“Car Czar” to slash wages, jobs of US autoworkers

[Omaha Steve]

http://themancommon.blogspot.com/2008/12/car-czar-to-slash-wages-jobs-of-us.html

By Jerry White

The White House and Congress are reportedly close to a deal to provide a $15 billion bridge loan to General Motors and Chrysler. The proposed legislation would establish the framework for drastically shrinking the US auto industry and sharply cutting the wages, health benefits and pensions of autoworkers.

There are still disputes within the political establishment over the bailout, with a section of right-wing Republicans denouncing any government effort to prop up the failing automakers as “socialist” and arguing that bankruptcy is a more effective way to slash labor costs or simply liquidate unprofitable companies.

However, a consensus appears to be emerging—involving the Democratic congressional leadership, the Obama transition team and the Bush administration—that the failure of the auto industry and the loss of hundreds of thousands more jobs could lead to a full-scale depression and collapse of the banking system. A bipartisan agreement is near to avert the bankruptcy of the US automakers, at least in the immediate future, while appointing a government overseer who would have as much, if not more, power over the Big Three companies than a bankruptcy judge.

The plan, drafted by the Democratic congressional leadership and submitted to the White House Monday, empowers Bush to appoint a so-called “car czar” to oversee the dispensation of federal loans and the restructuring of the industry. The choice of the term “czar” is apt because the official will have dictatorial powers to tear up union contracts, review financial books and records of the companies and approve or reject all capital expenditures over $100 million.

According to some press reports, this official, whose appointment will not be subject to Senate confirmation, will have the power to dictate terms to GM, Chrysler and Ford as well as to the United Auto Workers and other unions, suppliers, vendors, and creditors. The mandate of the “czar” will be to ensure that the companies take any and all measures needed to pay back the government loans.

FULL story at link.

[mrreowwr_kittty]

1. Holy fucking crap. Can Obama reverse whatever the czar does? nt

[Jane Austin]

2. Who is Jerry White?

Thanks.

[juajen]

3. I think the idea of a czar is ridiculous. An oversight committee is reasonable,

but a czar. Give me a break! Where the hell is the Wall Street Czar or the Insurance Czar. They disgust me. What republican hypocrisy!

[stillcool]

4. I get it!! They call it a czar..

because he/she gets to... "Dictate Terms" to GM, Chrysler and Ford as well as to the United Auto Workers and other unions, suppliers, vendors, and creditors.

[DJ13]

5. As long as the czar serves as long as the President wants, no problem

Theres not enough time for a Bush licker to do too much damage, and I would hope Obama would move immediately to replace the Bush appointee once in office.