Bail-out Deal Forces Wage Cuts on Union Auto Workers

 
Historic $17.4b Detroit bailout
"...Bush said that the United Auto Workers must agree to make wages competitive with those paid by foreign-owned auto companies that have plants in the United States. But Bush sidestepped the contentious issue of defining a competitive wage. ..."
Reference: www.boston.com

 

Politicians Attempt to Pressure UAW to Reduce Wages

 
White House offers lifeline to automakers
"...the talks broke down over a proposal to require the United Auto Workers union to accept wage and benefit cuts to the level of workers at U.S. plants owned by foreign automakers such as Honda and Toyota. The union was willing to accept the cuts starting in summer 2011, when their current labor contract expires...demanded that the union accept lower salaries starting next year. ..."
Reference: www.sfgate.com