Saturday, September 4, 2010

September 4th Test II

I bit of circular reasoning here. A -4.2 cut is better than no job at all so therefore bend over and take it because you should be thankful you have a job.

Slave owners probably told their slaves they should be thankful they have a roof over their heads, food on the table and they don't get beat too often.

An extreme example but by Shedlock's reasoning that's the final end game. Take whatever we propose or else and you should just always be thankful. And then there's the guilt trip that they'll hurt the Witchita economy even more if they don't rollover. Of course, as manufacturing flows overseas, wages must logically follow because who are they competing with? People make 55 cents an hour. Should Cessna employees accept $1/hr? Why not, they should be thankful right!

Always the argument is you should be thankful as if somehow you're being greedy and self-centered however the ultimately hypocrisy is that these CEOs continue to see big fat raises or at the very minimum big fat paychecks but they're never held to the same measure gratitude. It's always Christmas for them.

Union members are no different than other capitalists when it comes right down to it. They want to earn the most money possible for the least amount of effort.

Who knows, maybe the union should accept this deal but please spare us the specious argument that these people should just be thankful they have a job or they might hurt the broader economy even more. CEOs who move manufacturing overseas do immense harm to local economies when they do and few in the business community hold them to the same standard that Shedlock expects of unions. It's just good business.

Well its just good business if unions members get a better deal so go for it and if US companies move all the jobs overseas they should not be surprised when the Goose that Lays the Golden Egg dies.

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September 4th Test

Perhaps we could circle back to the discussion...companies and state governments are looking into the future and realizing they have zero in the "pension piggy bank" and it spells out bankruptcy if they dont change the trajectory. States will be going broke over the next 10 years due to pension promises they are nowhere near able to keep. My guess is if the workers agree to let go of the pension that they could likely negotiate their salary to stay the same or even increase. They (the union) wants something about job security in the proposal...really? Seriously? Like a promise "you will never lose your job?". Wow - where can I get one of those?

Cessna and others have weathered the downturn - but lets face it - not alot of people out there buying airplanes.
Their revenue has dropped for several quarters in a row - and they are delivering 1/2 as many high ticket planes (Citations) during this quarter compared to 1 year ago.

Screaming about what the CEO makes is a waste of time during negotiations..Clutching your MSNBC or FOX banner will only cloud your internal judgement. Remember they are entertainment channels - the news industry is long ago dead in this country.

So if you want to change the world - start YOUR own company - pay the CEO and CFO 10X what the workers make - make a superior product - and see if it sells. If it does..wonderful - you will force change in the market place. People will flock to your product because you are a company "doing the right thing" by paying its executive force a much smaller multiple of its labor force wages. Corporate ethos books will have chapters devoted to your new company.

By the way...my guess is after you start your own company - you will want to be paid more than 10X. But hey..thats your own problem.

In the meantime...quit the grandstanding...sit at the bargaining table and act like professional adults. Unfortunately, both sides are likely to emulate what they see in our own government

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