Toyota Republicans Should Cut Their Own Pay
President Bush took to the TV Friday to announce that he wouldn't walk past the financial crash of America's Big Three automakers and do nothing to save their lives.
Refusing resuscitation, Bush said, would be irresponsible during the worst economic crisis since the Great Depression.
A week earlier, 31 GOP Senators, mostly from Southern states, voted to avert their eyes and allow American auto companies to die. They opposed $14 billion in federal loans for GM and Chrysler, revealing that their loyalty lies not with America, not even with their own states, but with South Korea and Germany and Japan.
They are Toyota Republicans.
Toyota has non-union manufacturing plants in Alabama, Kentucky, Mississippi and Texas - states whose senators led the GOP quest to slay the Big Three American auto manufacturers - Richard Shelby, R-Ala.; Mitch McConnell, R-Ky, and John Cornyn, R-Tx. Here's the Republican from Mississippi, Sen. Thad Cochran, explaining why he'd vote against the loans, "Things have changed. It's not just the Big Three anymore," he said, pointing out that Nissan and Toyota employ more Mississippians than General Motors, Ford and Chrysler. But, he said, the foreign companies would not share "in the benefits of that automobile bailout program."
No. But Mississippi did give Nissan and Toyota more than $650 million to entice them to locate in the state. GM, Ford and Chrysler didn't share in those benefits, Sen. Cochran.
The Toyota Republicans are all for helping the rich with tax breaks and shelters, and they're all for aiding foreign auto manufacturers with billions worth of tax forgiveness and government-paid infrastructure improvements.
But their disdain for the working class couldn't be clearer as they organized defeat of loans to the Big Three under this command: "Republicans should stand firm and take their first shot against organized labor."
They haven't gotten the message sent out by the electorate in November. Voters rejected politicians prolonging the same old policy of protecting themselves and the rich. The nation's voters want selfless leaders who will perform in the best interests of the entire country. They want change.
Clearly the allegiance of the 31 Republicans who opposed the loan to save GM and Chrysler is not with the United States of America, which would lose 900,000 jobs if just GM closed, and more than 2.1 million if the Big Three did. Those job losses would occur during the worst economic downturn since the Great Depression. In November, the 11th consecutive month of job losses, another 533,000 people were thrown out of work, swelling the pool of unemployed to 10.3 million. The Toyota Republicans were willing to increase that.
They voted against the interests of their own states as well. Consider what would happen in a few of those Southern States whose senators led the charge against preserving the Big Three. If just GM collapsed, Kentucky would lose 20,000 jobs; Alabama, 21,000; Georgia, 23,000, and Tennessee, 29,400, according to calculations by the Economic Policy Institute.
Sen. Cochran just didn't think it was right for the U.S. government to aid its auto industry. But apparently he's fine with foreign governments providing subsidies to the transplant automakers in his state. And, apparently, he's okay with spending state and federal money to help foreign automakers locate manufacturing plants in the U.S.
Korean and Japanese automakers -- including Nissan and Toyota with plants in Cochran's Mississippi -- benefit from manipulation of currencies by their governments, a factor that, according to EPI estimates, reduces their costs by between 10 and 20 percent. In addition, nationalized health care in countries such as Japan and Germany serves as a subsidy.
Also, the Toyota Republican opposed federal money for American companies but supported state and federal money for foreign auto makers estimated at $3.6 billion.
Shelby, for example, got $3 million in federal funds to improve roads near the Hyundai plant in Alabama after the state gave $250 million to the Korean automaker. Shelby opposed loaning one federal cent to the U.S. automakers, though, telling "Face the Nation" that they should die: "Companies fail every day and others take their place... There's not a bank in this country that would loan a dollar to these companies."
But for foreign auto companies, his home state of Alabama couldn't provide enough taxpayer cash -- more than three quarters of a billion. In addition to the quarter billion it gave the Korean automaker, it handed another quarter billion to German Daimler for a Mercedes-Benz plant, nearly a quarter billion to Japanese Honda and $29 million to Japanese Toyota.
Similarly, Jim DeMint, another senator who led the Toyota Repubicans' rebellion against the loans to GM and Chrysler, told the "National Review" recently, "Government should not be in the auto industry." Yet, his state, South Carolina, got into the auto industry with nearly a quarter billion -- $230 million - in gifts to a German auto company - BMW.
