Bailout Watch 218: Gettelfinger Blackmails Congress

UAW President Ron Gettelfinger is joining Detroit’s two-day testimonial of shame in Washington DC today, and in case there was any suspense about what he would say, he leaked his notes to the Detroit News. The shameless audacity of his position shouldn’t come as a surprise, given his (and his organization’s) track record. Still, it might just take your breath away a little. Step one on the Gettelfinger formula for success, prove that the D3 are going under. Not hard. Step two, refuse to do anything about it. “We do not believe there is any justification for conditioning assistance to the Detroit-based auto companies on further deep cuts in wages and benefits for active and retired workers. We would also note that in the cases where the Treasury Department has acted to rescue financial institutions, it has only imposed restrictions on executive compensation. It has never mandated cuts in wages or benefits for rank-and-file workers and retirees. Thus, there is no basis for singling out the auto industry for different treatment,” says Gettelfinger in his prepared remarks. Step three? Blackmail, baby.

Exact details of Gettelfinger’s threats to congress have been partially paraphrased by the DetN, but the message is clear. “The liquidation of the Detroit-based auto companies would have devastating consequences for millions of retirees, Gettelfinger’s remarks said. A failure of the pension plans of the automakers could require immediate government intervention and a shifting of those responsibilities to the Pension Benefit Guaranty Corp, or PBGC. To ‘prevent the collapse of the PBGC, which would jeopardize the retirement security of millions of workers and retirees, the federal government would have to provide a huge bailout for the pension guarantee program. Furthermore, under existing law, the federal government would be liable for a 65 percent tax credit to cover the health care costs of pre-Medicare auto retirees costing about $3 billion per year.'” In other words, Gettelfinger seems to think he’s got congress by the short hairs, and he clearly doesn’t mind giving them a gentle shake.

Not that Gettelfinger doesn’t care about the taxpayer. “As with other rescue efforts under this program, the bridge loan to the automakers would be conditioned on stringent limits relating to executive compensation, as well as provisions granting the federal government an equity stake in the auto companies in order to protect the investment by taxpayers,” he tells congress. Besides, “We recognize that President-elect Obama campaigned on a platform that included increases in fuel economy and the production of plug-in hybrids, as well as assistance to the auto industry to ensure that the vehicles of the future are produced in this country. The UAW is looking forward to working with the Obama administration and the next Congress to help achieve these objectives.” Almost as much as Gettelfinger is looking forward to telling his membership that they don’t have to give up a red cent to have their hapless employers bailed out. Wrapped in green or red, white and blue, Gettelfinger’s venal self-interest is still just that.