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Did Senators Block Auto Loan Because of Employee Free Choice Act?

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by Tula Connell, Dec 12, 2008

The Center for American Progress spelled out clearly today another reason for the Senate junta to block the emergency bridge loan to the auto industry: It was an advance attack on the Employee Free Choice Act. Crossposting the CAP piece here.

Last night, conservatives in the Senate blocked the proposed $14 billion loan to General Motors and Chrysler. As Ali Frick notes over at ThinkProgress, conservatives blamed the bill’s failure on the United Auto Workers (UAW) refusal to accept steep concessions—introduced in a pay-cut amendment by Sen. Bob Corker (R-Tenn.)—that would have effectively neutered the union.

But various media outlets have reported that blocking the bill also had a wider purpose: sticking it to labor unions in advance of the anticipated debate over the Employee Free Choice Act. Often referred to as “card check,” the Free Choice Act would level the playing field for workers looking to form a union.

As the L.A. Times reported today, conservatives circulated “an action alert” calling for lawmakers to “stand firm and take their first shot against organized labor“:

In doing so, analysts said, Republicans were planting the seeds for a fundraising appeal to big business—other than the Big Three, of course—as they gear up for a major political fight next year over expected legislation that would make it easier for unions to organize.

The BBC noted this line from the conservative talking points:

This is the Democrats’ first opportunity to pay off organised labour after the election. This is a precursor to card-check and other items.

If the rescue loan was a “pay off” to the unions, it was a pretty lousy one, considering the UAW made serious concessions — including delaying Big Three payments into a retiree health care fund — as a prerequisite to the rescue bill proceeding.

Furthermore, conservatives denied the automakers their loan — potentially causing further harm to an already dismal economy — for the sake of preemptively sending a message on legislation that can help the economy. As David Madland and Harley Shaiken point out, competitiveness is “linked to productivity, quality, and innovation — all of which can be enhanced with higher wages” derived from unionization.

Yesterday, President-elect Barack Obama said that he wants to “strengthen the union movement in this country and put an end to the kinds of barriers and roadblocks that are in the way of workers legitimately coming together in order to form a union and bargain collectively.” It would appear that conservatives are already gearing up for the fight, even if that means sacrificing America’s auto industry and all the jobs that go along with it.

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19 Comments

  1. ndrocker on 12.12.2008 at 16:40 (Reply)

    Senator Demint shoud be ashamed of his stance on this issue–he is anti-worker, anti-union–anti-american. what is wrong with making an honest wage, being able to support one’s family, save for retirment–help retirees….again, his attitude is shameful! The UAW should not have to make any wage/benefit concessions. What Demint and others like him want to do is make this an $8.50 an hour job? get real!!!!!!

  2. nvrpc on 12.12.2008 at 17:04 (Reply)

    I hear on C-SPAN the government will not let GM, Ford and Chrysler fall but if for some reason the big three file bankruptsy here’s what you can expect and why. I would advise all of yu to take the time and listen to all four segments if you want to be prepared for what still may happen.

    Big three denied bail-out.

    Okay, it’s time to place a bet. How many days will it be before the big three, all at the same time file chapter 11 bankruptcy just as United Airlines did breaking the backs of the unions, stripping the workers of all they earned; while the CEO walk away fat, dumb and happy for life?

    No matter what happens from this day forward it’ll be the workers that lose, not management.

    For you who have forgotten how issues like this are handles by CEO I’ve provided you with a URL that lays out the time line of events, the results and your future. All you have to do is take the time to listen to all four segments if you want an thorough understanding of what the big three are about to do to you and the consequences to your life their actions will bring.

    The question I have for you blue collar worker is this. Are the workers going to let the CEO and ULM ( upper level management ) get away with this or are they going to assure they receive their just and equal treatment for their disloyalty and actions. It’s my hopes the CEO invest in Depends.

    I only wish the God Father was around when one needed his expertise. In my opinion Corporate America and it’s cronies have gone to far. It’s time to take back America.

    Here’s the UAW’s future: http://www.pbs.org/wgbh/pages/frontline/retirement/

  3. www.JoesUnionReview.com on 12.12.2008 at 17:32 (Reply)

    If anyone heard me speak at the last NYC Central Labor Council meeting 3 weeks ago I spoke of how the $73 myth was a precursor to the debate on the Employee Free Choice Act, the next day I wrote about it in Autoworkers and the $73 and hour myth

    I of course left out that there is no way that the labor movement can go forward while the corporations are able to abuse at whim a slave class of undocumented workers and the ties I had spoke of the night at the CLC, but the message remains the same, they want to spread the lies about anything that is good for an American worker because lets face it, the majority of corporations here in the US and worldwide in fact do not care one bit if we can feed our families, as a matter of fact they wouldn’t care if we were all left eating dirt sandwiches just like the people in Haiti which make our Wrangler jeans and a majority of Disney crap.

