Cash bonuses were part of the UAW's 2007 contract with Ford, but these were given back

[BeyondGeography]

By the union this week, both to help keep Ford healthy in a tough time, and to build some political capital for the endless shitstorm that organized labor is forced to weather in this country, in good times and bad.

The government is supposedly powerless, on the other hand, to violate the legal sanctity of contracts that provide for $165 million in payments to AIG's financial products unit, which blew a hole in the world's financial system last year.

I am not a fan of the way this has been handled.

The Obama Administration looks flat-footed on this. The Republicans have put organized labor in the crouch position as soon as they leave for work in the morning; doesn't this Administration realize it will have to the same to corporations? They knew these bonuses were coming, but all the jawboning they did was behind the scenes. They need to start shaming the AIG's of the world before the fact, put them on the defensive and have the front-page stories run well in advance of payday. The AIG money is due today, and this is the first we're hearing about it.

The Administration will say future TARP funds will be contingent on paying back these bonuses, but none of the money will come from those individuals who are receiving it, and who were responsible for so much damage to their company, the financial system and the economy as a whole.

Auto workers give back cost-of-living increases and cash bonuses in tough times. AIG crooks get everything they're owed. This is the world we sent you to the White House to change, Barack.

[BlueJac]

1. If the rich don't keep getting richer,

How can they donate to their favorite congressman?



Something about all this just sucks!!

[customerserviceguy]

2. Even George Will had a poignant observation

on "This Week" to the tune of: If AIG's contracts are sacred, how can we go out and talk about cramdown in the mortgage business, reducing both interest and principle?

The Administration has to speak with a consistent voice, or the contradictions are going to catch up with them.

[Bozita]

3. Amen. Recommended!

[LiberalFighter]

4. Good point mentioned about contracts.

They can renegotiate with a union but AIG can't renegotiate with their employees and execs?

[LiberalFighter]

5. UAW has renegotiated many contracts giving back in time of need.

How many times have execs renegotiated with the company and taken less?

[Life Long Dem]

6. You wouldn't be questioning the President's ability over handling AIG would you?

:bounce: :)

[high density]

7. Obama's economic team needs to fix this

AIG's "Oh we wish so much we didn't have to do this but we're legally obligated" thing followed by Larry Summers getting out there and saying, "Yup AIG is exactly right, oh well," is the biggest farce yet of the Obama administration. The excuse being aired by Summers was that to break these contracts would lead to lawlessness and nervousness about compensation in the financial sector. I don't know what country he's living in but we already have all of these things going on in our financial industry. AIG does not need to spend $100+ million to retain this "talent" which has led the company right down the tubes. There are plenty of jobless out there to fill the ranks of the company.

[shaniqua6392]

8. I would bet that any laid off auto worker could do better

than any of the "talent" that they are trying to retain. Weren't they the "talent" that screwed up the company to begin with?? I agree with you that they could hire some of the jobless out there to fill their shoes.