The bailout has it backward for auto workers

[Radical Activist]

Who is the bailout supposed to help? We keep hearing about American workers and economic collapse from lost jobs. Then why are we getting a bailout that screws auto workers?

Why is the UAW expected to make concessions to the company as a precondition for the bailout? If the Big 3 want federal dollars then they should be forced to pay MORE to laid off workers, more health benefits, and more for retirees. That's what will help the American worker and put more money into the economy.

Giving billions to the auto industry so they can fuck over their workforce is ass backwards.



http://www.freep.com/article/20081208/BUSINESS01/81208057/1002/BUSINESS

UAW leadership voted:

• To allow all three Detroit automakers to postpone their contributions to the retiree health-care trust — known as a VEBA, or voluntary employee beneficiary association — until 2012. The contributions were originally due in 2010.

• To eliminate the program known as the jobs bank and “negotiate a new provision to protect workers that other wise would have been placed in the jobs bank program.” In the jobs bank, UAW workers are paid nearly full wages after they are laid off or their jobs are eliminated. While some people in the jobs bank do other work for the company or volunteer in the community during the work day, the program is controversial because some laid-off employees are paid not to work.

The UAW first announced last Wednesday that it would suspend the jobs bank and allow the delay of VEBA payments to help the automakers.

[ContinentalOp]

1. You have it all wrong.

If you criticize the Big 3 management or criticize the terms of the bailout, you are clearly anti worker, anti-union and anti-American. Haven't you been paying attention?

[Radical Activist]

3. I see.

As far as I can tell, having a government car czar run the auto industry while they screw the worker is textbook fascism.

[elleng]

2. You probably know this.

Few think the 'big three,' 'little two' can survive, but many recognize need for the industry, as its been an 'anchor' business in the U.S.

SO, the 'dealers' want mgt and labor to 'promise' to try to do good, and give up stuff to run things smoother and 'cheaper.' The idea is, if you want it enough, you'll agree.

[Radical Activist]

4. They always threaten to shut down factories

if you don't give them what they want. That's usually how they stop CAFE standards. They usually shut down those factories anyway.

[BzaDem]

5. If they go bankrupt by the end of this month

the union contract will have to be renegotiated by the bankruptcy court. Basically, the union and management will try to negotiate a contract, and if they can't agree, it will go to arbitration. The point is, if they go bankrupt, the union will have much less control over the concessions it will be forced to make. (Not to mention the number of employees who will be laid off in a bankruptcy).

Therefore, it is in the interests of all workers for GM not to go bankrupt. That is why they are making the said concessions.

As for the bailout, the goal of the bailout is to help workers, but to do it in a way that preserves the solvency of GM. If GM gives workers more benefits, that might help the economy in general, but it will significantly hurt the ability of GM to remain solvent, and GM will undoubtedly need more money within months. This means one of two things must happen:

1. GM goes bankrupt after the first bailout fails to keep them solvent, bringing back all of the problems for the auto workers I mention above
2. The US keeps giving more money to GM, despite the fact that it will never become a viable business

If 2 happens, then basically we are having the US run a job bank just for the autoworkers and no one else that is in dire need. If we are going to provide more aid to those in need, more healthcare benefits, etc, it should be to everyone in the form of a stimulus package and/or healthcare bill.

This is why the purpose of the bill is to keep GM solvent, so it can continue to employ its workers on its own.

[Radical Activist]

7. GM's solvency problem

isn't worker pay and benefits. Cutting those won't solve the problem.

[JVS]

6. They're the pawns of the big 3.