Online at: http://politicalaffairs.net/article/articleview/7834/

Auto Bailout: Union Says, "We're Not Bankers"


Archives - Dates and Topics 2008 – online December 1– 31, 2008 click here for related stories: labor movement

12-05-08, 2:05 pm

GRAND RAPIDS, Mich. – Auto workers are fighting back. Over the past few weeks, right-wing pundits, the mainstream media, and many in Congress have opposed providing the automakers with a requested $34 billion loan as part of the $700 billion package already passed last October to help the companies avoid looming bankruptcy.

Republicans have even gone so far as to blame the workers themselves, accusing them of pushing for higher wages and better benefits and, in turn, causing the financial troubles the companies face.

Former Republican presidential hopeful Mitt Romney even proposed allowing the companies to go into bankruptcy regardless of the impact of such an action on the millions of workers and their families in auto and related industries. Romney basically implied that it was fine to punish working families in order to break their union, the United Autoworkers (UAW).

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But this week the union fought back with a new TV and online ad. "We're not bankers. We don't work on Wall Street or for big insurance companies," the ad's voiceover announced.

While flashing images of autoworkers, the commercial continued, "We build quality cars and trucks, but we've been hit by the same financial crisis."

"If we go out of business, so will thousands of other businesses. If we lose our jobs, so will millions of others," the ad emphasized.

A recent estimate by the Economic Policy Institute suggested that as many as 3 million workers are tied directly to the auto and auto parts industry, as well as indirectly in related industries. The ripple effect of the collapse of even one of the companies could harm many communities, small business owners, and working families.

An interactive map produced by the Detroit Free Press this week revealed the extent of the impact of the auto industry in dozens of US states.

The UAW ad, speaking directly to members of Congress, stated, "If Wall Street can get help, so should Main Street. We work hard building fuel-efficient cars for our future. Don't let us down."

Speaking to reporters in Washington on Dec. 4, UAW President Ron Gettelfinger said, "Main Street deserves help just as much as the bankers on Wall Street. It is time for Congress to do its job to save millions of American jobs and prevent our nation from falling deeper in recession."

The UAW this week also publicized key conditions that could come with the loan. Taxpayers would be purchasing an equity stake in the companies who receive funds. Stakeholders in the companies would organize a joint project to plan the re-tooling of US-based factories to build environmentally-forward cars, and provide health and pension benefits for retirees. All of the funds should be spent in the companies' US facilities, the UAW insisted.

For its part, the union said it would agree to postpone current labor contract requirements on the companies' payments in the union-controlled benefits program as well as the "jobs bank" program, which gives paychecks to auto workers laid-off by stalled production or seasonal slow-downs.

Leading Democratic members of Congress have described bankruptcy as "not an option," but so far they have made little progress in pushing through auto loan legislation.

See the ad here:



Readers can use this tool from American Rights at Work to write to their members of Congress to urge swift action on passing a loan deal.


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