This is a short diary, but I think it presents a viewpoint that merits consideration on its own.
Here's how I think we should deal with the liquidity crisis in the automobile industry:
- Lend GM the funds they need to make it through 2009.
- Assist in the carving up of Chrysler so that Jeep and the vans remain American made products.
- Pass a prevailing wage bill forcing the foreign automotive companies who have built non-union facilities in southern states to pay the same wages that UAW workers get. It would be similar to the laws in some states that dictate that contractors doing work for the state must pay the prevailing union wage.
The republicans are using this crisis to try to force the death of the UAW. Don't listen to any of their crap about looking out for our money. This is a simple union busting operation.
If the foreign companies have to match the pay of union workers in Michigan, the prices of cars would go up a bit (labor costs account for only 10% of the vehicle's cost) and would allow the Detroit 3 to make money on the passenger vehicles they sell. This is a much better solution than forcing workers to race to the bottom and accept wages and benefits that will not allow them to support their families.