Monday, April 19, 2010

Another UAW bailout is coming...

A couple of weeks ago, we posted on the giant-sucking sound that the UAW has become to America's tax payers.

Well, the Truth About Cars blog has even more dire forewarnings than were previously reported on:
GM needs help from the government in areas that have nothing to do with the Volt as well. A recent GAO report exposing GM’s $27b in unfunded pension liabilities presents a similarly dire risk to GM’s long-term viability, and another entry on Ed Whitace’s DC to-do list. And once again, the advance guard of GM’s influence machine has already sprung into action. Senator Sherrod Brown and Rep Tim Ryan, both democrats of Ohio, have already written a letter to the Treasury [in PDF format here], urging GM’s masters to prevent the dumping of GM and/or Delphi pensions onto the struggling Pension Benefit Guaranty Corporation. The congressmen write:

According to the GAO, we are now facing an even greater liability in auto sector plans. The failure of additional auto sector plans would not only cost retirees tens of billions of dollars in lost benefits, it would also require the Pension Benefit Guaranty Corporation to assume an estimated $42 billion in unfunded liabilities. 

As a majority owner of General Motors, the U.S. government must not put itself in the pensions [sic]. It also would be a poor outcome for the U.S. taxpayer to sell our interests in the auto sector only to have the U.S. government to assume [sic] the unfunded liabilities in their pension plans. 

We would like to request a meeting with to discuss how Treasury and the Auto Task Force plan to resolve the outstanding pension issues in the auto sector and how you will ensure that the federal funding in the Automotive Industry Financing Program will protect pension plan participants and the PBGC from assuming the unfunded liabilities.  [Emphasis added.]

Since American's are already on the hook for billions of dollars in bailouts for Detroits automakers, perhaps it's time for someone to just say "no" when they come back to the cookie jar for more sweets.

“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine, December 23, 1776

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