Fiat to Chrysler: Cut costs or we walk
- Thread starter Liberalman
- Start date
That may be, but did you see their latest results? Their sales (or revenues) were up a staggering 17 or 18% in these hard economic times. Clearly they are doing something right. Chrysler does need somebody like FIAT to bail them out.
And Chrysler needs FIAT, FIAT does not need Chrysler. If their terms re not met, FIAT will simply walk away. So the workers really have a dilemma. Either accept FIAT’s terms and take a huge pay cut, or reject their terms, force Chrysler into bankruptcy (and as I said before, no way government should shell out even a penny if Chrysler’s survival is not guaranteed) and get rehired at reduced wages, again taking a huge pay cut.
It is a Hobson’s choice and I don’t envy them their position. But then perhaps they did negotiate excessive wages and benefits in the past years, more than the company could afford. That may have played a part in bringing Chrysler where it is today (though that by no means was the sole reason).
You think Unions aren't Capitalist?
You need to wake up.
Unions are all about MONEY, the altruism of the early days of the Union are long gone. Honda, Toyota, Kumi, etc all produce higher quality cars, with greater efficiency. While the typical GM worker gets to read a couple papers a day, the average Honda line worker, doesn't have the chance. They actually work for their Union comparable wages and benefits.
Your BS is proven wrong, by the very fact that the Honda, Toyota and Kumi were thriving while the big three were diving...what's the major difference there DB...the Unions.
Only Ford saw the writing on the wall and began restructuring. Ford began courting the Japanese automakers in Canada. They sent representatives to the Honda Group to watch and learn. They implemented many of the 5S and LEAN manufacturing ideologies that the Japanese companies use to make a high quality car, efficiently.
The Union has tried and failed to penetrate the Japanese automakers in Canada, what does that tell you about the working conditions? The wages? The fact that the Japanese companies have no walls between management and the "Associates". No employees at Honda, Toyota, kumi...
I realise a lot of what the management puts forward for the average associate is window dressing, but it still works. Look at who's not at the trough. ;-)
Especially when you actually look at what they poses and call "skills". They aren't skilled labour. They're glorified labourers.
That seems a little low, hence why I do my own, lol...but I get the jist and concur.
Chrysler, GM, Ford...they all paid the Unions extortionist wages to get them back to building cars.
That would be what the plumber gets to keep as income after all expenses are paid. I just had a plumber in a couple of weeks ago. I was very happy (had him before), he's a hard worker and does a good job. He charged me (senior's rate) $55 an hour. Bet you wouldn't get that in Victoria or VAncouver.
I picked the $22.00 off a chart for average wages. If you hire a plumbing company to do work on your house the charge out rate is probably going to be around sixty bucks an hour but the plumber who does the work likely won't get that unless he is a private contractor.
Absolutely- if he's lucky, their vehicle is probably worth to $100 grand, God knows what the tool cost and then there's thousands of $ worth of inventory he has to have on hand, not to mention the fact he was making very little money while going to school and all the education expenses. MOst people don't appreciate these things- they just think whatever money goes in his pocket is his. Now guys screwing door handles on car door don't need $60 an hour, they learned on the job and the company supplies the tools- their biggest work related expense is probably a doughnut at coffee break.
The only way to make Chrysler and GM.. and ultimately Ford viable will be to re-organize them in North America as soley retail operations, selling products produced in Bangladesh or Viet Nam, or Latin American Maquilladora 'Free Trade Zones' (China is already too expensive), without any restriction or tariffs on imports.
But.. if we stop manufacturing things, nobody, except bankers and those involved in moving capital around the globe will be able to afford them.
The only hope of preventing a complete collapse of the North American economy, of which automobiles are a lynchpin, is to ditch Free Trade... and the corresponding Monetarist policies of unrestricted currency trading and movement of investment capital.
But.. if we stop manufacturing things, nobody, except bankers and those involved in moving capital around the globe will be able to afford them.
The only hope of preventing a complete collapse of the North American economy, of which automobiles are a lynchpin, is to ditch Free Trade... and the corresponding Monetarist policies of unrestricted currency trading and movement of investment capital.
If this were true, Honda, Toyota and Kumi wouldn't be building vehicles here at comparable prices, paying comparable wages and offering comparable benefits.
It's a downward spiral, an economic death spiral we are in. Honda, Toyota will ultimately be forced to abandon their facilities here, but not before they can no longer intimidate labour to work for less than the minimum wage.. but by that time the market for their product will have collapsed as well.
OooooK...8O
Ummm, OoooK. You do realise that Honda, Toyota and Kumi pay their Canadian autoworkers comparable wages to the big three right?
8O Reeeaaally?
Fun, out of the major auto manufacturers in Canada, the only three not projecting huge losses are Honda, Toyota and Kumi. Nor are they, along with Ford, begging the general public to bail them out.
Funny how everything you've said in this thread is the exact opposite of reality. :lol:
What I find interesting is that Ford one of the big three is not asking for government money and is paying their workers pretty close to what General Motors and Chrysler workers are paid.
Fiat and the government is asking the Canadian Auto workers to cut their wages by twenty dollars an hour which is sixty percent, but according to CAW labour cost equals seven percent of the total vehicle sticker price that the consumer pays.
This means that bad investments by corporate leaders and high bonus payments to top executives is making GM and Chrysler’s situation worse.
The government is not asking car dealerships to slash commission rates of car sale people by 60% and they are not asking corporate executives to slash their wages by 60%.
