by Scott Creighton
***UPDATE*** After watching Chris Dodd’s 1:00pm press conference this afternoon, I am suddenly struck with a different impression. It seems that, yes, certain republican Senators were demanding what they all called a “date certain” for the restructuring of the UAW pay and benefit plan to match those of the non-union workers in the southern states Toyota and Honda plants. A substantial financial hit they (the families of the workers) would have to take sometime in March of next year. While the Dodd Plan would put that hit off till possibly 2011 or a little sooner, the sticking point turned out to be, like I explain below, that single issue.
But he (Dodd) suggested it may be more of a political ploy. Everyone is praising the Bush administration for offering to step up here and float the Auto industry with a loan from the TARP money. That’s all well and good if they do it with the remaining TARP funds from the first $350 billion dollar payment.
However; it looks like, from what Dodd was saying, the Bush administration is going to claim there isn’t enough left of that money, and so the Democratically controlled congress will have to hand over the other $350 billion dollars, now, in order to save the industry and keep these jobs.
If that is the case, it is possible that these republican hold-outs are doing this in order to help the Bush administration get their hands on the second payment of the TARP money, after Bush’s appointees clearly squandered the first half by handing it over to banks without the oversight they promised and without forcing the banks to use the funds to ease the credit freeze. And if so, they are literally holding the auto industry hostage to do it. If this is the case, this is the most blatant example of this administration creating another crisis and using it to further their corrupt agenda.
When is comes to yesterday’s failure of the proposed Auto Industry bailout plan, once again you are not getting the complete picture from the MSM; and there is a reason for it.
It is being reported by a few sources now that the final holdup on the deal wasn’t that the republicans wanted the workers to take reductions in wages that the democrats didn’t (both sides wanted the same reductions in wages and benefits from the workers), the only question left unresolved on the table, was “when?”.
“Both sides agreed wages should drop to the levels of foreign competitors, but Republicans wanted a deadline of 2009. Democrats insisted on a date of 2011, when current worker contracts expire.” Democracy Now
Filed under: democracy, disaster capitalism, Economic Crisis ie. Disaster Capitalism, Globalization, UAW, war on the middle class | Tagged: auto industry bailout, class warfare, Union Busting, war on the middle class | 14 Comments »