Also, see some video reports at Do you trust congress to run the auto industry?
Union Workers at Big Three Automakers Average $73 an Hour-"Economists in Michigan, the long-time home of the auto industry, say they don’t support the proposed multi-billion dollar bailout of Big Three automakers Chrysler, GM and Ford. One reason why, they say, is the ultra-high labor costs for union workers employed by the Big Three. It costs over $73 per hour on average to employ a union auto worker, according to University of Michigan at Flint economist Mark J. Perry. “Is it right to tax the average worker making $28.50 to bailout workers whose labor cost is over $73 an hour?” Perry asked. He explained that in 2006, widely available industry and Labor Department statistics placed the average labor cost for UAW-represented workers at the former DaimlerChrysler at $75.86 per hour. For Ford it was $70.51, he said, and for General Motors it was $73.26. “That includes the hourly pay, plus the benefits they’re receiving and all the other costs to General Motors, Ford and Chrysler, including legacy costs – retirement costs, pensions, and so on – so it’s looking at the total labor costs per hour worked for workers,” Perry said. For U.S. workers at Toyota, however, the per hour labor cost is around $47.60, around $43 for Honda and around $42 for Nissan, Perry added, for an average of around $44."Networks Back Big Three Bailout-"Journalists have yet to see a bailout proposal they don’t like. After supporting the $700 billion financial bailout, the broadcast network news outlets have promoted the proposed $25 to $50 billion bailout of the American automakers."-Excellent article documenting media coverage on this issue.
It's Not an Auto Bailout, It's a Union Payoff-"Democratic leaders, media push for more cash to help liberal voting bloc...." Only it has little to do with saving Detroit and a lot to do with helping out the Democratic Party’s political machine. The chief recipient of this deal isn’t the companies, it’s the union. A bailout of Detroit would secure that the Big Three continue to fail and pay exorbitant sums to thousands of union workers.
The Los Angeles Times says unions funded the Democratic victory to the tune of more than $80 million just this election. The San Francisco Chronicle puts the number a bit higher – $450 million. Either way, they want their payback. They already have two things in mind – eliminating secret ballots in union elections and saving their 139,000 brothers and sisters in the United Auto Workers.
The New York Times quoted Gary N. Chaison, professor of labor relations at Clark University, saying without a bailout the union will “be a shadow of what it was 50 years ago.” “The future of the U.A.W. will be determined over the next two weeks,” he explained in a Nov. 17 story."
Automakers need 'systemic change,' perhaps bankruptcy-"A U.S. senator is advising the American auto industry to file for Chapter 11 bankruptcy and change management under reorganization.
Senate Democrats are seeking to take $25 billion of the massive financial bailout to pay for loans to Detroit's Big Three automakers -- Chrysler, Ford, and GM. However, the White House and Republicans in Congress want the automaker bailout money instead to come from redirecting a separate $25 billion Department of Energy loan program already approved by Congress to help the industry develop more fuel-efficient vehicles. Oklahoma Republican Senator Jim Inhofe says the auto industry is struggling because of both union and management problems. "If we were to go in there, just say, and drop $25 billion on our Big Three, do you think that they would actually change the way they operate? I don't think so," he contends. He believes that instead of treating the symptoms, the industry ought to evaluate a deeper-rooted problem. "I think that they need to have a systemic change, a change in the way they've been doing business," he explains. "They ought to fire the people who are responsible for getting them in the position they're in. They ought to renegotiate their union contracts and let people know that they need to survive, maybe even file bankruptcy." Inhofe says if the auto industry files bankruptcy, labor unions might get the message that they "can't negotiate to the point where they run a company under."
Charts on this page found at Auto Bailout Ignores Excessive Labor Costs and not only does the Auto bailout ignore this issue but so does Big Media!!!