    They say that unions force jobs overseas”>, the shame of it all is that unfair trade is the killing blow to our economy, the cohorts in office do what they are paid to.

    Who do you blame? I say the mirror is the best bet, if 10% of the American public got the idea that we are more similar than different, that we just want to work and be able to provide food for our family and hopefully one day retire with dignity, we could change the world.

  4. johnsav on 12.12.2008 at 20:11 (Reply)

    There is no doubt in my mind that they believe that this is their last hurrah, that in January working Americans are going to get the opportunity to take back the country from the un-patriotic corporate types of the world who would give a #%*% of the United States and its working people. It’s time to take back AMERICA.

  5. ibew 827 member on 12.12.2008 at 22:37 (Reply)

    Being a union member I still have benefits and don’t need medicare or social security when I get my 30yrs. The republicans on the other hand who claim they are for smaller goverment, want the UAW members to give these benefits up ,and I guess have them get on the goverment medicare line.Nice job increasing the size of goverment ,hypocrties ……Oh yeah do you see any of these senators giving up their goverment pensions or taxpayer funded medical care?
    Employee Free Choice Act does not take away your right to a secret ballot election. We must support this law.And if your against having a union at you job ,after a majority wants the union that’s democracy sorry and just quit.The majority must rise up it the American way….

  6. maxiis on 12.12.2008 at 23:54 (Reply)

    im a union carpenter not a real active member. but ,here lately how can anyone not feel compeled to do or say something .all union members should be outraged over how their treating the uaw if they break them your union could be next.the uaw with their job bank i belive was to fight outsorceing .the union has kept the big three from moving more plants overseas.now just guessing half of an american car is made in other countries.i think we have to take action .theirs a couple things we could do i think to get attention.if all union members stopped paying their mogtages and put that money into our creidit unions sort of escrow till these guys started useing the tarp money for what it was intended.second start a movement to demand that congress and senate to take a 25% pay cut till were out of this mess.maybe a balanced budget they act like they really have this money to loan the big three like the money was theirs to watch.the money they are refuseing to use is money our grand children havent even earned yet.what a bunch of flim flam artists.they badger the big three over how they run their companies while their bussiness has been in the hole for the last eight years .i cant think out the words hypocrocy comes to mind

  7. Kent on 13.12.2008 at 08:39 (Reply)

    We all need to put everything we’ve got into getting the Free Choice Act passed. Don’t wait for it to be handed to you on a platter by a bunch of politicians whose sympathies are always with whoever can provide their next election campaign with the most money.
    Too much has been handed to us with little or no effort on our part. During the Cold War the ruling elite was more worried about international communism than keeping American workers in their place. In fact, they wanted the rest of the world to think that the US was a “workers’ paradise,” so they paid decent wages and provided health insurance and pensions. Now that Russia and China are capitalist, too, the big shots can go back to doing what they did so well for so long - crushing unions and jailing, killing, or deporting labor agitators.
    We’re going to find out in the next few years just what the labor movement in this country is made of.

  8. Bradtex99 on 13.12.2008 at 09:27 (Reply)

    Although I am not a union member, I strongly support unions and the Free Choice Act. The Republican refusal to come to the aid of the auto industry is an attack on union members and all middle class workers in America. We must all stick together to prevent the Republican agenda from eradicating the middle class and making America a country of the haves and the have-nots. Unions help preserve middle class values and every worker should have the freedom to join a union without fear of corporate abuse. In fact, more industries should be unionized.

