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Paul Sancya, AP
Speaking to reporters Friday, UAW president Ron Gettelfinger defended the autoworkers union
and accused southern senators of seeking to "pierce the heart of
organized labor while representing the foreign brands" that have set up
factories in the South.
He also stated that the southern senators were "anti-union" after talks collapsed on the Bush-backed 38 billion dollar plan when UAW workers flatly refused to take a pay cut. Republican senators wanted the union to agree to having their wages slashed to put them in line with what Japanese auto workers make.Â
When union officials would not, the bill failed to pass.Â
Both GM and Chrysler have stated that they have only enough funds to last a matter of weeks.
"The current weakened state of the economy is such that it could not withstand a body blow like a disorderly bankruptcy in the auto industry," White House press secretary Dana Perino said.
Treasury spokeswoman Brooklyn McLaughlin said, "Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry."
The Wall Street bailout fund was one of the few remaining options for General Motors Corp. and Chrysler LLC.Â
About $15 billion from the first half of the $700 billion financial bailout remains uncommitted.
However, even if Bush chooses to hand over that money to the auto industry, he must first notify Congress, who could reject that option or put stipulations on release of the money to the automakers.
This would be, at best, a stop-gap measure until the new Congress, decidedly more Democratic, reconvenes under President-elect Obama.
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