Big Three automakers to submit plans to Congress

Automakers argue that bankruptcy isn't an option, maintaining that no one will buy a car from a company that may not be around for the life of the vehicle. 

You don't have to be in bankruptcy for this to be an issue-- I already feel this way about the "big 3".  As far as long term prospects go, there is no difference between needing a government bailout and bankruptcy.  In fact, bankruptcy pretty much is a government bailout!

Maybe if they released that 65mpg Ford running around Europe I would consider extending my tax dollar to help them.  However, they said it would not be profitable for them to do so.  I am a sales associate for a retail building supply chain. How will I profit?  What real incentive are they passing on to the consumer.  Instead here's a 3 step plan to help them 1. Sell off last years models at half price  2. Decrease production by half 3. Get rid of the assistant to the assistant of the assistant

If that doesn't work at least they can say they tried.

RIO DE JANEIRO, Brazil (AP): Brazil raised its minimum wage by 9.2 percent Saturday to 415 reals (US$248; euro163) a month, boosting millions of salaries and pensions based on multiples of the base salary.

The increase from 380 reals (US$226.80; euro149.30) was more than twice the 2007 rate of inflation, a traditional index for pay raises in Brazil. Inflation last year was 4.5 percent.

The impact is greatest on lower-class families, with pensioners and salaried workers who earn little more than the minimum wage, economists said.

"It improves the income of more than 12 million pensioners and government retirees (and) heats up the local economy,'' economist Marcelo Neri, of the respected Getulio Vargas Foundation, told government news agency Agencia Brasil.

But the Union Statistics Department, or Dieese, said the raise was still insufficient to cover a family's basic needs, as stipulated in the constitution. An adequate minimum wage for a family of four is 1,924.59 reals ($1,149; euro756), Dieese said.

"That's an estimate of how much the minimum wage should be to adequately compensate labor,'' said economist Jose Mauricio Soares.

MOSCOW — Ford workers in Russia are threatening to strike if management refuses to increase wages by 30 percent and offer other concessions, the head of the plant's trade union said Thursday.

The workers demands come at a time when the company is planning to almost double production at its St. Petersburg plant, putting additional pressure on its workforce, the union official said.

"We are ready to work for a worthy salary. The conveyor belt squeezes us dry," Alexei Etmanov of the plant's trade union said by phone from Vsevolozhsk. The plant's union is affiliated to Moscow-based Trade Union of Machine Builders.

The trade union, which is also seeking year-end bonuses and equal pay for equal work, expects to receive a response from management Friday. If management refuses to budge, the union is threatening to lay down tools for one hour in a warning strike.

"Ford seeks to provide compensation and benefits that are competitive in the local areas where we operate", said Todd Nissen, a spokesman for Ford Europe.

Back in June, U.S.-based Ford said it would sink $30 million into its plant in a move to increase annual production to 60,000 cars from next year.

While Ford plans to add to its 1,700 workforce, the production boost will nevertheless add pressure to workers who already do overtime in the hope of a bigger paycheck, the union said.

Most of the plant's workers earn between 10,000 ($350) and 17,000 rubles ($600) a month, according to the union.

In comparison, Ford workers in Brazil earn between 16,000 rubles ($560) and 26,000 rubles ($911) a month, Etmanov said, as well as receiving 1 percent of the profit a plant makes.

Prices in Brazil are lower than in Russia, with a liter of vodka going for 35 rubles or the rent of a one-room apartment costing $200, Etmanov said, who recently visited Ford operations in Brazil.

Recent discontent over terms and conditions has led to a dramatic increase in union members, with membership rocketing to over 1,100 from just 112 since August.

The plant's workers officially put forward their demands to Ford's management on Monday.

Tensions increased a day later when management denied a top union official access to the plant.

Gennady Trudov, chairman of the Trade Union of Machine Builders, had requested a meeting with the plant's management and the union representatives at the plant.

Ford said it had been unable to accommodate Trudov's visit at such short notice, having received the request on Monday. It was "not a good time" as the plant was getting ready to increase production, said Nissen.

Cheap labor is a key factor to attract multinational companies to set up shop in emerging markets. The wages at Ford's Russian plant do not greatly differ from workers' paychecks at other car plants in Russia.

Vanessa Levy, a spokeswoman for Renault's Moscow-based plant, said starting workers receive 11,000 rubles ($385).

Alexei Klyukin, a shift leader at Ford's plant, said workers have no reason to complain. "Workers count their wages but don't count expenses which they would have had they worked at a different company."

Svetlana Klimova, a labor expert with the Russian Academy of Science's Institute of Sociology said one of the few successful recent examples of strikes includes a strike by St. Petersburg dockers.

Some of this may be a couple of years old but the principal is the same, minimum wages $248 bucks a month. Ford plant workers in Brazil double to triple that? What slave who is being paid next to nothing wouldn`t think doubling or tripling his wages wasn`t a good deal?

All at the expense of the American and or Canadian workers? More profits for the CEO`s and stock holders at the expense of the workers. Real wages in other countries don`t come close to ours here, well Latin American countries and Asian. There wouldn`t be a push to move the work there if they did.

Just global slavery with a different name? You really have to think, is lowering our standard of living to enrich others a global economy?

Ford, GM, and Chrysler need to make their own way or go away.  

The gut that drove Kennedy's car from Dallas to Detroit was Lee Iacocca.

 I think it would be better if the press would quit calling this a bailout. A bail out it is, as defined in Merriam Websters. As it is seemingly  publicly perceived is as a gift. The Big 3 are looking for loan guarantees. Ford is not expecting to need a loan if any of the other Big 3 files bankruptcy according to an article on MSNBC. We do need to help these the industries out for sure. Failure of any of these company's would reverberate though-out our economy. Causing a ripple that might cause a lot of other government expense's that would not get paid back such as economic support and medical programs,housing,welfare and banks stuck with over valued property. It's imperative we stop the bleeding now. Rather than take the risk.  Human suffering on a large scale would be the order for this crime. Let's just make sure we get collateral in what we loan, just like a bank. I am writing my representative right after this comment to support these iniatives. I suggest we all do as we wanted a government of the people by the people. We need to do our part and let them know what we want, what ever it may be.