Yes...there are really frightening parallels. My wife was just saying how she doesn’t remember anything like this happening before in America.
Obama administration is abandoning demand for UAW to accept wage parity with transplants
Bluegrass Pundit ^ | March 22, 2009 | Bluegrass Pundit
Posted on Sunday, March 22, 2009 8:16:47 AM by Askwhy5times
The Obama administration is abandoning the demand for the UAW to accept wage parity with transplant auto manufacturers. According to Bloomberg.com, Steven Rattner, the Treasury’s chief auto adviser said,
GM and Chrysler must be “on a path” to bring wage rates in line with foreign automakers based in the U.S. rather than have those pay rates take effect immediately, he said.
The phrase “on a path” is so vague there is now a mile wide loophole for the UAW to jump through. The Bush Administration demanded the UAW accept a wage and benefit package at the level of the transplant auto manufacturers as part of the government bailout of GM and Chrysler. So far the UAW has only offered token concessions. According to bloomberg.com, Steven Rattner also said $22 billion more in bailout money may not be enough.
General Motors Corp. and Chrysler LLC may need “considerably” more than the $21.6 billion in aid they requested, which was based on optimistic recovery plans, said Steven Rattner, the Treasury’s chief auto adviser.
Meanwhile, GM has not concluded negotiations with bondholders and the UAW according to CEO Rick Wagoner.
Rick Wagoner, GM’s chief executive officer, said in an interview March 19 that the automaker hasn’t completed talks with the United Auto Workers and bondholders about cutting debt by $28.5 billion. The failure of those talks could drag Detroit- based GM into bankruptcy and possible liquidation, Wagoner said.
GM and Chrysler should be allowed to go into chapter 11 bankruptcy. The taxpayers have thrown enough money at what is shaping up to be a bailout of the UAW and bondholders.
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