posted on Dec, 20 2008 @ 10:40 AM
By Peter Whoriskey
updated 5:22 a.m. CT, Sat., Dec. 20, 2008
For decades after its founding in 1935, the United Auto Workers stood as a powerful model for the American labor movement, an influential organization
that historians credit with uplifting living standards for all working Americans.
But with the announcement of the federal loan deal yesterday, the union found itself being forced into concessions that some described as tantamount
to surrender.
The $17.4 billion federal loan agreement does keep the domestic auto industry alive. But the terms of that loan also insist that the wages and
benefits for union workers be lowered to "equal" the average of nonunion workers, specifically, those at the U.S. plants of Nissan, Toyota and
Honda
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I think that this is a very good sign for change in Detroit. The legacy costs were killing them for years and years. Now maybe they can actually be
competitive.
I still think that they are getting away with murder but they've been deemed "to important to fail", it seems.
The thing that I find most interesting is they were claiming that tons of people would be put out of work if they fail. These people were out of work
already and no one said anything to that affect. The parts suppliers, the steel workers, the tire and battery makers and so on. These people were
scaled back or layed off in the third quarter.
Hmmmmmmmmmmmmmm....