The Phony Confrontation over Auto Worker Wages

Globe and Mail newspaper
http://www.theglobeandmail.com/servlet/story/GAM.20090420.COSTANFORD20AR...
The auto industry is in crisis around the world, due to an unprecedented collapse in sales. And governments around the world (from Europe to Asia to the Americas) have moved quickly to keep the industry in business.

Only in North America, however, has this restructuring been sidetracked by an ultimately phony confrontation over auto worker wages. Auto workers are well paid everywhere - after all, that's a key reason governments chase auto investments in the first place. But only in Canada and the United States have governments made auto assistance contingent on union concessions. (More)
http://www.theglobeandmail.com/servlet/story/GAM.20090420.COSTANFORD20AR...

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http://www.allheadlinenews.com/articles/7014793842

Detroit, MI (AHN) - U.S. automaker Chrysler was told by Fiat to cut labor costs further or forget about a partnership as the looming deadline to work out a deal fast approaches.

Chrysler LLC is under orders from the U.S. government to forge a deal with Fiat SpA, or else enter bankruptcy.

But Fiat is now telling Chrysler it has to push American and Canadian labor unions to agree to drop worker's wages. At this point, the Canadian labor unions are reportedly more resistant than their American counterparts are to dropping wages.

With jobs scarce because of the ongoing recession, U.S. workers know that if Chrysler doesn't survive they are unlikely to get any job at all, let alone one that pays as much as they have been earning. So although agreeing to lower pay rates is not a desirable situation, it is not as much of an obstacle for U.S. unions.

But Fiat is also pushing for job cuts, while reminding Chrysler and union officials that a bankruptcy would result in automatic job cuts.

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Obama to chrysler..merge with fiat or walk...

http://www.npr.org/templates/story/story.php?storyId=102515066

"The president gave GM 60 days to win concessions from unions, creditors and others and consolidate unprofitable brands. Obama said the administration would provide both working capital and assistance during the 60-day window.

In the case of Chrysler, Obama said the company must have a partner to stay in business. He gave Chrysler 30 days to reach a merger agreement with Fiat, which has agreed to build fuel-efficient cars in the United States and repay U.S. taxpayers for new investments made before Fiat assumes majority ownership, he said. "

So Obama has put a gun to chrysler's head...take it or go bankrupt...

The recession has hit the auto industry hard. In Michigan, 1 in 10 residents has been thrown out of work, as manufacturers, dealers and parts suppliers shed more than 400,000 jobs, Obama said.

And the president said more sacrifices would be needed if the companies are to become viable.

But Michigan Rep. Thaddeus McCotter, a Republican, said the companies' initial plans cut 50,000 jobs. He said he's worried about what else can be sacrificed.

McCotter said he is concerned about how retirees' pensions and benefits will fare if the automakers head into bankruptcy.

Gee...looks pretty clear to me...the dirty republican scumbag cares more about auto industry jobs than Obama does...

Tsk tsk....but hey...it's not like anyone didnt warn you obamas plans would hurt american workers.......

suckers.

Wait till cap and trade goes through...

“Political correctness is a doctrine, fostered by a delusional, illogical minority, and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a turd by the clean end.”

http://www.washingtonpost.com/wp-dyn/content/article/2009/04/20/AR200904...

They are on the verge of ruin and they turn down a federal loan because they don't want pay restrictions. Really? Seriously? Just as Reagan sacked the air traffic controllers, Obama ought to fire the entire management structure at this pathetic excuse of a company. This is a team that has done nothing to improve the overall company and even down to the last dollar only cares about their own bloated pay plans. Let them all rot.

Top officials at Chrysler Financial turned away a $750 million government loan because executives didn't want to abide by new federal limits on pay, sources familiar with the matter say.

The government had been offering the loan earlier this month as part of its efforts to prop up the ailing auto industry, including Chrysler, which is racing to avoid bankruptcy. Chrysler Financial is a vital lender to Chrysler dealerships and customers.

In forgoing the loan, Chrysler Financial opted to use more expensive financing from private banks, adding to the burdens of the already fragile automaker and its financing company.

"If we go under, this place will become a ghost town," Charles Vega said about Toledo. Vega commutes to Chrysler's Warren stamping plant from the Toledo area, where unemployment is 14% and Chrysler has two assembly plants and one parts plant".
http://www.freep.com/article/20090420/BUSINESS01/904200311

Statements made are the opinion of the writer who is exercising his first amendment right to freedom of speech. Freedom of speech in the United States is protected by the First Amendment to the United States Constitution and are generally permitted.

