Auto Bailout Crashes in The Senate

Just when it looked like a deal was certain the auto bailout has crashed and burned. With Chrysler and GM saying they are likely a few weeks from bankruptcy. The deal died when the UAW rejected any renegotiation of wages before the current contract expires. The Senate was seeking to bring wages more in line with those of Japanese auto workers.  The move could put stress on the UAW and its workers, The final vote was 52-35.

Both Japanese and Americans earn about $30 hourly, the difference is in the benefits. Japanese workers earn approximately $48 with  benefits while American workers earn closer to $70 per hour. Asking workers to cut $20/hr is not easy and they are not responsible for the failure of the big 3, but they won’t find jobs for $50 if they have to look for new ones.