You know - for the kids...

Thursday, April 13, 2006

Would the last to leave please turn out the lights...

Ford announced today that it would be closing the Norfolk F-150 plant in 2008. This is a serious hit to the local economy. 2,300 workers will need to find new jobs and I seriously doubt they can find equivilent work at UAW scale pay here. So say a little prayer for these folks - they are going to need it.

Ford tough indeed

And while this is a very sad story for my beloved hometown, it speaks to a larger issue. US manufacturing, and the auto industry in particular, is in such serious decline that Ford is shuttering one of it most productive plants building its top selling vehicle. GM is in a tailspin, having laid off 30,000 this year. Chrysler seems to be managing but only just. GM and Ford suffer from similar problems of too many models, too much capacity, and too much overhead from insurance and pension costs. Even if the first two problems can be resolved, the insurance costs alone may sink them. If either of these companies goes bankrupt because they spend too much providing their employees insurance, I expect the door to nationalized healthcare to be kicked wide open. Kind of a bummer silver lining, but there it is...

UPDATE:
In no way am I wishing for the demise of GM or Ford to further a political agenda. Losing either company would mark a truly dark day on this country. I do, however, believe that the nationalized healthcare debate is one we NEED to have. The US spends more per capita on healthcare than any nation in the world yet we still have upwards of 40+ million uninsured. As much as $400 billion is spent on paperwork. We have fewer doctors per capita than most Western countries, visit our doctors less frequently than most Western countries, and still spend untold billions financing the insurance industry's efforts to not pay claims. The point is, being a good corporate citizen by insuring your workers should not lead to bankruptcy. And yet, there is no other option. Ford and GM should build cars, not be in the insurance business. Protecting the general welfare, per our constitution, is the role of government. To my mind, that would include providing citizens the care of a physician. Sadly, neither party has covered themselves in glory on this issue. Big dog Bill Clinton tried and was subsequently cut off at the knees. We need to try again. If for no other reason, let's talk about what Ford could have done if it were allowed to do what it does best, building the best selling vehicle of all time...

4 Comments:

Anonymous Anonymous said...

These employees have listened to the UAW cranks and believed they were untouchable. Follow the Union vote and be secure for life. They should now ask the union how many of you will lose your jobs. I am sure they will do the math and realize a very few union employees are affected and are still fat and happy.

10:23 PM

 
Blogger joestrummerlives said...

I don't mean to pick fights but the union was doing its job. They were trying to protect their members. Ford spent $350 MILLION updating the factory a few years ago. The membership should have felt secure. Ford got bit by bad management and a failed healthcare system. These workers were among the most efficient in the Ford system. The UAW is a convenient scapegoat.

11:16 PM

 
Blogger Tony Garcia said...

We will be talking about this story on our radio show on Sunday. Likely your blog's premise will be mentioned. If you care to listen go to my blog for information on how to listen.

We give the number out during the show so if you wish to call you are welcomed to do so...unfortunately we are not big enough of a station to warrant an 800 number.

BTW, I also was linked from the Virginia Pilot's website...I am not a spammer.

11:11 AM

 
Anonymous Anonymous said...

Just you wait! This same aruement can be applied to Education. With out pulling out my soap box, just under $10,000 per year is spent on our students and that includes the crap food "they" call lunch. Over 30,000 is spent per inmate........What-up-yo!!!

1:47 PM

 

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