Republicans who fought a White House-backed bailout plan want Americans to blame the United Auto Workers and think about Rod Blagojevich.
Photo: AP
As General Motors announced the temporary closure of 20 plants Friday, Republicans who fought a White House-backed bailout plan want Americans to blame the United Auto Workers and think about Rod Blagojevich.
The GOP strategy, previewed in an “action alert” sent by a Republican lobbyist and outlined by Republican aides, is based on the idea that the best defense is a good offense — and the hope that the taint of the Illinois governor will rub off on organized labor.
“This is the Democrats’ first opportunity to pay off organized labor after the election ... a precursor to card check and other items,” said the memo. “Republicans should stand firm and take their first shot against organized labor, instead of taking their first blow from it.”
Hours after that memo was circulated Wednesday, five GOP senators went before TV cameras to declare their opposition to a $14 billion bailout for GM, Chrysler and Ford. The House approved the plan Wednesday night, but it died in the Senate Thursday night when only 10 Republican voted for a procedural motion to allow passage.
With world markets plunging on the news, the Bush administration quickly opened the door to using money from this fall’s $700 billion financial-market bailout to keep Chrysler and GM alive into next year — an idea it had previously rejected.
Some Republican senators are resistant to that plan, too, saying the White House shouldn’t do anything to help the automakers without imposing the restructuring requirements that would have been included in the congressional bailout plan.
Either way, GOP aides are already plotting their strategy to deal with any blowback on the bailout vote. They’ll portray the UAW as intransigent; hammer away at the theme that unions don’t effectively represent mainstream workers; and play up the involvement of labor officials in the corruption scandal revolving around the Democratic governor of Illinois.
The hope: By making Big Labor the bogeyman, Republicans will escape blame for whatever happens with the automakers and set themselves up well for the card check debate expected to hit Capitol Hill after the first of the year.
Sen. Bob Corker (R-Tenn.), who played a central role in the negotiations that fell apart Thursday, put parts of the plan into play Friday.
In an interview with Politico, Corker said that the bailout plan lost any hope of Republican support in the Senate when the UAW refused to agree to a “date certain” on which the secretary of labor would begin the process of certifying that the wages paid by domestic automakers were “competitive” with those paid by foreign manufacturers with U.S. plants.
And in a press conference, Corker said a Republican alternative to the White House-backed plan could have passed both the House and the Senate if the UAW had “released” Democrats to vote for it.
“I hate to be so blunt,” Corker said. “That’s politics.”
Senate Minority Leader Mitch McConnell (R-Ky.) echoed Corker’s suggestion that the UAW’s position on the wages issue was the “sticking point,” and he washed his hands of responsibility for the Big Three’s larger problems.
“None of us want to see them go down,” he said in a statement, “but very few of us had anything to do with the dilemma that they've created for themselves.”
Blame the UAW??? How stupid do these guys think the average voter just might be? Not that I needed to see the Republican memo (marching orders), I (and millions more) already knew that Shelby, McConnell and their ilk can't see past their partisan, self-serving, blowhard selves and do what is right for America at this unbelievably crucial time. I'm so, so, so, so, so sick of the Republicans in Congress and their talking heads that rant and rave, throwing out manipulated statistics and absurd arguments. God, January 20 can't come soon enough. That said, the UAW is willing to make concessions but why shouldn't they be allowed to negotiate those concessions - that is what they do on behalf of their members. The auto-workers are getting a really bum rap in all of this - what concessions and sacrifices did Rick Wagoner make when the UAW made contract concessions? Did he give up one thin dime of his outrageous salary and bonus? No - If (and when?) the "Big 3" fail and the ripple effects put the economy even further down the drain, it will be on the Republican's hands. They are all despicable.An Ordinary American Trying to Make A Living
This is a prime example of Politicians working to a political position with disregard for the greater good. When you're in the hole you should stop digging. These Republican Senators are about to unleash a backlash against their party that will last a decade. Incredible.
AFTER BUSH/CHENEY, COMPETENCE & ACCOUNTABILITY IS CHANGE.
This is why you guys (Republicans) are viewed unfit for office, and have lost to Dem majorities in House, Senate, in Governorships, and the Presidency.
You idiots are seriously willing to risk us going into a Depression just so you could attempt to bust a union?? There is a reason Bush has backtracked, and its not because he suddenly likes the UAW. Republicans killed the bailout bill..if that stands and the automakers go into bankruptcy its over PERMANENTLY for the republican party, as well as our economy.
Millions of jobs at stake in carmaker woes The downfall of one of the Big Three could cost as many as 3 million jobs and $60 billion in the first year, report says. By Julianne Pepitone, CNNMoney.com contributing writer December 11, 2008: 4:01 AM ET
NEW YORK (CNNMoney.com) -- With auto sales at the weakest pace in 25 years and a government bailout far from certain, job losses in the struggling industry could potentially get much worse.
