The Joys of Intransigence
The UAW and its allied senators would rather see the automakers’ $15 billion loan disappear than agree to bring wages in line with foreign competitors in 2009.
A reader writes in:
My company enters into agreements with medical providers. In return for a 5-10 percent reduction in fees we will attempt to direct as many patients to them as we legally can. One provider has steadfastly refused to accept even a 2 percent reduction. As a result our policy holders are now directing more and more people to alternative providers and this doctor’s business is really being affected. I don’t know the exact impact but this is a guy who is willing to lose 85 percent or more of his total business over 2 percent reduction.
Sounds like this doctor and the UAW are kindred spirits.
I wonder if he’s in real estate. When I was in the market almost two years ago, one guy in the area was trying to sell his condo for $100K above what any comparable property had sold for in the past six months. Despite numerous signs of a housing bubble popping, he made clear was not interested in any bid below the asking price.
Penny wise, pound foolish.