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Boeing Plants Sold -- Workers Screwed

 
Naked Capitalist
02/23/2005 10:36 AM
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Boeing Plants Sold -- Workers Screwed
Announced today in the Wichita Eagle newspaper, Wichita, KS, that Onex corp., a Canadian equity capital firm has purchased the Boeing Aircraft Plants at Wichita, Kansas, McAllister, Oklahoma and Tulsa, Oklahoma, for a cool $900 million and assumption of debt. The workers have been informed that they will have to reapply for their old jobs. [chuckle]. Same management team will stay on.

Simple math:

(1)Boeing get cash and lowered contract costs.
(2)Onex gets a handy percentage of the increased profits and turns around and sells in a yeaar or so, maybe even back to Boeing.
(2)Workers get their paycheck cut in half.

Welcome to the new form of U.S. government in the new millenium --its called "Cashism." Its like facism, only instead of the government running the corporations, the corporations run the government as a wholey owned subsidiary.

BY LAW, our most esteemed citizens (yes, according to the Supreme Court coprorations are persons), are required to put their naked self interest above anything or anybody (see Dodge v. Ford). Sure, they can be charitable, BUT ONLY if it can be shown in a court, that these acts of benevolence contribute to their botttom line. This is established case law. If they fail to put greed above all else they can be sued by their shareholders.

We can now see the end result of this corporatocracy. Where our most influential citizens are multinational corporations. No, youīll never hear about this on the news, because the corporations pay the tab for the media. Sure, we have Martha Stewart, the sacrificial lamb for the brokerage crimes of Merill-Lynch. A stern lesson for anyone who might accept a tip from their broker and not be intimately familiar with securities law, and then try and blame the behemoth.

And, most are familiar with Eisenhowerīs warnings of the dreaded "Iron Triangle" the lethal combination of defense, their lobbyists and the pentagon. The revolving door is spinning at warp speed. Every General worth his salt is forming or managing a private group of mercenaries who receive multiples of their former service pay. Need I mention Haliburton and the outsourcing study showing how much the Pentagon would save if it outsourced logistics. Funny, it turneed out just the opposite.

But relax folks, this is just object lesson #665 in a long string of experiments in government.

I know many will beg to differ, but it really is this simple. Take Jesus out of the picture and capitalism doesnīt look real pretty from underneath. Throw his teaching out of the schools. Teach people to put their own interests above others. And you reap the rewards.

Communism was actually based on Jesusīs principles "from each according to their ability, to each according to their needs," but it was one of the cruelest and most inhumane government system in redorded history, far, far, worse than the excesses of the Czarīs regime which it replaced. Likewise, capitalism, without a Christian moral basis, is simply naked greed, screwing the poor so the rich can have more.

So get out your notepads and get ready to learn as THE teacher imparts to us this truth.
Anonymous Coward 39
12/08/2005 10:11 AM
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Re: Boeing Plants Sold -- Workers Screwed
When is it going to end?
Anonymous Coward 116
12/08/2005 10:11 AM
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Whatīs wrong with owning a company on foreign soil?
Anonymous Coward 116
12/08/2005 10:11 AM
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Donīt you think your analysis that the workers will only get paid half their original wages is a stretch?
Lockheed-Delta
12/08/2005 10:11 AM
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Is that all? $900 million? Wouldīve thought they were worth more.
Naked Capitalists
12/08/2005 10:11 AM
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Nothing is WRONG with a foreign country owning a company on U.S. soil. Whatīs WRONG is that the greedmeisters have adopted the equivalent of Hitlerīs Master Race theory in the economic realm, its called "free trade" and its filed in the same heading as "free lunch" and other freeebies. Its also why a good portion of the world hates the US.

When the trade deals are negotiated, when the laws concerning foreign ownership are passed there is one interest that is notably absent from the table, thats the American worker.

