Press Releases

December 12, 2008

Webb Condemns Republican Obstruction of Bill to Aid Auto Industry and American Workers

Washington, DC – Senator Jim Webb (D-VA) today termed the Senate’s failure to advance a bill that would provide a bridge loan to the U.S. domestic auto industry “a woeful misapplication of the priorities that should govern our stewardship as political leaders.”  The Senate last night failed to break a Republican filibuster to consider the legislation.

“This measure was intended as a bridge loan, not a bailout,” said Senator Webb. “It is inequitable to support a $700 billion bailout for mismanaged financial institutions that largely protects exorbitant executive compensation, and yet not support this loan package which was designed to provide cash flow in order to help millions of working men and women.”

“The opposition to this bridge loan was based on the faulty argument that unionized auto workers are too highly compensated,” said Webb. “When you remove from the average UAW compensation the money needed to support retirees’ health insurance and pension expenses, UAW workers take home about the same wages as non-union workers at foreign car plants in the United States.”

“If ensuring parity in pay between union workers and workers in non-unionized plants is a priority, then parity should be applied evenhandedly,” continued Webb.  “The average American CEO makes 400 times what the average worker makes, while the average Japanese CEO makes only 10 times what a Japanese worker makes.”

“The health of our nation’s domestic auto manufacturers, suppliers and dealers is as important and as deeply woven into the fabric of our economy as the health of Wall Street,” said Webb.
 
According to the Center for Automotive Research, in Virginia alone there are 47,485 jobs that are directly connected to the auto industry, in the form of parts and suppliers, dealers, and assembly plants.

Senator Webb also cosponsored a proposal offered by Senator Mikulski (D-MD) and Senator Bond (R-MO), S.3684, that seeks to restore consumer confidence by providing tax credits to help middle class Americans purchase new cars. Under this plan, a family would save about $1,553 on a $25,000 car, and about $2,500 on a $35,000 car.

“After weeks of refusing to do so, I am encouraged to read reports this morning that the White House is considering using Congressionally provided funds for Wall Street to assist U.S. automakers,” stated Webb. 

« Back to Press Releases