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Monthly Archives: December 2008

Pay-to-Play, UAW Style

The UAW states its members have sacrificed enough, and urges taxpayer bailout money. But they’re not telling you it’s so they can keep a special UAW golf course.

Owned and operated by the United Auto Workers union, Black Lake is a public course that provides UAW members and retirees substantial discounts from the regular greens fees.

Auto workers pay UAW dues, which subsidizes golf facilities for UAW members. When the UAW asks for more money, they’re not really telling you it’s so they can keep their golf facility open.

Taxpayer money — to fund UAW golf courses. Is this what you had in mind when bailout talk began — funding a UAW golf facility?

While other (non UAW) workers have reductions in pay, layoffs and other problems, UAW leadership wants your taxpayer money to fund their golf course.

Hat tip: Money pit: The UAW’s gold-plated golf course

UAW Sinks Auto Bailout – TARP Limited to Financial Institutions

The UAW torpedoed the auto bailout by refusing to make reasonable concessions and reduce labor costs (and having the chutzpah to ask taxpayers to subsidize their benefits). If the big three pay 40% more in labor costs than other auto companies, how will they *ever* become competitive again? They can’t.

The UAW *must* accept a package comparable with Toyota and Honda, or one of two things will happen:

  1. The big three go bankrupt – not reorganization, liquidation. Kaput. No more jobs.
  2. Taxpayers forever subsidize UAW workers with bailout 2.0, 3.0 and so on forever.

Naturally, the UAW favors option #2, but they may get #1 instead. They’re counting on President Bush to do what he said he wouldn’t do – bailout the auto companies. Where the money will come from is unknown, but it can’t be from the $700 billion TARP fund, as that fund is for financial institutions only – auto companies don’t quality for TARP funds (at least legally under the TARP law).

By refusing a congressional gift, the UAW may just disappear. At the least, they’re dooming car companies to never be competitive again as they slowly fade into oblivion.

Corker’s amendment demanded concessions from the UAW as tangible evidence that the industry was willing to make fundamental structural reforms before risking taxpayer money on loans to failing businesses. But the UAW refused to accept pay parity with non-union foreign automakers by the end of 2009. That pay scale — among the best hourly wages in America at $26-an-hour plus benefits, totaling $48-an-hour — was not good enough for the coddled union, who demanded that their current $73-an-hour contract package be paid until it expires in 2011.