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Brooks Wilson's Economics Blog: Bush Blinked

Saturday, December 13, 2008

Bush Blinked

Thursday night, Republican senators torpedoed a $14 billion bailout deal for GM and Chrysler.  The bill was killed by a few senators, mostly Republican, who were demanding union concessions before signing onto the plan.  Many of the senators were from states that have healthier non unionized automakers. 

In a policy reversal, the Bush administration announced that it may use TARP bailout money originally intended to shore up the ailing financial sector.  Bush blinked.  As an aside, perhaps the government should hire union negotiators to represent us when dealing with the Iranian or North Korean governments. 

According to Tom Krisher and Kimberly S. Johnson, the unions accused senators not supporting the bill of trying to kill the unions because unions gave $1.9 million to the Democrats and only $11,500 to Republicans in the last election cycle and to protect their states automakers who hire non unionized workers.  Mike O'Rourke, president of a UAW local at a GM factory in Spring Hill, Tennessee,

"What this is is the Southern conservative senators trying to destroy the United Auto Workers, trying to destroy unions.  It's a sad day in America when the senators turn their back on Main Street."

Mr. O'Rourke does not represents Main Street.  He represents the union, and is properly concerned with its and its workers welfare.  As a consumer, I want a high quality vehicle at a low price.  Currently, non unionized automakers are doing a better job at producing those cars.  I don't see how unionizing the other automakers helps the country or me.

The Krisher and Johnson article also noted that

Many Democrats support the Employee Free Choice Act, which would take away employers' rights to demand a secret ballot on whether workers will join a union. Instead, workers could form unions by getting a majority of employees to sign a card in support of it.

In an earlier post, A Love-Hate Relationship, I predicted, mostly in jest,  that Congress would force non unionized workers to unionize.  Little did I not know about the Employee Free Choice Act when I made the prediction.  For the life of me, I cannot see how taking away a secret ballot is democratic.  It sounds like a bill to authorize intimidation to me. 

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