Bush announces auto industry aid package

This morning, President Bush announced a $17.4 billion loan package to rescue failing American automakers. The plan will be paid for using TARP funds (Troubled Asset Relief Program, part of the original financial bailout), as Congressional Democrats had wanted.

The terms of the loans authorize $4 billion each for GM and Chrysler on Dec. 29 and another $5.4 billion for GM on Jan. 16.

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Another $4 billion could be authorized in February if necessary and Congress and President-elect Barack Obama decide to do so.

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The package includes many of the restrictions that were included in the failed legislation and requires the companies to achieve “positive net value” by March 31 and produce plans toward viability. If the administration is not satisfied, the loans could be called off – essentially forcing any of the companies into bankruptcy.

And what might some of those restrictions be that were included in Bush's plan? Yes, that's right, Bush is sticking it to the UAW.

Bush included the provisions suggested by Senate GOPers that killed the bailout agreement in Congress. Chief among them is a requirement that American automakers lower worker salaries to the same level paid by foreign carmakers with factories in the U.S. by the end of '09. GOP lawmakers have been pressuring Bush to include the provision since he announced he would develop a WH-run bailout.

It's a sad day when the American government sells out American workers in order to keep foreign companies competitive. But then we've been having a lot of sad days for the past eight years. And, if you ever believed the Republican line about the "free market" you ought to go get a shovel, because it's piling up pretty high. And I'm not talking about the snow we're having either.

Here is the UAW response to the rescue package, which notes that sacrifices must be made by all stakeholders.

"We're pleased that the Bush administration has acted today to provide urgently needed emergency bridge loans to America’s auto companies and to pursue a process for restructuring outside of bankruptcy," said UAW President Ron Gettelfinger. "This will keep the doors of America's factories open, keep Americans working and prevent the devastating economic consequences for millions of Americans and thousands of businesses that would have resulted from a liquidation of operations by one or more auto companies."

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"While we appreciate that President Bush has taken the emergency action needed to help America's auto companies weather the current financial crisis, we are disappointed that he has added unfair conditions singling out workers," said Gettelfinger. "These conditions were not included in the bipartisan legislation endorsed by the White House, which passed the House of Representatives and which won support from a majority of senators.

This eagerness by President Bush and Congressional Republicans to prop up foreign interests has got to be a campaign issue in 2010. The party that used the slogan "Country First" for its national convention does not represent American interests. Either you're for the United States of America or you're not, and the Republicans in Congress and the White House are clearly not. And the voters need to hold them accountable, since they are supposed to represent us.

Like I said before, the Republican old boys network can step up, wave the flag, sing another chorus of the "Battle Hymn of the Republic" and pay homage to mom and apple pie all they want, but it all means nothing if, in the end, the actions they take support foreign interests and hurt Americans.

Yes, American automakers have been badly mismanaged for as long as I can remember. But the workers who are being asked to bear the brunt of this problem, had no say in the business decisions that led us to this day. It's simply unfair to expect the UAW to sacrifice everything so that management can collect a payday from the federal government and continue business as usual.