And what if fiat decides the jeep plant needs to go?

What about hydromatic?

what if they shut down as part of Obama's restructuring requirments...

you still gonna support Obama?

Oh...duh...ofcorse you will...it's Bush's fault ...

You betcha...

“Political correctness is a doctrine, fostered by a delusional, illogical minority, and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a turd by the clean end.”

No I'm going to support the Toyota driving TBT team. They have figured everything out for what's best for Toledo. They know how to support their fellow residents. The best is yet to come!

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20090421/BUSINESS0...
"Chrysler has until the end of this month to reach an agreement with a number of stakeholders, including its unions and bondholders, on concessions that would allow it to survive as a viable company in an alliance with Italian automaker Fiat SpA, or face potential liquidation.
General Motors Corp., which also has a large number of retirees locally, has until the end of May to submit a viability plan to the government or face what
Chief Executive Officer Fritz Henderson has called a "probable" bankruptcy.
In both instances, among the costliest financial hurdles to be overcome are retiree pension and health-care benefits. Almost 930,000 people are covered under GM and Chrysler's pension plans, and union officials estimate that more than 60,000 active and retired auto workers live in northwest Ohio and southeast Michigan." (MORE)
http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20090421/BUSINESS0...

Statements made are the opinion of the writer who is exercising his first amendment right to freedom of speech. Freedom of speech in the United States is protected by the First Amendment to the United States Constitution and are generally permitted.

Obama picks winners and losers...give us power over you..or go bankrupt....

The democrat way!

Now they wont even let the banks pay back the Tarp money.....it's "not in the national intrest"...

You know what the caption is for the Obama chavez pic?

http://www.timesonline.co.uk/multimedia/archive/00524/Chavez_1__524861a.jpg

"Chavez,..ha ha..I got a head start"

Obama pals around with dictators...

Reaching out...

Reaching out to Russia...

Reaching out to Iran..

Reaching out to venezuala..

Reaching out to North Korea...

Reaching out to palistine...

Reaching out to the taliban...

But the American people get a reach around...

Show me your friends..and I'll show you your future...

“Political correctness is a doctrine, fostered by a delusional, illogical minority, and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a turd by the clean end.”

http://www.reuters.com/article/topNews/idUSTRE53K0KU20090421?feedType=RS...

U.S. to give Chrysler, GM new aid
Tue Apr 21, 2009 12:26am EDT
WASHINGTON (Reuters) - The Obama administration will make about $500 million available to Chrysler LLC through the end of this month as it seeks to reach an alliance with Fiat, and up to $5 billion through May to help General Motors Corp restructure outside of bankruptcy, an independent oversight report on the Treasury Department's corporate rescue fund said on Tuesday.

Separately, the United Auto Workers (UAW) union urged its members to lobby the White House by phone or email to ensure that workers and retirees are treated fairly in negotiations at both companies on new concessions, which are considered vital for the automakers' to survive.

"We need President (Barack) Obama and his auto task force to stand up for the interests of workers and retirees in these restructuring negotiations," the union said in an appeal on its Web site to members.

The UAW represents about 26,000 workers at Chrysler and 62,000 at GM.

The union is under pressure along with bondholders and banks to help Chrysler and GM slash debt so they can restructure. The central issue for the UAW and the car companies is reaching an accord on restructuring the finances of a multi-billion-dollar retiree health care trust.

The administration's task force does not believe Chrysler can stand alone and is brokering meetings this week in Washington and Detroit to see if a deal with Fiat is possible.

The administration has offered up to $6 billion to help finance the alliance that would give Chrysler access to Fiat's small car technology and the Italian automaker a platform for building light trucks and a robust network for selling its vehicles in the United States.

Analysts and consultants have questioned whether the companies can close the deal and avert what most believe would be a certain Chrysler bankruptcy.

At the White House on Monday, Obama's chief spokesman, Robert Gibbs, would not forecast where the talks were headed but said the administration was working "with all of the stakeholders involved" and was hopeful a solution would be found to "continue the Chrysler brand" and strengthen the industry overall.

“Political correctness is a doctrine, fostered by a delusional, illogical minority, and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a turd by the clean end.”

The common sense answer here is that both labor and management and especially the corporate fat cats are going to have compromise on income...ie...both sides will have give up some. Period. You cannot continue to stay in business with a completely dysfunctional operation.

Political Championship Wrestling- putting politics in proper perspective by presenting it as pro wrestling.

Coming in January, a political satire about the sorry state of American Politics- Jesusland vs. Progressiveville.

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