Since Ford is the only US automaker that was able to stave off bankruptcy and not borrow money from taxpayers, they can probably be considered the best of the Detroit clan left standing. The Reuters news release about Ford offering buyout plans to the UAW employees is a glaring example of why things are amiss in the US auto industry. According to the Reuters release:
“Under the terms of the new buyouts, Ford workers with at least a year of experience will be eligible for a payout of $50,000 plus a new car voucher worth $25,000 or an additional cash payment of $20,000.”
Wait, am I missing something? Someone with 1 year of work experience at an auto-manufacturer is being offered $70,000 in cash to quit?
This really conjures up and image of the massive UAW contract anchors that hang around the necks of the Big(smaller) Three Auto-Makers. The UAW is not the only special interest group fleecing the American taxpayer, but this particular group is very visible as an impediment to economic freedom. A company or industry cannot prosper if it must “payoff” its employees like a shop-owner facing his monthly mafia dues.