SEARCH
Tell Congress to Pass a Bridge Loan for Automakers |
|
 |
|
Congress passed a big bailout for Wall Street financial giants last month—so why are some lawmakers on Capitol Hill willing to let the auto industry twist in the wind? Firedoglake’s Jane Hamsher says it just might have something to do with the fact that the auto industry is unionized—and some ideologically driven lawmakers would like to see a big unionized industry fail.
But withholding aid from automakers could literally eliminate millions of good U.S. jobs: The Big Three companies employ some 240,000 workers, and their suppliers an additional 2.3 million, amounting to nearly 2 percent of the nation’s workforce, as Louis Uchitelle points out today.
Now’s the time to tell Congress the nation’s auto industry and the jobs, pensions and health care of millions of workers and retirees are threatened unless lawmakers approve an emergency bridge loan to keep the nation’s Big Three automakers working in the midst of the nation’s worst economic crisis since the Depression.
The Senate begins debate today on a $25 billion emergency bridge loan, and you can click here to send a message to your senators and representatives urging them to approve the package.
The nation’s economic and credit crisis have dropped car sales to record low-levels and the huge decline in revenues is forcing the Big Three to burn through their cash reserves. News reports say GM could run of money and be forced to shutdown by the end of the year.
As we reported Friday, UAW President Ron Gettelfinger in an op-ed column in the Washington Post warns the auto industry
cannot succeed in today’s unstable economic environment without immediate help from the federal government. And the costs of failure are unacceptable.
Tomorrow, Gettelfinger will make the first of two appearances this week before congressional committees to lay out the devastating consequences for our nation if GM, Ford or Chrysler go under. Industry executives, economists and business group representatives also will be on Capitol Hill to outline the need for action.
The legislation is expected to be introduced this afternoon and according to news reports, will use $25 billion of the $750 billion of the Wall Street bailout to help automakers weather the current credit and economic. We will keep you updated on the debate and Gettelfinger’s testimony.
The auto industry emergency loan likely will be attached to the extension of unemployment insurance (UI) benefits for the long-term jobless that passed the House in October. That bill provides seven weeks of benefits to all workers who exhaust their, plus an additional six weeks for workers in high unemployment states.
9 Comments
Sorry, the comment form is closed at this time.
If the potential loss of one-fifth of the nation’s manufacturing jobs doesn’t scare our lawmakers in Washington and our state capitols, what does? This is a no-brainer-we need this money to keep our national economy afloat. That said, the ___________(insert your favorite non-sequitor here) in the leadership positions of the big 3 all must be fired!
It’s past time to stop rewarding mediocrity with golden parachutes for failed leadership. Can all senior management in Detroit and replace them with non-automotive junior executives of successful companies. Keep the union contracts in place-we have given enough already! It is time for those earning twenty to thirty times their shop floor worker’s average salaries to take a pay cut.
Why are the only two options being discussed a bailout or bankruptcy? There is a third option. NATIONALIZE THEM, at least partially. Buy stock and then direct a portion of their production capacity to things that we need in this country, like buses, transit trains, wind turbines, etc. We simply make too many vehicles and we have for years. Cheap credit was used to push more and more new vehicles on people that didn’t need them.
This strategy worked successfully during WWII and finally brought us out of the depression. If global warming and the worldwide economic meltdown don’t constitute an emergency on the scale of WWII, then what would?
At least they are now calling it a bridge loan instead of a bailout, that makes more sense. I would like to see a comparison of the ratio between CEO pay and workers pay between the union and non-union automakers. That would add some more perspective to the discussion. I have already seen the comparison of union and non-union workers wages. Let’s not forget the difference in benefit packages in the equation. Then maybe it would show the advantage to having a union job.
Bottom line is still the same though, if you don’t offer a product the public wants you will not be very successful. That is capitalism and the free market.
No lets not pass a bridge loan,i think the best thing is for bankrupcy,than come out as a new company that will make just as good a car as forign car companys do with better gas milage..We need to get of oil,i remember the big 3 saying theres no money in making small fuel cars,and even starting up new lines in england rather than here…Remember its all about greed by the management,so by going bankrupt this will fix the situation ,hey who knows maybe toyota or honda will buy them up….
Bankruptcy is NOT the answer! Think of all the jobs lost, not just at the Big 3, but throughout the automotive industry, the mom & pop stores where these folks shop. It’s ok to put stipulations on CEO pay and to insist they retool to build more fuel efficient cars, but don’t make the workers, the backbone of America, bear the cost of this crisis. We’re always the ones that get screwed in the end by these things.
This bailout/loan is too little too late. The automakers and the UAW are about 20 years behind in developing fuel efficient or electric cars; in fact they conspired to kill the electric car. Why should they be allowed to produce more gas guzzlers for the markets in China and the developing world when we already have a polluted overheated planet? Retool the industry, retrain the workers, reorganize the economy and let the CEOs and those who made concessions to the CEOs reap what they sowed.
In March of 1944, UAW President Walter Reuther made a speech in New York. He called on the automakers to make use of lighter metals and diesel engines for higher fuel efficiency. He said the cars being made were “dead weight”. As usual, the industry didn’t listen. The UAW, of which I’m a proud member, was not 20 years behind as you claim. We were 60 years ahead. We build what management tells us to build, so don’t blame us for managerial failure.
I’m bottom-up kinda guy. On the current financial situation and bailout initiatives, I’m for the Fed working with people facing foreclosure to be able to refi their loans on one home declared as a family residence. I’m for making loans and grants available to AIG, banks and auto companies on a matching basis; we’ll advance $1 dollar for every private $1 dollar invested. That banks be required to open-up credit to customers and that money
not be used for executive pay, stock-holder dividends and to finance mergers. In cases where taxpayers are granting capital, tax payers should end-up owning a proportionate share of each entity. An added condition on the auto companies; that they take
significant steps to produce alternative fuel vehicles while they provide guarantees of immediately raising gas fuel mileage standards on all new ‘09 autos by 5mpg- 10 mpg by 2010; and hold-back any and all payment until results are realized.
Way to go,just as i said its all about greed,they showed up in private jets to beg for 25 billion.Ya i can trust these bozzos with our money….jezzzzzzzz