The Obama Administration is abandoning the demand for the UAW to accept wage parity with transplant auto manufacturers. According to Bloomberg.com, Steven Rattner, the Treasury’s chief auto adviser said,
The phrase "on a path" is so vague there is now a mile wide loophole for the UAW to jump through. The Bush Administration demanded the UAW accept a wage and benefit package at the level of the transplant auto manufacturers as part of the government bailout of GM and Chrysler. So far the UAW has only offered token concessions. According to bloomberg.com, Steven Rattner also said $22 billion more in bailout money may not be enough.
Meanwhile, GM has not concluded negotiations with bondholders and the UAW according to CEO Rick Wagoner.
GM and Chrysler should be allowed to go into chapter 11 bankruptcy. The taxpayers have thrown enough money at what is shaping up to be a bailout of the UAW and bondholders.
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