UAW owns a $6M golf course

All that union membership fees put to good use... in owning and operating a golf course!

Blaming Republicans, defending unions

Rose Ann DeMoro of the Huffington Post comes out swinging at the Senate Republicans, specifically their leader Mitch McConnell, in the matter of helping the auto industry. Funny title for an article: The Mitch Who Stole Christmas -- just in time for the holidays. Too bad she lacks the holiday spirit, calling Sen. McConnell "mean-spirited," "vilifying unions," and "cynical"...

Ms. DeMoro is upset over the Republicans' demand for "parity pay structure," or cutting wages and benefits for UAW laborers. She doesn't think it has anything to do with what's wrong with Detroit. Well, she's partially right -- unions share the blame with the clueless auto executives. Japanese automakers don't have to deal with excessive union contracts like G.M. has to, so naturally they can sell their cars cheaper than their American competitors. It's not about "punishing workers" as DeMoro argued, but rather staying competitive in the marketplace. And in the long run, allowing the employer to survive so the workers can still work. After all, nobody benefits from G.M. closing shop.

Being the liberal that she is, of course this has to tie into universal health care:

Or helping employers, as well as the people who work for them, by shifting healthcare coverage costs from employers to a national system like Medicare. It's one major reason why car producers have lower costs in other industrial countries which have national healthcare systems. It would also guarantee healthcare coverage for the millions of Americans who have lost, or are losing their jobs or employer-coverage in this recession, or were already uninsured.

Instead of cutting health care benefits, why not offload the obligation to a nationalized system like Medicare or some other universal health care plan. (I'm guessing she voted for Obama.) That actually sounds like a reasonable argument, but deep down it only means burdening taxpayers (including the workers) with UAW's health care bill.

No, thank you! Everybody is suffering in this recession, not just the auto workers.

But she concludes with a decent point:

During the last major Depression, we experienced a wave of union growth. A direct result was the full flowering of economic prosperity for American families and an unprecedented economic boom in the 1950s and '60s. The erosion of that dream and the shocking wealth chasm in our nation has coincided directly with the decline in union membership and the relentless attack on unions during the Bush-McConnell reign.

But let's just say that the unions of today is very different than those of the last Depression. There's nothing wrong with labor unions. In fact, it is indeed a good way for workers to organize and protect each other against injustices in the work place. However, mega-unions like the UAW, National Education Association, and American Federation of Teachers, have morphed into something sinister, something resembling political parties. And that stems from union leaders cozying up to Washington, particularly the Democrats, to stay in power and further their own agendas.

It is a shame that the UAW is getting so much negative attention in light of Detroit's troubles. Unfortunately, UAW leaders brought this unto themselves and their union colleagues for taking advantage of their employers and being a hard-headed cry-baby all these years...

Bush blinks first in auto bailout

In the high stakes game of "Who blinks first?" it looks like President Bush lost to the UAW. The biggest losers are taxpayers, naturally.

The White House will authorize a $17.4 billion bailout for G.M. and Chrysler LLC which should last them through February 2009. If the automakers cannot show they're worth saving by March 31, 2009, the loans will be called and all funds to be returned.

UAW leaders gambling on members' livelihood

It's a high stakes game of chicken: UAW vs. the U.S. Senate, especially the Republican senators. At risk are autoworkers' jobs and billions of American taxpayer dollars. Sen. Tom Colburn (R-Okla.) blames UAW for the collapse of negotiations. UAW President Ron Gettelfinger is busy holding press conferences to make the GOP senators look bad and to encourage the White House to dip into TARP for a bailout.

You've got to hand it to Mr. Gettelfinger. It's nice to gamble with others' livelihood. It's not like he'll be out of a job if the automakers file for bankruptcy. He'll continue his stint at the UAW, continue to pour money into the Democratic political machine, and all the while pointing fingers at Washington for Detroit's destruction.

