An Auto Bailout is Like Sending Arsonists to Fight Fires
By Lori Roman, OpEd Contributor
- 11/19/08
This is why it is painful for me to say that the taxpayers should not pay for a bail out.
First, I believe that sending the government to bail out the auto industry or any industry at this time is like sending an arsonist to put out a fire. The government is partially to blame for this situation.
They forced lenders to make bad loans which resulted in a credit crunch that made it difficult to sell cars. And Democrats in Congress blocked domestic oil production which drove up gas prices and sent wealth and jobs overseas.
And to add more fuel to the fire, over the years they have created arbitrary fuel efficiency standards that do not match market demand.
One would think that, since the government created the crisis, they should fix it, right? No. They should STOP interfering with the markets, not interfere more!
They should let lenders make prudent loans and let energy producers produce energy and they should let the automakers get out of this mess without government meddling.
You don’t send folks with gasoline to put out a fire. Congress doesn’t just want to “bail out” the Detroit Three, they want to add their own mandates to make Detroit “green” and thereby make the industry even less competitive.
Second, we are asking taxpayers who make market-based wages to bail out autoworkers who make wages that do not correlate in any way to their skill level in the workforce.
Why should other manufacturing workers who make $15 an hour bail out folks who make about 70% more before benefits?
Third, as a former supervisor of UAW workers at a GM facility, I will say that the UAW takes the hard-earned money of the best workers and spends it defending the worst workers while tying up the industry with thousands of pages of work rules that make it impossible to be competitive.
Meanwhile, spineless management often makes short-sighted decisions to satisfy the union and maximize immediate benefits over long term sustainability.
The strength of the union and the weakness of management made it impossible to conduct business properly at any level. For instance, I had an employee who punched in his time card and then disappeared.
The rules were such that I had to spend hours documenting that he was not in his work area. I needed witnesses, timed reports, and plant wide searches all documented in detail.
After this absurdity I decided to go my own route; I called the corner bar and paged him and he came to the phone. He received a 30-day unpaid lay-off because he was a “repeat offender.”
When he returned, he thanked me for the paid vacation. I scoffed, until he explained: (1) He had tried to get the lay off because it was fishing season; (2) The UAW negotiated with GM to give him the time with pay.
One afternoon I was helping oversee the plant while upper management was off site. The workers brought an RV into the loading yard with a female “entertainer” who danced for them and then “entertained” them in the RV.
I went to Labor Relations for assistance. The Labor Relations rep pulled out the work rules and asked me which of the rules the men were breaking. None applied directly, of course. Who wrote work rules to cover prostitutes at lunch? There were no consequences.
Eventually, I was promoted to a management position at GM headquarters. As I left the plant, I gave my supervisor a blunt message. I told him that I expected the union to act like the union, but I was disappointed that management didn’t act like management.
This is why, with deep regret and sympathy for the many fine folks who work in the auto industry, I think it is time for consequences. Let them file Chapter 11 and reorganize. Don’t make taxpayers foot the bill for an incompetent Congress, a greedy union and wimpy managers.
Lori Roman is president of RegularFolksUnited.com.
7 Comments
Reader Comments:
POSTED Nov 19, 2008
John M. House: "Please come visit Continental Automotive Systems in Huntsville Alabama. This facility was purchased from Chrysler in 2004 by Siemens VDO Automoitve division. As you know, Siemens then sold there Automotive Division to Continental AG. This facility was somewhat operated in a manner like your days at GM (under Chrysler days). However, there have been drastic changes and this company now is very efficient and operated like a business should be operated. All of this has been supported by the local UAW. I can assure you, the current UAW ways in Detroit do NOT reflect ALL UAW facilities. Come visit see for yourself."POSTED Nov 19, 2008
examiner readers: "We all know the goal is to bust and get to China, however possible. Why should we allow more of our US companies, that we invested in run from or shores the Big three may have to be the big One now to survive. If so thats it Who can buy cars, with no jobs? Who can buy with bad credit? What will the rates be? Usary of course How will you get change with, no change? The YES we can gang said, "we wanted change" well give us change in management. To have a congress big enough to give you everything you want is big enough to take everything you have. We have no representation, like the 80 million spent by lobbyists Can we get some change?"POSTED Nov 19, 2008
Big D: "Make a deal with organized labor like the UAW and you might as well be making a deal with the devil. Get rid of the UAW and the Big Three may live. It is really that simple."POSTED Nov 19, 2008
Common Sense: "There is enough blame to cover all three. Yes the governemt should stop screwing with private enterprize. Yes the Unions promote socialism and protect those who don't haul their weight with extream overhead. Finally, the management of the "Big Three" are paid enough to not be so stupid and greedy and let things get out of hand as they are. The U.S. will come out of this better and stronger if people use common sense."POSTED Nov 20, 2008
ok: "went to management because he couldn't handle the B*ll buster jobs on the line that many do day in day out taking so much damage to the body that its hard to get out of bed to go to work the next day but we still do because we have a product to build. management are the ones running these places to the ground. I do a job that requires 2 people management cut one person we can't feed the line by running on the job in turn means less units produced. the supervisor gets a bonus for this but the company loses money by not getting the units out in time."POSTED Nov 21, 2008
: "Ma: Read this one."POSTED Nov 23, 2008
: "I agree wholeheartedly! We need to check Unions thoroughly."