Bailout idea

[KEVWYO]

Perhaps I will be out to lunch on this thought but that wouldn't be the first time ....

If a company got some bailout money what if they had to bring back the same amount of money spent on jobs that have been outsourced back in order to get that bailout money?

For example, Company X gets $1 billion in bailout cash. They would be required to bring back $1 billion in workers jobs (salary/bennies). If they didn't have a billion in outsourced workers they just would have to bring every outsourced job back to the US. They would have to maintain this worker stance until the $1 billion was paid back and then they are free to out source in the future but only to a percentage of their companies profits .... say 25%.

Dumb idea, idealistic idea, an idea with some potential? Just curious.

[DMWyatt]

Seems to me that it would negate the initial influx of capital, and increase operating costs. If they're needing bailed out, forcing them to hire new workers is going to put an undue and illogical burden on the company. Let the company fail, and give the one that replaces it incentives at the state level to hire American workers in the state the company does business in.

[KEVWYO]

Originally Posted by DMWyatt

Seems to me that it would negate the initial influx of capital, and increase operating costs. If they're needing bailed out, forcing them to hire new workers is going to put an undue and illogical burden on the company. Let the company fail, and give the one that replaces it incentives at the state level to hire American workers in the state the company does business in.

Good point. I was just thinking that if a company took some bailout money one of the conditions would be to move any outsourced jobs back to the US.

A little off subject but if GM or any of the other car companies take money I think they need to sit down with the workers and unions and come to some agreement on sound wages. If they can't agree there is no sense trying to bail themout as it will just be a matter of time before this happens all over again.

[DMWyatt]

Originally Posted by KEVWYO

Good point. I was just thinking that if a company took some bailout money one of the conditions would be to move any outsourced jobs back to the US.

A little off subject but if GM or any of the other car companies take money I think they need to sit down with the workers and unions and come to some agreement on sound wages. If they can't agree there is no sense trying to bail themout as it will just be a matter of time before this happens all over again.

Better option would be to let them fail. Sure, millions of jobs would be lost. Millions more are being lost now in the uncertainty of everything.

[XDConvert9mm]

Originally Posted by KEVWYO

Good point. I was just thinking that if a company took some bailout money one of the conditions would be to move any outsourced jobs back to the US.

A little off subject but if GM or any of the other car companies take money I think they need to sit down with the workers and unions and come to some agreement on sound wages. If they can't agree there is no sense trying to bail themout as it will just be a matter of time before this happens all over again.

It's a nice thought but this assumes that the Unions would be open to this kind of negotiations. Hoffa the younger has been on CNBC talking with the heads about this type of topic and he just fell into his rap about greedy Corporations (Fatty, that's for you ) and how they're only out to screw the worker while the Union is the Champion of the working guy. They're only purpose in life is to keep wages, bennies and conditions up regardless of company health (and to enrich the Union financially and in terms of power) along the way, most importantly. If they were to knuckle under to this sort of negotiation then the members would probably see that they had no further use for the Union itself IMO.

[FLSTFI Dave]

Originally Posted by DMWyatt

Better option would be to let them fail. Sure, millions of jobs would be lost. Millions more are being lost now in the uncertainty of everything.

Exactly...That is how the free market should work, if your product is not purchased you go out of business....


GM for example, has been failing since 1978 or so. They have failed to change their management ways, the Union ways, and their business model.

toyota on the other had has been building cars in the USA since the mid 80's. They are turning a profit and expanding in the USA ever since. Mean while GM is shrinking every year.

Why bail GM out when other companies are sucessful at the same business in the same country?????

[HumbleGuy]

Originally Posted by FLSTFI Dave

Exactly...That is how the free market should work, if your product is not purchased you go out of business....


GM for example, has been failing since 1978 or so. They have failed to change their management ways, the Union ways, and their business model.

toyota on the other had has been building cars in the USA since the mid 80's. They are turning a profit and expanding in the USA ever since. Mean while GM is shrinking every year.

Why bail GM out when other companies are sucessful at the same business in the same country?????

I have heard that GM spends more on employee health benefits (including retirees) than they do on raw materials for building cars. I don't know if this is accurate but, having in-laws in the UAW, it doesn't seem implausible.

Regardless of their product line or quality, this is a huge competitive disadvantage to Toyota. I'm not a union buster, but if the unions don't work with management, GM could file bankruptcy which could void current contracts. It has certainly happened with some airlines.

As we have seen with other businesses, under funded pension plans of bankrupt businesses are taken over by the feds. Retirees receive much lower payouts and taxpayers pick up the tab.

Which is going to cost us more, a bailout or a bankruptcy? I don't know but the taxpayers are going to be paying for it either way.

By the way, Toyota isn't doing so great right now (although definitely better than GM). They have idled their Tundra plant.

[ichy_trigger]

The only way that the car companies will survive is if they restructure and get the unions to butt out. They cannot continue to operate the way they have been. Bailing them out at this point will do nothing if things dont change on the way the company is running.

I have a feeling that throwing money at them will only prolong the inevitable. Let them fail and then someone can rebuild them the way they should be run.

[Frenchy]

Originally Posted by DMWyatt

Better option would be to let them fail. Sure, millions of jobs would be lost. Millions more are being lost now in the uncertainty of everything.

These companies would reorganize, and many if not most, would be back to work, IMO.

[ForTehNguyen]

In Henry Ford's autobiography he even showed his despisement of unions, fought them hard to stay away, and predicted correctly what would happen if they got into his company. Too bad 30 years after his passing, his company took on what he hated the most. GM has cut costs dramatically and their new products were coming out but it came at a bad time with this slowing economy etc.

Sorry that bailout in exchange for hiring non outsourced workers is a govt nanny idea. Who is the govt to tell me who I can hire and who I cannot hire? More govt meddling instead of free market is bad.

BTW:
YouTube - ABC News : 20/20 : Myth : Outsourcing Bad for America