Thats why the demos lost big time - they screwed their unions and worker base and allowed the debate to become about gay marriage and abortion, two topics that were dropped like hot potatoes after the republicans got elected and they got right down to business in the lame duck lull on the corporate agenda of tort reform (caps damages for the insurance industry so they reap huge profits keeping premiums the same), social security (hundreds of billions for Wall Street in commisions and management fees), oh and since the poor schmuck consumer has had his or her wages halved, lower taxes so they can pay the monthly bills to megamonopolycorp. I havenīt seen a real democrat for years, with the exception of maybe Kucinich, and thatīs a big maybe.

The funny thing thatīs happening now is that the coprorations are lining up in the government welfare line now that theyīve fleeced the sheep of all the fleece.
Anonymous Coward 195
12/08/2005 10:11 AM
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The funny thing thatīs happening now is that the coprorations are lining up in the government welfare line now that theyīve fleeced the sheep of all the fleece.
------------------------------

we should start our own damn companies
Anonymous Coward 195
12/08/2005 10:11 AM
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when the denial wears off the workers gonna get violent.
Rex
12/08/2005 10:11 AM
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This is a legal way to give employees pay cuts. It will happen more.
It is getting to management. They have to reduce costs to compete with other companies.
It is too expensive to buy US made products.
The Dollar has to come down some more.
Anonymous Coward 105
12/08/2005 10:11 AM
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REX

"This is a legal way to give employees pay cuts."

No its theft and no giving at all, its force. Its also smoke and mirrors the buyer is not a palne builder but a leasing comapny. What Boeing has openly done is sold the factories and workers to a finance comapny and leased them back. Boieing makes money because the lease back is at a lower rate than its production cost. The leasing comapny makes by having a lower book value and cutting wages.

It is a sleight of hand.

It is only legal in that they get away with it.
Rex
12/08/2005 10:11 AM
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Itīs legal.
Lawsuits, if any, will settle the matter. But so far it is legal. It sucks. But law, justice and ethics are different things.
Naked Capitalist
12/08/2005 10:11 AM
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>>we should start our own damn companies

Lets do it. After years of dealing with fat cat politicians and free trade Nazis, I have come to understand the system in its current form.

See, what these people call negotiating is simply figuring out who is going to get what cut of the dollars that roll off the government printing presses now that the sheople have been fleeced of everything.

Hereīs how it works. You get some lobbyists, preferably former collegues of the fat cat polys, and you cough up some big bucks into the right campaign coffers and the lobbyists salary. Hereīs a warning, donīt think you are going to take up some other corporate behemoths berth on the gravy train or youīll get stomped on. So you have to find virgin uncharted territory. Sure, once you show a profit the greedmeisters will move in with their army of lawyers threatening to sue unless you give them a healthy portion of the profits or turn the whole thing over to them. What do you do then - you sell, and enjoy your life doibng what you always wanted to do.

But I have come up with the perfect win-win proposition. The only people that get screwed on the deal are the unborn future generations and the taxpayers.

Its got it all. Profits poured right out of the government coffers into the corporate greedmeisters bank accounts. PR for the demogogues in "helping the American people."

It has to do with the publishing industry - so for the only industry that hasnīt figured out how to fill out a corporate welfare application.

My thought was basically to have sustainable community pilot projects that would transcribe for starters, the Library of Congress onto the internet. Googles already working on it for some private libraries, but it seems they don;t know how to move in and hit the jackpot of big money.

Imagine all those politicians beaming about how they "invented the internet." And the publishers raking in the residuals on long dead copyrights. And, of course, weīll hire Chinese to do it all for 10 cents an hour with a front facility over here for the tours and the like, and weīll reap. Ainīt that how its done?
Wissbank
12/08/2005 10:11 AM
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I wonder if anybody, these days, is researching the ideal structure of government. We research just about everything else, from oral sex to respiration of grasshoppers. I never see anything on designing governments. It seems clear that our own government has long been hijacked by interests well apart from those of the (media doped) general population.
Half Pint
12/08/2005 10:11 AM
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Well if the workers are going to get screwed, it canīt be all bad.
Naked Captialist
12/08/2005 10:11 AM
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There is no IDEAL Government.

If the people are upright, honest and moral, then even a dictatorship will be a paradise.

