17 Dec 08 Congressional Arrogance

By: Ang Biondo

Let’s start by clarifying what the work-force (blue collar) auto worker has given up in the past 10 years to aid in the restructuring of the American Auto Industry:

• Took buy-outs and early retirements (Gambling on the future.) 
• Gave extensive concessions in pay to the tune of 1/3 to 1/2 (While executives took massive bonuses and golden parachutes.) 
• Endured lay-offs and unemployment (While executives salaries and bonuses increased.) 
• Gave extensive concessions in medical benefits, including an annual employee contribution of $750.00 and increase in co-pay for prescriptions. Those not on Medicare pay full office visits.
  In short, the American (blue collar) Auto worker has sacrificed gains made in union contracts over the past 50+ years to keep the industry viable to the point where their annual income is much lower than the amount tax-payers pay for the services of the civil servants employed by government.

On the other hand, the executives, who are employed by the stock-holders of the corporation have lavished in luxury and multi-million dollar salaries and bonuses while the stock-holders have watched their stock investments in these companies continue to drop.

Is the Senate being “penny wise and pound foolish” by not supporting the Auto industry bailout?  Since the birth of the auto industry in America (and any other country for that matter), the industry has been the backbone of the war effort. Any time a country has call to defend itself, the auto industry is the first to be converted to support its nation.

Iran, Russia, and China are chomping at the bit waiting to see what happens to the American auto industry. That is not to say they are waiting to start a war with us, but it certainly makes them feel more comfortable to flex their muscles against American interests world wide.

It was the auto industry at the start of WWII that put us in a strategic position to an immediate defensive strike against the massive Japanese fleet that would have crippled us to the point of defeat had they not been in existence at that time. In fact is the fledgling inferior Japanese auto industry which was unable to keep up the war they started against us.

The American auto industry was the standard of the world at that time and its technology is still prevalent in the world today. The blue collar auto worker has always been among the most patriotic citizens of any nation. They have always taken pride in God and Country and the product they produce.

The American automobile is the most prized possession of many European people, and is most desired over those made in their own country. In America, foreign vehicles are favored by one of two categories - luxury, or price. Those who want a lot of expensive options which they can’t afford in an American made vehicle will purchase the lower cost foreign make, or those who can afford a luxury vehicle will purchase the exotic luxury vehicle not offered by American manufactures.

American quality is second to none. Technology developed in recent years is envyed and copied by the overseas companies. The technology developed by GM’s Saturn division in the 80’s using the “Factories of the Futures” technology, is still widely used today and copied by their foreign competition.

America’s auto industry has cut it’s workforce by over 1.8 million jobs in the past 10 years, forcing retirerment removing them from the tax rolls, or forcing them to take lower paying jobs, reducing the taxable income. If you believe taxes haven’t gone up, look at your phone and cable bills. There are additional surcharges on your utility bills and in most cases sales taxes have increased. If your community has’nt increased school and property taxes your one of the lucky ones, but I doubt it.

The Big Three, had to go through major retooling expenses to accommodate cafe‚ standards imposed by the federal government, delaying production of fuel efficient vehicles. The financial crises caused by the collapse of the democratically managed Fannie Mae and Freddie Mac caused many invested companies to endure great financial losses and America’s automobile industry was no exception.

Restructuring plans to collapse the various engine models into two or three had to be delayed. Currently the engine must be designed to fit a specific engine compartment. Designing the vehicle to fit the engine would reduce cost of manufacturing immensly.

The government is forcing the industry to move their manufacturing operations out of the country, where they can afford to build the new factories to compete with the competition. Yet, our U.S. Government deems it fitting and just to give companies like Volkswagon $500 million dollars to build a plant in Kentucky.

The U.S. Industry has had to endure the enormous cost of new tooling, forced upon them by the government to meet cafe standards has contributed to bringing down the companies, not labor. Tenured school teachers and civil employees paid by the tax payer are all higher paid than the blue collar auto worker and their benefits plans are better and more costly. All burdens on the tax-payer. The Auto companies are not asking for a hand out, they are asking for a loan, to be repaid with interest.

Forcing the industry into bankruptcy is not the answer. It will only force more if not all of the jobs to be moved out of country and America will lose the ability to re-tool in the event of a national emergency. The mom & pop shops providing so many of the jobs available today, have neither the ability nor knowledge needed to build the equipment needed to defend a major power.

Should We:

• Back a bail out of the auto industry? - I don’t believe we have a choice.
• Impose stipulations and parameters? - Most certainly!
• Mandate a No Golden Parachute rule? 
• Mandate jobs be kept in America?
• Mandate a cap on executive salaries, bonuses, and expenses?
• Mandate retirement for all workers hourly or salary at age 70?
• Mandate all corporate supplied transportation be limited to business use only?

 

It’s high time that public stock held companies cater to the stock-holder instead of the executive employee. The unions of the American auto industries have already made significant concessions in blue collar pay and benefits, cutting the pay scale by 1/3 for skilled and 1/2 for production workers.

And to show they mean what they say, similar stipulations and parameters should be imposed on elected officials as well: 

• Abolish the current full pay retirement and all expense paid medical benefits for Congress/Senate House members, let them collect SSI and Medicare like the rest of the aging population.
• Place a reasonable cap on in-town expenses, and eliminate tax payer supplied meals. This is not an unreasonable demand when you consider that Congressional positions are part time and paid as follows: 
  • Congressman - $169,300.00 plus expenses and fully paid medical benefits per year and a multi-million dollar budget to man their office. Congress is in session 120 to 130 days per year and averaged 130 per year over the past 9 years. That means they spent 2.5 days a week representing us in Washington D.C. And they get this for life after spending one day in office. When they die it is passed on to their spouse. 
  • The Senate works a little harder. They are in session 130 to 190 days per year or an average of 140 days over the past 9 years. They are compensated $165,200.00 per annum in 2006 (2008 hasn’t been posted yet.) They averaged 2.7 days per week representing us in Washington D.C. and get all the benefits and perks the House members.
    I say that’s not bad for part time help. Is it any wonder industrial executives feel deprived and demand such high annual salaries. At least the tax payer is not paying for the lavish cost of the company executive, the stock-holders are.

It also comes to our attention, that because of security reasons since 9/11, the tax payer also pays for transportation to and from home for Congressional Members that is both the House and Senate. In the case of the Speaker of the House, Nancy Pelosi, who wasn’t satisfied with the modified corporate jet she was issued, it costs the tax payer about $120,000.000 per week to fly non-stop to her home in California in the jumbo jet she requested and got.

If Abraham Lincoln were alive today, I’d like to ask him to look around, then tell me, is this government from the people, really for the people…Or, for themselves?

Tags: arrogance, auto industry, bail out, bailout, Chrysler, Congress, Ford, General Motors, GM, House of Representatives, Pelosi, political arrogance, politicalfineprint, Politics, Senate, Washingtion