Another alternative to an auto bailout
As the Bailout Nation rolls on, a search continues for an alternative to simply cutting the auto makers a check that is twice as much as the companies are worth in the first place. Today’s suggestion comes from Sen. Bob Corker (R-TN), who earned praise by various conservatives for the tough questions he asked of the auto company chiefs, AS WELL AS the benefactor of the Democrat Party the head of the United Auto Workers (UAW).
Here are the four things Sen. Corker wants to see before we agree to give the “Big Three” a loan:
One, give existing bondholders 30 cents on the dollar to help reduce their overall debt load. Two, bring wages immediately in-line with companies like Nissan and Volkswagen. Three, GM owes $23 billion to the United Auto Worker’s VEBA (voluntary employees’ beneficiary association) account. The union must agree to take half of that payment in GM stock. Four, the union must agree to do away with payments to workers who are still receiving almost full compensation up to four years after their jobs have ended.
Sounds reasonable, no? Sen. Corker went on to say…
“These are the same types of conditions a bankruptcy judge might require to ensure that these companies become viable and sustainable into the future, and if they will agree to these terms then we have something to talk about. The process I have suggested would allow them to avoid the problems and stigma that accompany a formal bankruptcy, while forcing them to do the things they need to do to be successful companies.”
UPDATE: Awesome! Now lets tie it to opposing “card check” too…