But human nature is what it is, the framers knew human nature, and therefore placeed protections into the constitution to pretect the people, like checks and balances and the Bill of Rights. It only took 200 years to circumvent all those well thought out protections.

When I took constitutional law, my professor, who stidied under Scalia, on the first day of class said that constitutional law has very little to do with the constitution. And you know what? I think he was correct.

He said that he realized when beginning to study con law as they call it, that most of the federal government as it exists today is unconstitutional. In particular, he viewed the "switch in time that saved nine," as a watershed event. This was where FDR threatened the to increase the Supreme Court to 15 justices and appoint enough to pass his New Deal legislation, which the court had previously ruled as unconstitutional.

There is a book out that has a sub-title, "the myth of the noble savage," and it proceeds to make the case with historical examples that humans, contrary to popular myth, exploit their environment until it can no longer sustain them even though, if they practiced conservation they could live in the environment indefinately. This is so even for primitive native cultures - even the Native Americans. We are no different today in the U.S. Part of it is our personality of rugged independence and individualists. Part of it is that is a lot easier to exrtract money from dupes than to work for a living.

Money is not a substitute for morality. This is the error made by the economists and B-schools. Health care was changed into a "for profit" industry in the early eighties and we can see the consequences now. You need doctors that care about healing people, not padding their pockets.

We will learn, as every society in history that has embarked on some wacked out idea, that there is only one truth. Treat others as you would have them treat you, and in our case, you cannot love both God and mammon.
Anonymous Coward 106
12/08/2005 10:11 AM
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There is no IDEAL Government.

If the people are upright, honest and moral, then even a dictatorship will be a paradise.

I agree. And I think this is a way to reduce wages and bust unions.
Anonymous Coward 30
12/08/2005 10:11 AM
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At you local safway, albersons, and so on accross the country . The local retail clerks

make , are you ready for this

$27.00 per hr for a checker and $17.00 for a box boy

Thats why its cheaper to shop at trader jose and other independent stores .

All they do is run stuff through a bar code machine and take it out to your car.

Thats why everyone hats wal mart
the pay what its worth
Naked Captialist
12/08/2005 10:11 AM
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I see the Free Trade Nazis are gathering for another Nuremberg Market Rally.

The reason you get such inexpensive goods at Wal Mart is because they are manufactured by commie slave labor. Its real simple the commie masters give the fat cat capitalists a big cut for f&^%king their own people, and when they get enough technology, they cut out the middle man like any good capitalist. If they have the workers and the means of production what the hell do they need a bunch of overpaid Wall Streeters working spreadsheets. Then the f*&kor becomes the f*&kee. Simple mathematics. You donīt need tyo be Einstien to figure that one out. Unfortunately, most people are only going to come to that recognition when their tanks are dirivng through Brokeville USA.

Marxīs revenge, baby.
Anonymous Coward 45
12/08/2005 10:11 AM
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Outsourcing spelled sideways
And...
12/08/2005 10:11 AM
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Bye Bye Boeing Bye Bye

Joe Vialls

[link to www.vialls.com]
Anonymous Coward 45
12/08/2005 10:11 AM
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Hmmmmmmmm. Iīm not flying in a New Boeing!
Anonymous Coward 174
12/08/2005 10:11 AM
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sigh
Sub-shop employee
12/08/2005 10:11 AM
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Onex is a huge company. They own all kinds of smaller firms and some medium ones as well. They will keep those plants for awhile, then poissibly sell the operation to a large global company based in saaaaay...Japan. Boeing is able to dump assets and garner īpointsī with the NAFTA watchdogs, Canada, and the stockholders at the same time.

Those Boeing plants were on the way out, anyway. The plan is to push all that work
back outward and only bring in large assemblies. The company has to streamline and become lean and mean, or the EU-Subsidized Airbuz will gain more market share. Once Boeing gets more cash in the bank and the market swings back itīs way, I can see them reassuming some or not all of that work.
ac
12/08/2005 10:11 AM
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LOL yanks, goes around comes around. You thought nothing of US corp.s taking over foreign co.s thought it was īfree marketī now the shoeīs on the other foot, you cry. Well call me a WAAAAAmbulance.
Anonymous Coward 141
12/08/2005 10:11 AM
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Whatīs wrong with owning a company on foreign soil?




