Well my company filed for protection under Chapter 11 of the bankruptsy code this week.

After two years of declining sales due to lost market share to overseas competition, dumping, and inability on our part to get product out on time, we are taking drastic measures to save the company.

What brought it to a head was a labor dispute. Our plant is union to the core.  The contract we have with our union was negotiated years ago with work rules that you see in a company five times the size (and we were when it was negotiated) with things like no departmental seniority only plant wide and operators can't add oil to a machine on and on.  Our labor rate and benifits are 50% higher than even the best companies in the area.

Our productivity is 70% no matter where you set the rate.  In short, if the rate says 100 pcs/hr the workers will do 70 if we lower it to 70 they will do 50.  Literally one third of our work force is not touching a part at any given time.

The last negotiation and vote was to change wages from an average of $15 an hour to $13 an hour and add contribution for medical up to a whopping $70 month per family with 90% coverage and $10 copay on visits and medication.  Average wage here is $10 hour and average medical is 80%.  To give you idea of the economics, a brand new house 1700 sqft 3 beedroom goes for $80,000 here and you would pay $400 a year in taxes.  Gas is $1.32 gallon.

We've been paying our bills but not growing and not paying the investors back for their money lent two years ago.  They've been amasingly patient.  Our manufacturing technique is the same as our competiton but have the highest price, longest lead time, and poorest delivery record.  If it wasn't for superior engineering and quality we would be closing the doors now.

Our ranks could give a holy shit since thanks to senority they are all near retirement.

I'm telling you guys this whole labor brotherhood thing is crap in my company for getting new employees in and growing the company is not a priority.  Even losing their jobs doesn't matter as long as they maintain their one upmanship.

I'll give you a quote [b]"I'd rather be out of work than give a dime."[/b]  My reply was but that means you will have to take a job for much less and instead of losing two dollars your familly will lose five dollars.  [b]I just won't work for less than $15 period."[/b]  This guy is labor grade 1 and empties the trash cans.

It's sad to watch a 100 year old company drained to extinction due to labor issues.

I was wondering if you guys have gone through this or have thoughts on the topic.

Tj

Do you really think you have to get paid by the hour to get screwed by upper management.  Our employee retention plan is to give big bonuses to the two top dogs to stay and they've been there a whole 3 months while those of us that have been there for over two decades have been told no severance if we let you go.

That's not a salary hourly issue, it's a top dog gets it all thing.  

I have a therory about top dogs.  They are all assholes and support each other above all else.  They go from company to company raping and pilaging.

Doesn't change the fact, asia is kicking our ass on price.