Home » Congress » UAW Sinks Auto Bailout – TARP Limited to Financial Institutions

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.

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2 Comments

  1. Ever wonder what a UAW contract looks like? It is over 2200 pages and weighs 22 pounds. It no wonder the big three can not compete in the global market. Honda and Toyota don’t have to deal with that kind of crap. It would take a team of lawyers just to understand this document. 2215 pages of inefficiency brought to you by the UAW

  2. Forget “conservatism,” please. It has been Godless and thus irrelevant. As Stonewall Jackson’s Chief of Staff R.L. Dabney said of such a humanistic belief more than 100 years ago:

    “[Secular conservatism] is a party which never conserves anything. Its history has been that it demurs to each aggression of the progressive party, and aims to save its credit by a respectable amount of growling, but always acquiesces at last in the innovation. What was the resisted novelty of yesterday is today .one of the accepted principles of conservatism; it is now conservative only in affecting to resist the next innovation, which will tomorrow be forced upon its timidity and will be succeeded by some third revolution; to be denounced and then adopted in its turn. American conservatism is merely the shadow that follows Radicalism as it moves forward towards perdition. It remains behind it, but never retards it, and always advances near its leader. This pretended salt bath utterly lost its savor: wherewith shall it be salted? Its impotency is not hard, indeed, to explain. It .is worthless because it is the conservatism of expediency only, and not of sturdy principle. It intends to risk nothing serious for the sake of the truth.”

    Our country is collapsing because we have turned our back on God (Psalm 9:17) and refused to kiss His Son (Psalm 2).

    John Lofton, Editor, TheAmericanView.com
    Recovering Republican
    JLof@aol.com

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