Re: [Pen-l] labor and the auto companies

[ken hanly <northsunm@xxxxxxxxx>]

So they would still need help of the same sort that GM needs in the present situation under present ownership. Surely a progressive such as Obama and the Democratic Party should be pushing for exactly such a solution. There are after all some successful worker owned US firms. Lincoln Electric I believe is one. The government would be seen as better if they bail out workers even well paid ones rather than jet set executives pleading for welfare. Of course as I am sure Shemano would insist the workers as managers would have to adjust to market and competitive conditions and act responsibly not just feed at the trough as present executives seem to be doing to some extent.

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--- On Thu, 11/20/08, Michael Perelman <michael@xxxxxxxxxxxxxxxxx> wrote:

> From: Michael Perelman <michael@xxxxxxxxxxxxxxxxx>
> Subject: Re: [Pen-l] labor and the auto companies
> To: "David B. Shemano" <dshemano@xxxxxxxxxx>, "Progressive Economics" <pen-l@xxxxxxxxxxxxxxxxxx>
> Date: Thursday, November 20, 2008, 12:53 PM
> Your idea is interesting, but nobody would give them the
> finance necessary to turn it 
> around.  They would loose more than the company is worth
> before they had time to put 
> it on solid footing.
> 
> When the Youngstown steel mills were shutting down, the
> employers refused to 
> make the sale.  My uncle, who was friends with many of the
> people in upper 
> management, echoed their view that there would be something
> fundamentally wrong with 
> letting workers replace management.
> 
> On Thu, Nov 20, 2008 at 09:45:29AM -0800, David B. Shemano
> wrote:
> > A year ago I suggested that the UAW simply buy GM and
> the employees could then pay themselves whatever they
> wanted.  The total market capitalization of GM today is
> around $1.5 billion, which is essentially nothing.  A
> mind-boggling number for a company that had $165 billion in
> sales for the past year.  If $1.5 billion is too expensive
> for the UAW, GM could file chapter 11 and UAW could propose
> to exchange some claims for the equity and own the
> reorganized GM.  SOCIALISM NOW!
> > 
> 
> -- 
> Michael Perelman
> Economics Department
> California State University
> Chico, CA 95929
> 
> Tel. 530-898-5321
> E-Mail michael at ecst.csuchico.edu
> michaelperelman.wordpress.com
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