A $14 billion emergency bailout for U.S. automakers collapsed in the Senate Thursday night after the United Auto Workers refused to accede to Republican demands for swift wage cuts.
The collapse came after bipartisan talks on the auto rescue broke down over GOP demands that the United Auto Workers union agree to steep wage cuts by 2009 to bring their pay into line with Japanese carmakers.
The Senate rejected the bailout 52-35 on a procedural vote -- well short of the 60 required after the talks fell apart.
Why UAW does not agree to cut their salaries in line with the Japanese automakers? That is just totally wrong, you make worse automobiles and expect more pay?
As a result, Asian market and U.S. future market are tumbling over the news.
Isn't it true that if the Big Threes file Chapter 11, Bankruptcy Protection, it does mean they are going to die. It actually allows them to get rid of the Unions, and restructure.
File Chapter 11 might be the only option left!
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