New contracts kick in next year for the UAW, cutting the hourly rate to 14.50 for new jobs. That was part of the deal to put them back into the black.
Problem is, right after the contract, first came the gas crisis, slowing sales. Then came the credit crisis and stockmarket crash, basically stopping sales. Very few industries could survive that no sales. Even Toyota and Honda are reeling.
If you drive around Oakland County, a suburb of Detroit where many auto execs live, you'll see astonishing home after astonishing home. Really, I've never seen the amount of wealth in one area like that. South Florida has it's McMansion subdivisions, but this is city after city stocked with really nice homes.
Now, these aren't the UAW workers' homes. These are the white collar workers homes. If you haven't been to Michigan, it's truly hard to imagine how big these three companies are, and how many people they employ.
ANYWAY, we can argue the merits of helping out the auto industry all day, but here's the thing. THE GOVERNMENT WON'T LET THEM FAIL. Actually, it CAN'T let them fail.
It's a Homeland Security Issue. We need the car companies, we need the steel industry in case of war.