You Set Up the Lemonade Stand to Buy All the Lemonade

UAW members at protest

UAW members at protest (Photo credit: Wikipedia)

Anyone who knows me knows that I have a “thing” for unions. In Particular the UAW. While working a summer job for International Harvester  as a college freshmen, I met the UAW. I went to look at my design for a machine frame on a welding table in the R&D shop. I examined the way the welder had placed all the pieces of steel on the welding table over a layout of the design. I saw a part out-of-place by what I thought a large amount. I tapped the piece back into the correct place. The act took but a few seconds to complete. Within a few minutes my boss Mervyn came out and asked me to walk with him. I did. As we left the shop floor, I noticed that all the shop-workers were conspicuously sitting down doing nothing. Inside the office, Mervyn lectured me on life in a UAW factory. It seems my adjustment stole life-giving sustenance from the mouth of UAW families. They showed who was boss by sitting down on the job. They didn’t go back to work until Merv’s boss came out to apologize to the UAW shop Steward about my mis-behavior.

After my experience I began to take notice of UAW articles in the newspapers. They struck a lot. Walter Reuther was head of the UAW at that time. GM announced a multi-billion dollar profit and Reuther boldly proclaimed that the UAW would get their piece of the pie. GM workers went on strike and were out for several weeks. I cannot believe those guys ever made back what they lost in wages during that time. GM lost business to Ford and Chrysler and ultimately caved.

What I noticed following strike articles is the attitude of the striking workers; “we would rather see this company go out of business than to make a single concession in a contract.”

Watch what will happen in Chicago this month. The teacher’s union will strike to get their demands for a raise. Poor teachers, twenty-three million private sector workers are scraping to find a meal, and they are looking for more money. None of what they are asking for is for the betterment of your kids, it is for themselves. They have the same attitude as the UAW on bringing the school district to its knees. Mayor Rahm-bo Emmanuel will cave not because he wants to see all his under-performing schools do better and the kids in his city learn to read and write, but rather will be looking to protect his former boss during the election. That means we pay the bill folks, by paying higher taxes.

In the meantime, enjoy the article below about the Hopey-Changey-Feely success of the UAW and Govmnt Motors.

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Reblogged from several sites

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By Angel, on July 12th, 2012

Remember how Obama keeps telling us how he saved GM, and how our economy is getting better, it seems the car company he bought is being saved by Govt employees using our tax money to buy new cars. 79% of GM’s sales last month was government purchased.

GM’s sales figures for last month were the best since 2008 , up 16% for the month of June. YIPPEE! Well, wait just a minute. It seems that those rosey sales figures are due primarily to a 79% increase in fleet sales to the U.S.government in June. That’s right. Our tax dollars are being used to pump up GM’s sales figures ahead of next month’s quarterly report so that Dear Leader can point to Government Motors as a huge success. The incestuous relationship between GM, the UAW and the Regime has never been more glaringly apparent. I’ve said it before and I’ll say it again. GM is unsustainable without government subsidies and will ultimately go bust again, taking billions of taxpayer dollars down with it.

We bailed out General Motors to the tune of $50 billion. $30 billion of this is effectively a loss, mostly sunk into fattening the United Auto Workers union—fierce Obama supporters—while the actual bondholders were shown the elevator shaft.

Meanwhile, as NewsBusters reports, “We the Taxpayers are still stuck holding 500+ million shares of GM stock.  Which we need to sell at $53 per.  Which debuted post-bankruptcy at $33 per.  And which is currently trading at just over $20 per.  Meaning we’ll lose about $15 billion.”

But it gets better. Despite the overwhelming negatives, the tiny bright spot of positive June sales numbers is being heralded by Obama and the leftist press as proof the auto bailout was a “success.”

Obama is now campaigning on the “success” of – the government buying cars from…the government’s car company.  With our money.

Americanvision says That’s like you setting up a lemonade stand for your kids.  You buy them the lemons, sugar, cups and pitchers – and then buy most of the lemonade yourself.

