by Rick Lowe
Mr. Ferguson recently asserted in the press that The Government should mandate a "redundancy fund that would assist those people and others in their time of need".
He was/is referring to those workers that were laid off as a result of the tough economic times The Bahamas, and the world, are going through at this time.
It might be useful for Mr. Ferguson to review the unfortunate situation that GM, Chrysler and Ford are in as a result of these types of mandates. In a word, it has lead to their near bankruptcy.
Maybe Bahamians should be encouraged to save for a rainy day instead of expecting government or employer handouts.
Government and employers are hurting as much as anyone else in these trying times. It's difficult enough keeping the doors open without the additional burden of "legacy costs" to worry about.
Hi Rick,
“It might be useful for Mr. Ferguson to review the unfortunate situation that GM, Chrysler and Ford are in as a result of these types of mandates. In a word, it has lead to their near bankruptcy”
That is slightly off. GM, Ford and Chrysler, are in the positions they are in because, I agree, higher than average work wages, which is exacerbating their company’s lack of net income, due to them not selling cars folks want.
In fact, tha automobile market is saturated as it is now. Hence, the cries, the US can’t compete the way it is. Not due to higher wages, but they just have not adjusted the way they make cars. The unions didn’t cause that, as they have little or no say on what type or brand make of cars. the company is allowed to create by the government.
More importantly, they [Us car companies], legally, can’t make a cheaper car, which would be US road and safety ready. This is the bigger reason, why the US, even if they were to slash staff and benefits, really and truly can’t ever produce a “cheaper” and more “attractive” car–their cars are not made to be cheaper and likeable, but they have to have safety and quality standards, which guides their production make, more utilitarian than luxury.
As a subsequence, US auto-makers are hit with high insurance premiums as well as hit with more lawsuits, than average, compared to other car maker jurisdictions–Germany and Asia.
Take for example Honda and Toyota makers in the US, they are made ‘slightly’ differently than their sister companies in Asia– a little heavier in some parts, with higher production cost per average in addition to higher unit and part costs, during production phase. Not import costs, but mid and post prduction phase.
In fact, Toyota and Honda, are seeing a slump in sales, directly tied to the slump in the US market by virtue of their US subsidiaries–on top of decreases in net export, universally.
Happy New Year,
Youri
http://globalviewtoday.blogspot.com/
I think the unions are trouble, nothing but trouble.Maybe in the 1940’s there was a need, but they have gone way too far.The employers in the Bahamas have absolutely NO rights what-so-ever ! I spoke to someone at the labor board some time ago & asked what my rights were, the reply was, “you have the right to stay open” ! Its called the “Pindling syndrome”, something for nothing, that’s all,something for nothing.What we need is for the union members to have to pay their dues on their own time & not be deducted from their pay. This would break the unions in six months because no one will pay.
When I read that article, I was astounded, as nevermind figuring how it would accrue, or who would manage it, but at some point, the employees would see more imeadiate benefit to themselves in the company actually failing. Bad logic but they would probably see to it.
In effect, a company would have to invest in its own demise, not for ownership but for employees.
Another reason not to go into business in the Bahamas.
We are going to see more of this type of garbage thinking as the free rides evaporate.
Pillaging at its best.
How about union audits first? would a union have to start such a fund itself, in case it goes under?
How about government?
One can only hope that he was confused and actually was suggesting a performance bond for foreign investors, something which makes some sense given the caliber of same in recent years.
Amen !
Thanks for dropping by Youri:
The costs associated with the union contracts on the so called Big 3 (GM, Ford and Chrysler) is the main contributor to their being so uncompetitive.
There are few companies in the US that are not experiencing a slump in sales, but without the UAW giving concessions, GM, Ford and Chrysler are doomed.
This article might interst you: http://www.mises.org/story/3278
GM has been a fine organisation in many respects, but to sacrifice them on the alter of union greed would hurt more than just the union leaders.
So am I to assume you agree with Mr. Ferguson?
Happy New Year!
Well, there it was, Tuesday Jan. 6th, Tribune in black and white.
The real Cardinal rule and purpose of unions as stated by union lawyer Obie Furguson:
To protect the executives of the unions at all times.
Boy I hope the union membership see the significance of that admission.
It is not about the worker, working conditions, productivity, no it is all about protecting the union executives at all times as a cardinal rule.
The funny thing about lies and fraud, is that they often come full circle and trip over the forgotten truth in the process, and in not regognizing it, spill it out for all to see.