Tuesday, June 5, 2012

In Wisconsin

Last March, I wrote a post disparaging of the Wisconsin legislature. Today, the Wisconsin voters get to decide if their governor stays in office or not. I didn't think the move that Walker made was a good one, even if all the Republicans agreed with him. Here's how I thought of it, over a year ago:

Suppose you're a supplier to a conglomerate, with a contract for product or services. In many contracts, there's a clause regarding termination for cause. The cause is usually a failure to perform. You negotiated your contract with the ABC subsidiary in good faith. You may have given up some pricing or payment terms in lieu of a multi-year agreement. A new CEO is appointed in the conglomerate. He voids all supplier contracts because the conglomerate is losing money. He's decided that his corporation will no longer enter into any long-term agreements. Everything will be on PO-by-PO, or spot buy, basis. He has just voided any pricing, or protections you have that would allow you to sue/arbitrate for payments. Wouldn't you take action, at least to voice your concerns?
I would at least suggest that the current contract is in force until it expires and then it can be renegotiated.
Now all politicians do some boneheaded moves, say some silly things, but they hardly ever go crazy en masse. Apparently not true in Wisconsin. Many people agree with Walker. Many disagree. After today, we'll know if there's a majority.

However, when a politician creates a policy that borders on unethical, then it should come up to a vote by the populace. Hopefully, an informed populace. I'm sure there's been enough ranting and raving throughout Wisconsin. Hopefully, there's been some thoughtful debate too.

No comments:

Post a Comment