The sup-pay the union members get pays the difference between unemployment and 75% of their regular pay, an amount less than half of the amount normally paid out by GM. This lower expenditure and really excessive inventory makes this decision sensible, at least for GM.

 

However, the big problem is still there. GM still has to pay pensions and heath care to their their retirees. Remember, the retired workers out number the working ones 3 to 1 and 75% of GM's health care pay outs are for retirees. That doesn't go away during the shutdowns.

 

Given Delphi's problems, I don't see how GM can avoid bankruptcy.

 

It's interesting that, GM pulled AC Delco off of the sales block.

By the way, the sup fund is not a bottomless pit. It's a fund GM pre-pays into by agreement with the UAW. Last I heard, 3 months is as long you can get supplemental pay, based on it's current dollar amount. That covers this layoff, but the fund probably won't replenish before the next one.

Glad you're doing well. I have a problem with us giving GM billions and then they close up and continue to pay wages whatever%. How is this afinancially sound decision? I assume that GM would not do this on their own dime. Why do laid off GM employees recieve more than other laid off workers? This whole thing just reeks of something bad.

I explained the sup-pay previously and the fact that it is a prepaid fund, but these payouts are provisions in contracts agreed between GM, the UAW, and the IBEW. GM is trying to survive and maintain their contracts. There is nothing shady going on here. Also, unlike the bailouts handed to Wall Street, the money is being loaned to GM and Chrysler, not just given to them with no strings attached. I don't like it, but nothing criminal is happening from my point of view.

Thanks and I agree with you. How do GM employees get that? One word UNION! :irked:

 

I don't mean the one in Barbourville either! :thumb:

GM agreed to those contracts back in the 60's and 70's when they were fat and happy. They should have allowed the unions to strike or should have locked them out, but they didn't. They were fat and happy and just wanted to continue to be fat and happy, so GM gave in to get the people back to work. In those years, the average life expectancy was in the 60's. GM didn't think the pensions would could come back to bite them, because the corporation is notorious for planning no futher than 6 months ahead.

 

Once GM discovered the corner they'd painted themselves into, they couldn't afford a lengthy strike, so the contracts continued as is. Unions are not going to give up what they feel they've earned.

 

From where I sit, both GM and the unions are complicit in this situation. Neither could see the future.

 

For those who might be thinking I'm pro-union, I got black plagued by the UAW one time.

By the way, the sup fund is not a bottomless pit. It's a fund GM pre-pays into by agreement with the UAW. Last I heard, 3 months is as long you can get supplemental pay, based on it's current dollar amount. That covers this layoff, but the fund probably won't replenish before the next one.

 

Where did the billions in bailout money go?

Where did the billions in bailout money go?

The rest of the post you quoted lays that out.

 

I remember Rick Wagner saying somewhere, that when he became CEO of GM, he thought he'd be at the head of the largest car maker in the world, but instead, he ended up being the manager of the largest health care provider in the US.

 

Either the government will have to take over GM's health care or GM will have to go into bankruptcy to protect itself from it. Neither option bodes well for the country.

Well the next step will be to take a " car tax" from everyone drawing a paycheck, and every 5 years you get a "GM" car. You do get to pick one of four colors. Das vadanya comrade