Comments on: Unions, Reducing Employment One Company At A Time

By: Michael

Michael — Fri, 14 Oct 2005 16:03:09 +0000

the company usually needs to pay their execs more, or else they will lose all of their best execs, and go down for sure.

Its not always the best execs who get the golden parachutes, sometimes they are just the best connected. Some of these execs are financial execs who put them under SEC investigation.

By: HispanicPundit

HispanicPundit — Wed, 12 Oct 2005 19:05:23 +0000

Michael,

Let’s not forget that labor costs also affect non-union employees. Has upper management taken a cut?

In many companies top execs negotiate a lucrative golden parachute while they are asking the rank and file to take cuts and layoffs.

But you forget, in a downturn, execs tend to be the first ones to leave. As the company is going down, execs leave early because they know they will need a new job sometime in the near future, and they don’t want to be on a sinking ship, so company’s need to pay more to retain them, especially the really good execs. In other words, the company usually needs to pay their execs more, or else they will lose all of their best execs, and go down for sure. That is not the case with the union labor employment.

By: Michael

Michael — Wed, 12 Oct 2005 18:21:15 +0000

It is a 63% wage cut according to a Detroit Free Press article. This was information made available from the union. The co had no comment.

One other problem that I neglected to mention was the investigation by the SEC regarding accounting irregularities.

Let’s not forget that labor costs also affect non-union employees. Has upper management taken a cut?

In many companies top execs negotiate a lucrative golden parachute while they are asking the rank and file to take cuts and layoffs.

The other stuff like the proposed tax code changes are from today’s NY Times. The off-shores are pretty much regularly repored as are the pay packages for CEO’s.

By: HispanicPundit

HispanicPundit — Wed, 12 Oct 2005 15:47:36 +0000

It’s several different factors, but labor costs are certainly one of the primary ones.

By: W.NM.

W.NM. — Wed, 12 Oct 2005 15:47:06 +0000

Michael,

Can you show me your sources from where you get your information?

By: Michael

Michael — Wed, 12 Oct 2005 15:26:19 +0000

I don’t think that you can ignore the high fuel prices from the equation. These fuel costs are of costs exasperated by the record profits the oil and energy companies continue to bring in, while the administration and the republican congress continues to prop up these businesses through tax subsidies in the corrupt energy and refinery bills, while they are already exploiting loopholes in the tax code by setting up phony offshore parents (while a presidentially appointed panel to investigate revisions in the tax code to help close the obsene deficits only proposal will be to cut the deductions in mortgage interest and health care costs - two deductions most likely to screw the middle class.
Meanwhile CEO’s continue to earn historically disproportiante compensation packages approved by board members all in incestuous relationships with one another.

These factors have nothing to do with bankrutcies, its the working stiffs causing the problems the guys checking your bags, taking your reservation, flying your plane serving you drinks. They are living too high on the hog.

Also Delphi is seeking wage cuts of 67% for its union workers while it has sweeteneed the severance package for its top executives.