GM Hints It Could Go Broke

[ovr50]

Looks like Calvin & Hobbes had Detroit pegged 15 years ago: (from Bailey's site today):

http://www.baileycar.com/pow_html.html

[initial_D]

Would Calvin show his Private Jet or Tigg'er out?

[SkiBunny]

In the news today: Larry Flynt requesting bailout money for the porn industry.  True story.

With the "bailout nation" mentality, everyone is at the public pork trough now. 

Don't miss out on your opportunity for free money!

[Leviathan]

cut the union job banks

So it shall be spoken, so it shall be done:

UAW allows GM to eliminate Job Bank

The UAW agreed earlier this week to allow Chrysler to do away with its Job Bank, and the union announced on Wednesday that it will give General Motors the same concession. The elimination of the Job Bank was a crucial provision of the government’s $17.4 bailout package to Chrysler and GM.

GM currently has about 1,600 workers in its Job Bank, but those employees will have to file for state unemployment starting Monday. However, they will still receive some supplemental benefits from GM.

The elimination of the Job Bank should save GM quite a lot in payroll expenses. Whereas employees in the Job Bank made nearly 100 percent of their normal wages – despite not having to report for work – the new system will see out-of-work employees making about 72 percent of their normal wages, according to Automotive News.

Further Job Bank savings could also be in the works as GM is currently negotiating with the UAW to reduce or completely do away with supplemental payments.

[rrocket]

Wonder if SUB is next here? (Canadian version of job bank)

[toolatecrew]

Wonder if SUB is next here? (Canadian version of job bank)

CAW has repeatedly said "no concessions". I think they would be foolish to give it up for 2 reasons:
1. I don't think that it will save Canadian plant closings. The UAW agreed becuase he elimination of the Job Bank was a crucial provision of the government’s $17.4 bailout package to Chrysler and GM.GM turned down the Candian bailout package so SUB or no SUB doesn't mean anything in terms of Government loans. GM would need to negotiage with the CAW on the premise that giving up the SUB would save Canadian jobs not that the givernment requires it to give loans. Not the same thing and not going to happen because.....
2. They are going to need the SUB becuase GM is likley going to do massive plant shutdowns in Canada to move production to the US and save US jobs (which is an wunwirtten condition of the huge US Government bailout). Giving up the SUb won't save jobs so you might as well keep its benifits to prop up as many of soon to unemployed CAW works as you can.