Tuesday, October 14, 2008

No SUVs, No Jobs

P-Mac makes the point that SUV production halts mean jobs are lost.

Two notes:

1) When he mentioned "productivity," consider the fact that GM will pay those workers eighty-five percent of their normal earnings for THREE FULL YEARS after the plant closes. Yes, they will need a cushion and I'm happy for them and their families that they got it. But you can bet your last dollar that Toyota does not have a similar provision in their labor agreement(s).

2) A lot of commenters seem to think that retooling a factory is a matter of snapping one's fingers--and presto! New transfer-lines, new automated welding machines and programs, new robots and programs, new stamping dies, new pneumatic tools, ....all just appear! like magic!! They also seem to think that a facility like Janesville is endlessly malleable--it can accomodate large vehicles and small vehicles, and everything inbetween--no problem.

They are wrong.

1 comment:

Steve Burri said...

I don't think many here in Janesville think that anything will come of the resuscitation attempts.

The foolishness of the contracts between the union and the corporation did make them less competitive. The government's industry mandates and the environmental obstacles to energy production have also been major contributors.