Friday, December 12, 2008

Auto industry slain last night by Senate Republicans

Been holding my water on this for as long as I could. Can't stand it one more minute:

A bailout-weary Congress killed a $14 billion package to aid struggling U.S. automakers Thursday night after a partisan dispute over union wage cuts derailed a last-ditch effort to revive the emergency aid before year's end.

Republicans, breaking sharply with President George W. Bush as his term draws to a close, refused to back federal aid for Detroit's beleaguered Big Three without a guarantee that the United Auto Workers would agree by the end of next year to wage cuts to bring their pay into line with U.S. plants of Japanese carmakers. The UAW refused to do so before its current contract with the automakers expires in 2011.

The UAW acceded to the politicians' demands to reduce its members' compensation -- they are NOT $70 an hour, by the way; that's another radical conservative urban legend -- just not next year, as Sens. Bob Corker of Tennessee, Mitch McConnell of Kentucky, Richard Selby of Alabama, and a few other tobacco-juice-drooling, slave-owning symbols of the Old South insisted.

That bill — the product of a hard-fought negotiation between congressional Democrats and the Bush White House — was virtually dead on arrival in the Senate, where Republicans said it was too weak in its demands on the car companies and contained unacceptable environmental mandates for the Big Three.

Thursday's implosion followed yet another set of marathon negotiations at the Capitol — this time involving labor, the auto industry and lawmakers. The group came close to agreement, but it stalled over the UAW's refusal to agree to the wage concessions.

"We were about three words away from a deal," said Corker, the GOP's point man in the negotiations, referring to any date in 2009 on which the UAW would accept wage cuts.

...

Congressional Republicans have been in open revolt against Bush over the auto bailout. Senate Minority Leader Mitch McConnell of Kentucky joined other GOP lawmakers Thursday in announcing his opposition to the White House-backed bill, which passed the House on Wednesday. He and other Republicans insisted that the carmakers restructure their debt and bring wages and benefits in line with those paid by Toyota, Honda and Nissan in the United States.

Hourly wages for UAW workers at GM factories are about equal to those paid by Toyota Motor Corp. at its older U.S. factories, according to the companies. GM says the average UAW laborer makes $29.78 per hour, while Toyota says it pays about $30 per hour. But the unionized factories have far higher benefit costs.

GM says its total hourly labor costs are now $69, including wages, pensions and health care for active workers, plus the pension and health care costs of more than 432,000 retirees and spouses. Toyota says its total costs are around $48. The Japanese automaker has far fewer retirees and its pension and health care benefits are not as rich as those paid to UAW workers.


So let's make sure everybody understands: because the US auto industry is almost a hundred years old, because its workers bled and died on assembly lines (and continue to do so today) before they organized for livable wages, affordable health care, and a comfortable retirement -- things the GOP has dismantled in virtually every other American industry over the last 25 years -- they are to be punished.

McConnell, the happy co-killer of labor unions and by extension the willing assassin of what's left of America's middle class, is married to Elaine Chao, the (so-called) Secretary of Labor. You can NOT make this shit up.

Even the massive financial contributions to the GOP by the auto manufacturers over the years couldn't buy them a break, because the Republicans saw an opportunity to bust a union and couldn't resist ...

An action alert circulated among Senate Republicans on Wednesday called for Republicans to "stand firm and take their first shot against organized labor."

In doing so, analysts said, Republicans were planting the seeds for a fundraising appeal to big business -- other than the Big Three, of course -- as they gear up for a major political fight next year over expected legislation that would make it easier for unions to organize.


Even Dick Cheney
told the GOP Senate caucus that it was going to be "Herbert Hoover time" if they killed this bill.

I believe the Republicans just sealed their fate as a minority party for a generation, isolated in the Southern region of the nation, policed by radicals and extremists. The homophobes and racial bigots throughout Dixie ought to be be real happy this morning. The poor people in Kentucky and Alabama and Tennessee -- and yes, Texas -- who elected these scumbags may yet live to regret voting against their economic self-interest, but they're probably still too stupid to realize it this morning.

Give them another three months, let the REAL depression settle in. I bet they start to smell the coffee.

Update: BooMan ...

When you've let your anti-union ideology move you far to the right of Dick Cheney, you know you're out on a limb. It appears the Senate Republicans decided to play their own game of chicken with the Bush administration. They said, essentially, 'if you don't want to go down in history as the modern-day Hoover administration, bail Detroit out on your own'. And now it is up to the Bush administration to do just that.

The 18 Senators who voted FOR the $700 billion bank bailout, and against the $14 billion loan to the auto manufacturers. Our very own Kay Bailey is one.

And this:

"I don't know what Sen. Vitter has against GM or the United Auto Workers or the entire domestic auto industry; whatever it is, whatever he thinks we've done, it's time for him to forgive us, just like Sen. Vitter has asked the citizens of Louisiana to forgive him, " said Johnson, president of Local 2166. Otherwise, Johnson said of Vitter, it would appear, "He'd rather pay a prostitute than pay auto workers."

-- Morgan Johnson, president of the United Auto Workers local representing General Motors workers in Shreveport

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