GM cutting 25,000 jobs!

itscookeyo · 06-07-2005, 01:00 PM

Yikes! Hope Nissan is hiring.

http://money.cnn.com/2005/06/07/news...ex.htm?cnn=yes

Clancy · 06-07-2005, 01:52 PM

This quote pretty much helps you to understand a lot.

GM's UAW contract essentially forces it to pay union employees during the life of the contract even if hourly workers are laid off and their plants are closed. But those protections only run through September 2007, when the current four-year pact with the union ends.

Can you imagine a business model that works where you have to pay for all of your labor for the next 4 years regardless of how much you really need, or how well they do their jobs?

All that and they make junk too.

bestatchess · 06-07-2005, 02:03 PM

GM will probably be moving to Mexico.

itscookeyo · 06-07-2005, 02:05 PM

Quote:

Originally Posted by Clancy

This quote pretty much helps you to understand a lot.

GM's UAW contract essentially forces it to pay union employees during the life of the contract even if hourly workers are laid off and their plants are closed. But those protections only run through September 2007, when the current four-year pact with the union ends.

Can you imagine a business model that works where you have to pay for all of your labor for the next 4 years regardless of how much you really need, or how well they do their jobs?

All that and they make junk too.

Sounds like the NFL.

tnbowhunter · 06-07-2005, 02:33 PM

GM Plans to Cut 25,000 U.S. Jobs by 2008

*Boot Man* · 06-07-2005, 02:54 PM

Quote:

Originally Posted by itscookeyo

Sounds like the NFL.

There are no guaranteed contracts in the NFL. There are in the NBA and MLB.

PHOEBISIS · 06-07-2005, 03:55 PM

Boy,that is terrible news.Losing those jobs is just killing the country.Lots of blame to be shared in this screw up.
1)GMs execs-paid millions a year- couldn't see past 3 month reports,and short term stock prices.GM concentrated on vehicles that are impossible to sell now with $2.15/gal gas!!Suburbans-Tahoes etc are absolute sales dogs now.GEE what a surprise that gasoline went up in price.I would have never guessed that gas was on the way up.I could have never guessed that no one would want a 10 mpg people mover with gas at >$2/gal.A pickup is a different story-more useful than a SUV.The greedy shortsighted leaders of GM just sold the company down the river so they could keep things looking good stock price wise,and quarterly report wise.They never considered the long term concerns of the workers or the company.They just acted as if the world rose and fell in 3 month intervals.Why blame them-most USA businesses operate that way??Well-the Japanese looked ahead.They-TOYOTA-HONDA-are making money with AMERICAN PLANTS AND AMERICAN WORKERS!!The useless,greedy MFs at GM sold us out so they could make plenty of $$ and their short term investors could make $$.No thought was given to the good of the USA and the workers in the USA.
2)The unions.They should have faced reality-assembly line work just can't pay the equivalent of $30-$40/hr anymore.There are Koreans-Mexicans-Canadians and other USA workers(like in Canton,Miss) that will do it for $10-$15/hr less!!!But,no,they ignored reality and fought to max benefits for current workers-ignored the fact that the factories would close if they were too uncompetitive.Now they lose their jobs-benefits-and the retired workers are liable to lose med benefits if GM goes belly up!!(we will make it up thru Medicare etc).
I blame the GM bosses most of course.No matter what they say;they had the whip hand,but they let the country down.They made 200 or more time what the assemble workers make,and they made the wrong call(maybe not-they have plenty of $$$)Those rotten MF's!!What did JC say-"Easier for a camel to fit thru the head of a needle....".He must have had these guys in mind!!
I sound like a Commie!!Charlie

Bassomatic · 06-07-2005, 04:38 PM

Phoebisis--

You REALLY need to tell us what you think, my friend.

In the eternal words of Saturday Night Live--"Simmer down now....ya got to simma!"

I say that in jest, of course. I agree with you on the Unions....absolutley killing the company. I have some friends that work there (Engineers) that tell me some silly sh*t they have to put up with because of the Union. However, GM will never go under...the governement will not let it. Too many other industries tied to it....could be catastrophic for the overall economy. Not that GM going out of business will cause it, but it seems the economy is on an uneasy teeter right now, and any little push might send it down.

