Dec 20 2008
Unions Will Take A Hit
Taking the bailout deal from the White House will mean certain concessions from the UAW. Among them, wages and benefits for union workers be lowered. This was heard a lot from the Republicans a few weeks ago. Those on the side of the unions are happy that the bailout is here, but disappointed that Bush added these conditions. Analysts are saying that average wages will go down to $24 an hour from $28 an hour. In the end, even though President Bush placed these conditions, Obama may still choose to take them out when he comes to power.
Personally, I believe in worker’s rights and treating workers fairly. Nevertheless, these people must realize that no one is singling only them out. I can sense that many Bush-haters will use the woes of the unions to bash him more, but it would be unfair. Executives must make concessions as well. This is an economic crisis, everyone has to make concessions. This is not President Bush trying to be evil. Would it really be fair to have workers thrive fruitfully while executives take the brunt of the woes? They would become the new group to pity. I think it is not unfair to ask certain concessions of workers. The cut in pay is not that huge. Certain benefits can stand to be diminished. These benefits are not wise in a time when the company has to spend wisely. They must still respect their workers, but not be driven to bankruptcy because of them. This is not a surrender, just a sacrifice in hard times that should be made.
Cutting wages in a time of recession is ALWAYS a bad idea, as it undermines the middle class’s ability to spend, which is what we need to get them to do to climb out of this recession.
But at the same time, if the companies are spending a lot on not just wages, but benefits that are not really needed for workers in a time where everyone is hurting, they are going to run into trouble again. This is more than a recession involving job losses. This is a complete meltdown and collapse of some industries that has not been seen in a long time in this nation. If you give them their wages and benefits, which include very generous unemployment benefits, these automakers will lose tons and risk making a mistake at a time they cannot afford to. The bailout is not meant to go just to help the workers, it has to get the businesses back on their feet. After that, the workers may have their benefits back, when benefits do not stress spending by companies going bankrupt. I am against big business and for workers, but for them to get good pay and benefits, their companies have to be able to supply them. If your company is bankrupt, it cannot supply anything. Economists who advised the wage and benefit cuts have a point. Save the businesses first, keep the jobs there at any worthy wage, people will spend to some degree during this time, businesses will get back on their feet, wages will rise as competition rises again, and then we can start moving out of the recession itself. Besides all that, I am sick of the bailout being held up. Republicans stopped the bill because they wanted wage cuts, now unions are unhappy because the industry is getting the bailout on a condition of wage cuts. THERE WILL BE NO WAGES, WORKERS, OR AUTO INDUSTRY AT ALL, if they do not get help to save themselves. That is the top priority. The bailout package cannot be wasted on overdue unemployment benefits. It must be paced out smartly.