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Originally Posted by C C Kent  The CEO's salary isn't the problem, although I agree that if you run your company into the ground you shouldn't get a big bonus. A size eleven to the glutes is more appropriate.
The problem is they have signed work agreements with unions that gave pension and health insurance to retirees that are not sustainable in todays economy. When GM sells a car the cost of retirees pension and healthcare coverage is greater than the cost of steel to build the car. This is just for people no longer working, they still have to pay the people working today.
It's a tough situation because the retired worker has been given a promise...but the company goes under the promise ends. If the promise is honored...the company goes under. The 25 billion $ bailout is little solace for an industry losing 50 billion per month. It's just a trial balloon to see if the idea will cause outrage from the people. |
If GM built a car that didn't fall apart they would be fine. If they cared about their customers they would be fine. People are paying more for Toyotas and Hondas because they don't want a disposable car. We can't blame the unions - why didn't GM fly to D.C. to ask for them to help bring down health care costs if it was such a big issue? The bottom line is that GM's business practices are terrible. Their customer service is terrible. They cut so many corners and don't take responsibility for when it costs $3000 in labor to replace $5 seals that they KNEW would fail at 75K miles and didn't care. (One of countless expensive issues I've dealt with in the last 5 years.) I'm the first one to say "buy American" but not if the car is a money pit. Sorry, but I think our next car will be a Toyota.