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Auto bailout talks collapse over union wages
Thursday December 11, 10:40 pm ET
By Julie Hirschfeld Davis and Ken Thomas, Associated Press Writers
Senate auto bailout deal collapses over Republican demands of quick union wage
cuts
WASHINGTON (AP) -- A $14 billion emergency bailout for U.S. automakers
collapsed in the Senate Thursday night after the United Auto Workers refused to
accede to Republican demands for swift wage cuts.
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Senate Majority Leader Harry Reid said he was "terribly disappointed" about the
demise of an emerging bipartisan deal to rescue Detroit's Big Three. He spoke
shortly after Republicans left a closed-door meeting where they balked at
giving the automakers federal aid unless their powerful union agreed to slash
wages next year to bring them into line with those of Japanese carmakers.
Republican Sen. George V. Voinovich of Ohio, a strong bailout supporter, said
the UAW was willing to make the cuts -- but not until 2011.Reid was working to
set a swift test vote on the measure Thursday night, but it was just a
formality. The bill was virtually certain to fail to reach the 60-vote
threshold it would need to clear to advance. Reid called the bill's collapse "a
loss for the country," adding "I dread looking at Wall Street tomorrow. It's
not going to be a pleasant sight." The implosion followed an unprecedented
marathon set of talks at the Capitol among labor, the
auto industry and lawmakers who bargained into the night in efforts to salvage
the auto b ailout at a time of soaring job losses and widespread
economic turmoil. "In the midst of already deep and troubling economic times,
we are about to add to that by walking away," said Sen. Chris Dodd, D-Conn.,
the Banking Committee chairman who led negotiations on the package. Sen. Bob
Corker of Tennessee, the GOP point man in the talks, said the two sides had
been tantalizingly close to a deal, but the UAW's refusal to agree wage
concessions by a specific date in 2009 kept them apart.
The autoworkers' contract doesn't expire until 2011