The pressure is on Government Motors to appear financially strong as this may be the last earnings report before November elections and sets the stage for how “successful” GM is. One of GM’s past tricks to help fudge earnings numbers has been to stuff truck inventory channels. Old habits die hard at GM. According to a Bloomberg report, “GM said inventory of its full-size pickups, which will be refreshed next year, climbed to 238,194 at the end of June, a 135 days supply, up from 116 days at the end of May.” 135 days supply is huge, the accepted norm is a 60 day supply. The trick here is that GM records revenue when vehicles go into dealership inventories, not when actually sold to consumers.

Barney Frank to Head GM!

News Flash. “Barney Frank Takes Over the Reins of GM.” Why not? He did a great job with the housing market. He would probably work wonders for GM. The first thing he could do is to present legislation called the “Transportation Revitalization Act.” This law would force lending institutions to make subprime car loans to people who could not afford to own one.  It would be a social engineering program aimed at low income workers. Everyone is entitled to a car.  With the current recession headed toward a depression, the idea might fly. The caveat would be that in order to qualify for a loan, the buyer must purchase American. i.e. GM, Ford, or Chrysler.
The Transportation Revitaalization Act would serve several fronts. First, we give everyone in the country a car. Second, we get the country back on its feet. Think of all the jobs created by the demand for American made cars.
Barney is the perfect guy for the job. He did so well with the housing market that the country experienced economic growth like no other time in history.
I can just see Barney across the table with the UAW. There would be no adversarial relationship between manufacturer and the union. Barney would also be fair, and limit his salary to one half of what the current GM CEO’s make. He would also limit his parachute to a lifetime of service in the Senate.

Another great outcome from the Transportation Revitalization Act is the threat from Japanese, Korean, and Chinese car makers is over. Who would want to buy a foreign product and have to pay for it?  Most likely my kids, they would still insist on a car they wouldn’t have to take back to the dealer for an argument every month.

Write to your congressman today. Insist he initiate the Transportation Revitalization Act in the first session after the Christmas, er Holiday Break.

Wealthy Middle Class

My Flag Flies Everyday

My Flag Flies Everyday

What a joke to watch the Big Three CEO’s squirm on Capital Hill today. They gave the Senate an earful. Basically, we would have gotten off with a bargain had we accepted the 25 billion bailout the carmakers asked for in November. Of all the jokers who spoke before the Senate, I thought the guy from the UAW was most off base. After listening to a proposal from GM which could save an estimated eight billion dollars a year, he proceeded to argue about how he didn’t really believe the numbers of the proposal. Of course not. The proposal meant the UAW would lose some jobs. These are jobs that should be lost. GM, Ford, and Chrysler all carry dead wood because of the UAW contract. In the meantime, their Japanese and Korean competitors are hiring people in this country who are only happy to have a job. They work for considerably lower wages than a UAW greed monger will.  The typical UAW response was one which was adversarial to the management of GM. Even in a hearing which held the life of the company in it’s hands, the UAW forgot why they were there and began to argue against the management. They were there to support the company. They could not. They are the problem, have been the problem and will be the problem for as long as they are in existence.

It has been my experience that everytime a UAW worker goes up against GM he takes the attitude that “I’d sooner see you go down and look for another job than lose this contract negotiation to you bastards.” Over the years, GM has caved in, time and time again in order to please the stock holders. In the meantime, the UAW has become the strongest union on the world. At least it thought it was strong. All it was doing was looking at the immediate bottom line for its workers. Never did they imagine that the mighty GM could crumble. Never did they imagine that the Japanese and the Koreans would steal their lunch.

My opinion of the GM management is not much higher. They were arrogant enough in the seventies, eighties and nineties to believe that the Japanese could not unseat them as the number one carmaker in the world. In the meantime the Japanese continued to do everything right. Little by little they chipped away at the GM market share which went from forty-five percent in the seventies to twenty percent today. They are lucky to have that. The management of GM today is finally waking up and making some good cars. Their quality rivals the Japanese. They have a way to go with overall reliability, but their quality has improved. Their styling sucks. Their current hot car, the Cadillac STS is a winner, but the Chevy Malibu, their work horse, is a dog. I can’t believe that with all the design talent in the USA and within GM that they continue to make cars that look shitty. I can only blame it on the management. Their designers are better than that.

