04 February 2009

Congress Betrays Unions

AP reports:

Wells Fargo & Co. is canceling a pricey Las Vegas casino junket for employees after a torrent of criticism that it was misusing $25 billion in taxpayer bailout money.

The company initially defended the trip after The Associated Press reported it had booked 12 nights at two of the city's most expensive hotels. But within hours, investigators and lawmakers on Capitol Hill had scorned the bank, and the company canceled.

The Culinary Union Local 226 lists the Winn Hotel as one that employs Union workers.
The Encore is not listed seperately, but the AP reports that it is a "sister hotel" to the Winn.

Also on the chopping block is a Feb 25th meeting of Wells Fargo's insurance division at the Mandalay Bay, another Union hotel.

So, Union workers: as you are getting laid off, remember that your clients are cancelling their business trips because the Democratic-controlled Congress is telling them not to patronize you anymore.

Do you feel you got your money's worth for your $200 million?

Now interestingly, the AP only quotes one congresswoman by name, and she is a Republican from West Virginia. I will keep my eyes peeled to see who else made waves ...


Exodio said...


So, you're saying that fancy trips to Vegas is how the bail out money should be spent?

Tony said...

I am saying that

1. The members of Congress have shown no ability to run government efficiently; I do not think that they are the people I want telling businesses how to run their companies.

2. The economy is so complex that stupid stunts like this have consequences that I am willing to bet were not thought through by the bright lights of capital hill.

3. I do not think there should have been a bailout in the first place. Certainly not one like what happened.

4. Meetings are important in business, and still need to be held.

And 5. Yes, I guess I have no problem with Wells Fargo - which only needed the bailout money for its banking operation because they were pressured to take over Wachovia by the Feds - sending its people on trips like this.

Exodio said...

1. Agreed

2. Not just stupid stunts, but also practical matters - I wonder what the economic impact is going to be on that 50 million dollar airline that was supposed to be delivered this year? I can't remember off the top of my head which company it was, that was told they can't buy it now. What happens to the company that manufactured it in good faith?

3. Absolutely agreed, as I think you are probably aware :D

4. Agreed. I am in the trade show business. It isn't just the union workers at the hotels. It is the company that set up the show (companies holding conferences don't do the groundwork at the show site, they hire another company to do it). And the freight companies that get the show supplies to the hotel. And the caterers that were going to provide food. And the street vendors that hit up the attendees. Etc.

5. Welcome to the USSA. Where any bank can be forced to do anything with its money that the government tells it to.