UAW starts petition for automaker loans

The UAW has started a petition and a drive to contact Congress, in favor of government loans to domestic automakers. 

Such loans have been recommended by the Japan Times and representatives of Honda and Toyota, but have been opposed by many American media outlets not connected with the industry, and by Congressional representatives of states with foreign automakers’ plants. The loans have also been opposed by the White House, which campaigned vigorously for $700 billion to “rescue” banks and insurers with few restrictions.

Talking points issued by the UAW include support of a requirement by Democratic leaders to have CEOs present detailed plans by December 2, support for an equity stake, “tough limits on executive compensation,” a ban on dividends; and an advisory board to ensure that expenditures benefit the United States and are consistent with the viability plans. The UAW also wants a plan by the Obama administration for revitalizing domestic industry. 

The talking points note that “The consequences of a collapse by the domestic auto companies would be truly devastating,” listing:

• 3 million lost jobs;

• pension and health care benefits cut for 1 million retirees, spouses and dependents;

• thousands of other businesses — dealers, suppliers and others — would be threatened;

• huge pension and health care costs shifted to the federal government;

• negative impact on the entire economy, making the current recession much worse;

• drop in revenues to the federal, state and local governments, forcing cuts in vital social services.