Wednesday, October 12, 2005



By Elaine Meinel Supkis

You can tell if an economy is tailspinning by the size and number of corporate failures. So what is going on? Well, we watched Delphi shoot the rapids and dissappear, General Motors is trailing close behind, ratings now so low they are competing with Haiti for loans. Now Northwest Airlines, after going belly up on Sept. IIth, does what all our corporate entities are doing: assassinating the unions.

From Yahoo news;
Northwest Airlines Corp. asked a federal bankruptcy court Wednesday to reject its existing labor contracts if it can't agree to new terms with its unions. The move was expected as the company works through a Chapter 11 financial restructuring.

The nation's fourth biggest air carrier wants to cut $2.5 billion in costs, including $1.4 billion annually in labor costs.

Doug Steenland, the airline's president and chief executive officer, called the filing in U.S. Bankruptcy Court in New York a "backstop" to negotiations for consensual cuts.

The airline outlined new targets for union concessions in the filing, and said salaried and management employees would also take a second round of pay and benefit cuts soon.

Northwest mechanics, cleaners and custodians have been on strike since Aug. 20, although Northwest has kept flying without them. The last round of talks broke off on Sept. 11. Northwest filed for bankruptcy three days later.
They are all using bankruptcy laws to shield their management while savaging the unions. Note how Delphi increased pay and bonuses to its managers while savaging the union. The pain of bankruptcy used to be shared, in Victorian days, by the owners of companies as well as the staff and employees.

Now this is no longer true, bankrupcy has nearly zero impact on pay of executives, it may ruin their stock options but even that is protected since they sell this off discreetly before bad news, the real people who take a whack are the stockholders who don't know the bad news except when the MSM reports it, the management is always covered.

So one can predict that in ten years there will be no unions left in America. All unionized entities will flee into bankruptcy in order to drop wages! And what is a depression?

When wages fall and fall and excess workers grow ever greater in number and it becomes a dog eat dog world and usually, the next step is war and revolution. Usually in tandem.

Why our rich rulers want this? Greed. Simple greed. They never see what lies at the bottom of the lake, what lurks around the next corner even if they hear the wolves howling. They think, they are the Masters of the Universe.

They don't need to fear Fenir's wrath.

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