  9. CMEFLYRC on 13.12.2008 at 15:58 (Reply)

    Last night on “Larry King Live” a republican senator (not sure of his name because I just caught the very end of the program) said that the union (meaning the UAW) had to be busted. He also said we need “tax reform” to get big business to bring jobs back to America. Give big business more tax cuts and raise the taxes on the working class while insisting we all take a substantial pay cut. I believe that if they try to do that, the AFL-CIO should call a nation wide strike. Shut every UNION job down across the country. Teamsters, Electrical Workers, Railroad Workers, etc. We all need to stand together and fight or we will all see our jobs go down the toilet. Soon we will be living in a world of “haves” and “have-nots.” Slavery was abolished in this country almost 150 years ago… 1865.. but if big business has their way, it will return. The federal minimum wage is $6.55 effective 7/24/08 and goes up to a whopping $7.25 effective 7/24/09.It had been stuck at $5.15 for over TEN years. This proposal was defeated by the Republican controlled Senate in 2006. It was also opposed by “conservative economists”, whatever that is, and by big business. $6.25 on a 40 hour work week is $262 a week. That equates to $13,624 annually. At $7.25 it is 290 weekly and $15080 annually. I believe it would be pretty hard to make a house payment or buy a car or even raise a family, much less, send a child to college on that kind of salary. But if the republicans get their way, that’s what we will all be facing. Cut our wages and raise our taxes so we have even less money to live on. Meanwhile , he and his cronies get to vote on raising their own pay. I thought they were elected to represent us, but I guess once you’re there, it’s every person for themselves
    They say they are worried about the taxpayers getting a return for their “investement”. But they didn’t seem too concerned sbout that when they forked over $700 billion to the financial sector. Didn’t see any substancial wage cuts for them. Not even a “Banking Czar” to oversee how the money is spent. And what kind of return are we getting on the TRILLIONS, YES TRILLIONS OF DOLLARS we are spending in IRAQ. YES I SUPPORT OUR TROOPS 110%, but why are they over there??
    Alabama can give millions of taxpayer dollars to foreign car makers, but they refuse to help the domestic auto makers. May I remind you, the “BIG THREE” came to the rescue of this country after December 7th 1941 and after September 11th 2001. Check the records. Let’s see how much the foreign auto makers helped.
    AUDI : $0
    DAEWOO INTERNATIONAL : $0
    CHRYSLER : $10 MILLION + Employee and Dealer contributions
    FIAT : $0
    FORD : $1 MILLION to the American Red Cross+ Matching Employee contributions to the American Red Cross + 10 EXCURSIONS to the NEW YORK CITY FIRE DEPARTMENT
    GENERAL MOTORS : $1 MILLION to the American Red Cross + Matching Employee contributions to the American Red Cross + a whole fleet of Vans, Trucks, and SUVs
    HONDA : $0 After “American Honda Motor Company” recorded it’s second best sales month ever in August ‘01
    HYUNDAI (KIA) : $300,000 To the American Red Cross
    ISUZU : $0
    MITSUBISHI : $0 (built planes that bombed Pearl Harbor in 1941)
    SUBARU : $0
    SUZUKI : $0
    TOYOTA (including LEXUS) $0 Offered condolences on website. Boasted about high sales in July and August ‘01
    VOLKSWAGEN : Created Foundation initially funded with $2 MILLION to assist children and victims

    1. hotrodgreg1957 on 15.12.2008 at 12:08 (Reply)

      The listing of what companies gave after 9/11 posted by you are incorrect, check it out at Snopes.com at the following link:
      http://www.snopes.com/rumors/automakers.asp

  10. poncho227 on 13.12.2008 at 18:10 (Reply)

    I am a strong union member and feel we need the bridge loan to keep from millions of people from losing their jobs. I’ve got a great idea. Let’s put a legacy tax on the Japanese and South Korean cars. A tax of $30 an hour. That way when American and Japanese workers in Japanese plants get ready to retire, they would be way ahead in their pension obligations. That would level the playing field for domestic American car production. Fat chance huh.

  11. JerryWells on 13.12.2008 at 21:02 (Reply)

    THE TIME TO DRAW THE LINE IS NOW!

    Has the AFL-CIO “leadership” once again, in uncritically supporting forever the Decmocrats, once again allowed itself to be screwed?

    Is it not time to give a final notice and ultimatium to the Democrats, that if support for EFCA is not forthcoming in the first 100 days of Obama’s reign, the AFL-CIO will start in motion on the 101st the call for a new political party that
    will finally represent the ieconomic and political nterests of working peopel!

    Dump the Democrats! Do not further delude the working people of American that these pro-corporate anti-working people Democrats, that the game is over!

    Is Obama Backing Off a Crucial Pledge to Labor?
    Bait and Switch on the Employee Free Choice Act
    by Steve Early

    http://mrzine.monthlyreview.org/early081208.html

    “It’s only been a month since hundreds of thousands of union members and their families helped Barack Obama win key “battleground states.” Yet, already, some labor supporters of the president-elect fear he may be backing away from a key campaign promise to workers threatened by recession.”