The same is true in Kentucky, home of Sen. Mitch McConnell, who said of loans for the Big Three, "Government help is not the only option. It's not even the best option." But government help was fine when Kentucky was providing grants for Toyota, which got $371 million from taxpayers since 1986.
It's clear that the real problem was not a philosophical one.
All of these lawmakers were willing to flick free market capitalism out the car window like a cigarette butt if their states could use taxpayer dollars to buy a foreign auto plant. No, what really gags them about the Big Three is that they pay good, middle class wages and benefits as a result of contracts with the United Autoworkers.
Repeatedly, the Toyota Republicans insisted that UAW members bear the brunt of the cost of the bailout. The senators insisted that UAW wages be lowered to match those of non-union auto workers at foreign-owned manufacturers. Toyota Republican Sen. Bob Corker of Tennessee, wrote an amendment to the bailout bill that would have required UAW members to accept pay cuts by a specific date in 2009. When Republicans defeated the bailout, DeMint blamed that on the union, saying, "It sounds like the UAW blew up the deal."
The Toyota Republicans then conferred the American auto industry to bankruptcy. They said they favored bankruptcy because it would enable the Big Three to break pledges made in labor contracts and promises for health care and pensions made to retirees.
The Toyota Republicans want the wages of American workers pulled down. To them, UAW members making an average of $28 an hour, accounting for less than 10 percent of the cost of a car, are earning just too much money.
The Toyota Republicans did not, however, make that claim about the white collar workers on Wall Street who got this country into the financial fiasco that led to the dire circumstances for automakers. And not just for American ones. Domestic car sales declined by 40 percent last month, but Asian producers' sales dropped too - by 35 percent.
The average salary of white collar, Wall Street employees -- workers in "securities, commodity contracts and investments" -- is four times that of those laboring in the rest of the economy. Remember, these are the guys who are so smart that they took down Bear Stearns, Fannie Mae, Freddie Mac, Washington Mutual, AIG and Lehman Brothers - in less than a year - and ultimately required $700 billion from taxpayers to bail them out.
The top executives of Wall Street banks receive billions of dollars in year-end bonuses. The New York Times detailed those at Merrill Lynch in a story Dec. 17 entitled "On Wall Street, Bonuses, Not Profits Were Real." In 2006, the firm gave its top executives between $5 billion and $6 billion in bonuses, which means, for example, a trader earning $180,000 a year got a $5 million bonus.
Merrill's $7.6 billion earnings that year turned out to be bogus. The company's losses now have exceeded all of the profits it earned over the previous 20 years. To prevent collapse, it sold itself to Bank of America in September. But then, Bank of America took $15 billion of that $700 billion in bailout money. Despite the gift of taxpayer dollars, the CEO of Bank of American has not publicly announced that he will decline a bonus, and Bank of America plans to tell Merrill Lynch workers the amounts of their bonuses beginning Friday, the New York Times reported Dec. 18.
When those Toyota Republicans voted in favor of providing $700 billion for Wall Street -- including both of Tennessee's senators, Bob Corker and Lamar Alexander; Kentucky's Mitch McConnell; Georgia's Saxby Chambliss and Johnny Isakson; South Carolina's Lindsey Graham, and Texas' Kay Bailey Hutchinson and John Cornyn - none asked for high-paid white collar workers to take pay cuts or give up their million dollar bonuses. There was a feeble attempt to limit the pay of chief executives, but that applied only to firms that received federal money under one particular method, and the treasury decided not to hand out the $700 billion that way.
And no lawmaker asked white collar workers or executives who got billions in bonuses based on false profits to return them.
But those Toyota Republicans want middle class, blue collar workers who don't get year end bonuses, who don't celebrate with five-figure dinners, to take wage cuts. They want autoworker pensioners to lose the monthly benefits they earned with a lifetime of labor.
And at no time did those Toyota Republicans suggest that they should cut their own salary or top-notch, government-paid health benefits or pensions. Like the reckless speculators on Wall Street, Congress bears responsibility for the crisis condition of the American economy because it deregulated financial markets.
In 2002, during a downturn in Japan, the House of Councillors reduced the pay of Diet lawmakers by 10 percent, and ended the transportation allowance, portrait-painting and pension given senior lawmakers.
