Posted by Will (in MI) on Sunday, September 25, 2005 at 1:20PM :
In Reply to: Re: Interesting posted by Kevin in Ohio on Sunday, September 25, 2005 at 9:09AM :
The cause of the NA OEM's and some of their spun off suppliers (as well as in some other industries) is do to greed and no long term planning.
Back when the employers committed to benefits (either because of Union demands, or OEM incentives for maintained workforce) they promised the world. When they committed to these benefits, the future cost was projected, perhaps not always correctly, and the profits of the day made it possible. However they never set aside those profits for the rainy day, and continued to spend (owner, share holder and CEO pocket big bucks) as though times would always be rosy.
Now that they have spent the cash that should have been set aside, and it's not there to pay for the promise they gave, the employees are the big losers, and the companies look for ways to cut product quality and as a last resort bankruptcy.
Who made the promises, the companies, how should they keep the promises, if they have spent the cash, then give those who are about to loose what they were promised what's left of the companies. Either by taking parts of the current owners shares away and turning it over to those who no longer have the promised benefits, or sell the company and use the cash to first pay their debt before themselves.
Just my own 2 cents worth, but clearly poor planning and management have put the US (residents and employers) into these grave situation.
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