Pieces of 8 - Costs of auto bailout & benefits

Richmond Hill, Ontario - Tuesday, December 15, 2008 - by: Robert Ede

Instead of bailing out the auto companies with $2 Billion, bailout the workers.

In this (or any case) divide the proposed bailout sum into 'eighth's' and spread the 1/8th's around.

Give the 30,000 auto workers 3/8th's -in three equal installmants - on Day 1 after their Employment Insurance runs out, Day 91 after Employment Insurance runs out and Day 121 after Employment Insurance - they'll appreciate it much more as "insurance, down the line" and won't be tempted to blow it as a windfall.

Give another 2/8th's to the say, 30,000 employees of the Detroit Three direct suppliers and their suppliers in two installments Day 61 and Day 121- they'll have to transition to different industries too (let's hope none of those companies had all their eggs in one basket)

Finally, give another 1/8th to the say, 60,000 employees of spin off firms and service providers in the towns and cities that will be affected by the temporary or permanent closure of an auto plant, or an auto supply plant.

So 120,000 individuals and their families are sharing 6/8ths of the $2,000,000,000 and the companies get nothing.

The weakest plants close, the strongest re-organize and re-open.

One or a few divisions are merged, two or three of the companies merge either before or after a bankruptcy.

Specialization develops - all three firms need no longer produce competing vehicles in all categories.

The workers will want to return to the dignity of work and will re-apply for jobs of their former superiors.

This upward cascade of re-vitalized workers will spew out fat cats and laggards on all levels of the operation, creating a purge of the most satisfying nature and results - Employees excited about their new broadened responsibilities who are glad to be working at something they love to do.

By the way, this method also saves one quarter of the money that would have been paid by the old regime to its friends' high-interest bonds, or severance packages and forces the companies to take the opportunity to trim, cut and re-fit, or they'll all die and no one will be able to blame the government for inaction.


Retrun to Ensign

This page is a story posted on Ensign which is daily web sites offering a variety of material from scenic images, political commentary, information and news. This publications is the work of Faster Than Light Communications . The content of this material represents the opinions of its authors and may not reflect views held by its editor or of Faster Than Light Communications. If you would like to comment on this story or you wish to contact the editor of these sites please send us email.

Editor : Timothy W. Shire
Faster Than Light Communication
Box 1776, Tisdale, Saskatchewan, Canada, S0E 1T0
306 873 2004