If the Toyota Republicans believe the Japanese way of pay is so great for autoworkers, they should first impose it on themselves.
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Let's see if I have this right...
The patriotic, "Free-Market Conservative" Southern state Senators who stiffed the "Big 3" American Automakers offer hundreds of millions in tax incentives and other goodies to foreign automakers (who take corporate profits overseas) to locate their plants in their States.
These same patriotic "Free Market Conservative" Politicians help their State governments maintain an anti-union political climate as part of the deal, increasing the Foreign corporations' bottom line at the expense of American wages, pensions and benefits.
This creates an ongoing, perpetual tax revenue shortfall, in proportion to THEIR STATE infrastructure needs, so these patriotic "Free-Market Conservative" Senators and Representatives go to Washington, DC to bring home FEDERAL Tax revenue money in the form of earmarks, highway funds, etc., to make up for THEIR STATE financial policy shortfall.
Now, remember the patriotic "Free Market Conservative" mantra: Taxes are bad!
This STATE tax policy creates a business development advantage for these States in which the losing States not only don't get the jobs (and the various types of tax revenue), but they wind up subsidising the winning States with Federal money.
Witness the birth of the "Welfare Queen" Red State...
Conclusion: The war between the states is still going on, patriotic "Free Market Conservative" policy is anti-American working class, and patriotic "Free Market Conservatives" wouldn't know a truly "Free Market" if it bit 'em on the ass. It's protectionism for the rich investor class, plain and simple.
Please list the Senators (Dems and Reps) that voted against auto company support. I would like to drop them a note.
Here's the official list of the vote in the House of Reps:
http://www
Here's the list from the Senate:
http://www
Good luck....
Thank you W8. Snowed-in in Seattle. Will spend Christmas sending nasty cards to leaders who think dismantling our remaining industrial base is a good idea. Can't put all blame on Southerners. Our local rep Dave Riechart voted against it and we just sent him back for another term. Guess he thinks we should all work for Starbuck's at minimum wage.
Politics is not a game,it is an earnest business.
I think I got all the benefits either paid or promised (tax holiday's) to Toyota, Nissan etc. mentioned above and it comes to about $2.5billio
The Congress should let GM and Chrysler go bankrupt if the companies can't fund themselves and then lend Ford (who is only asking for money since their competitors are getting it) the money to buy the productive assets. Then we would have one strong US company rather than three weak ones.
There are lots of companies and employees who would love a hand out right now...GM and Chrysler are not special.
I own a Suburban and a Chrysler MiniVan and like them both. Only drive the Suburban when I need to.
I so agree with this opinion. What Shelby & Corker (and their cronies) have done is sickening.
How can they NOT understand that jobs are important for our economy? They don't just get paid for their salary & extreme benefits from their Southern transplants. And they're about to give themselves a 2.8% raise? They need to cut their own pay & benefits instead of already beaten down union workers.
The Heartbeat of America
Like a Rock
I don’t see how you can blame this all on the southern 14 Senators, after all 14 western, 2 mid western and one New England republican also voted against the bailout. I’m counting Texas and Kentucky in the south and Oklahoma as western, but anyway you look at it the GOP opposition was pretty evenly spread throughout the country.
All of the Republicans want to bust the unions, it's in their DNA. What they failed to mention is that the hourly wage is pretty much the same in the non-union plants. The difference comes with the health care and pension costs.
The only reason that the pay is comparable is because they don't want their employees tempted to join the union. If the union is gone, there is no longer any reason to pay what they do. The current economy is the perfect excuse to start cutting wages and next thing you know, these will become just over minimum wage jobs. There are plenty of people desperate enough for a job, any job, that they will be able to get away with it too.
And the rich get richer and the poor get poorer (and the middle class disappears). The Republican credo.
Quit trashing Toyota. It's petty. Its amazing that even after 20years and thousands of case studies the Little 3 can't even get the 30yr old Toyota Production System implemented across their factories.
They give lip service to Lean.
Don't use politics to trash one of the FEW companies that actually INNOVATES in the auto industry.
If that's the problem, then why are their sales down nearly as much and the Big Three?
The people are sick and so are the rednecks and racists that keep them in office in the South.
