The U.S. Senate shot down the United Autoworkers bailout that is disguised as a bailout of the big three U.S. automakers, GM, Ford and Chrysler.
According to FoxNews.com:
GOP objections stalled the measure in the Senate Thursday night. Republicans put pressure on the powerful autoworkers union as they tried to squeeze out concessions in exchange for their support.
"This was just simply subterfuge on the part of the minority in the Republican Party who wanted to tear down any agreement that we came up with," UAW President Ron Gettelfinger said at a press conference, declaring "the auto industry around the world is in peril."
Intense negotiations broke down over the union's refusal to meet GOP demands for wage cuts. Corker, the architect of the Republican counterproposal to the House-approved bill, told FOX News that negotiators were "just three words away from a deal."
Corker rejected the accusations, telling FOX News the union simply refused to offer a date by which they could be competitive with foreign automakers who have plants in the United States.
"I was stunned that they would walk away from a deal to put these companies on an incredible footing, a healthy footing for their employees for years to come," Corker said.
The senator complained that the UAW pay scale is "far higher" than at other plants in the United States, particularly those of foreign automakers.
In terms of hourly wages, the pay scales are similar. For instance, General Motors says the average UAW laborer makes $29.78, while Toyota says it pays about $30 per hour.
The difference is in the benefits, however. GM's hourly labor costs (including pensions and health care) total $69 for active workers. Toyota's total about $48 per hour at older U.S. plants.
This does not even mention the benefits that thousands of retired autoworkers are receiving. The UAW is unwilling to make any cuts until 2011. Sorry, but if this really were a crisis, then they should be willing to make cuts now.
Hugh Hewitt wrote in today's Townhall.com blog:
Now Senator Reid has announced he's giving up and going home --one of those moves that makes me wonder about the whole premise of the exercise. If a real crisis is at hand, does the Congress go home for a month?
Since no input by the GOP was allowed by the Democrat majority, so small wonder the Republicans in the Senate voted against this bailout of the UAW.
It is about time the GOP showed some backbone. If the Democrats continue to refuse to negotiate for terms favored by the Republicans, then this bailout is good as dead.
2 comments:
that $69 an hour average does factor in all the retirees and spouses. one of the reasons the foreign automakers don't have as many costs is they don't have as many retirees.
http://www.uaw.org/auto/11_25_08auto2.cfm
(i know, it's from the UAW, but at least it's the other side of the story)
http://mediamatters.org/columns/200811250012
it's amazing the TIMES is the one that started all this $70 an hour nonsense. when Dick Cheney of all people warns the GOP lawmakers about being the party of Hoover, it's a sad thing.
and if companies and corporations would treat their employees they way they should, there never would have been a need for unions in the first place.
David
Maybe in "ancient times" the need for labor unions were necessary, but given the laws and regulations we have today, it is questionable whether they're needed.
Cheney forgets that FDR didn't end the Great Depression, World War II did.
I was not happy about Bush's comment about "dumping free market principles" in order to save the free market.
The "Big Three" should file Chapter 11 bankruptsy instead of holding their hats out for our tax money. That's the purpose of bankruptsy laws.
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