FIAF – The Sky Is Falling Edition
This just isn’t going to end well:
ATHENS—Thousands of Greek public-transport workers walked off the job Thursday in a 24-hour strike over new austerity measures, a day after the government approved fresh budget cuts to appease the country’s international creditors.
See. This is why you can’t negotiate with unions.
Greece’s two main umbrella unions, the private-sector GSEE and civil servants’ Adedy, have said they plan a nationwide public-sector strike on Oct. 5 and a nationwide general strike on Oct. 19.
And striking creates money, out of thin air … how, exactly?
At stake is an €8 billion ($10.85 billion) tranche of aid from the European Union and the International Monetary Fund that Greece needs in the next few weeks. Without it, the government will run out of money by mid-October.
Greece’s creditors have demanded additional austerity measures before they will release that aid.
“Creditors” is an evil-sounding word for those folks who are giving them the money. So, while they go on strike …in the real world:
Money managers, meanwhile, have been passing around analyst reports suggesting that a Greek debt default is becoming inevitable, and are worrying that European efforts to prevent it are just prolonging the pain.
“Part of it is the Fed, part of it is the seeming slowness as well as lack of effort on the part of European nations to really come out with a scheme to handle heavily indebted nations and their banking systems,” said Thomas Villalta, portfolio manager at Jones Villalta Asset Management in Austin, Texas. “The fear is really pronounced.”
Yea, I’d say so.
Since I’m on the business section of the WSJ, let’s see how the negotiations are going between Chrysler and the UAW:
Talks between Chrysler Group LLC and the United Auto Workers broke down this week over stark differences on pay for entry-level workers and health care costs, people familiar with the matter said on Thursday.
The UAW pushed to increase the $14.65 an hour pay for entry level workers similar to gains at General Motors Co., but rejected Chrysler’s demands to offset the hourly increase by increasing health-care contributions by all workers, the people familiar with the matter said.
The UAW wants more, but there is this pesky little fact:
Chrysler is still unprofitable, posting a $370 million loss in its most recent quarter on charges associated with repaying U.S. and Canadian government loans.
See, UAW and union folks don’t seem to understand that pay is often related to PROFIT. If you’re company is losing money, you’re honestly lucky if you’re still getting a paycheck. That’s the real world.
n his view, Chrysler is the least able to afford the rich signing bonuses, pay increases and buyouts to cut workers that GM negotiated, this person said. GM has offered about $5,000 signing bonuses, and a between $1 a hour and $3 an hour boost to its entry-level workers.
In what wacky world is there a “signing” bonus for union employees? Can someone please explain this to me?
Here’s $5000 for agree with out contract! It’s like bizarro world.
it’s all so depressing.
No vid for now. Maybe I’ll find something interesting later.