Why should the workforce get screwed over for management's incompetence (and squirreling away of large amounts of cash from the company, from some reports)? And if Rover cars really can't be sold, turn the production lines over to something useful, like public transport.
[Irouleguy] Exploring the possibilities of keeping the business going is precisely the administrators' job. But in the end, if they can't find anyone who wants to run it and has a credible business plan, it goes under. That is unfortunate for the former employees, but losing out when the people you work for fail is one of the risks of any sort of employment.
I have never understood the fetish about manufacturing. I mean, Rover makes a car in the midlands. Fine. But if you want to buy the car in Glasgow, say, then you need someone to transport it, which means a services sector. And then you want to buy it, and you probably don't have several thousands pounds in cash on you, so you need a bank, which again means a services sector.
The point is that the product that interests you is not a car sitting on a lot hundreds of miles from you that can only be purchased for cash on the nail. It is a car available for delivery in Glasgow in exchange for a bank draft. And that requires services every bit as much as it needs manufacturing.
Raak] Unless the government steps in and does something, like nationalise it. Governments used to do that here, and they still do on the continent and elsewhere. When exactly did it get written that the market has the absolute power to screw us all over?
[Irouleguy] I.e. subsidise it with other people's money. When exactly did it get written that every incompetently run business has the absolute power to put a trowel into my pocket?
(Raak) When the railways were privatised, amongst other instances. The Government subsidy to Train Operators and Rolling Stock Leasing companies is huge, and vastly more than was available to BR. Large amounts of public money disappear into private profit. So the true answer to your question is; "when the current political dogma has to be satisfied". There's a lot of it about, worldwide, and always has been.
Littlewoods is shedding 3000 jobs and closing most of its 'Index' stores. Will there be a march on parliament and hundreds of millions of pounds in government aid?
Raak] What Rosie said, plus the Common Agricultural Policy (which puts your money and mine into the pockets of the royal family!), the Export Credit Guarantee Department (which ensured that when arms manufacturers flogged stuff to Saddam Hussain and he didn't pay up that you and I paid for it), the 'guarantees' given to PFI contractors....
(Irouléguy) I was going to mention all that, so I'm glad you did. Also, many countries practise protectionism. A typical example (the legally-enforceable Buy American policy of many US institutions) cost me my job in 1998.
Also it doesn't help that the average CEO's salary has risen to a truely incomprehensible sum. Oh, your company is out of money? Mayhaps it's because you were paying yourself thirty million dollars a year for a job consisting largely of assigning yourself more stock options. Fortunately you'll never feel the sting of unemployment because you write yourself off as a personal corporation for tax purposes and you don't need one of those silly retirement accounts because you have more money than King Solomon. Sadly four thousand people have lost their honest, hard-working jobs, but if they're that honest and hard-working I'm sure they'll land on their feet.
... On a separate note, I want to see someone jump twenty motorcycles with a full size bus.