If the Big Three carmakers were to cut U.S. operations by 50%, 2.5 million jobs could be lost in 2009, according to a study released Wednesday. The Center for Automotive Research reported that the total employment impact includes nearly 250,000 jobs lost at the automakers and nearly 800,000 at suppliers. In addition, the organization estimates another 1.4 million job losses outside the industry, such as those caused when stores go out of business in communities hit by plant closings.
In economic terms, cutting operations in half would reduce personal income by more than $125.1 billion in the first year, and $275.7 billion over three years, the center said. Such a decline in personal income would cost the government tax dollars -- $49.9 billion in 2009 and more than $108.1 billion over three years. http://money.cnn.com/2008/11/0... Weak outlook for jobs, GDP in 2009 UCLA report expects 2 million jobs lost, four straight quarters of GDP decline. By Julianne Pepitone, CNNMoney.com contributing writer December 11, 2008: 4:01 AM ET
NEW YORK (CNNMoney.com) -- The nation is expected to lose 2 million jobs in 2009 and undergo economic contraction through the first half of the year, according to a widely watched report released Thursday.
The quarterly forecast issued by UCLA's Anderson School of Management was peppered with words like "ugly," "nasty" and "abnormalities."
In the report, senior economist David Shulman said the recession will include four quarters of declining real gross domestic product, and unemployment will rise to 8.5% by late 2009 from the 6.7% reported last month.
3 MILLION JOBS LOST IF AUTOMAKERS GO INTO BANKRUPTCY + 2 MILLION ALREADY PREDICTED LOST = A GUARANTEED DEPRESSION WHICH THE REPUBLICANS WILL BE DIRECTLY RESPONSIBLE FOR.WE DID IT!!!!!!!!!!
Obviously the public ain't buying what the GOP is trying to sell. So now they have the worst of both worlds...the President will free up money for the bridge loan, and the GOP Conservatives will rightly be seen as trying to sink the US economy because of their hatred of unions, threatening millions of wage-earning families because of their "core beliefs." I guess they figure they have little left to lose, because this little drama of theirs will surely put the final nail in whatever political hopes they may have had for the next decade or two.
The Center for Automotive Research said if ONE of the big three reduced production by 50% we would see 3 million jobs LOST for 2009. Due to Republicans gambling our economy over a political stunt, GM has just announced it is slashing production by 30%.
THIS IS WHAT THE REPUBLICANS HAVE GOT US. A DOWN PAYMENT ON A FULL-BLOWN DEPRESSION, ALL BECAUSE THEY GAMBLED OUR ECONOMY ON A UNION-BUSTING STUNT.
GM To Temporarily Close 20 Plants To Slash Output DAN STRUMPF | December 12, 2008 05:17 PM EST
NEW YORK — General Motors Corp. said Friday it will temporarily close 20 factories across North America and make sweeping cuts to its vehicle production as it tries to adjust to dramatically weaker automobile demand.
GM said it will cut 250,000 vehicles from its production schedule for the first quarter of 2009, which includes a cut of 60,000 vehicles announced last week. Normal production would be around 750,000 cars and trucks for the quarter, spokesman Tony Sapienza said.
Many plants will be shut down for the whole month of January, he said, and all told, the factories will be closed for 30 percent of the quarter.
"We're adjusting pretty dramatically," spokesman Chris Lee said.
The move affects most of GM's plants in the U.S., Canada and Mexico. During the shutdowns, employees will be temporarily laid off and receive a portion of their normal pay from the company. They can also apply for state unemployment benefits, Lee said.
GM and nearly all automakers who sell in the U.S. are mired in the worst sales slump in 26 years. GM reported its sales in the U.S. plunged 41 percent in November and are down 22 percent for the first 11 months of the year compared with the same period last year.
Cash-strapped GM is seeking government loans to stay in operation beyond the end of the year. The White House said Friday it may tap into its $700 billion Wall Street bailout fund to help GM and Chrysler stay in business after the Senate blocked a measure to provide $14 billion in immediate loans.
The measure failed in dramatic fashion late Thursday after Senate Republicans balked at passing the bill without more wage and benefit concessions from autoworkers.
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CHRYSLER COLLAPSE NOW IMMINENT - REPUBLICANS RISKING 3 MILLION AMERICAN JOBS OVER POLITICAL STUNT
Report: Chrysler suppliers are demanding cash
Philip Nussel Automotive News December 12, 2008 - 1:14 am ET
DETROIT -- Chrysler LLC's suppliers have begun asking for cash on delivery for auto parts, the Associated Press reported late Thursday, citing an interview with executives. Vice Chairman Tom LaSorda and Chief Financial Officer Ron Kolka said suppliers and other vendors have demanded COD, but the company is "fending them off," the AP said.
When suppliers demand COD from a troubled company such as Chrysler, it can cause chaos in the company's financial structure.
