The GM Decision

"A Japanese automaker and an American automaker decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race.


On the big day, the Japanese company won by a mile.
The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action.


Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing.


Feeling a deeper study was in order, American management hired a consulting company and paid them a large amount of money for a second opinion. They advised, of course, that too many people were steering the boat, while not enough people were rowing.


Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the American rowing team's management structure was totally reorganized to 4 steering supervisors, 3 area steering superintendents, 1 assistant superintendent steering manager and one person rowing.


They also implemented a new performance system that would give the 1 person rowing the boat greater incentive to work harder. It was called the "Rowing Team Quality First Program", with meetings, dinners and free pens for the rower. There was discussion of getting new paddles, canoes and other equipment, extra over-time hours for practices and the possibility of future bonuses.


The next year the Japanese won by two miles.
Humiliated, the American management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's racing team was outsourced to India .


A funny, but all too true story of what is happening to corporate America."
 
Evidently this is also affecting retired GM also. I received a lead and talked to one a few minutes ago and he said he would be losing his insurance and needed to go to a new Med Sup or Advantage plan. He could have been mistaken, but that was his interpretation of the new policy.
 
I have been told that the Toyota assembly workers are making appx 25 per hr, plus bennies. All non-union. Clean, efficient and very productive. A positive, team attitude place to work.

The new Honda plant in Greensburg, Ind is close to getting up and running and I know few ppl who work there. They are also projecting that they will be making 25-28 hr within 3 months (actually prior to full production).

Obviously if the workplace is efficient and they produce a high quality and highly desirable vehicle that sells well in any type of market, (Toyota, Honda, etc) then the labor costs @ 25-30 bucks per hr are not problem. It is when a protectionist union harbors inefficient employees who are making far more, that the problems manifest. Hence, the Amrican Auto Manufacturers... all of them.


That is a great story, but, it is exactly that, a story. Unions do not hire nor fire workers. Every CBA has a management clause that gives the right of running the business solely to management. There is not a union out there that can prevent a company from firing a worker. They may be able to get the person his job back if the firing was not for just cause.

Management uses the managemanet clause like an iron fist whenever unions try to suggest changes that would make them more productive.

Unions are not an abstract entitity. Union are the workers themselves. When I worked in organizing, we had a saying, "unions don't organize workers, management organizes unions".

The workers have a vested interest in the company being profitable and staying in business.

I would argue this all day long, but, this is not what I come to this forum for. I'm going to bow out of this discussion now and get back to things I do come to this forum for, to learn about insurance issues.
 
I will bow out with the final comment - the average blue collar Joe Blow is NOT the problem. It is the multi million dollar upper management and greedy hands in the cookie jar. The workers are busting their backside to stay alive, are generally good workers - good people.

The blue collar union worker is not the reason we can not design cars that are reliable, affordable, and in line with market demand or balance the companies financial books.

Again the little guy gets screwed we all know that.

I have no problem with the good blue collar workers, it is the slime balls above them that screwed the whole thing up , which is why the foreign competition is able to capitalize on those weaknesses - heck they are even financially encouraged to do so by our own tax and legislative system.
 
No kidding - Section 162(m) plans are a complete joke.

How about this? Talk about the possible bankruptcy of a company (which sends the stock price to rock bottom) and then grant stock options based on a "total compensation delivery package", which basically gives them a multiple of options greater than they already would receive, grant stock options, and then guess what? JK on the bankruptcy. I know a lot of execs that became ultra-wealthy that way!
 
I've talked to three GM retirees already. They lose benefits end of this year. Husband and wife each receive $300 month added to the pension. This is going to be a really big year for me.
:cool:
 
I've talked to three GM retirees already. They lose benefits end of this year. Husband and wife each receive $300 month added to the pension. This is going to be a really big year for me.
:cool:


Any marketing ideas on how to get in front of the GM retirees? We have a plant near me and I know there are quit a few retired GM workers near.

Mailings, newspaper,union publications?
 
This decision would not be a strong point to get rid of unions since the "union" employees (blue collar, non-salaried) are not losing their health care coverage. The retired non-union employees will lose their coverage. My father is a retired "union" employee so I can appreciate the benefit of his union benefits. Although, it appears that these benefits are not real secure because GM may declare bankruptcy and then their benefits would be in play to be removed.
 
Although, it appears that these benefits are not real secure because GM may declare bankruptcy and then their benefits would be in play to be removed.

I can not think of any other strategy to save the company at this point. The system relied heavily on future growth and lack of competition. Future obligations were well beyond what they can handle.

If you think this sounds familiar - it does. Try our federal government. Eventually something has to give, hopefully for the nation it won't be bankruptcy.
 
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