Senate kills auto bailout bill

A few moderate Democrats joined forces with Republican senators to kill the $14 billion bailout bill after the UAW refused to cede wage and benefits to match those of foreign carmakers like Toyota and Honda. But now it seems the White House may step in to help Big Auto with TARP funds.

However, fingers are pointing everywhere already...

Democrats are blaming Republicans and the White House for not lining up their ducks, causing wasted energy and time, especially after the House passed the initial plan. Republicans are standing firm on greater concessions by Big Auto and its unions or else Detroit won't see a penny. They also bring up the point that Democrats have been too intimate with UAW and its largess, ultimately causing the downfall of G.M., Ford, and Chrysler.

It's a disturbing fact indeed that UAW and its political action committees have donated millions and millions to Congressional Democrats to lobby for labor benefits. Now look at what's happening. Daniel Howes of the Detroit News says it's Republican payback. That's certainly an oversimplified view of the situation. The bottom line is that the recession is hurting everyone, but not everyone is coming out asking for government handout. Why should taxpayers, many of whom are losing homes and jobs, further thin their wallets for these mismanaged corporations?

It bothers John B. Judis of The New Republic even more:

Here’s what bothers me. Japanese companies, which for years have benefited from one-way deal by which they could sell cars in the U.S. while U.S. companies were stymied in selling cars and trucks in Japan, set up non-union plants in low-wage, low-education, right-to-work states where they can pay less wages and benefits to their workers. Of course, in Japan, these same companies recognize and work with unions, but not here, where they have a chance to undercut American firms that work with unions. Corker and these other great patriots want to allow these Japanese companies to dictate the wages and benefits that American companies pay their workers. It’s despicable. Imagine, for a moment, American companies being allow to operate in this manner in Japan or South Korea. It would not happen.

Yes, that is part of the problem -- unfair trade practices between Japan and the U.S. But keep in mind that the Democrats control the House and the Senate and soon the White House! Why hasn't even one Democrat draft legislation to reverse this unfair trade? All they are thinking about is where and how to give more government handout, filling the media and our heads with images of an unemployment apocalypse triggering Great Depression II. Putting it bluntly, Democrats control the federal government, but they are not leading the nation.

And Judis ends with this:

Put it this way. What we have learned from the economics of the Great Depression is that in order to end the spiral of unemployment, government has to throw money at companies and consumers. It should be trying to raise wages, not lower them. The Wall Street bailout was a fiasco, but it was probably better than nothing. And the auto bailout was considerably better thought-out. Now there is a good prospect that two of the Big Three will fail, jeopardizing, perhaps, as many as a million jobs. That’s exactly the kind of thing that Americans should not be doing. But don’t tell that to those great patriots Corker, DeMint, or Shelby. They know better.

Anyone with basic understanding of capitalism and the fundamental economic principle of supply and demand would know Judis's thinking is flawed. Instead of the government throwing money, how about just not taking as much in taxes to let the companies and consumers decide what to do with it? Instead of trying to legislate acceptable wages, why not just let the market decide? The Great Depression was prolonged because of government intervention. The government should just get out of the way -- Americans have always found a way to recover and thrive without handouts!

Latest bailout saves UAW, not Big Auto

Another bailout package is in the works in Congress, one that's even less popular but that's not stopping the Democrats from pushing for it. House Speaker Nancy Pelosi said a government lifeline would be provided only if the auto industry meet new fuel-efficiency standards and restructure to limit executive compensation. Of course, there is no mention of concessions from the United Auto Workers (UAW) union.

We all know that the Democrats are good buddies with the UAW. This bailout will infuse fresh blood into the dying General Motors, Ford, and Chrysler so that the UAW can drain them some more. Big Auto already knows to make better, fuel-efficient cars. They came late to the green game and are paying the price. But the root of the problem is unionized labor in the auto industry. It's interesting how Jeffrey D. Sachs never mentions this in his Washington Post article. Michael E. Levine, writing for WSJ, is on the right track: Why bankruptcy is the best option for GM.