Finally, a statement of the obvious. "If the Toyota Republicans believe the Japanese way of pay is so great for autoworkers, they should first impose it on themselves. "
Toyota Republicans or just economic troglodytes, they have no workable solutions, just impediments to solutions. Does anyone else wonder if these Senators earn anywhere near what they are paid in salary, perks, and benefits? Let them work on the the GM, Chrysler, (or Ford) assembly line for a year at the average wage and benefits, or, more appropriately perhaps, at the entry level pay and benefits of a UAW member and live in the local area of the plant and its local economy, where, I expect, the cost of living will be higher than in southern states. (Oh, yes; I know. Like that is ever going to happen! The southern gentlemen & gentlewoman don't have the wherewithall to even imagine themselves doing something so "degrading
This article illustrates the Corporate Welfare (read "business as usual") that is provided by state and federal governments to lure corporate businesses to their dens. Such is never mentioned by the perps and political hacks and flacks. It's always "look over there at all of the jobs we're creating". Don't look over hear where we're giving out millions of your "hard-earned" tax dollars to these large corporations. Why can't they, and we, be honest about what goes on and do what's fair for the taxpayer and the businesses? Just might be a positive game-changer.
If the Southern Senators want to start voiding contracts and forcing people to take sizable cuts in wages & benefits they should use their beloved Trickle Down Theory; start at the top with the Executives and upper management - No Golden Parachutes, No Bonuses, No Private Jets (that's why airlines have Business Class), Salary Cuts and the same healthcare benefits that the workers on the shop floor get.
Toyota Republican? Interesting term.
I'm not crazy about Toyota except some of the fuel efficient cars.
But, I want to share some of the more universal value can be embraced even today's conflicting atmosphere.
I like episodes of Soichiro Honda, Honda Motor Corp's founder. He liked to be in worker's uniform in any occasions. Even when he was to receive the medal of honor from the emperor (for the success of Civic or F1? I don't know), he asked to the aide if it was really inappropriate to attend the ceremony with worker's uniform. I don't know if Toyota Republicans, Toyota CEO, today's Honda CEO, Big 3 CEOs are like that? But, hope they are.
One day Honda visited one of the factories without noticing the workers. When he approached to an assembly line, one worker yelled at him: "Hey old man, stay back! I'm now working on a delicate part!" In worker's uniform Honda looked very ordinary not surprisingly. Upset was the factory manager who was accompanying with him. But, Honda calmed the manager and said: "Look at this young man. He is a hard worker. I like him!"
Well, if we are humble enough and work adequately, we will find the solution to get out any difficulty. Only the universal value to apply!
Its simple. If a state is democractic then republicans try their best to screw them. Example New Orleans - Katina, Detroit - Big Three.
Now if LockHeed Martin or Chevron has issues in Texas, i am sure they will be all over it.
Where are their lapel flag pins now? It was obvious then that the only reason they were waving the flag and draping it over George was to hide the sins of the Bush administration. They are shameless.
The argument that UAW members ought to take a pay cut in order to preserve the Big Three is ludicrous. After all, auto workers are not the ones who design the cars consumers don't wish to buy, nor are the auto workers the ones who've made the management decisions that have driven American car companies to the brink of destruction. Granted, the pensions and healthcare burdens agreed to by the car companies are onerous anachronisms. But the solution to alleviating the burden of pension and healthcare is not to scale back salaries, benefits, and insurance coverage for auto workers.
The first, obvious step is managing the companies better to ensure a better product. The cost of insurance coverage should be shifted to the government through nationalized healthcare. Once the companies make cars people will buy and are relieved of a burden that should be addressed by the government as a right of all citizens, many of the Big Three's problems will disappear. Given the bloated salaries, perks, and privileges that the executives of the car companies enjoy, cutting back on their extravagances would be helpful too.
The Ford F series has been the number one selling vehicle in the US for the last 27 years. This year 5 of the top 10 sellers are from the big 3 including the top 2 spots. It's not like the big 3 arent selling vehicles.
Exactly, I own a 1991 Chevrolet with over 500,000 miles and it runs BEAUTIFULL
This car cost less than $20,000 fully loaded, full size more value for my money the Honda Accord or Toyota Camry on the other hand does not have the same leg room in the back and costs more fully loaded.
We all should buy only American OWNED not MADE cars going forward, I know Obama stated all government vehicles should be by American owned companies the last time it came to vote the repubs shot it down.
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