The government and I might add the Conservative government is telling the CAW members to cut their wages by 60% or they won’t give the much-needed infusion of cash to save the jobs.
If CAW members do this will you see a major reduction in car sticker prices? I don’t think so, but auto executives will get a big fat raise and its business as usual.
Fiat and the government is asking the Canadian Auto workers to cut their wages by twenty dollars an hour which is sixty percent, but according to CAW labour cost equals seven percent of the total vehicle sticker price that the consumer pays.
This means that bad investments by corporate leaders and high bonus payments to top executives is making GM and Chrysler’s situation worse.
The government is not asking car dealerships to slash commission rates of car sale people by 60% and they are not asking corporate executives to slash their wages by 60%.
The government and I might add the Conservative government is telling the CAW members to cut their wages by 60% or they won’t give the much-needed infusion of cash to save the jobs.
If CAW members do this will you see a major reduction in car sticker prices? I don’t think so, but auto executives will get a big fat raise and its business as usual.
Maybe you missed this...
This is true. Although I've read they are as high as 10%. Not that 3% give or take makes a huge difference.
Do you honestly believe some ass-hat that turns two screws and a nut shout make over $40/hr?
Agreed.
Nope, dealerships have done that themselves to help move cars.
As they should.
I doubt that, not if the tax payer has anything to say about it.
It's up to the Fed's to make sure that there are provisions in any contractual writings, that the exec's do not get raises or bonuses from our money.
Around 25% I believe.
Ford Ranger, Mazda B series.
Ford Probe, Mazda MX 6.
Ford Fiesta, Mazda 121.
The issue is revolving around the combined cost of direct wages as well as the rich benefits plan that the N.American mfgrs are stuck with.
The CAW rants and raves about the cost of labour per vehicle in terms of the direct wages paid to the workers but mysteriously omits the combined costs... When it's all added-up, the combined labour cost per car is much higher than the CAW will ever be willing to voluntarily recognize to the media.
If the mfgrs are already bleeding red ink, do you think that they are in a position to pass along 'savings' to te consumer.. If they're lucky, they might be able to recognize a smaller loss with this reduction in costs.
As far as the bonus comment is concerned, neither you or I can truly say.
Crappy management is crappy management. Auto makers are not immune. Nor doers it seem that memories are very long in business .....
The Forgotten Lessons of Lee Iacocca - The Daily Beast
The Forgotten Lessons of Lee Iacocca - The Daily Beast
http://business.theglobeandmail.com/servlet/story/RTGAM.20090417.wrautos
18/BNStory/Business/home
Looks like Chrysler wants to abandon Canada and follow President Obama’s bring it back to America policy.
Why else would Chrysler make an unreasonable demand of a $20.00 an hour wage cut.
If Chrysler does close up shop and move everything back to America will our government do the right thing and ban Chrysler products from being imported to Canada?
Like Obama who is pressuring the American companies to come back to America and create more American jobs will Prime Minister Harper do the right thing and protect Canadian jobs?
These are the times when leaders have to prove themselves and it's up to Harper to show Canadians if he’s a true cowboy, he has to make a stand now,
When I lived in Alberta, the cowboy mentality was simple “Make my life harder and you make your life a lot more harder.”
If we are going to lose jobs because of the Made in America policy we have nothing to lose by making a stand.
18/BNStory/Business/home
Looks like Chrysler wants to abandon Canada and follow President Obama’s bring it back to America policy.
Why else would Chrysler make an unreasonable demand of a $20.00 an hour wage cut.
If Chrysler does close up shop and move everything back to America will our government do the right thing and ban Chrysler products from being imported to Canada?
Like Obama who is pressuring the American companies to come back to America and create more American jobs will Prime Minister Harper do the right thing and protect Canadian jobs?
These are the times when leaders have to prove themselves and it's up to Harper to show Canadians if he’s a true cowboy, he has to make a stand now,
When I lived in Alberta, the cowboy mentality was simple “Make my life harder and you make your life a lot more harder.”
If we are going to lose jobs because of the Made in America policy we have nothing to lose by making a stand.
Why not boost our own manufacturing, open more trade with other countries, and let them do what they want? Setting your teeth, digging your heels in and sneering at the other guy is counterproductive besides being a bit childish..
L Gilbert
Protecting jobs is the name of the game beside it is cheaper than welfare payents to the laid off auto workers by the tax payers besides Stephen Harper is nogotiating more free trade agreements with Central and South America.
When the Liberals win the majority they will continue with what Stephen Harper is doing which is seeking out new free trade partners.
It is simple to see that Obama is ready to pull the plug on the Free Trade Agreement.
America is ready to go protectionist and everybody knows it.
Protecting jobs is the name of the game beside it is cheaper than welfare payents to the laid off auto workers by the tax payers besides Stephen Harper is nogotiating more free trade agreements with Central and South America.
When the Liberals win the majority they will continue with what Stephen Harper is doing which is seeking out new free trade partners.
It is simple to see that Obama is ready to pull the plug on the Free Trade Agreement.
America is ready to go protectionist and everybody knows it.
How are you going to protect those jobs if they slide south of the border? You gonna sto,p your feet and tell the US it can't have Chrysler? lmao Why not just make new jobs.
BTW I find the idea of a Gliberal majority just as foul as I would find a Con majority.
BTW I find the idea of a Gliberal majority just as foul as I would find a Con majority.