GM CEO Rick Wagoner is out and about today, peddling his company’s ability to be all things to all people save, perhaps, enough customers to avoid bankruptcy, bailouts and brickbats. The AP reports that Red Ink Rick reckons retirees are golden. “General Motors Corp. Chief Executive Rick Wagoner said Thursday the Detroit automaker can survive long-term without cutting benefits to retired workers. Wagoner made the remarks on NBC’s Today Show, where he was joined by United Auto Workers President Ron Gettelfinger. The two made the appearance from Detroit ahead of their renewed labor negotiations scheduled to begin next week.” Nothing like a good long suckle on the taxpayer tit to bring out a little media-pleasing solidarity. I wonder how Ron’s base feels about that one. Prety good if they’re retired, and think Uncle Sugar will cotinue to fuel the gravy train for the next twenty years or so. Perish the thought. Now, about those congressionally mandated concessions…
“I’m confident that we’ll be able to get the kinds of changes we’ll need,” Wagoner told Lauer (who makes $2.6m plus perks). And those changes are? Hello? Matt? Rick? Ron?
Under the terms of Bush $17.4b bailout, GM must bring its own hourly wage costs in line with America’s nonunion automotive factories. When Lauer called it a $10 per hour wage cap, Wagoner said the figure “may be a little bit on the high side.” As is anyone who thinks the UAW’s going to concede anything without getting paid for it.
That Rick sure is funny. Could Middlefinger contain himself at hearing that?
GM has a total of 56 open jobs posted on their website. Of those, 36 are finance and accounting jobs.
Unless their accounts are flying out the door (which they might be), it’s tough to understand why they’re hiring so many more accountants.
This is the stuff that should be scrutinized.
Unless their accounts are flying out the door (which they might be), it’s tough to understand why they’re hiring so many more accountants.
Temps and contractors.
Look, would you want to be involved with GM on a long-term basis? Would you want that on your resume?
On their side, accounting is one of the few nonunion functions many businesses don’t outsource: IT, HR and Marketing are probably already handed over to other firms, and Logistics/Operations are all lifers, so all you have left, outside of lineworkers, broom pushers and upper-office suits is the beancounters. And they aren’t going to hire anyone permanently, not with their cashflow.
I always find it funny that, in any company I’ve worked at, F&A is always the last to see it’s functions outsourced. No, scratch that, I’ve never seen F&A outsourced. I suspect accountants have no trouble outsourcing others, but can’t bring to do it to themselves.
Ah, its good to see that GM has moved entirely beyond the financial crisis and has buckled down and gotten to the business of doing exactly what they’ve always done, exactly how they’ve always done it.
“Unless their accounts are flying out the door (which they might be), it’s tough to understand why they’re hiring so many more accountants. ”
$9.4b is a lot of money to count, they obviously need to increase their F&A department to spend it appropriatly!
When Gettlefinger hedged on the new labor negotiations Lauer asked G point blank if the UAW was going to reopen the contract.
G said no… then hemmed and hawed about how they’ll just make “modifications.”
… uhhh…. aren’t modifications to a contract sorta kinda like reopening it?
…and if you don’t reopen it? Titanic. Iceberg. Ramming Speed.
G gives weasels a bad name.
Wagoneer is right, as long as the US government does not become as broke as GM. (looks like China doesn’t want to buy anymore US debt)
“Your Tax Dollars at Work in GMAC
by George Will”
http://townhall.com/Columnists/GeorgeWill/2009/01/08/your_tax_dollars_at_work_in_gmac
Where’s George Will going to work when the NYT, Washington Post, Boston Globe, Chicago Tribune and LA times go broke?
It’s ironic, to say the least, to watch journalists working for insolvent companies like the NYTimes lecture Detroit about not changing with the times.
I agree with Will about 60% of the time, but I’d like him to at least acknowledge that some of his income comes from a company, ABC, that makes its money from what technically belongs to the public, i.e. broadcast frequencies. The government’s even giving out $40 vouchers so that viewers can continue to watch ABC broadcasts after the industry switches to digital.
On their side, accounting is one of the few nonunion functions many businesses don’t outsource
Did I read that right? GM doesn’t outsource accounting and finance… Given the mess that IS GM accounting and finance… maybe they should.
Did I read that right? GM doesn’t outsource accounting and finance… Given the mess that IS GM accounting and finance… maybe they should.
No one outsources accounting**. Accounting outsources you.
** except for small businesses that don’t have accountants to start with
No one outsources accounting. Accounting outsources you.
Isn’t that the truth.
When you consider that most outsourcing is done based on upside down business cases that make ZERO business sense, industry trends (everyone else is outsouring HR so we will to), or something that some CEO read in some in-flight magazine.
I would LOVE to see some big firm outsource their finance department. The panic and ripple effects might finally put an end once and for all of all of this outsourcing madness.