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Thursday, 03 December, 2020

Driving Into Bankruptcy

Date: 15 June, 2009

By: Chief

Imagehich is precisely where you will find both Chrysler and GM these days. What a multi-billion dollar disaster.

So fellow members of We the People (or We the Taxpayers) how does it feel to be a "reluctant shareholder" of General Motors Corporation? Actually the President said (quoting

" 'We are acting as a reluctant shareholder because this is the only way to help GM succeed', Obama said in nationally televised remarks delivered in the White House's Grand Foyer. He called the new effort 'a credible plan that is full of promise'."

I would say the "new effort" is a political payback plan that is full of crap. I believe that is far more honest than Obama's (how do you say his name?) statement.

Oh no. Did I just say something against Obama the God? You're bloody well right I did. And, believe me, there is more to come. Did I say that out loud? Yup.

Now why, just why, is that? Because it is true. Obama, and far more importantly, the Democratic National Committee (DNC) got where they are courtesy of big labor. Period. The DNC owes big labor and owes them more than they can pay. The same holds absolutely true for most Democratic members of Congress and Democratic members of the several states' legislatures.

Political cash contributions, free labor (get out the vote stuff) and — votes — all played a part in the Democratic party's return to power. Of course King George the Bush and all the Republican corruption cases did not hurt the DNC's chances a bit either (the blithering idiots). But big labor is a very credible force for the DNC and the DNC has been big labor's mistress or whore for decades. Hmmm, I don't see that changing either.

But GM was, and remains, in deep financial trouble and has been for the better part of a decade. Vehicles which were:

were discontinued. Indeed, companies which built a better vehicle were, if possible, bought out and shut down. The Geo Metro saga is a perfect example of this kind of corporate stupidity. Yes, the Metro was profitable — but not profitable enough for GM. Unbelievable. Had Chevy not shut down the Metro line in 2000, GM might not be in bankruptcy court today and We the People might not be the "reluctant shareholders" we currently are. That is no joke either.

Add to that the not so mere fact that the cars, not pickups, but the cars GM has been producing were and are nothing short of expensive pieces of garbage. If you look in the dictionary under "POS," you shall find a picture of a 2006 Chevy Cobalt. It is enough to make you heave.

I could write about the management screw ups at GM for weeks on end, but there is no point to it. However, as is the case with most bankruptcies there is at least one other culprit involved. And in the case of GM this is absolutely true. The other culprit is none other than the DNC's and Obama's very own sweetheart — big labor. Specifically the United Auto Workers union (UAW).

Yes indeed the UAW is at least fifty percent, and quite possibly more, of the reason GM is in the toilet — flush twice, it is a long way to Washington, District of Corruption. The UAW has known for many, many years that its most powerful weapon, basically its only weapon, is the strike. The UAW also knows it can singularly put any auto manufacturer out of business by using its strike weapon. They have used the strike in the past in order to get their way. It is quite effective. The pay and benefit package for a union member is phenomenal. Yet if you look at the quality of their work — the vast majority of the workers do not earn the pay and perks they are getting. Not by a long shot. The majority of UAW workers would get fired if they worked at a McDonalds. Have it your way.

Now that GM is under the protection of the bankruptcy court having been driven there by:

you would think the UAW membership would be shaking in their coveralls. Not even close. Per the Wall Street Journal:

"According to the UAW, the new agreement entails no loss in 'base hourly pay, no reduction in . . . health care, and no reduction in pensions'. It also restricts the ability of GM to import cars made abroad.

"The UAW, in other words, remains unbowed, and it knows that GM's new owners want to keep Big Labor happy. After the likely bankruptcy filing in coming days, the Obama Administration will own America's largest car company."

Can you spell political p-a-y-b-a-c-k? I sure as shootin' can. Obama and the DNC desire to remain in power for as long as possible. In Obama's case it is as long as Constitutionally possible. Geez, a President and a Congress all bought and paid for by big labor — at We the People's expense. Must be nice. Scumbags.

Oh, to be fair the UAW did have to make some concessions. Again quoting the Wall Street Journal:

"[T]he UAW will accept more flexibility in work rules, and retirees will have to give up prescription-drug coverage for their Viagra and Cialis. Seriously."

Our very own U.S. Treasury Department negotiated the agreement. But why was treasury oh so very, very nice to the UAW while shafting bondholders with non-skid? The Wall Street Journal had this to say about about this oh so sorry situation:

"Treasury officials argue that they have to treat the UAW more generously than bondholders, or the employees won't show up for work on Monday. But this is bluster; the UAW needs GM as much as GM needs workers. The Treasury's generosity toward the union is much more about political payback to Big Labor than it is a hard-nosed business decision. But this is what happens when government plays business mogul."

You know something — on this particular point the Wall Street Journal was exactly spot on. If GM had gone into bankruptcy without this government agreement — well guess what? There would be a whole bunch of UAW workers — looking for work. More importantly a whole lot of retirees would lose a bunch of benefits. Which currently cost GM billions per year.

The UAW did not want that in the least little bit. They had to get the fix in before GM filed for bankruptcy protection. So I suspect they got on the phone and called their mistress (or whore) and basically said 'fix this the way we want it or we'll kick your Zone Diet butt from here to Mars'. The DNC and Obama said 'you got it boss'. And they did.

Left up to me, I too would have filed for bankruptcy protection — but without the federales one sided agreement.

Thanks, Obama. Thanks, DNC. You rabid dogs just screwed over We the People, our children and our children's children. All for power. All for legacy. Scurvy curs.

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