Corker plan gaining support?
12-13-2008, 11:22 PM
#46
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Location: Santa Clara, CA
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And I really believe the UAW was OK with that.
The 3 issues being;
1) what is parity? All the transplant plants have different pay scales. Toyota's oldest American plant pays BETTER than the UAW plants. So how do you determine parity? Gettlefinger said that it would be OK, but not before he was able to see all the books from all the plants to determine what parity truly was.
2) timing. Those few southern repub senators wanted the cuts immediately (even though Corker said in his press conferences, just give me a date in 2009; I don't believe that it was that simple in negotiations). Without letting the union do some analysis first.
3) where were the other stakeholders? Other than the bondholders, nobody else was asked to take a haircut in this proposal. The burden of this cannot be shouldered entirely by the workers.
The 3 issues being;
1) what is parity? All the transplant plants have different pay scales. Toyota's oldest American plant pays BETTER than the UAW plants. So how do you determine parity? Gettlefinger said that it would be OK, but not before he was able to see all the books from all the plants to determine what parity truly was.
2) timing. Those few southern repub senators wanted the cuts immediately (even though Corker said in his press conferences, just give me a date in 2009; I don't believe that it was that simple in negotiations). Without letting the union do some analysis first.
3) where were the other stakeholders? Other than the bondholders, nobody else was asked to take a haircut in this proposal. The burden of this cannot be shouldered entirely by the workers.
What about Corker's proposal to get the bondholders to accept 30%? Was that not part of this? If not, then the motives are indeed very suspect.
12-14-2008, 12:18 AM
#47
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Yes, it does look like they were using the situation to extract their pound of flesh. In today's Wall Street Journal, it was suggested that they presented such an extreme proposal, because the Bush administration indicated that they would do something if Congress failed to.
What about Corker's proposal to get the bondholders to accept 30%? Was that not part of this? If not, then the motives are indeed very suspect.
What about Corker's proposal to get the bondholders to accept 30%? Was that not part of this? If not, then the motives are indeed very suspect.
But there was NO talk of the executives, middle management, shareholders, creditors, dealers, suppliers, etc. having to take a cut.
I'm not even sure if Corker's plan outlined a new way of doing business for the Big 3. It sounded like their plan was for the union to take a large cut and that would correct/solve everything.
And don't forget about that memo that was circulated in the Senate on Wednesday. It basically said to "rally the republican troops and we will give the dems their first loss". It also directly mentioned hurting organized labor.
I have the full text of the memo in an MSNBC video that I'll start a new thread for.
12-14-2008, 02:06 AM
#48
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Location: Santa Clara, CA
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There has previously been lots of talk about cuts for execs. Wasn't $1 per year part of this? Middle management has also taken cuts. There's no jobs bank for them, and a lot have been let go already. Remember that the company can cut their salaries and benefits at any time.
Dealers, creditors, shareholders, and suppliers have been suffering for a while now. The workers have been fairly insulated due to the contract.
Still, I grant you that it appears that the union was being targeted here. Hopefully G.W. comes up with a more even-handed deal.
12-14-2008, 10:06 AM
#50
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Location: CNY
Posts: 2,224
I don't think it was quite that one-sided.
There has previously been lots of talk about cuts for execs. Wasn't $1 per year part of this? Middle management has also taken cuts. There's no jobs bank for them, and a lot have been let go already. Remember that the company can cut their salaries and benefits at any time.
Dealers, creditors, shareholders, and suppliers have been suffering for a while now. The workers have been fairly insulated due to the contract.
Still, I grant you that it appears that the union was being targeted here. Hopefully G.W. comes up with a more even-handed deal.
There has previously been lots of talk about cuts for execs. Wasn't $1 per year part of this? Middle management has also taken cuts. There's no jobs bank for them, and a lot have been let go already. Remember that the company can cut their salaries and benefits at any time.
Dealers, creditors, shareholders, and suppliers have been suffering for a while now. The workers have been fairly insulated due to the contract.
Still, I grant you that it appears that the union was being targeted here. Hopefully G.W. comes up with a more even-handed deal.
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