"“Two, bring wages immediately in-line with companies like Nissan and Volkswagen."
Posted on 12/04/2008 6:17:12 PM PST by Lorianne
WASHINGTON, D.C. – U.S. Senator Bob Corker (R-TN), a member of the Senate Banking, Housing, and Urban Affairs Committee, today outlined a plan that should be adopted before any loan to the U.S. auto industry is discussed or contemplated. The hearing, the second in a series examining the industry, included testimony from UAW (United Automobile Workers union) President Ron Gettelfinger, Ford Motor Company President and CEO Alan Mulally, Chrysler Chairman and CEO Bob Nardelli, and General Motors Chairman and CEO Rick Wagoner.
“At today's hearing I suggested a number of very specific and rigorous measures that should be in place before we even discuss making a loan to any of these companies.
• “One, give existing bondholders 30 cents on the dollar to help reduce their overall debt load. • “Two, bring wages immediately in-line with companies like Nissan and Volkswagen. • “Three, GM owes $23 billion to the United Auto Worker’s VEBA (voluntary employees’ beneficiary association) account. The union must agree to take half of that payment in GM stock. • “Four, the union must agree to do away with payments to workers who are still receiving almost full compensation up to four years after their jobs have ended.
“These are the same types of conditions a bankruptcy judge might require to ensure that these companies become viable and sustainable into the future, and if they will agree to these terms then we have something to talk about. The process I have suggested would allow them to avoid the problems and stigma that accompany a formal bankruptcy, while forcing them to do the things they need to do to be successful companies.”
He said it all today. There is no point doing anything for them unless they have a business model that can make money selling cars.
Would you kindly point me to the place in Article 1, Section 8 of the US Constitution where Congress is given the power give taxpayer money to a Corporation as a loan?
Thanks.
L
Bwahahahahaha.
It's in there, near where it says that it's ok to kill babies.
"“Two, bring wages immediately in-line with companies like Nissan and Volkswagen."
It is beside the line that makes Paulson king and next to the one that says the government can take your money and pay down debt on someones mortgages. and subsidize dishonest builders and realtors. And people here were worried about obamma's redistribution.
Which one has the ethanol??
As long as the plan is the big 3 either go belly up or find real investors, I’m all for it.
Gubmint monies? Nope.
I think its one of those penumbra thingys.
Exactly. If they would have appeared today and announced that the unions were taking pay and benefit cuts to equal the pay and benefits Toyota provides it American workers, and announced that the were cutting the Pontiac line and the Saturn line and closing 5,000 dealerships, they would have walked out of the hearing with a loan.
These people are nuts, our senators that is. Nowhere in any of the “plans” is there a plan to make profits. I listened to their gibberish point-counterpoint in the Senate today on the radio during a long drive and was amazed at the level of spin and speculation going on. It amazes me that none of these three have a business plan where they can say “Our earnings projections are for $X on Dec. 31, 2010 and here is exactly how we will return your taxpayer investment.” They don’t have a clue and the senators don’t either. Instead we get nonsense like Corker’s idiotic proposal.
He must have read the same Constitution that Sen Goober Alexander and Rep Zack Wamp did. Wamp sent out e-mails today warning about the automotive bailout and how the DEMs didn't keep their word. I wrote back explaining why I did not vote for him nor Alexander in this years election. I excerpted part of my response to Congressman Wamp.
We expected better than a yes vote from you. When the likes of Barney Frank sets the agenda for a majority of the GOP including our president It's a sad day in the United States. I expected better judgment from both the GOP and you.
There's no point in doing anything for them period. If they had a business model that could make money selling cars, investors would voluntarily put up their own money.
Sorry I wrote that wrong, I caught that after I posted. You are absolutely right, maybe then they could borrow some money from a traditional bank that already has government money.
This fellow comes to Chrysler from Home Depot (must be real recent). He got fired there because he was running them into the ground. Got a really golden parachute though.
I'm amazed that anyone would hire Nardelli after the fiasco at Home Depot. His continued career is evidence that the people running our corporations have no idea what they are doing or have not the integrity to put profits and good business sense ahead of taking care of each other at everyone else's expense. If we must bail out the automakers (a policy that I oppose), another requirement should be that departing executives receive no golden parachutes.
Bill
The situation was laid out on Brit Hume’s show tonight-(unfortunately Dr. Krauthmaer was not on the panel)-it was either Fred Barnes or Morton Kondracke who referred to Corker’s 3 “benchmarks”.
I loved hearing it described as such, because the libs insisted on benchmarks for\in Iraq. It’s only fitting that the Big 3 and UAW should also be judged on their success\failure in reaching “benchmarks”.
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