The Senate is a different matter. Majority Leader Harry Reid isn’t so fortunate. The bailout failed in the Senate because the United Auto Workers refused to accede to Republican demands for swift wage cuts.
The Detroit automaker leaders are shown above. From left to right are: Richard Wagoner, Chairman and CEO of General Motors, President of the United Auto Workers International Union Ron Gettelfinger, Alan Mulally, President and CEO of Ford Motor Company, and Robert Nardelli, Chairman and CEO of Chyrsler LLC.
The UAW refused to agree to wage cuts before their current contract expires in 2011.
Republicans in the Senate stood their ground saying that wage cuts must be in 2009 to bring their pay into line with Japanese carmakers.
If Detroit automakers are denied the bailout, they may be forced into bankruptcy.
A bankruptcy judge could toss out existing union contracts and set pay and benefits comparable to Japanese autoworkers.
When Airlines filed for bankruptcy, the traveling public didn’t stop flying with them. Would car buyers purchase vehicles from a bankrupt automaker?
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