The President-elect hails it as “a necessary step to help avoid a collapse in our auto industry that would have devastating consequences for our economy and our workers,” and warns, “The auto companies must not squander this chance to reform bad management practices and begin the long-term restructuring that is absolutely required to save this critical industry and the millions of American jobs that depend on it.”
But hometown Congressman John Dingell is not exactly thrilled as he issues this statement:
“While I applaud President Bush’s decision to provide short term loans to the domestic automakers, I have strong concerns about some of the conditions that were placed on these loans. We all want to see the Big 3 restructure and be competitive in the future, but it is irresponsible during a time of economic crisis for the White House to insist that workers take further wage cuts on top of the historic concessions they have already made. No one is asking corporate executives to reduce their salaries to levels similar to that of their Japanese counterparts, and no one required the employees of Citibank or AIG to take a pay cut. I strongly urge President-elect Obama to revisit this issue as his first priority upon being sworn in, and to ensure that assistance to the automakers is provided in a way that is fair to working Americans.”
I think Justin pretty much has it right. He calls it “another kludgy, temporary fix for a problem that will now continue to occupy Washington for years. But it’s probably better than the alternatives.”