The Detroit News fingers one key political factor in GOP resistance to bailing out the United Auto Workers: Of $1.93 million contributed to candidates in the 2007 - 2008 cycle, the UAW gave $12,500 to GOP candidates--99.4 percent of its largesse went to Democrats. But the political conundrum for the GOP is this: the rank-and-file membership of private sector unions votes very differently from their highly partisan leadership (not true with public sector unions, whose members are highly partisan Democrats). Thus the GOP is, in a sense, damned if it does and damned if it doesn't.
A Wall Street Journal editorial praises Senate Republicans for standing up to the UAW by rejecting a bailout that would allow the UAW to finesse concessions until the new administration, when it could pocket the money and renege on its 2011 "commitment" to finally restructure labor costs. The WSJ's Detroit editor finds fault on all sides and says that the UAW outmaneuvered everyone else; a structured bankruptcy would give the tough love solution needed, rather than what politicians are likely to come up with.
Alas, President Bush, in full legacy mode and not wanting to be portrayed as the Grinch who stole Christmas (in political terms, as a 21st century Herbert Hoover) from 250,000 UAW workers, seems ready to use TARP funds for an industrial bailout. Such is flatly contradictory to what TARP was aimed at--helping falling financial firms--but Congress will pass, as Democrats want the UAW to get the funds and want automakers to make Greener cars, part of the bailout bargain. Human Events editor Jed Babbin nails the White House for once again rebuffing its own party and negotiating directly with the Democrats; the WH agreed with the opposition to refuse to even consider bankruptcy as an option. Bill Kristol, for his part, faults both parties for treating Big Three workers and executives alike worse than bankers, and says a deal should be made; he is not specific on what kind of deal.
Fred Barnes paints a vivid portrait of what he calls "the other auto industry": the non-unionized workers employed by foreign auto firms located in the South. Definitely read this two-pager, and reflect upon the fact that bailing out the UAW can potentially harm these competitors of the Big Three, none of whom (at least so far) are seeking help from the government. There is some overlap between the two camps, in that 3,000 auto parts suppliers, who are owed $13 billion by the Big Three, sell to both groups of firms.
Supporters of the UAW, such as Michigan Governor Jennifer Granholm (a Democrat), assert that because America alone funds health care mostly via employer-subsidized plans, the labor cost issue is unfair. But foreign firms located in America, as Mitt Romney points out, face the same health care financing system, and out-compete the Big Three.
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