UAW CONCESSIONS ARE LEADING AUTOWORKERS TO A CATASTROPHE

[Omaha Steve]

http://gangbox.wordpress.com/2008/12/14/uaw-concessions-are-leading-autoworkers-to-a-catastrophe/

Posted in Uncategorized by gangbox on the December 14, 2008
from the WORLD SOCIALIST WEB SITE:

White House signals aid after auto loan bill stalls in Senate
UAW agrees to more concessions
By Joe Kishore
13 December 2008


The Bush administration announced on Friday that it is open to granting emergency loans to US auto companies through a Treasury Department fund. On Thursday, the US Senate failed to pass a bill supported by the White House and Democrats that would grant the Big Three—General Motors, Chrysler, and Ford—a $14 billion loan contingent on massive concessions from auto workers.

The White House said it would consider providing funding through the Troubled Assets Relief Program (TARP), the $700 billion fund originally established to funnel taxpayer money to the banks. This is a shift from its previous opposition to using these funds.

White House spokeswoman Dana Perino said on Friday morning, “Given the current weakened state of the US economy, we will consider other options if necessary—including use of the TARP program—to prevent a collapse of troubled auto makers. A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time.”

The announcement reflects concerns within the ruling elite that failure to grant some aid could spark a collapse of financial markets and turn the recession into a full-scale depression.

The loan bill that had been backed by the White House and Democrats would have established an “auto czar” appointed by Bush and tasked with overseeing the restructuring of the auto industry, including massive layoffs, plant closures and attacks on auto workers’ wages, health benefits and pensions. The official would have the power to send the companies into bankruptcy if it was determined that restructuring was not proceeding quickly enough.

The bill passed the House of Representatives on Wednesday but then stalled in the Senate after facing opposition from the Republican caucus, which demanded more explicit and brutal attacks on auto workers as a condition for any loans. In a vote of 52-35, the Senate failed to reach the 60 votes necessary to overcome procedural hurdles and bring the loan bill to a vote.

FULL story at link.