Stop Blaming Companies for Making Smart Business Decisions!
It was announced on Monday, November 26th, that GM would be cutting nearly 15,000 jobs in both the United States and in Canada.
Additionally, the automaker promised to end production at “several North American factories, marking the auto maker’s first significant downsizing since its bankruptcy last decade,” according to Mike Colias of the Wall Street Journal.
In the same article, it’s noted that both President Donald Trump and Prime Minister Justin Trudeau have personally called GM Chief Executive Mary Barra to express their severe displeasure towards GM’s announcement.
Both North American leaders urged GM to reconsider its position on downsizing its workforce, and in its willingness to do away with many of its North American plants.
Ms. Barra attributed the downsizing of both GM’s employees and its production plants to GM’s desire to remain, “lean and agile… to get in front and lead in autonomous and electric vehicles.”
Large corporations like GM are shunned for these seemingly callous decisions, as they lay off tens of thousands of workers just to save a few bucks, and to reinvest in new lines of production.
I’d like to remind you of a column I wrote about the federal budget last week before I dig into this GM situation: https://www.empirestateconservativenetwork.com/blog/entitlementsneedtoend.
In it, I discuss why cutting entitlement programs (and even our military in certain respects) is the only way we’re going to be able to make our ever-increasing government revenue work towards actually paying down our always-ballooning national debt.
The same methodology holds true for companies in any industry: In order to continue to generate profit, and in order to continue to have a healthy business, a company has to find ways to reduce expenses and to stay competitive in the marketplace.
The writing was on the wall…
GM’s sedan and small car sales were tanking.
Their large workforce and their high overhead were prohibiting them from staying competitive in the field(s) of hybrid, electric, and self-driving cars - The future of the automotive industry.
It’s a brilliant financial decision!
GM stocks were up nearly 5% post-announcement.
Because investors also know that this is a brilliant financial decision!
Do I want people who had steady-paying jobs losing them? Of course not.
That being said, when one is an employee, this is the inherent risk that they’re taking when they sign their soul to the devil.
Even if they’ve made themselves seemingly irreplaceable, there’s always a chance that a company will look to reduce its workforce, and that it will look to move in a different direction - Away from that employee’s particular skillset(s)!
These employees aren’t entitled to any more than what’s been laid out and agreed upon in their employment contracts - Just like we’re not entitled to anything outside of our rights as expressly laid out in the Bill of Rights.
It was reported that GM has already offered many thousands of their employees severance pay as of this writing.
As somebody who’s been on the receiving end of severance pay, it’s usually enough to keep you going for a few months (at least!) while you find something else.
Before you even think about it, please don’t give me the crap that some of these folks weren’t prepared for such a major change!
Life is like facing the best junk ball pitcher there ever was: The unflappable RA Dickball when he ws on the New York Mets!
I kid, of course - It was Greg Maddux…
Getting back, these rollbacks will be happening over the course of the next year or so. Plenty of time for one to find another occupation!
‘Pete, you don’t understand,’ you may be thinking to yourself. ‘It’s tough out there!’
Oh, you mean that record low unemployment thingy going on?
We may be in an economic bubble, but in the meantime, you can use it to your advantage while you can if you’re an employee that’s on the outs at GM (or any ther company, for that matter!).
I’m tired of people thinking they’re owed anything from the government, or from these mega-corporations.
These two types of entities have one bottom line, and one bottom line only: To continue to increase both their revenue, and their influence amongst the public.
If you’re thinking of chastising GM for making a smart business decision, you’re out of your goddamn mind!
Maybe instead of pointing the finger and playing the blame game, you should ask yourself how you can avoid catastrophe if you’re on the receiving end of an unexpected pink slip in the near future.
A little tough love for those who are up in arms, but it all comes from a good place :-)
God Bless You and Your Family,