While the fat cats play, the mice will pay

GM CEO Rick Wagoner gets a salary increase, to make up to $2.2 million (plus stock options), while his company is losing money, so much so that we now need to bail them out.* (OK, it’s a LOAN, but it’s government assistance nonetheless.) As part of this deal, Wagoner does not have to give up his millions, but the workers have to promise not to strike, and to take a pay cut. Chrysler has a similar no-strike provision in its loan agreement. Ironically, it is the workers, in the form of taxpayers, who are giving the loan to Mr. Wagoner and Chrysler CEO Bob Nardelli. Yes, those "greedy workers," who are finally getting what's coming to them for asking their company to honor the contract to which the company agreed. If the auto companies have to continue honoring their contracts with the workers, how are Mr. Wagoner and Mr. Nardelli supposed to feed their koi?

In truth, even if the CEOs do work for the much trumpeted single dollar, the money saved would not rescue GM and Chrysler. But if nothing else, the pressure on the UAW to bear the brunt of this bailout, while allowing Wagoner and Nardelli to keep their jobs - even for a dollar - just looks bad. Maybe it’s a done deal, but if there is anything that can be changed before this agreement goes into effect, then it should be changed. And if it can’t be changed, then there should be hearings on how this came about, so it won’t happen again. Otherwise, the conservatives will get exactly what they want: an end to the UAW, and the beginning of the end for unions in general, all courtesy of the US taxpayer, who are being asked to foot the bill for their own financial demise. This is taxation without representation, which, if I recall, was the basis of a revolution some years ago. In the name of enlightened self-interest, Congress and the millionaire Detroit CEOs might want to ponder that point.

* See:

Detroit News: "Strikes would imperil bailout funding"
Raw Story: "Bush Admin. to bar autoworkers from striking against GM"