Reading many of the comments on Kos it appears that those who arguing against a bailout are characterized as being anti-union. That the only pro-union position is to support a bailout. I beg to disagree. I think that the government providing Debtor in Possession financing following a Chapter 11 filing is in fact the most pro union position.
As best as I can tell in all the attempts the automakers have made to restructure their business it is the unions that have made all the concessions. Did the executives give up any of their salaries or perks? Did the bondholders make any concessions? Did any of the dealers make concessions? The simple answer to all these questions is no. The sacrifices of the working people has not resulted in better auto industry only pay offs to these special interests- dealers get paid to give up their franchises , bond holders get their interest payments and the Executives live high on the hog.
I think the evidence is pretty clear- in any private negotiation it is the workers who are going to get screwed. What caused the automakers to give up their private jets or to even consider cuts in compensation- activist shareholders/bankers/bond holders? Nope it was the public pressure through Congress.
It seems to me that the only logical solution is for the Government to agree to provide the Debtor in possession financing following a chapter 11 filing and use that position to ensure that there is basic equity in any restructuring. One that ensures that the sacrifices that will be required of the workers comes after all the other stakeholders and is in proportion to the sacrifices made by them.