On 5/4/07, David B. Shemano <[EMAIL PROTECTED]> wrote:
I have a question and it is meant to be serious. Why does not the UAW (or the
employees generally) simply buy GM and then pay themselves whatever salaries
and benefits they think appropriate?
If that is too radical, how about a thought experiment whereby the employees
obtained the right to appoint the entirety of the board. How would GM's
fortunes differ than from what presently exists? How would the salary/benefit
package be different?
I am not too knowledgeable about GM/UAW history but I wonder if such a
thing was even possible for GM in its current corporate form? The
company has evolved to its current size and organization under a
climate that emphasized returns to capital and compromises with labor.
An employee owned GM would have to be broken up and reorganized in a
very radical way in order to truly empower workers. It is not clear
that GM would survive such a process under its present financial and
political circumstances.
If employees obtained the right to appoint (elect?) the board that
would certainly make labor relations much easier and would generally
be a big positive for GM. Unfortunately shareholders will never allow
that to happen. An employee-led buyout is also unlikely because - who
in their right mind would lend capital for such a transaction?
-raghu.
