I had hoped some common sense may get a place at the table in the auto bailout discussions. Senator Bob Corker (R-TN) has offered a straightforward, no nonsense compromise compromise to the bill sent from the House.
Key points:
1) Reduce unsecured debt by 2/3 (does not include pensions and employee benefit obligations)
2) Reduce compensation, including wages and benefits, to the average per person per hour of Nissan, Toyota, and Honda
3) Ensure parity of work rules with those of Nissan, Toyota, and Honda
4) At least 1/2 of payments to VEBA account must be in the form of stock, not cash
5) Suspends continued payments to UAW Jobs Bank recipients
Unfortunately, Republicans may not sway reluctant Democrats that are beholden to their UAW financial benefactors.
Points Two and Five above are certain to be addressed in any bankruptcy filing. In fact, they will be the linchpin of any bankruptcy plan.
The UAW knows that. And they know the consequences if this matter is sent to Federal Bankruptcy Court.
HughS
