Bosses, gov’t behind auto crisis

[Jack Bone]

Bosses, gov’t behind auto crisis
Why should workers have to pay?
By Martha Grevatt

http://www.workers.org/2009/us/auto_crisis_0430/

Published Apr 26, 2009 8:38 PM
“Absolutely we are prepared to walk. There is no doubt in my mind.”

Those aren’t the words of a union leader preparing for a strike. No, they come from a capitalist bully—Fiat CEO Sergio Marchionne—threatening to pull out of a planned alliance with Chrysler. Speaking of the United Auto Workers and the Canadian Auto Workers, Marchionne, the likely CEO of a reorganized Chrysler, said, “No one wants to remove the UAW or the CAW from the table. But it will happen if a bankruptcy process drags on.” (Detroit News, April 15)

The White House’s Auto Task Force has declared that Chrysler is “not viable” as a stand-alone company. If Fiat and Chrysler do not consummate the alliance by April 30, there will be no more government aid from the U.S. or Canada, forcing Chrysler into bankruptcy.

Aid is also contingent on Chrysler eliminating most of its $6.9 billion in secured debt, a majority of which is owed to JPMorgan Chase, Morgan Stanley, Goldman Sachs and Citigroup. These Wall Street powerhouses have received $95 billion in U.S. bailout funds but have denied government requests that they reduce Chrysler’s debt.

The U.S. and Canadian governments are insisting that the auto unions “make painful sacrifices.” Up against this powerful array of forces—their bosses, the government and the big banks—the UAW and CAW are “negotiating” a new round of concessions. The Delphi experience leaves no doubt that bankruptcy would result in massive job losses and be used to break the UAW. It is in this atmosphere of fear that union members will be asked to vote to give up what was won through decades of struggle.<snip>

Much more at the story link provided above.....