[StBernard] Helping Our Auto Industry

[Westley Annis]

Dear Friend,

	

I have heard from folks across our state expressing their concerns about our
auto industry and workers and asking Congress to pass some to assistance for
U.S. automakers. As you may know, I have some concerns with the latest
proposals, but I do believe several alternatives to the auto bailout package
could be considered this week by Congress that might gather my support.

	

I am not for doing nothing. We cannot afford to simply pack up and go home
because so much is at stake if we do not take appropriate action. I believe
that if we are to do something, however, it should be the right thing. And
there are two proposals being developed and discussed that I could support. 

	

One proposal by Senator Bob Corker would require that these companies reduce
their outstanding debt by 2/3 and bring their labor costs and work rules
more in line with companies like Toyota, Nissan and Honda to make them more
competitive. This proposal would also require a change in UAW/VEBA payments,
converting some to stock and providing employees with a real stake in the
future of these companies. Finally, it would require that all compensation
beyond regular severance pay would end.

	

I also support a formal bankruptcy process with help from the U.S.
government. Automobile warranties would be backed up by the full faith and
credit of the government with debtor financing available if necessary.
There are some who say that a declaration of bankruptcy would amount to
disaster.  This is baseless fearmongering - there is another way.  We can
demand fundamental, core restructuring and bring about real change in these
companies, instead of simply throwing billions of dollars at them with no
clear plan in hand.

	

We need to come together in a bipartisan manner and say yes to real
restructuring and to helping ensure these companies can effectively compete
in the marketplace.

Sincerely,

David Vitter
U.S. Senator