  12. jean2jean4 on 15.12.2008 at 06:36 (Reply)

    Jobs With Justice held our kick-off of the 1 Million Member Drive for the Employee Free Choice Act in Boston.
    Jobs With Justice & SEUI printed Pro-EFCA postcards. We need to be outdoors getting these cards signed, posted and returned to DC. Obama promises took lift up workers and we must stand up with Obama. The fight is just heating up. Be active not just vigilant.
    We will be too broke to pay for Our INACTION!! But, pay we will if this legislation fails.
    /Write in your newspapers, talk to everyone you know, demand action in your union halls.
    I’m not union and make $9/hr cleaning bathrooms. Union is my hope for a better tomorrow. Please, fight for me, too.

  13. hotrodgreg1957 on 15.12.2008 at 12:02 (Reply)

    Interestly enough it is estimated that 35-40% of our membership voted for the same Republicans that are trying to stick it in our arses. I hope their voting for the three G’s justified this raping we’re getting. Corker was such as joke getting on TV and acting so innocent and talking about how now all of a sudden all it would take is 5 minutes to get to an agreement, hell, he wanted to renegotiate the entire UAW agreement. I would think the membership might need input into that. Shelby and the rest are showing their true colors. I hope they feel like proud Americans. This is about political pay backs and I believe some are still fighting the civil war. I am always intrigued when I travel south and see bumper stickers-”the south will rise again!” and “Successionists were right!” As a footnote, I read where the predominantly southern red states for the last 8 years have been getting $2 for every $1 back in federal funding for what they send to Washington. The blue states have been getting screwed, receiving only 60-70%. That is a concerted effort to further hasten the rust belt and hasten furthur decline and decay in the northern states.

  14. No Amnesty on 15.12.2008 at 12:52 (Reply)

    Perhaps the ‘jobs bank’ had something to do with their decision. After all, any company that ewould allow itself to be coerced into paying their workers when their laid off obviously doesn’t handle money very well! ‘Suspending’ the jobs bank just isn’t good enough. It needs to be eliminated. Layoffs are supposed to save companies money. Paying laid off workers is just plain DUMB!

  15. Janet on 15.12.2008 at 13:14 (Reply)

    We are dying up here in Michigan. I implore each and every one of you to e-mail or call your elected representatives and demand that help be given to the American automobile industry. If they don’t care about people losing their jobs, perhaps the tack of a domestic auto industry is in our national defense’s best interest may help.

  16. No Amnesty on 15.12.2008 at 17:46 (Reply)

    Perhaps the ‘jobs bank’ had something to do with their decision. After all, any company that would allow itself to be coerced into paying their workers when they’re laid off obviously doesn’t handle money very well! ‘Suspending’ the jobs bank just isn’t good enough. It needs to be eliminated. Layoffs are supposed to save companies money. Paying laid off workers is just plain DUMB!
    And let’s get rid of those bloated upper management salaraies and perks while we’re at it. That kind of excess has been bringing this country down for over two decades now. It HAS to stop!

  17. Stix on 15.12.2008 at 23:53 (Reply)

    President-Elect Obama is just that. He is not the president yet, and some of you are blaming him for what Bush and the republicans are doing. Obama said, he wants to strengthen unions. That alone should tell you something.

    It has been the republicans for Wall Street and keeping those people’s pay exactly as it was. Yet these republicans want to take away the middle classes unions and lower the amount we make on our jobs.

    How about starting up petitions to take away the extras of Senators. We can start by getting rid of their free healthcare. I would start with Sen. Bob Corker (R-Tenn,) and when we are finished all senators will pay for their own Insurance.

    As for those automatic raises, let’s put an end to them. Let the American people vote whether senators get a raise or not. I would vote “no.”

    Republicans are planting seeds for big business and would have the rest of us live like paupers making minimum wage at our jobs.

    I see it is time to put an end to these polititons that think so little of the working class.

    Make a list of those in your voting area that are against the middle class and vote the bums out of office.

    As for their big fancy pensions, we can no longer afford to allow them to have these pensions. When they leave office let them get a job like everyone else.

    No more!

  18. Janet on 17.12.2008 at 13:51 (Reply)

    To No Amnesty re: jobs bank:

    That’s just a cop-out. Toyota has its own version of a jobs bank. Of course, because they’re not union, I never hear complaints about it.

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