Comments on: Jobs: What’s the ROI to Create or Save One?

By: Zane Safrit

Zane Safrit — Tue, 06 Jan 2009 16:19:34 +0000

Thanks all for the comments and passion and questions and challenges. This is the conversation we should be having nationally. It’s the conversation our elected reps should have as well, on our behalf.

The more we have this passionate, opinionated, the more likely we are to find solutions and find ‘em faster for what’s needed to drive us out of this mess.

My own PS: I need to remember to subscribe to comments….

By: Martin Lindeskog

Martin Lindeskog — Thu, 18 Dec 2008 06:32:14 +0000

“Cynical Synapse”: You have an interesting quote on your blog.

“That which does not destroy us makes us stronger.” — Friedrich Nietzsche.

It is time for the auto industry to learn the hard lesson. Same as the steel industry when Nucor entered the stage. I recommend you to read American Steel by Richard Preston. For more information, click on “Martin Lindeskog” Says: and read my post on this topic.

Walt: I agree with your statement 100%. Have you read Harry Binswanger’s article,’Buy American’ is UN-American?

Best Premises,

Martin Lindeskog – American in Spirit.
Gothenburg, Sweden.

By: Walt

Walt — Thu, 18 Dec 2008 00:42:39 +0000

Cynical Synapse, the reason the public is not buying the crap GM and Chrylser are shoveling has nothing to do with $4 gallon gas or selling SUV’s. It has to do with making attractive vehicles people want to buy because they are attractive AND an affordable cost structure. GM’s cost structure is bloated and the UAW is a big part of puffing it up. How come Toyota can make money but GM can’t? Ill tell you why, costs and management.

By: Cynical Synapse

Cynical Synapse — Thu, 18 Dec 2008 00:06:58 +0000

Ok, pull your heads out of the sand!

@Anita Campbell (Change or Die):
@Zane Safrit (Angry at Blindsided Automakers)
The Big 3 have been making the kinds of vehicles consumers wanted to buy. How many of us, back in December 2007, predicted $4.00/gallon gasoline? Since it takes an average of 3-5 years or so to bring a new vehicle to market, considering GM and Ford each have 30+ mpg vehicles available, the domestic car makers have products available for consumers. In the true American, capitalist economic model, they’ll sell you what you want to buy. And, yes, I realize they’re not perfect and agree they’ve made mistakes.

@Elliot Ross (7 support jobs):
I wish people truly realized the significance of the auto industry on our economy. How many “support” jobs are there for the financial industry? Auto workers outnumber financial workers by 1-1/2 times. Why does Wall Street get at least 50 times the bailout?

@Neal O’Sullivan:
And we’re seeing real benefits from the $700 billion Wall Street bailout? I don’t think so!

@Stew (Crappy products):
So, Wall Street has better management? Not! Yet, they’re still getting bonuses using taxpayer dollars! Oh, and take a look at JD Powers’ quality surveys, Big 3 cars have 4 of the Top 20 spots.

I’m not pro-union by nature, but we all enjoy benefits from union activism, such as holiday pay, vacation pay, and overtime. OSHA and other worker protection schemes have their basis in union efforts. I don’t think any of us wants to give those up. People like to also forget unions have given substantial concessions during the last decade or so. Certainly Gettelfinger should have been more agreeable and partnerish during the Congressional hearings, but members and retirees don’t have it as good as the good ole days.

The UAW has agreed to shut down the “Jobs Bank”, which lots of people cast stones. Never mind that some Jobs Bank folks have been working with school districts and other community organizations. What’s the impact of this loss? And, to dispel a common myth, the Jobs Bank has a 2-year limit, so it’s not “indefinite unemployment”. It also came about as a safeguard for members as automakers began installing robots and other automated processes.

@Susan Oakes:
I agree–the cost of not giving the automakers a bridge loan is much higher than most realize. Although I agree they should have a plausible plan rational people agree with, why is this a stipulation for the automakers but banks and Wall Street get $700 billion without any plan? Even Secretary Paulson, who has total control over that pot of money, seems totally lost.

By: Mary Grace Ignacio

Mary Grace Ignacio — Wed, 17 Dec 2008 11:22:13 +0000

Hi Chaitanya,

What do you mean by “Jobs are not ends?”

By: Kris Bovay

Kris Bovay — Wed, 17 Dec 2008 05:59:22 +0000

I think we need to bail out the auto industry; but we need to do it in a way that forces change. Tie the money to conditions; and manage those conditions. Executives should be let go – they led their companies to insolvency. The Unions need to compromise – a job that pays less is still better than no job, for a long time.

One of my clients laid off 20% of his workforce last week. They are a manufacturer and have been hard hit by the slowing economy. The laid-off staff probably don’t have a good opportunity for new jobs in the next 3 to 6 months. Could they have kept those employees working by job sharing? Perhaps but then all of the employees would have been hurting. Instead, the client is focusing on new sales opportunities in non-traditional fields to try to get sales high enough to bring back laid off employees.

By: Chaitanya Sagar

Chaitanya Sagar — Tue, 16 Dec 2008 14:16:24 +0000

Zane, jobs are not ends. They are means to achieving something. Anyway, it’s great to see such a passionate post.

By: Luz Spielberg

Luz Spielberg — Tue, 16 Dec 2008 06:37:36 +0000

The American taxpayer can’t carry everyone on its back — that includes overpaid executives making bad business decisions, and non-working union members taking advantage of the job bank for lifetime unemployment benefits. ->> This is so true Anita. I’m quite surprised that America does have this problem too.

By: Neal O'Sullivan

Neal O'Sullivan — Tue, 16 Dec 2008 02:20:52 +0000

Susan pleasesix to 12 months; try six to 12 weeks! Until the principles of the big 3 (including the BOD’s) and the UAW personally feel the financial smack in the face of illiquidity there will be no resolution. I’ve got an idealets first drain their respective net-worth’s, and then go to the Fed’ hat in hand.

By: Susan Oakes

Susan Oakes — Mon, 15 Dec 2008 21:57:45 +0000

It is interesting reading the comments. When the news hit that the auto industry was in trouble within days our car companies said the same thing and of course wanted money.

If the US auto industry goes down then the effects will also impact on jobs around the world directly or indirectly. I don’t usually agree with bailouts but consider the consequences.

Maybe I am wrong but I haven’t heard of any real plans to change the way the car companies operate and actions that can be taken today to increase productivity. Without this what will happen in 6 or 12 months when the money is gone.