UAW Reaches Agreement with Big Three
The UAW has reached a tentative agreement with Chrysler, Ford and General Motors (GM) on changes to its 2007 contracts with the automakers. The agreement came hours before Chrysler and GM had to file restructuring plans as part of last year’s federal loan agreement. Discussions continue over the retiree health care plans at all three automakers.
Says UAW President Ron Gettelfinger:
The changes will help these companies face the extraordinarily difficult economic climate in which they operate. Discussions are continuing regarding the Voluntary Employee Beneficiary Associations (VEBAs) at all three companies.
Chrysler Shutdown Shows Need for Immediate Help for Automakers
After Chrysler announced it is shutting down all of its North American plants starting tomorrow, elected officials, union leaders and other industry supporters urged the Bush administration to immediately provide assistance to the auto industry or risk an economic tsunami in the nation’s manufacturing sector.
Citing a 47 percent drop in sales last month, Chrysler said late yesterday it will shut down all 30 of its North American plants at least until Jan. 19, putting 46,000 employees out of work. The plants are typically shut down from Christmas Eve through New Year’s Day. The workers will receive holiday pay from Dec. 22 through Jan. 2. After that, the workers will be considered laid off for the additional weeks their plants are shuttered. Some of the plants could be shut down into February, according to published reports.
Anti-Worker Republicans Pressure White House for Deep Pay Cuts in Automaker Loan
After a small group of Republican senators put the economy in jeopardy by blocking an emergency bridge loan for the nation’s Big Three automakers, the same minority is pressuring the White House to demand some significant pay cuts from the UAW as a condition of any short-term financial assistance.
Bryce Hoffman writes in yesterday’s Detroit News that the White House may press union workers to accept the terms of a pay-cut amendment introduced by Sen. Bob Corker (R-Tenn.), which would have required the UAW to accept deep concessions that would have effectively neutered the union.
Double Standard: Critics of Big Three Loan Subsidize Foreign Competitors
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When Senate Republicans blocked the $14 billion emergency bridge loan needed to keep the nation’s auto industry operating, they knew it could cost between 3 million and 5 million jobs. But some of the most vociferous critics of the auto industry and the UAW reside in states that have given huge no-strings-attached subsidies to foreign auto plants. Some of those states even owe their very survival in part to the Big Three auto companies.
Good Jobs First reports that foreign-owned auto companies operating in the United States have received $3.6 billion in subsidies, mostly from southern “right to work” for less states. That amount doesn’t even count joint ventures with U.S. companies or include inflation, which would make the figures even higher in today’s dollars.
Barnacles of Class War Around Our Necks
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For more proof that the Republican opposition to the auto bridge loan is ideologically based class war against workers and their unions, look no further than yesterday’s comments by Sen. Jim DeMint (R-S.C.), who wants to force the American auto industry—at the cost of 3 million to 5 million U.S. jobs—to its knees:
I’m not trying to get rid of the unions but I am saying that they appear to be an antiquated concept in today’s economy and if a company cannot be competitive with the union structure that they have then we need to recognize that.
…Most of this is being done to protect unions. It’s not to protect the workers. What I want to do is make sure we have jobs for these workers and we have first-class American auto companies and we’re not going to do that with the barnacles of unionism wrapped around their necks.
House Passes Emergency Loan for Automakers
The U.S. House last night approved and sent to the Senate a $14 billion emergency bridge loan for the nation’s Big Three automakers. The 237-170 vote marks a big step in the effort to prevent the shutting down of one or more of the automakers, which could lead to the loss of more than 3 million jobs in the first year.
The Senate could take up the bill as early as today. Although the loan enjoys strong support from both sides of the aisle and the Bush White House, a small minority of Republican senators have threatened to try and block the legislation when it comes to the floor.
UAW Strongly Backs Auto Loan Package
With Congress poised to consider a $15 billion bipartisan emergency bridge loan for the Big Three automakers, the UAW is strongly urging lawmakers to pass the legislation quickly to save as many as 3.3 million jobs across the economy.
While the U.S. House may act as early as today, a small minority of Republican senators are threatening to filibuster against the bill and stop it from being approved. If lawmakers do not act this week, UAW President Ron Gettelfinger said, one or more automakers will be forced to liquidate operations.
Please call your representative today! Urge her or him to vote for the bipartisan legislation to provide emergency bridge loans to the domestic auto companies. Tell your representative this legislation is essential to prevent the collapse of the companies and the devastating consequences that would follow for millions of workers and retirees, and for the entire economy of our nation.
10 Reasons to Support the U.S. Auto Industry
Chances are the upcoming holiday get-togethers will provide plenty of encounters with relatives and friends who are against helping out the auto industry. Opponents of a bridge loan have plenty to say. And we should, too. Here’s a quick list of reasons for countering arguments by Uncle CEO and Cousin It.
1. Unlike the taxpayer giveaway to Wall Street, the funds for the auto industry are loans. These loans have to be paid back. The Big Banks who got our $700 billion get to keep it.
2. It’s cheaper to support the auto industry than to let it die. Anderson Economic Group and BBK Ltd. determined that over a two-year period, a $30 billion bridge loan with only half of the amount repaid would result in a $16.4 billion cost to taxpayers in lost sales, taxes and jobs, while a bankruptcy would cost $65.9 billion when costs for pensions, unemployment insurance, loan losses and professional and other fees are added.
Democrats Send Auto Industry Loan Deal to White House
Congressional Democrats have sent to the White House a proposed $15 billion emergency bridge loan for the nation’s Big Three automakers. The Bush administration is studying the plan, according to a Bush spokesperson. And workers say it cannot be approved soon enough.
Workers are demanding that Congress act quickly to save the domestic auto industry, which many call the backbone of our economy. If one of the Big Three were to shut down, the impact would send ripples throughout the economy, says Brian Schneck, president of UAW Local 259 in Hicksville, N.Y., which has 1,700 members and 3,000 retirees.
UAW Launches Ad to Showcase Need for Bridge Loan to Auto Industry
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Congress and President Bush quickly signed off on a $700 billion, nearly no-strings-attached bailout to Wall Street and the nation’s financial industry. Now, says the UAW in a new TV commercial, it’s time to focus on Main Street. UAW President Ron Gettelfinger puts it this way:
Main Street deserves help just as much as the bankers on Wall Street. It is time for Congress to do its job to save millions of American jobs and prevent our nation from falling deeper in recession.
The ad, which began airing this week in the Washington, D.C., area, features UAW members urging Congress to approve a bridge loan to allow U.S. automakers to keep their assembly lines rolling. They tell viewers:
We don’t work on Wall Street…or for big insurance companies. We build quality cars and trucks. But we’ve been hit by the same financial crisis.
If we go out of business…so will thousands of other businesses….If we lose our jobs…so will millions of others….
