Millions Of Auto Jobs Hang On Government’s GM, Chrysler Decision

[Omaha Steve]

http://www.laborradio.org/node/10801

By Doug Cunningham

As millions of workers whose jobs depend on them anxiously await government action this week on more loans for GM and Chrysler, President Obama is expected to announce that more money will flow to the U.S. automakers. But Obama says the companies have work to do on their cost-cutting restructuring to be sustainable for the future. That will mean more painful sacrifice from a unionized workforce that has already given huge wage and benefits concessions. A painful sacrifice not demanded of the fat-cat employees of AIG and other financial institutions. The federal government announcement expected Monday will demand more concessions from union workers, bondholders and others in the auto industry in order to get more federal loans. The threat of possible bankruptcy still hangs over both U.S. auto companies. GM and Chrysler have gotten over $17 billion in government loans. GM says it needs another $16.6 billion, Chrysler another $5 billion to get them through this recession. The UAW is still negotiating with GM and Chrysler over funding for retiree health care.