UAW Agrees to Make Changes
By Alan Stewart Carl | Related entries in Business, Cars, Economy
The United Auto Workers apparently believes the U.S. auto industry really is in serious trouble. Today, the UAW announced, it is willing to make serious concessions to help automakers secure government loans.
The UAW says it is willing to renegotiate labor terms, accept delayed payments of billions of dollars into the health-care trust and suspend the job bank which pays laid-off workers 95% of their salary while they’re not working. There are no specifics on any of this, but the UAW is clearly aware that many blame the union as much as they blame automakers for the industry’s predicament.
Once again, we’re seeing the advantages of not jumping to provide billions of dollars the second the auto industry requested the money. Slowly, both executives and workers are realizing that a bailout absolutely must include fundamental changes. There’s still a lot of debate to be had and a lot of steps to be considered, but at least the matter seems to be moving in the right direction.
This entry was posted on Wednesday, December 3rd, 2008 and is filed under Business, Cars, Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
December 3rd, 2008 at 5:57 pm
So for the auto company’s request for a $25 billion loan, we are going to fundamentally change the way an industry is–OK, I will buy that. But for a $750+ billion bailout of the financial industry we got…what?
The difference here is simple–the Bush administration and congress are beholden to the obscenely wealthy and the middle class had to ensure they could continue living, well, obscenely. The middle class union workers are getting screwed both ways.
Typical
December 3rd, 2008 at 6:34 pm
gerry — I’d say that the less than effecient management of the financial industry bailout shows why we can’t buy into these “the sky is falling” claims. But, to be fair, the evaporation of credit would have caused greater economic disaster than the bankruptcy of the auto industry. So, in terms of hyperbolic rhetoric, the financial industry did have a leg up.
December 3rd, 2008 at 7:11 pm
This is really, really great news, and kudos to all the players involved for realizing the gravity of this situation and responding appropriately.
Now if we can just get all those free market hawks to let loose of their ideology long enough to grasp how serious a massive auto bankruptcy would be, we’ll be in good shape to invest in these companies with strings attached.
December 4th, 2008 at 7:02 am
Alan,
If the evaporation of credit had indeed occurred, I might be inclined to agree with you, but despite the now $750 billion bailout to the financial industry, credit has not been freed up–instead, it has evaporated as financial institutions have used the money for other things (multi-million retention loans, purchasing struggling companies, I don’t know, new towels for the executive washroom?)
I’m not against some automotive restructuring–what I am outraged at is the handwringing, hypocriscy and intervention being suggested when the size of the LOANS is so much less. The Administration (3-page memor) and congress were falling all over themselves to shower money on an industry that had not just been greedy, but failled spectacularly. The automotive industry by comparison was the good ship lolipop and would have actual sailed along if not for the collapse of the financial industry and the massive hike in oil prices (both of these being brought on by 30 years of deregulation).
December 4th, 2008 at 7:23 am
While everybody is complaining about the auto industry bailout I just want to say that my Ford (F) stock is up over 40% since I purchased it the week before Thanksgiving……not a bad return and it will only get better….follow the money!