"This is all about a lot more than just Detroit," Wagoner declared. "It's about saving the U.S. economy from a catastrophic collapse."
Alan Reuther, legislative director for the United Auto Workers, rejected the idea -- voiced by more than a few members of the House and Senate -- that overly generous union wages and benefits contributed to Detroit's woes.
"We are obviously opposed to any more concessions being required of workers and retirees," Reuther said. "UAW members already made huge sacrifices in the 2005 and 2007 contracts. The last contracts have been called 'transformational.' They effectively eliminated the cost gap between the Big Three and the foreign transplants in terms of labor costs.
"Wages for new employees were slashed 50%; new employees do not get any guaranteed retiree health benefits; they also do not get the traditional defined-benefit pension plan," he said. "And the healthcare liabilities for existing retirees will be transferred to an independent [entity]. Bottom line: The workers and retirees have already accepted major cuts."
Time was when Detroit and the UAW had so much clout that working their will on Congress was relatively easy. They fended off tougher vehicle fuel-economy rules for years, for instance.
"The kind of muscle that used to be applied by the unions and these revered corporations just isn't there anymore," said Ross Baker, a political science professor at Rutgers University.
Many Democrats want to preserve the jobs of union members, an important constituency. But they also want to respond to another important constituency: environmentalists who think aid should be conditioned on Detroit's stepping up its commitment to build cleaner, more fuel-efficient vehicles.
"What we need is for the Big Three to become part of the solution for energy security and fighting global warming rather than being part of the problem," Sen. Robert Menendez (D-N.J.) said.
Not only do environmentalists have more leverage, but the debate over aid to U.S. automakers has also become a proxy battle over the role of unions in U.S. businesses, said Gary N. Chaison, a labor relations professor at Clark University in Worcester, Mass.
The collapse of one or more of the automakers could further damage the U.S. labor movement, costing it thousands of union jobs and tarring it as a drag on companies' ability to compete in the global economy, Chaison said.
