Tag Archives: uaw
Turning a corner, or going in a circle?
There is no word on what this what the deal entails, but on the day when Chrysler and GM were required to submit their proposal on long-term survival in exchange for the second half of the bridge loan, the Big Three automakers have reached a tentative agreement with the UAW.Â I would say that there is more here and here but there really isn’t because neither the companies nor the UAW have released the terms of the deal.
Labor costs, at least for current workers, are not substantially higher for American companies than they are for foreign (and largely non-union automakers).Â Legacy costs are the big drag (other than outdated perceptions like those of my father who refuse to buy American cars because they sucked in his childhood) and VEBA discussions (on benefits) are continuing.Â There’ll be more on this issue when it comes out… and when I finish midterms.
Jennifer Granholm made a great point on Meet the Press this morning.Â In rejecting a $14 billion loan to the Big Three automakers which would have a long term net cost to the government of … $0, the government took on $150 billion responsibilities from decreased tax revenue, increased unemployment and healthcare responsibilities thats $500 for every man woman and child in the country.Â Opponents of the bridge loan often say that if Ford, GM or Chrysler were credit worthy they would be able to get loans in the normal fashion.Â Ignoring that the credit markets don’t work right now, they forget that the bank doesn’t face the loss of $150 dollars if the automakers can’t get loans.Â We the taxpayers do.