Unemployment in 2008 was higher than usual, especially in Michigan. If anyone was willing and able to hire people with the same skill-set, they would have done so regardless of the auto bailout.
A lot of those "bloated" union wages were slashed and benefits cut.The ONLY difference the bailout made was that the union survived with their bloated wages and benefits....
Again: Eye and dental coverage were axed. New hires are paid at almost half the wages as before ($17/hr instead of $29/hr), and they also get 401(k)'s instead of pensions. They no longer have guaranteed annual raises; they now get profit sharing, so if the company is not profitable, they don't get a raise or bonus. The "job bank" -- where union employees who were temporarily laid off would get paid regardless -- got axed. Strikes have been banned. The stock received by the UAW is non-voting, and because of that setup, the companies cut their health care obligations to pensioners by 50-70%.
Yet again, stockholders in the old GM were screwed anyway. And the only way stockholders in the new GM will benefit is if the employees are sufficiently motivated to do a decent job.and to this day hangs like a leach drinking the blood of stockholders
As much as you may wish it otherwise, the reality is that unions still exist, and almost certainly will continue to exist in the manufacturing sector.
Existing GM and Chrysler customers would have been screwed if the companies went up, since all those warranties would be worthless, and parts companies would lose a ton of business.customers
New customers of GM and Chrysler buy of their own free will. Market forces are just as present as always; if the companies charge too much, it will impact sales.
GM added around 600 employees last year, and are hiring 4000 more this year.And because the union is still there GM can't afford to hire more people.
Recession's Over: GM Hires New Employees, Not Laid-Off Workers, to Build Cadillac ATS - Automotive News
GM Plans to Hire 4,000 New Employees | Wall St. Cheat Sheet
Chrysler added 1,800 employees last night. They're now adding another 1,250 employees and investing $374 million into its Indiana plants.
Chrysler To Hire 1800 New Workers « CBS Detroit
Chrysler announces 1,250 jobs, $374-million investment for Indiana plants | Detroit Free Press | freep.com
And maybe I missed it, but I don't recall all that many people eviscerating Reagan for saving Chrysler in 1980.