Fox Attacked Auto Bailout Because It Helped Unions, Now Attacks Auto Bankruptcy Because It…Helps Unions?
Fox Attacked Auto Bailout Because It Helped Unions, Now Attacks Auto Bankruptcy Because It…Helps Unions?
In November — when America’s domestic automakers first received aid from the federal government — Fox News was adamant in its belief that the funding should have been withheld because the autoworkers’ union wasn’t making enough concessions. At the time, Fox contributor Jonathan Hoenig called government efforts to prevent the auto companies from entering bankruptcy “thievery,” while decrying the health benefits that union autoworkers receive.
When the automakers’ plans for viability were due three months later, Fox went at it again, claiming that the Big Three should enter bankruptcy because the union hadn’t made significant concessions.
So, now that Chrysler has been pushed into bankruptcy by a few hedge funds that were unwilling to compromise — and with GM potentially set to follow — Fox should be pleased, right? Wrong. Because bankruptcy is evidently also too good for the unions.
Bloomberg reported today that GM’s bondholders are balking at the auto company’s latest offer, and that President Obama will attempt to “safeguard union health-care benefits” if GM were to file bankruptcy. This led Fox News anchors Bill Hemmer and Megan Kelly to go on the offensive, claiming that the administration is “pushing GM toward bankruptcy to benefit the unions.” Watch a compilation:
Even Fox’s correspondent at a shuttered Chrysler plant wasn’t having it, reminding the anchors that the autoworkers worked for and earned the benefits in question. Harold Myerson completed this point:
Shareholders and bondholders knew they were taking risks when they invested in the company, but workers were flatly promised pensions and health benefits in retirement, payments for which were deducted from their paychecks. In sum, even as the administration’s policy toward the banks has a bias toward capital, its policy toward auto has a bias toward labor. Which, in the latter case, is entirely as it should be.
For Fox, meanwhile, any situation in which the union comes out with its jobs and benefits intact is evidently unacceptable.
4 Responses to “Fox Attacked Auto Bailout Because It Helped Unions, Now Attacks Auto Bankruptcy Because It…Helps Unions?”
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Supervisors and managers suck!!!!!!!!!!
May 4th, 2009 at 4:00 pmI hate supervisors and managers.
May 4th, 2009 at 4:02 pmI’m afraid it’s a little more complex than labor vs. capital. What the unions were promised vis a vis what they put in from their paychecks (responding to Meyersen) is around 1 – 2 billion dollars. What they are getting is closer to $20 billion. Bondholders put in $27 billion to keep the company running. Now the Gov. thinks that only the money the Gov. puts in to keep the company running is worth anything. The bondholders(including many retirees who bought the bonds when they were A rated to supplement income with interest payments)only want fair treatment. The Obama admin (who I voted for) is unfairly favoring the unions at the expense of bondholders. He is taking from one side to pay the other. The Gov, which should be impartial, is picking sides. Not only that, but they are playing loose with bankruptcy law, with lending structures (who comes first), and precedent. Even Warren Buffett, a big Obama supporter, warns that by the way the admin is ignoring debtor law it will have a chilling effect on any unionized company that seeks capital in the future as being a risky investment — thus jeopardizing unionization in general.
I think the UAW should be given a fair shake and its interests protected, just not at the expense of the scapegoated lenders. GM caused this mess, manipulation of energy futures created this mess, the Gov created this mess…the lenders just financed the company while the union was negotiating their contracts. I think there are many, many creative ideas to solve this without bankruptcy or cramdowns — bondholders idea of 58% ownership, UAW 41% ownership, exisiting common 1% is one idea, extending bonds out 100 years so GM can save up to pay them off is another. It is no mere coincidence that interest payments each year are 2 – 3 billion as are original VEBA/healthcare payments. Gov create its universal healthcare, transfer GM retirees to it. I’m sure there are many other better ideas, too.
–Scott
May 5th, 2009 at 12:22 pmJust when I think Fox new can’t top it’s own stupidity and bias, I get to read this!!!. Sad thing is my own sister-in-law watches Fox, and then I have to take hours correcting the mis-information she has absorbed. Can’t wait for her phone call. Fox news is a pain in my brain.
May 5th, 2009 at 3:32 pm