Highway Robbery ; Automakers Angling for Federal Bailout

Summary

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Not much of what happens in Detroit has relevance here. But a wire report out of the Motor City that appeared in the July 21 Gazette should rivet every American's attention. The story focused on the opening of contract talks between Chrysler and the United Auto Workers, and on what each might have to do (and sometimes give up) in order to restore competitiveness to an ailing industry. The "Big Three" pay workers between $70 and $76 an hour in wages and benefits. They need to eliminate a $25 to $30 per hour cost disparity with foreign counterparts in order to remain competitive. Is the union willing to make such concessions?

But suddenly, about midway through, the story took an unexpected detour, from Detroit to Washington -- to which the company and union are apparently looking for help. And that's the part that should have taxpayers buckling up.

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Extract

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Highway Robbery ; Automakers Angling for Federal Bailout

"Chrysler and the union clearly are focused on health care, with both calling for a national solution to the problem of rising costs for active workers and the huge obligation to care for retirees," the AP reported. One Chrysler executive...

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