Clancy · 06-07-2005, 04:45 PM

Quote:

Originally Posted by Bassomatic

<snip>

However, GM will never go under...the governement will not let it. Too many other industries tied to it....could be catastrophic for the overall economy. Not that GM going out of business will cause it, but it seems the economy is on an uneasy teeter right now, and any little push might send it down.

I wouldn't be so sure. I'm starting to think that the only way to break the UAW's grip is to let it go down... Surely the plants, equipment, expertise and MARKET could be quickly filled by a merger or something, but only after the UAW is sent packing. Sometimes drastic change is easier (and faster) than incremental change.

TXTitan05 · 06-07-2005, 06:46 PM

Phoebisis has a point!

Did he say union? Reminds me of the following thread (Mike Up vs. Go Vols)

S&P Cuts GM, Ford Credit Ratings to 'Junk'

Clint · 06-07-2005, 07:49 PM

There is a very OLD saying,
"If General Motors goes, so goes the country"
If they ever went belly up you'd wish you had bought one of their products so our economy wouldn't be worse than we've ever seen it. The last few years since 9/11/01 wouldn't be bad compared to what it would be like after that.

Clint

itscookeyo · 06-07-2005, 08:21 PM

Quote:

Originally Posted by Boot Man

There are no guaranteed contracts in the NFL. There are in the NBA and MLB.

Funny, I meant NBA but was reading an article about TO (

)right before I posted that.

Either way, it wouldn't suck to be guaranteed some cash even if the company bellies up.

sndmn2 · 06-07-2005, 09:44 PM

The overseas market is strangling alot of buisinesses. The dental lab industry is faceing sever competition from abraod. In a industry that pays its average worker 35 to 50 grand a year,( depending on ability) it just doesn"t make sense to me. Most dentist pay an average of about $130- $160 for a crown that they are charging $750- $1000 for. Now they can get them from China, Indonesia,Phillipenes for under $100 bucks. Go figure. Germany put the screws to this practice by putting a 100% tax on dental aplliances made outside the country. Our only hope is that the FDA steps in and decides not to allow this practice. While GM's problems are far reaching ,stiff global competition is going to require them to make global changes.

I live in the Detroit area and everyone has an opinion on how to fiX GM.I don"t know what the answer is and I"m afraid they don't know either.

Optimist · 06-07-2005, 10:12 PM

It is sad, & “in my very uneducated opinion” unfortunately it’s the only way out & it still doesn’t add up.

GM management sees this as a way to generate roughly 2.5 billion in savings, meanwhile marketshare is down 25% & in the 1st five months of this year this = a $1.1 billion dollar loss! Bankruptcy could be the only option when they can’t afford innovative product line, R&D re-tool while maintaining labor drain with current contracts. The only option they had “the way I see it” is cuts on the labor side, when existing contracts & material need to remain & still this won’t be enough.

It’s not a good day considering GM= 1% of the US labor force.

Titan4x4Aggie · 06-07-2005, 10:36 PM

Quote:

Originally Posted by sndmn2

The overseas market is strangling alot of buisinesses. The dental lab industry is faceing sever competition from abraod. In a industry that pays its average worker 35 to 50 grand a year,( depending on ability) it just doesn"t make sense to me. Most dentist pay an average of about $130- $160 for a crown that they are charging $750- $1000 for. Now they can get them from China, Indonesia,Phillipenes for under $100 bucks. Go figure. Germany put the screws to this practice by putting a 100% tax on dental aplliances made outside the country. Our only hope is that the FDA steps in and decides not to allow this practice. While GM's problems are far reaching ,stiff global competition is going to require them to make global changes.

I live in the Detroit area and everyone has an opinion on how to fiX GM.I don"t know what the answer is and I"m afraid they don't know either.

there was a special on 20/20 about how much better overseas medical & dental was because it's privately run businesses. no, i'm not talking about mexico. this is in india and countries like that. a lot of it has to do with fewer frivolous lawsuits.

they are terming them vacation operations. you get to stay in a 5-star resort, by the beach, do your therapy and operations. very appealing, and 1/10th the cost.