Auto-Bailout: Unions Pulling Strings to Save Sweet-Heart Pensions
There is a current labor crisis involving the US auto manufacturers, but not all plants are suffering. The unionized companies are taking large losses while Toyota and other non-unionized companies in right to work states are not yet jumping ship. However, the unions wish to do whatever it takes to "bailout" the automobile sector. Why? Because if GM or the other large plants have to file bankruptcy, the multi-billion dollar union pension plans will have to be renegotiated with a much higher degree of transparency and accountability.
AWF sent the following legislative alert to the US House and Senate to highlight this effort by the unions to save their "backroom" sweet-heart pension deals:
Auto-Bailout: When Unions Pull Strings to Have Their Sweet-Heart Pensions Saved
After giving $600 billion to the left, unions say it’s payback time
Washington, D.C. – Is Congress really prepared to send the message that the free market is obsolete, that competition is not the driving force in our economy and that bad decisions by corporations warrant government intervention?
This is exactly what will happen if the “auto-bailout” is allowed to go through. This is not a problem with the auto-industry; this is a problem with the unionized auto-industry.
Unions gave over $600 million this election cycle – 91 percent of that went to Democrats and now the Big Labor bosses are becoming the political “puppet masters” to bailout their failing billion dollar trust funds.
True, this money does not go directly to the union coffers. However, bailing out the auto-industry allows GM to avoid Chapter 11 bankruptcy. If the company does not file Chapter 11, the United Auto Workers circumvent GM entering a pension renegotiating process which could ultimately strip the unions’ control over a $35 billion VEBA (or Voluntary Employee Benefit Association). This VEBA is an unmonitored union slush fund that the UAW got in a strike-concession from GM in 2007 and would vanish without the bailout.
Do not allow the United Auto Workers to pull the strings of government. Chapter 11 is there for a reason. Vote “NO” on the “Auto-Bailout for Sweet-Heart Union Pensions”
