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Thank-You Senator Corker

December 12, 2008
UAW .... waiting for their man.

UAW .... waiting for their man.

CORKER PROPOSAL INCLUDED:

Reduced indebtedness of company by 70%.

Debtholders would be crammed down significantly just like in bankruptcy.

Jobs bank had to be taken out  – which the UAW finally agreed to take out – as if … (apparently the UAW thinks paying workers full wage for NOT working is fine & bailout money should help pay too – I don’t know anyone who gets to remain on the payroll for NOT working – that is ridiculous, but I’m not paying for that nonsense).

SENATOR CORKER:

Got down to one last question: “Can you give us a date in which you will be competitive with Honda, Toyota, BMW, and Nissan?”  (A: I can’t tell you, no date) – TBV: Corker wanted a date and they were unwilling to give one – UAW workers make apx. $30/hr more than non-union autoworkers .. mainly b/c “legacy costs” – also known as generous retiree payments/benefits, still get paid and are choking the Big Three …  and that had to change in order to make them competitive … everyone knows that but the UAW won’t bend – even to the demise of the companies who pay the salary – but why should the taxpayer pay their salary and these “legacy costs”?  We shouldn’t.  The union-negotiated agreements are killing the companies that are paying them.  It is not the taxpayer’s job to pay these costs when they are the mini-Crap Sandwiches (if I can borrow from MM) that are killing the Big Three.

Sen. Corker: “What we were attempting to do is the same as in bankruptcy but without the stigma.  The one issue the bankruptcy judge would deal with is make sure the wage structure is competitive.”  “I’m going to place a call to the UAW president – just like earlier where it was just me and a UAW representitive –> all they have to do is give us a finite time when they would be competitive – a date certain.”

Sen. Corker: “I was stunned they would walk away from a deal to put these companies on a healthy footing for years to come just because we called for a date certain.” 

“They had a guy in the room, nice guy, but with every issue he had to call a lawyer or the UAW president.” 

“Our members represent people all over this country who recognize the UAW’s payscale is making them uncompetitive.  The Secretary of Labor under Obama will favor the UAW significantly.”  (TBV: They want short term bridge loans b/c Obama will take care of them in the new year – that is why they are not bending with agreeing to restructure their wage structure).

THE FACTS

– if you are an UAW autoworker, (total compensation including union “legacy costs”) pay is  $72.31/hr   (Toyota: $44.20/hr)

– UAW autoworker has agreement in place until 2011 – they do not want to renegotiate, especially if the wage structure will have to become closer to that of Toyota.

– Bankruptcy will require that these agreements be renegotiated and the judge decides before approving the Ch. 11 plan

 

TBV:

Congrats to the GOP caucus for sticking to its guns and voting against this crap sandwich.  If the UAW and the Big Three don’t want bankruptcy they need to agree to similar restrictions as bankrutpcy would require if they want the U.S. taxpayer to bail them out instead of hashing out a Chapter 11 plan that the requisite majority of creditors agree to and the judge approves.  If the UAW takes TARP money instead, which they are calling for now, there needs to be the same restrictions on the UAW as what the GOP caucus was requiring, esepcially getting rid of the jobs bank and restructing the wage structure.   TARP money is taxpayer money and Taxpayers Are Really Pissed – their elected representatives have spoken … we do not want to give out TARP money to the big three without Corker’s requirements.

 

– Polymath 3

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One comment

  1. Good post, I’m glad at least some of the senators are trying to solve problems and not give them a blank check.

    However, the wages are actually pretty close. I read somewhere that GM pays $26 an hour and Toyota pays $24. The jobs bank, healthcare and retiree costs is what kills the Big Three. Fixing those problems would help the long term viability of the auto makers.

    Also, government regulations like the CAFE standards hamper the Detroit Automakers as well. Efficiency should be measured on a per car basis, not some crazy formula that forces them to make millions of unprofitable cars.



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