Posted on 11/30/2008 11:28:00 AM PST by reaganaut1
WASHINGTON -- The head of the United Auto Workers made a public plea Sunday for government help for U.S. carmakers as the Big Three put the final touches on stabilization plans to submit to Congress.
"We cannot afford to see these companies fail," said Ron Gettelfinger, the UAW chief, calling on Congress to approve the aid during a special session the week of Dec. 8.
Gettelfinger said a $25 billion rescue plan for the carmakers is "not a bailout, this is a loan _ a bridge loan _ that will get us through until we can take a longer-term look at exactly what needs to be done in the industry."
Democratic leaders are demanding blueprints from Chrysler LLC, Ford Motor Co. and General Motors Corp. before they will schedule votes on any new federal aid. The plans, due Tuesday, are to be scrutinized at a Senate hearing Wednesday and a House hearing on Friday.
If lawmakers like what they see, Congress may reconvene the following week to consider the auto bailout.
Members of Congress remain deeply divided on the aid, with many in both parties wary of supporting another costly government rescue on the heels of the $700 billion Wall Street bailout.
Sen. Lindsey O. Graham, R-S.C., said he would not back the help for the U.S. auto industry.
...
In return for new federal loans, leading Democrats want the Big Three to agree to eliminate lavish executive pay packages and dividends; reimburse taxpayers; share future profits with the government; and show how they will meet fuel-efficiency standards and cover their health care and pension obligations to workers.
(Excerpt) Read more at washingtonpost.com ...
If the automakers recovery plan does nothing to deal with the real problems, I hope the Republicans have the guts to oppose it.
Let the Obamessiah take the money out of his own bank account to PAY OFF the union thugs for their support.
I’ve always wondered why the UAW doesn’t realize that they are killing the goose that lays the golden eggs. Sure, I know they’ve enjoyed the high pay and benefits, but don’t they realize that unless they stop the Big Squeeze there will be no company left? 50% less of something is better than 100% of nothing.
“”We need to behave like a bank,” McCaskill said. “And we need to make sure that we get all of those internal financials and that we feel comfortable that this is a good investment for the American taxpayer.””
Sure. And tell us, what did the banks do with that $350billion they just got?
~chirp.....crickets....wind.....chirp...
The money allocated for the autos will be a loan, not a gift.
I’m very impressed that the union has volunteered to sacrifice some of their pay and benefits to help keep the companies afloat.
As if.
How are they going to pay it back when they are broke and losing billions every month?
Which only treats the symptoms and not the disease. This is one of the reasons I opposed the original bailout in the first place; while I do understand there is greed in the free market, why should someone who has exceeded goals and expectations not be justly rewarded?
If the Big Three want to remain solvent, the UAW will have to be reigned in or eliminated, which probably won't happen as long as the Democrats are in their back pocket.
The same Congress that has failed to solve social security, medicare, immigration, and that caused the economic meltdown by forcing lending institutions to grant loans to people that they knew couldn’t pay the notes is now going to pass judgment on how to save the Big Three. Does anyone but Obama supporters believe that this is remotely possible.
The Democrats have a vested interest in protecting the UAW, and if the plan fails, the Congress will say that they only approved what the Big Three presented so therefore it must be the fault of the Big Three.
When confronted with the facts about the peril to the economy that the Fannie Mae/Freddie Mac debacle represented, the Democrats in Congress failed to admit that the emperor had no clothes on. They will do the same with the domestic auto industry at the taxpayers expense. After all the Congress is the best at failing to solve problems while spending tons of other peoples money in the process.
But rest assured that “change that you can believe in is on the way.”
Good point. This is like handing $100 to a known crack addict and the crack addict claims it will be used for “educational purposes”.
The banks cried and wailed about their losses, and then, after they got handouts from the Federales, they turned around and slammed their best customers with credit card rate increases to "make up for their losses."
let them go chapter 11 then reorganize their business....along with getting rid of the unions.
Paying the money back is NOT in these discussions. They want to build new cars that people are NOT going to buy with the bailout money.
"YES, WE CAN!"
Maybe one of them, anyways.
1 The U.S. House of Representatives passes a “bill”
2 The U.S. Senate passes that “bill” (usually Porked)
3 The REAL President signs / vetos said “bill”
Seems that since the wonder bailout that worked so well (/Sarc)
the senate has taken control and drops the bucket to the house of Representatives.
Nazi,Harry,Barney,Crissie and coming soon... “Tarzan and the Retreads”. A Smorgasbord of .... ( Fill in the Blank)
Spending the U.S. into the Twilight Zone..
How does a Monopoly of Labour Have a say over anything?
Short answer:
HELL NO!
The UAW has to go - most of management, too. And, Michigan has to understand that the horrific business climate has to change before anyone in his or her right mind would locate a business there.
Chapter 11 for the Big 3! It only takes three creditors of each company to whom the company owes past due obligations to put them into an involuntary bankruptcy proceeding, which would trigger all of the default clauses in their debt instruments, etc., basically giving them 30-90 days to clean it all up -- which would probably be impossible.
If the Big 3 don't like the prospect of a Chapter 11 reorganization, we can always put them into a Chapter 7 liquidation!
How about starting by cutting the labor contract about in half, then let the union members buy their own eye glasses and dental and pay some of their own health care costs. Get rid of that damned "jobs bank." Then we'll talk.
Yeah, Gettelfinger is pleading alright.
Because he knows if the Big 3 file for bankruptcy, his completely over the top union contracts, for all intents and purposes, become null and void. Or at least subject to serious, downward renegotiations.
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