I agree nothing wrong with it. But the thing is they are going over there to make their products and then try to sell it back to the USA. Because so many corporations are going over seas that means less jobs for Americans. And less jobs means we donīt have the money to buy the stuff they are trying to sell us. And the people in those countries they are in sure canīt buy them because they are making peanuts. These companies are going to start hurting again. And they wonīt be able to leave those countries and come back home. They have signed deals and must stay there come hell or high water. It just isnīt looking pretty. When we realize we donīt need alot of īstuffī to be happy it is going to get worse for THEM.
Anonymous Coward 30
12/08/2005 10:11 AM
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Naked Captialist
2/23/2005
4:23 pm EST

You are so full of crap. The Chinese are becoming consumers just like the western world. And just like the western world, if you not with us you go to jail. Chinese people in the USA are going back to China to retire. China has there population in control and there factories are humming. People are buying homes and cars and consumer goods. Life is actually very good there. You need to get out more. It’s not your fathers Oldsmobile anymore
Taco-Sauce Engineer
12/08/2005 10:11 AM
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Lower $ for airplanes = lower cost to airlines = more hiring = cheaper airfares = everybody happy
ac
12/08/2005 10:11 AM
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"Because so many corporations are going over seas that means less jobs for Americans."

Lord liftin Jesus people itīs AMERICAN companies moving to foreign soil and expecting Americans to boost profits!
For fuck sake, you just donīt understand! They (bankers) work with real estate agents to inflate value so youīll re-finance and spend equity on foreign made goods, then say itīs wise to invest in your countryīs demise!
My God, youīre so sated and jaded with surplus and luxury and phony morals! SO STUPID! Itīs American companies that tell you itīs īfreedomī to support your own bankruptcy. Donīt you, canīt you see that?
Naked Capitalist
12/08/2005 10:11 AM
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>>You are so full of crap. The Chinese are becoming consumers just like the western world. And just like the western world, if you not with us you go to jail. Chinese people in the USA are going back to China to retire. China has there population in control and there factories are humming. People are buying homes and cars and consumer goods. Life is actually very good there. You need to get out more. It’s not your fathers Oldsmobile anymore

You econonazis are all alike. Youīll lie YOUR ASS OFF just like like a politician if it means a thicker wallet for you. Either that or youīre just a dumb parot turned out from some US B-School where you learned that ethics means screwing poor people so you can get richer - fat cat.

The reason Chinese people are returning to China is because thatīs where the feaking jobs are nitwit. With dual language skills they can speak WallStreetease to the fat bankers and tell the 14 hour a day slave labor to chop-chop.

Its unbeleivable American businessmen can be so stupid and greedy. Moving their factories into the heart of a country sworn to destroy them. Makes about as much sense as Israel relocating its manufaturing sector to Iran. You donīt think the chicoms are laughing their asses off. Once they get the critical technology and infrastruture in place its screw you dog face, we donīt need ya no motr - yankee go home. What are the Wall Street bozos gonna do then, threaten to nuke them. Sorry Charie - you be nuking your own factories.

The chicoms played long term chess with a bunch of dillettantes and kicked their slimy capitalist butts fair and square. Hot to screw their own countrymen for a dollar, they walked down the primrose path to checkmate.

Just keep putting out the lies like a little sockpuppet, and when they invade and begin he genocide just DONīT SAY DIDNīT WARN YOU.
Naked Capitalist
12/08/2005 10:11 AM
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Lower $ for airplanes = lower cost to airlines = more hiring = cheaper airfares = everybody happy

Lower $ for airplanes = lower wages = no food on the table for for little Johhny = mega profits for fat cats = a lot of really pissed of people = revolution
The King
12/08/2005 10:11 AM
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WEEEEEEEEEEEEE HAAAAAAAAAAAA!

Things are cookin now !!!!

:dubya:poop





GLP