Ok I've only owned and run my business since 1990 so I'm new to the game but can someone help me out with this one? Political I know but I'm sure there are others here with my same view.

http://finance.yahoo.com/news/GM-say...-14756454.html

"GM offers $20k Cash and a $25k Voucher to entice employees out of their contracts"

"Chrysler offers $75k Cash and $25k Voucher to entice as well"

"Ford just offered a buyout"

So GM and Chrysler are getting Billions of our dollars to bailout themselves out of Sh$ty business practices and a bad economy.

Please help me understand why these companies just don't Fire them.

If my company slows to the point I can't afford my employees I let them go. Possibly if I just call on our local legislature to send me a 20 million dollar check to cover some salaries I would be ok as well.

Does anyone know the number for this bailout money?

Maybe this is a Rant. I don't know. I'd love some other thoughts. Possibly these GM guys should have let about 5000 managers and about 15000 blue collar workers go last year to save some bucks. Who knows. I just run my business different I guess.

 

Mark I feel the same way. When there isn't work for employees, you let them go, that's how it works. Why should WE be paying for GM/F/Chrysler employees to keep their jobs when its hard enough as it is for everyone.

Mark, lets go partner up and apply for bailout money, then pay ourselves extravagant bonuses and declare bankruptcy.

 

^^^That 20 million was for my bonus I earned last year but didn't have enough to pay it. It seems it's the correct way to do things in the US these days.

But I will take you out to Lunch if I get the 20mil bailout.

 

Deal. If I get a bailout, I'll buy you lunch as well.

 

I think it has to do with the union deals that they get worked into their contracts. A friend of mine started working for Sears in High School. In 97 she had 15 or 16 years in. She was making good money, not great, but she bought a home and was able to do the things she wanted to do. When her next promotion came up corp Sears decided they were paying her too much and bought her out. Her salary at the time was near $50k. They gave her just north of $100k cash and paid her salary for 1 more year for her to "retire". How does that work out financially for a company to pay an employee equal to 3x their salary to fire them so they can save money? It came down to the contract put in place by the union. BTW, she did the right thing and used that cash to go to school for a few years and now she works for MS.

I know the executives aren't part of the union, but I am sure they know how to negotiate a contract and use the unions terms as leverage.
my .02 cents.

 

this is the exact reason these companies need to go bankrupt with no bailout cash. Close out all union deals. Close out all retired people getting cash from them now and start over. It's too bad but in the end why should the american people pay for their retirement if the company they worked for did all the wrong things?

 

Agreed 100%.

On a related note, due to the housing market crashing I can not get refinanced for my house right now. I bought a home I could afford and used a conventual loan. But my home value has tanked so much that the banks wont let me refinance. Why is it that people who had no place buying homes in the first place and bought way over their heads are getting "bailed out" and the responsible ones like me can't get a loan at the newer rates the feds are offering? This whole situation is so f'ed up!

Side not, Bruce M told me about a new program that might help me out of this situation, but I shouldn't have to find a new "program" to save money on my loan. I should qualify right out of the box.

 

^^ Agreed.

 

F@wking Amen to that!

Bailout thinggy was just a scam to start out with.

If the govt wants to help people out, all should be done equally, I'm pretty sure I've paid more tax than those people who is on the table to get bailed out for sure.

 

This is a really tough deal for both the manufacturers and us Americans. The manufacturer has to deal with the stubborn unions, and we end up having to pay for it all. I partially blame the unions myself.


John

 

I've written both senators and our district representative and I've called and I've posted on their sites and I'm just as frustrated about it as all of you. I feel like our government has gone completely insane. I was even looking for a local tea party as I've about had it with these clowns.

 

unions suck, they had a place in the 20's but no longer, unions help people jack off all day and get the same pay as the hard worker = teh ghey

they stifle progress while protecting the leeches

 

did you guys vote for Obama?
I know that Mark did and I recall a "best man for the job" quote from a previous post.
What did you expect?

Isn't the "throw tax payer money at the problem" approach page one of the democrat playbook?

I am not a sour grapes guy -- but vote democrat and your tax rate will increase "for the good of all (although I am not sure that all includes me)". Well the nation spoke and Obama is the man and just signed and $800 billion dollar spending bill and we continue to bail out companies that are deemed important to the overall health of the economy (AIG, the big three... well actually Ford has not taken a dime).

I recall hearing that if you EARN more than $250K as a household per year... you get a free membership into the 40% federal income tax club.

I am not saying that the system does not need some repair/regulation but in the words of every small to medium sized business owner, and in the words of every repsonsible home buyer, and in the words of every self starter that has never taken any form of a government hand out of any type --- where is my GD bailout????

Stand back and get ready for a Gregoire state income tax proposal... it is coming...
she cannot raise sales tax any higher, B&O tax is running companies out of the state, sound transit tax, crazy property taxes, and still we have a huge state budget shortfall... what is left to tax on the state level -- your income.

The whole thing really stinks and I certainly do not have the answers (I am simply not that smart), but why should Addison Const, Buzzed Hornet, Vasily's Co, etc not qualify for some federal relief? When business slows, you are forced to reduce your expenses...right? But when the economy slows, we spend a trillion? How is our country's credit (defecit) any different than your personal credit? What if all of this spending does not fix the problem? Then where are we? Higher taxes and higher defecit... then we will be told that we did not spend enough... try that play in your personal life... business is down, pay has been cut... I must need to spend more :-)

We recently cut pay for every employee (90+) in an attempt to preserve jobs... next step is layoffs if we have to... why not inject a little bailout $ into my company just like these other companies? If we layoff, we are sending people straight to unemployment lines for hand outs and increased taxes...

Remember the Obama deal with CAT? CAT will keep 2000 employees employed if they get some stimulus cash... they got the cash... and just laid the poeple off a month or two later... where was the media then? They had no trouble covering the big "your stimulus money keeping people emlployed" feel good press conference, but when the crap hit the fan, the media is reporting a 20 point gain for the Dow... or some very nominal AIG bonus scandal... Pelosi quickly getting a 90% tax on said bonus money which died in the senate.. a 90% tax on the AIG bonus money is like sweeping out the garage while it is on fire.

Heh I have an idea.. let's boycott SBUX because they have a corporate jet on order -- give me a break.

Rant over... I just feel like a future rape victim that is being told by the left to lay back and enjoy the ride... what choice do I have? If I really speak out, I am a heartless bastard right wing wacko fox news conservative *****...

I have a 2000 layer nomex suit on :-)

 

As much as I hate to interject politics, I completely agree with this one. Many of us warned that we just put a radical socialist into office, but most wanted to believe he was something different. He wasn't.

 

Uh, you're in the **** business. You're not letting your employees go, ever.