UAW may give up jobs bank to secure loans:

Link (http://www.freep.com/article/20081120/BUSINESS01/311200023)

Its a good start. Now how about lowering wages and other compensation to be in line with Toyota?

BTW,


Added House Speaker Nancy Pelosi, D-Calif.: "Until automakers show us the plan, we cannot show them the money."

Does she think she's being hip by using 15 year old movie tag lines?

Good start, agreed. Everything must go that does not constitute a reasonable working wage for today's global environment. It is very difficult for companies to compete in the global marketplace with extorted union contracts. Time get real or get nothing. That goes for everyone in these organizations, not only the union folks.

Its a good start. Now how about lowering wages and other compensation to be in line with Toyota?

Isn't the job banks one of the biggest reasons for the compensation difference?

Isn't the job banks one of the biggest reasons for the compensation difference?

They also get a higher wage when they are working, better medical and nearly ridiculous pension. Like I said, its a good start, but it doesn't bring them in line with Toyota.

Still its a huge step when you consider that a week ago they said they would make absolutely no concessions whatsoever.

American cars sell for cheaper than Japanese cars despite the pay discrepancies of the workers. The union contracts need serious work but don't pretend they're the main reason for GM's troubles.

Darthvader,

I agree the union contracts are but one broken cog in a broken machine, but American really aren't that cost competitive. At least not a couple of years ago when I was looking. Once you get to as close of an apples to apples comparison, they averaged about 3-5% more for cars (not light duty trucks). Then you have to consider resale value, etc. Plus, as you can now see they really weren't profiting even at those prices. I bought a GM Vibe because I had savings on my GM card and see value in buying American. I didn't buy it because is was the best car that best met my needs at the best price. Yes, I know the Vibe is a joint venture with Toyota.

Abe Lincoln is credited with saying something to the effect "Slavery is something no man wishes for himself"... I believe a similar concept is appropriate when suggesting someone else should give up their job, take a pay cut, or give up benefits.

I'm retired (auto insurance giant), non-union professional, with military experience.... let the US Citizen make a decent day's pay building a made in USA car.... make it a VOLT!

If Nancy Pelosi truly said that, then good for her. Maybe Sean Hannity will pipe down. From my perspective she had been portrayed as a hand-it-all-over bailo out advocate. The job bank seems to be a ridiculous extravaganza. No one has that kind of job blanket. No one can be competitive with that kind of burden. Talk about being chained to a corpse......