: I’ve only heard good UAW sound bytes listening to NPR. Agreed, the Media isn’t doing anyone any favors.
And on a completely unrelated topic, why are pickups like the F-150 still referred to as half ton when their payload capacity exceeds 3/4 ton and approaches a full ton?
benders: Nobody wants to admit that the full-size truck race is a pissing contest between manufacturers. Once Toyota ditched the T100 for the Tundra (ditto Nissan and the Titan) the bigger is better mentality ruled the roost.
Park an ’06 F150 next to a ’96 and the Barry Bonds references are obvious.
To support Mikey, the media likes the old stereotype of unions. It sells. The fact that many of those in union leadership today have College degrees in Economics, Law, Engineering or surprise surprise, Labor Relations, goes unseen. The fact that the UAW hired analysts to understand what was needed to be able to fund a VEBA and how it could be managed shows a different face on the UAW. They have also hired accounts in the past to look at Detroit’s books to a) see if they were telling the truth and b0 understaand where the problem really was.
One other comment for all of you smug union/Detroit bashers. This is the begining of the end for North America. As other employers that supply “free” benefits to tehir employees discover that others don’t, they will stop or reduce their participation to reamin competetive . Eventually, even the government jobs will change because with the reduced incomes will come reduced taxes.
We may have seen the last of each generation living better than the previous. I do not and will not live better than my father does/did already and I have a lot more education than he does and for that matter a lot more knowledge.
I hope I am wrong.
TJ “Using prudent financial planning a person should not purchase a home that is more then 3 times their income and should not purchase a vehical that is more then 1/3 their income. Based on that how many homes are there for sale in Detroit for $87,360 and how many vehicals have a sale price of $9,609? Scarry future for the UAW. ”
I think you can get more car than that using 16% of your monthly pay on payments?
Either way, homes in detroit for $88K? There are tons, the market’s so bad there are auctions people aren’t showing up to even. Yes, this is related to the reasons these cost cuts are needed. It might be a bit of a circle. UAW wages cause Big 3 struggles, Big 3 struggles causes Det housing to tank, new lower wage UAW members can afford housing still?
Queensmet said “We may have seen the last of each generation living better than the previous. I do not and will not live better than my father does/did already and I have a lot more education than he does and for that matter a lot more knowledge.
I hope I am wrong.”
Unfortunately for all of us, you are not wrong.
Please don’t slit your wrists after reading this, but…. here is The Truth About Our Economy
http://www.goldcentral.com/marketcommentary/6655.html
and
http://www.goldcentral.com/marketcommentary/6653.html
“We may have seen the last of each generation living better than the previous. I do not and will not live better than my father does/did already and I have a lot more education than he does and for that matter a lot more knowledge.”
A friend of mine works as the CFO of a moderate sized technology company in Silicon Valley, is highly educated and has over 15 years of experience. One day we were talking and he noted that he is not able to provide as nice a home for his family nor as good of an education for his children as his father was able to do. His father worked as a plumber. The out-of-sight housing inflation in most of the coastal cities, where so many of the jobs are, has been a disaster for the average family. The euphemism of calling increasing housing prices “appreciation” has to stop. Inflation is inflation, no matter what it is that is going up.
It’s strange that many Americans (especially those who are relatively well off) think the future is bleak, even though by practically any objective measure our circumstances steadily get better. Astounding progress was made just in the past sixty years. And both legal and illegal in-migration patterns indicate lots of foreigners think the US is the place to be.
The paradox of pessimism amid plenty is examined in Robert J. Samuelson’s excellent “The Good Life and Its Discontents: The American Dream in the Age of Entitlement.” Also, in Gregg Easterbrook’s “The Progress Paradox: How Life Gets Better While People Feel Worse.”
For me, the prime culprit is the media, which is insistently negative. Hence, people who pay more attention to news sources can come to think disaster is just around the corner. Actually they are often being misled, as Samuelson argues in another fine work, “Untruth: Why the Conventional Wisdom is (Almost Always) Wrong.”
I think a lot of the anxiety is related to decreased employment security, regardless of socioeconomic class (except if you’re really way up there). In the past, capital moved relatively slowly and there were the advantages of a relatively skilled workforce in America. Now, labor, even highly skilled labor, is much more a fungible commodity. Real dollar purchasing power for the American middle class has been stagnant, with most of the gains accruing to the top 5% of households.
Name: jdv | E-mail: jdveencamp@hotmail.com | IP: 65.123.223.41 Robert Farago: “The union management couldn’t care less about The Big 2.8’s survival, or their members’ best interests. They’ve got the Mother of All Payoffs: a $50b plus union-controlled health care fund.” I think the union bosses (and rank and file) have shown they care very much care about the health of the automakers in the fact that they made huge concessions. Things that are detrimental to the union. Like loss of jobs. Much of that detriment to the union is inevitable. But where I see the union doing the best they can, you see them as naive and unaware some may be laid off. You give neither the union management, nor the rank and file any credit at all recognizing the current environment. This aint 1970 anymore. Maybe they’ve changed. And maybe you just haven’t noticed yet.
“Ford doesn’t even have ONE mega-hot product–” ford and mazda have a few(hydrogen/battery/gas rx-8) ,wish i had the money to buy ford stock it may go a little lower but i think theyve shuttered enough plants to be very profitable in the future,mazda really seems to be the savior for them. check out the redesigned mazda 6 that gives you an idea of what the fusion and clones will look like ,im guessing they will be selling some cars if it handles as well as the original mazda 6- http://blog.vehiclevoice.com/2007/11/2009_mazda6_frankfurt_and_toky.html