Chrysler's cash will drop to $2.5 billion by Dec. 31, company officials have said. That's the bare minimum the automaker needs to make payroll and pay suppliers, according to the report. Chrysler pays its suppliers $7 billion every 45 days, Kolka told the AP.
"January, first quarter is a big problem for us," Kolka said.
Chrysler's depleted cash situation underscores the financial crisis faced by the Detroit 3 as a federal government loan bailout failed late Thursday evening. Without an immediate infusion of cash, both Chrysler and General Motors have said they could run out of funds to operate their businesses by the end of the year http://www.autonews.com/apps/p...
Millions of jobs at stake in carmaker woes The downfall of one of the Big Three could cost as many as 3 million jobs and $60 billion in the first year, report says. By Julianne Pepitone, CNNMoney.com contributing writer December 11, 2008: 4:01 AM ET
NEW YORK (CNNMoney.com) -- With auto sales at the weakest pace in 25 years and a government bailout far from certain, job losses in the struggling industry could potentially get much worse.
If the Big Three carmakers were to cut U.S. operations by 50%, 2.5 million jobs could be lost in 2009, according to a study released Wednesday. The Center for Automotive Research reported that the total employment impact includes nearly 250,000 jobs lost at the automakers and nearly 800,000 at suppliers. In addition, the organization estimates another 1.4 million job losses outside the industry, such as those caused when stores go out of business in communities hit by plant closings.
WHY DO REPUBLICANS HATE AMERICAN BLUE COLLAR WORKERS SO MUCH? WHY DO REPUBLICANS WANT MILLIONS OF AMERICANS TO SPEND THIS HOLIDAY SEASON ON THE STREETS, WITH THEIR BABIES, STARVING TO DEATH WHILE THEY GO BACK TO THEIR MULTIMILLION DOLLAR MANSIONS? WHY??? President Elect Barack Obama. 44th President of the United States of America
Republicans continue the assault on the middle class. And yet the CEO's of these major corporations continue to be staunch Republican supporters. This is just payback to the unions for supporting Obama and other Democrats this past election cycle. We need to rid ourselves of these anti-American politicians who are not placing their country first once and for all. If they want to live in a country where the common man works for starvation wages while the elite have absolute power then let them move to China.
Stupid enough to vote in a politician for POTUS from the sewage system of Chicago politics - look at his long list of sewage ditch political allies.
The big three labor costs are too high and their product development costs are too high plus the products are inferior to foreign autos. A bailout is not going to fix the problem but delay the obvious.
Bum rap for the auto workers with the jobs bank program the UAW has. Top economist state U.S. automakers are “capable of making high quality vehicles” but that the extremely high labor and product development costs will keep the Big Three from becoming profitable and surviving.
To safe jobs in the long haul .. the big three needs to restructure (lower cost/auto)
"Economic justice" simply means punishing hard work and success by redistributing this hard work and success by government fiat. It's a euphemism for socialism.
Isn't it interesting that the Republicans are so confident that they are doing the right thing opposing this bailout that they already have a strategy on how to deflect attention and assign blame to someone else. If you believe that your "NO" vote is worth the risk of what could happen to the US auto industry, then stand up and say so.
HEY REPUBLICANS "COUNTRY FIRST"??? REALLY!!! WHICH COUNTRY: - CHINA - TAIWAN - JAPAN - SOUTH KOREA - ALL OF THE ABOVE CERTAINLY NOT AMERICA!!! President Elect Barack Obama. 44th President of the United States of America
No. They agreed to take $1 per year in salary. But since executive pay is generally a mixture of salary, stock options, incentives and other forms of compensation they will still be very well paid.
Does anyone know the exact vote tally from the senate; I heard if all the DEMOCRATS would have voted for this with the 10 REPUBLICANS that did vote yes,it would have passed.
We need to unionize the Honda plants in the South. If they move to mexico, we must teach the mexicans to union. If they move to India, we must teach them to make unions, if they go to China, we must teach the chinese to unionize.
When corporations stop treating employees like slaves that will be the day Unions are not needed, but until that day Unions must survive. Republicans don't care about regular people, if your not a millionaire or billionaire they think you don't exist. Occasionally they might pretend to like you if your Christian, but they don't really mean it.
born red wrote "So just out of curiocity: do you know the wage difference between the workers at the Big Three vs foreign auto manufacturers in the US?" the wage and benefits difference are about $3-$5 an hour depending on the plant location. The differences in labor costs are a result of pension obligations on the part of the Big 3 and amount to about $15 an hour. The Japanese companies havent been in the country long enough to rack up much in the way of pension results. I guess the republican party hopes the big 3 declare bankruptcy, void their pension obligations except for their executive separate plans and leave them broke and dependent on social security or whats left of it. unless I remember incorrectly uaw made several concessions in last contract and it wasnt until the ceo's traveled by private jets that they gave up their salary for a year.
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