Sen. Corker's Alternative Autos Bailout Plan
Senate Republicans are threatening to block the $14 billion Big Three auto bailout loans approved last night or, at the very least, amend the bill to get some of the conditions they want imposed on GM, Ford and Chrysler.
Sen. Bob Corker (R-Tenn.) is riding the hood of this legislative vehicle in the Senate. He wants significant concessions from automakers, bondholders and the union. Here are the highlights of the amendment he's working on today, as outlined in an op-ed Corker wrote in today's Detroit News:
-- One, give existing bondholders 30 cents on the dollar to help reduce their overall debt load.
-- Two, bring wages immediately in line with companies like Nissan and Volkswagen.
-- Three, GM owes $23 billion to the United Auto Workers' VEBA (voluntary employees' beneficiary association) account. The union must agree to take half of that payment in GM stock.
-- Four, the union must agree to do away with payments to workers who are still receiving almost full compensation up to four years after their jobs ended.
December 11, 2008; 12:50 PM ET
Categories: The Ticker | Tags: Chrysler, Ford, GM, automakers
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