bailout package
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UAW shoots self in foot and skewers "Detroit Three" bailout package!
By bayernfan
@bayernfan (1430)
Canada
December 11, 2008 11:54pm CST
The U.S. senate failed to pass the $14 billion bailout package for the "Detroit Three" automakers because the UAW refused to compromise. The Democratic Majority House Leader, Harry Reid, said that this failure to pass the bailout effectively kills any attempt by congress to help the U.S. automakers this year:
http://www.reuters.com/article/topNews/idUSTRE4B50CL20081212?pageNumber=1&virtualBrandChannel=10276
I guess the unions would rather put their fate in the hands of Hank Paulson. I wonder if they know something that the rest of us don't?
[b][i]The late night development followed intense discussions on a possible compromise that participants said fell apart over proposed wage concessions by the powerful United Auto Workers.
"We were three words away from a deal," said Sen. Bob Corker, a Tennessee Republican who proposed the alternative and led the talks.
Sen. Christopher Dodd, a Connecticut Democrat, said the main issue of disagreement was the date to require the Detroit autoworkers' pay parity with foreign auto manufacturers.[/i][/b]
I guess that the wages made by Toyota, Honda and Volkswagen workers isn't good enough for UAW workers. This whole soap opera hasn't been about saving the American manufacturing industry or the American economy at all for the UAW. How likely is it now that future hard earned American taxpayer dollars won't be eventually wasted on these dinosaurs? Will the "Detroit Three" be able to hang on until Obama is in the White House?
1 person likes this
3 responses
@spalladino (17891)
• United States
12 Dec 08
From what I read the wages earned by Toyota employees are similar to the UAW workers but the benefits and pension expenses create a noticable difference in the per employee costs between the two. While it's true that Toyota has a smaller pension program to fund, I do believe that the UAW should have been willing to make whatever concessions were necessary if they truly wanted to keep their members working. I also read that it'll be a matter of weeks before the automakers run out of money.
@bayernfan (1430)
• Canada
12 Dec 08
I don't really want to get into an argument over semantics. The term wage concessions was taken directly from the article that I posted and that exact term was used by the senators interviewed. I think that we are in agreement on what the UAW should have been willing to do. However, I think that the bailout collapse is the best thing for the American taxpayer. We'll have to wait and see whether it is a permanent situation or whether Hank Paulson or Barack Obama have anything to say about it.
I hope that both Canada's Federal Government and the Ontario Provincial Government aren't stupid enough to waste any more money on these dinosaurs.
Rick Wagoner, the CEO of GM, has said that General Motors has only enough money to last until the end of this month. Robert Nardelli, the CEO of Chrysler, has said that Chrysler will run out of cash in January.
I hope that both Canada's Federal Government and the Ontario Provincial Government aren't stupid enough to waste any more money on these dinosaurs.
Rick Wagoner, the CEO of GM, has said that General Motors has only enough money to last until the end of this month. Robert Nardelli, the CEO of Chrysler, has said that Chrysler will run out of cash in January.1 person likes this
@anniepa (27955)
• United States
12 Dec 08
I'm going to take what may be a rather unpopular view here and actually defend the union workers, especially when compared to the Wall Street bankers. The Senate Republicans who led the charge against the deal, including Senator Corker from Tennessee, happen to all live in southern states where there are several foreign car manufacturing plants such as Toyota, Honda, and Hyundai. These states all fought hards to get these plants to locate in their states, understandably so, and it would certainly be an advantage to these states if their competitors, mostly made up north in union shops, were to go under. Also, since the south is known for being anti-union it would certainly work to their advantage if there were no danger of the UAW trying to organize in their plants. The truth is the wages paid at these foreign auto plants are right in line with those paid by the Big 3. It could be argued that these workers are actually better paid if you compare the cost of living in Kentucky, Tennessee or South Carolina with that in Detroit Michigan. The biggest difference is in benefits, especially pensions and health care for retirees. The UAW has already made concessions in these areas for newer workers and were willing to compromise further from what I understand. I can't disagree with the UAW official who said today that there was no request for details of how the money would be used when it applied to the banking industry but in this deal the GOP offered the auto companies they wanted to micromanage the blue collar workers while not putting any pressure on management or comparing other aspects of the foreign and domestic/non-union and union plants' finances.
I'm sorry, while I've always said there are some unions, including the UAW, who demand too much and should be more willing to make concessions and to compromise, in this particular case I see a real attempt at union busting with no real concern for the economy of the country in general.
Annie
@ParaTed2k (22940)
• Sheboygan, Wisconsin
12 Dec 08
In other words, the Senators represented their states well. Something that too many Senators forget to do in the wheeling and dealing in Washington.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
13 Dec 08
"wage concessions"... what a joke! If the Jobs Bank is part of what they call "wages" then they don't know what the word means. Theft is a better word for it.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
12 Dec 08
Awesome! So let the Big 3 go to Chapter 11 where all contracts are subject to review... including labor contracts.
Finally, we have a reason to thank the thugs who run the UAW!
@bayernfan (1430)
• Canada
12 Dec 08
That is absolutely the case...provided the "Detroit Three" actually make it to Chapter 11. Don't count out Henry Paulson and Barack Obama just yet. Hank has already spent the fortune of several generations' and Barack has already promised to continue the trend. What's another $14 Billion, right? $14 Billion for now, anyway...
@ParaTed2k (22940)
• Sheboygan, Wisconsin
12 Dec 08
I wonder if Congress realizes that Paulson has no authority to allocate revenue at all?




