Obama administration spearheads attack on auto workers

[dcsmart]

General Motors and Chrysler are scheduled to submit restructuring plans to the White House today that include a drastic reduction of auto workers' wages and benefits and the elimination of tens of thousands of jobs.


The outgoing Bush administration and Democratic-controlled Congress last December mandated the auto companies to submit plans to restore profitability as a condition for $17.4 billion in emergency loans. Under the terms of the agreement, the wages of 90,000 hourly workers were to be reduced to the level of non-union auto workers, and GM was to be allowed to pay half of its $20 billion in retiree health obligations in vastly devalued stock.


The agreement includes a sweeping attack on the democratic rights of the workers. It stipulates that the government loans to the companies can be rescinded if any section of workers engages in a strike or work stoppage.


GM previously announced plans to cut at least 31,000 jobs, shut ten plants and close 25 percent of its dealerships by 2012. Given the steep decline in US auto sales—which have fallen to their lowest level in three decades—the company is expected to propose even deeper cuts. All told, the US auto industry is expected to sell less than 11 million vehicles this year, down from 16.2 million in 2007. To align capacity with current demand, it is estimated that the auto companies would need 24 fewer North American factories than their current total of 70 assembly plants.


According to reports in the Wall Street Journal, with or without additional loans GM is considering filing for bankruptcy in order to liquidate unprofitable assets and tear up existing agreements with the United Auto Workers union and creditors. It would then transfer profitable brands and assets to a new, much smaller company, which would be a lucrative source of investment for Wall Street.

Speaking on the Sunday talk shows, President Obama's senior advisor, David Axelrod, would not rule out throwing the 101-year-old industrial icon into bankruptcy. He reiterated the position that auto workers would have to accept "sacrifices."
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[Metta]

1. Those who push this through inherit really bad karma from the suffering they cause.

That's how it goes. ... doesn't have to be that way.

[Larkspur]

2. Why is it that workers are always asked to sacrifice, but the CEO's who screw up can still make

millions of dollars in compensation? When the top execs sacrifice first, like they do in Japan, then I'll accept worker sacrifices.

[DCKit]

3. How can Obama "spearhead" what Dumbass started?

Obama inherited THIS mess too and Axelrod is simply stating the obvious - it's going to get worse before it gets better.