Not about cars
This post is only slightly about cars and business. It’s really about reality and having a clue. Here’s the quote
"…Mark Bellamy, 49, who said he has more than 29 years of seniority at Delphi's Flint East plant and plans to retire soon, described Friday's developments as part of an unceasing trend of corporate greed. As long as corporate America is unloyal[sic] to this country -- they're not loyal to anybody but to their stockholders -- we're going to have these problems, and it's not just going to be the auto industry," he said."
(Emphasis Added)
There is no problem. What he describes is the way it’s supposed to work. If I own a company and I hire someone to run it for me I want them to keep my interests in mind when they make decisions. Unless the company is organized as a not-for-profit endeavor or has a quirky corporate charter the people I’ve hired to run it are required by law to think about me, the owner, first. With the stock price of GM as low as it is right now the UAW could probably put together enough money to buy a seat on the board. I think the laws need to be enforced a lot better (e.g. worldcom) but it’s a good system.
I remember about three years ago when Ford was kissing the ass of all the environmentalists. Ford management had a nice meeting with all of the tree huggers to discuss bunnies and butterflies. After they left the meeting but before they were too stoned to talk to the press the hippies commented on how astounded they were that it was fraud for managers to not look out for the shareholders.
I feel sorry for anyone that’s getting hurt in this, but I hope the union’s don’t destroy the domestic auto industry out of spite.
"…Mark Bellamy, 49, who said he has more than 29 years of seniority at Delphi's Flint East plant and plans to retire soon, described Friday's developments as part of an unceasing trend of corporate greed. As long as corporate America is unloyal[sic] to this country -- they're not loyal to anybody but to their stockholders -- we're going to have these problems, and it's not just going to be the auto industry," he said."
(Emphasis Added)
There is no problem. What he describes is the way it’s supposed to work. If I own a company and I hire someone to run it for me I want them to keep my interests in mind when they make decisions. Unless the company is organized as a not-for-profit endeavor or has a quirky corporate charter the people I’ve hired to run it are required by law to think about me, the owner, first. With the stock price of GM as low as it is right now the UAW could probably put together enough money to buy a seat on the board. I think the laws need to be enforced a lot better (e.g. worldcom) but it’s a good system.
I remember about three years ago when Ford was kissing the ass of all the environmentalists. Ford management had a nice meeting with all of the tree huggers to discuss bunnies and butterflies. After they left the meeting but before they were too stoned to talk to the press the hippies commented on how astounded they were that it was fraud for managers to not look out for the shareholders.
I feel sorry for anyone that’s getting hurt in this, but I hope the union’s don’t destroy the domestic auto industry out of spite.
posted by Garble at 12:49 PM
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3 Comments:
Duh.
I'm young and not likely to be fired in a bankruptcy. I really feel sorry for the 47 year old that's too young to retire, too old to start over new and tied to metro Detroit by three generations of family on both sides.
Bankruptcy isn’t the same thing as liquidation. Basically what happens is the people you owe money to go to court and ask a judge to make you pay your bills. If you pay them you’re fine. If not then the judge can order ‘bankruptcy reorganization’ or liquidation. It depends on if the judge thinks the new company will be more valuable than the sum of the parts of the existing company. So bankruptcy is actually better then liquidation.
Think about it like this. The judge in the Delphi case could have said; “No, you guys are hopeless. We’re going to auction off all of your plants, tool, patents etc. and use the money to pay off the people you owe.
Yeah, suppliers come pretty late on the list of people who are paid off in a bankruptcy. Large companies are mean mofo's though
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