On the surface, it should be good news when a company is doing well enough that it can pay out almost $190 million dollars in bonuses to its rank and file salaried employees. If the directors are good with it, the creditors are in good shape, and the company is doing well, employees ought to sometimes get a piece of the profit action. That’s good business.
It’s not good business, however, when the company is celebrating one good patch among years of ruination and the money they’re “sharing” with their employees is money they scammed from us.
DETROIT | General Motors Co. will pay more than $189 million in profit-sharing to 48,000 U.S. hourly workers and millions more in performance bonuses to salaried employees, according to company documents obtained by the Associated Press.
GM will pay most hourly workers more than $4,000 each as compensation for its strong financial performance last year, said a person briefed on the bonuses. The payments come less than two years after the automaker emerged from bankruptcy protection with the help of a huge government bailout. They’re more than double the previous record payment of $1,775 in 1999, at the height of the boom in sales of sport utility vehicles and pickup trucks.
GM made $4.2 billion in the first nine months of 2010 and is expected to soon announce a fourth-quarter profit. The company needed a $49.5 billion government bailout to survive a mid-2009 bankruptcy filing, and the government still owns 25 percent of GM‘s stock. Chrysler, which needed a $12.5 billion bailout, plans to pay bonuses as well. The government owns about 9 percent of Chrysler stock.
This is not GM’s money to give out. It belongs to us. We did not approve the loan or the stock purchase — Democrats passed the whole bailout scheme to benefit their union cronies over our objections. Before General Motors gives out a single dime in frivolous bonuses, it needs to sell off all the stock owned by the government to private investors and pay off all its government loans, with interest. Until then, it has simply stolen our money and we should treat the company as the den of thieves it is.