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UAW Senate Showdown

I had hoped some common sense may get a place at the table in the auto bailout discussions. Senator Bob Corker (R-TN) has offered a straightforward, no nonsense compromise compromise to the bill sent from the House.

Key points:

1) Reduce unsecured debt by 2/3 (does not include pensions and employee benefit obligations)

2) Reduce compensation, including wages and benefits, to the average per person per hour of Nissan, Toyota, and Honda

3) Ensure parity of work rules with those of Nissan, Toyota, and Honda

4) At least 1/2 of payments to VEBA account must be in the form of stock, not cash

5) Suspends continued payments to UAW Jobs Bank recipients

Unfortunately, Republicans may not sway reluctant Democrats that are beholden to their UAW financial benefactors.

Points Two and Five above are certain to be addressed in any bankruptcy filing. In fact, they will be the linchpin of any bankruptcy plan.

The UAW knows that. And they know the consequences if this matter is sent to Federal Bankruptcy Court.

HughS


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Comments (11)

I highly doubt any common s... (Below threshold)
Dave W:

I highly doubt any common sense will prevail in any of this. The republicans will be shouting some common sense things from the bleachers, while the real players in the game, the dems, ignore it all. Once it blows up in their faces, they'll go back to their usual blaming of the republicans or the free-market, or something other than themselves.

We have to find a way to break this idiotic cycle.

Well, unemployment is only ... (Below threshold)
jmc:

Well, unemployment is only at a 25 year high.
Why stop there? Thanks to republican leadership another 3 million people will be getting unemployment benefits. So our tax dollars will be used anyway (for the benefits) a symbol of our industrial might dies, and retirees get to start an exciting second career as wal-mart greeters.

And of course this will severly hurt the economy just as the economy was hurt when Lehman brothers collapsed.

Four million americans are unemployed we can get to Seven by the end of the month!! whoohoo!

JMCYou just proved... (Below threshold)

JMC

You just proved Dave W right; in less than an hour too!

1) Democrats have control of the senate and congress.

2) You went from 3m to 4m unemployed in just 3 sentences, typical democrat math...

3) 93.3% of the American work force is still employed.

4) There is nothing wrong with being a Wal Mart greeter. IT IS A JOB. RIGHT???? Are service jobs so unappealing to you because it isn't a job *YOU* would do? Beneath you maybe?

There are tons of service/retail jobs open, begging for workers. A slice of humble pie is what is on order for a lot of the spoiled, too good to do menial labor crowd out there.

Melissa,1. Obviously... (Below threshold)
Elrod:

Melissa,
1. Obviously, Democrats do not have control of the Senate since they mustered 52 votes to pass the auto bailout and that wasn't enough. Under GOP rules you need 60 to pass anything.
2. 3 million + 1 million = 4 million
3. Quoting the percentage of employed is like saying that 9/11 didn't matter because while 2982 people died, nearly 300 million Americans didn't. Idiot logic.
4. Being a Wal-Mart greeter is fine, as long as it's not a major step down from prior employment. It's called underemployment.

Sorry to burst some bubbles... (Below threshold)

Sorry to burst some bubbles, but bankruptcy is the only way the big 3 can survive for more than a year. Maybe even 6 months.

Do it now while reorganization is an option instead of later when liquidation is required.

The bailout only delays the inevitable and costs tons more money.

Boy, the UAW showed us. NO ... (Below threshold)
bobdog:

Boy, the UAW showed us. NO MORE CONCESSIONS!

I wonder if UAW management has ever heard of a "Pyrrhic victory"?

Kinda brings a tear to my eye, standing up to mean old management and all...talk about guarding a corpse...

Sorry to burst som... (Below threshold)
Sorry to burst some bubbles, but bankruptcy is the only way the big 3 can survive for more than a year. Maybe even 6 months.

That is just plain wrong. Few people will want to buy something that costs a few months salary from a company that is in bankruptcy.

I wonder if UAW management has ever heard of a "Pyrrhic victory"?

I could ask the same thing of the Senate Republicans. As Dan Riehl notes: [sorry can't seem to link to his site]

So what happens if a GM fails and declares bankruptcy before January?

Congratulations GOP! You are now known as the only reason the American auto industry went down the tubes and the highly newsworthy blood of every disappearing auto sector job around the country will be on your hands.

Did people stop flying when... (Below threshold)
GianiD:

Did people stop flying when airlines went into bankruptcy?

BK IS THE BEST option to save the big 3, but, libs only are worrying about saving the UAW.

There's a difference.

Melissa, I mo... (Below threshold)
jmc:

Melissa,

I most certainly did not prove Dave W.'s post. in fact everyhting I said was a direct refutation of his post.

1) Republicans have had the presidency for the last 8 years.

2) You have had congress for 6 of the last 8 years.

3) EVERYHTING, the democrats have tried to do has been blocked because they have a one vote majority which is nowhere near enough to stop a filibuster. Therefore most everyhting the democrats have tried (like say an auto bailout) has been stopped. So when it goes under and unplyment doubles, that is your fault!

Responsibility for this is with Republicans. By letting this happen you are basically letting unemployment, already at a 25 year high, double. that is gross negligence.

Also you don't think this will cause massive ripple effects? What happens when retirees start losing their homes because wal-mart (if they can get the damn job. apprently that is pretty hard these days according to a few news reports I have read) anyway, if they get the wal-mart job you think they will be able to pay their mortgages? wal-mart pays pretty much on the shitty end.

I know people who won't most definelty won't pay their mortgaes if they lose their pensions. and 60 years old, with 30 years auto-work expericne they aren't qualified for much else.

Also shops in the area... out of business...auto parts plants... out of business... ore banks when the defaults increase in trouble. Guess what is in business your tax dollars in unemployment, welfare (when the unemployment runs out) Not that it will be enough to save the devastating effects on all of us republicans are causing.

Once again Republicans have proven their incompetence, You would rather union bust and eliminate american cometition So japanese manufactors get an edge in the south, than help our economy.

That is why you have had your asses handed to you the last two election cycles. My only hope is that you don't fuck the whole world up before you get booted out of office. 2009 can't get here fast enough for me.

The proof is in the pudding... (Below threshold)
Van:

The proof is in the pudding that has now surfaced. Republicans are mad that they got blown away in the last election and the letter stating the GM/UAW loan hold-out was there last chance for a "pay-back". I now have no respect for the Republican Party which I voted for because they put politics over the country which is now at risk of a depression.

www.BoycottAlabamanow.com ... (Below threshold)
Van:

www.BoycottAlabamanow.com




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