In the meantime, the Japanese continue to work their fifty year strategic plan. Their car companies are in union with the government. They work together in thier industries for the good of the country. The car company employees work under a job for life program. This program keeps them from organizing. These employess are also retrained to work in many different areas in order to reamain employed. They do so. In the meantime our wonderful UAW is protecting jobs even when they are no longer needed.

Another famous UAW contract point is the pay for no work. When a US car company sees a downturn in business, and needs to cut back to save money, the UAW workers continue to get paid eighty percent of their normal wages for up to eight months. What a sweet seal that is. Get paid for nothing, bring on the layoff.

Henry Ford created the middle class when he began building cars. Over the years the UAW has created the “wealthy middle class.”  Thier workers are so well paid they rival the wages of our most educated college students. A UAW worker does not have to give up four or more years of his life to study either. He works the line doing some mundane job better served by a robot.

In the meantime, GM does a profitable business in other parts of the world. Why? Ask yourself that? Why can they compete in other countries but not the USA? The Japs sell the same car against them in other countries, so why do they do so poorly in the USA. Two reasons: The first is perceived quality. GM has sold us such crap for so many years we don’t believe that it is improved to that of the Japs. Second, GM costs are too high compared to their competitors, and they cheeze the car to make profit. That second point only hurts the first one.

If Congress gives them the money it should be with the following caveat: eliminate the UAW, or get major concessions from them. Another option, let GM build cars in another country and import them to the USA.

We May Indeed Be Nuts!

My Flag Flies Everyday

My Flag Flies Everyday

I am almost over the election. I haven’t blogged because the need to do so dried up when BO won. This week, however, I have to speak my piece on the latest of Uncle Sam’s idiotic moves. Why do we want to bail out GM? This car company has consistently thrown poor quality, and reliability at us in the name of “Made in the USA.” The same goes for the UAW. I tried my best to hold out by buying American for many years. I owned an Oldsmobile Intrigue for eight years. It was without a doubt, the best GM car I ever owned. I bragged about it’s reliability and performance. I tried in vane to get my kids to buy “American.” No amount of reason or guilt worked. Two of my kids  don’t even know that there are cars made in America that are not Honda or Toyota. They grew up on Honda, and Toyota. They are brand faithful. At the same time I was bragging about my Intrigue with 110,000 miles on it, my daughter bragged about her Honda with 180,000. All she ever did was change oil, and put brakes, tires and gas in it.  At 111,000 miles my Intrigue crapped out. It leaked fluid into the cyclinders and locked the engine tight. After I spent $1800 to replace a leaking intake manifold, I learned on the I-net that GM cars are notorious for this failure. They have had the problem for years, but have never taken any steps to fix it. 

The US car companies, management and the UAW, have let the Japs take them down. Now GM wants the tax payer to bail them out. The argument is that if they are allowed to go bankrupt, many thousands of jobs will be lost, thus fueling the recession.

The truth is that filing for bankruptcy will not be a loss of jobs. They can go on making crappy cars as is their usual business. The difference is that they won’t get any “free money,” from the taxpayer.

A few years ago, GM divested itself of a division called Delphi. Delphi makes electrical systems for GM and other car companies. GM gave Delphi as much pension debt as they could. Eventually, Delphi filed for chapter eleven. They couldn’t make a profit with all the baggage GM dumped on them. I know, because I am a stockholder. Want to know what happens to the stockholder when a company files for bankruptcy? The old shares become worthless, meaning the stockholder loses his investment. GM didn’t give a hoot about losing Delphi, it became Delphi’s problem.  Even though Delphi filed for bankruptcy, it has continued to operate for several years. They keep on shipping orders. They even entertained the purchase of another electronics company. How can a business that is in bankruptcy buy another company?

What GM is afraid of is all it’s incompetent managers losing their options and bonuses paid in stock.

The capitalistic system rewards companies that can design, make, and sell useful products that buyers want. GM does not do any of these things. They design cars that have a shorter life than their competitors, their designs are ugly, and they are made by the most unproductive union in the world, i.e. the UAW.

If we reward GM and the UAW with a government bailout, we are indeed nuts. Let the system work, we’ll all be better off for it. We won’t have to worry about BO turning the country socialist. WE will hand a socialist government to him on a silver platter.

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