«
»

Senate votes down $14 billion in UAW welfare

Posted 12 Dec 2008 in bailouts, conservatism, economy, George W. Bush, unions

After the House’s disappointing vote to bail out the “Big Three”, it was gratifying to see cooler heads prevail in last night’s Senate vote. Michelle Malkin posted the final roll call vote on the UAW bailout so you can see what your senator voted (including the 10 pro-bailout Republicans).

But this isn’t over yet. The unions still have their hands out, and they’re relying on President Bush to fork over your money to preserve their status quo.

With hopes of a $14 billion set of emergency loans dying in the Senate on Thursday night, the United Auto Workers and Detroit’s Big Three automakers are resting their hopes on President Bush to save the industry from insolvency.

“I would hope that president Bush start thinking about the welfare of this entire country and pull the trigger on” automotive aid from the $700 billion finance bailout package that Congress passed earlier this year, said Jim Graham, president of the UAW Local 1112 in Lordstown.

Well, he got the “welfare” part right.

UAW members are some of the most highly paid workers in America, earning $28/hour, but their cost to auto manufacturers is more like $73/hour after wages, benefits, and retirement are factored in.

This bailout should be rejected on principle. The government should not be propping up failure and enabling dysfunction in the marketplace. Even so, Senator Jim DeMint (R – SC) hit the pragmatic nail on the head;

“The fairness of it becomes more and more evident as we go along. The auto companies may be hurting…but there are very few companies that aren’t hurting and they’re going to hurt. We don’t have enough money to bail everyone out.“

The Big Three’s poor performance (thanks to the UAW) is what Chapter 11 bankruptcy was created for. If they file Chapter 11 bankruptcy, they will stay in business, be given relief from most of their debts, and a judge could order UAW’s contracts to be renegotiated to reflect competitive realities. In the meantime, shareholders could demand the resignation of the inept leadership that created the situation.

Call the White House switchboard and tell them no means no: 202-456-1414.

Posted by FullMetalPatriot
12th gen. American, Constitutionalist, Harley-riding Texan, gun owner & NRA member, blogger, illustrator, Florida Gator alumnus. #TCOT

Leave A Comment