—By Kevin Mooney
Federal bailout funds directed toward America’s beleaguered auto industry in the form of a $25 billion loan package approved last year should really be viewed as bailout for the United Autoworkers of America (UAW), Matthew Vadum, a senior editor with Capital Research Center (CRC) has suggested.
Vadum moderated a panel discussion on the “Economics of Unionization” as part of a summit on labor issues organized by the CRC. Although labor unions only account for about 12.4 percent of the workforce in America, according to government statistics, they have enormous political clout on Capitol Hill, Vadum pointed out.
“The bailout of the big three automakers is in essence a bailout of the UAW and it just serves as a way to subsidize the unions higher wagers and overly generous benefit packages,” Vadum said. “The bailout does nothing except to prop up industries that are not viable.”
Vadum hopes the Labor Summit helps to focus attention on some of the legislation union bosses are trying to push through the House and Senate at the expense of the economy. The Employee Free Choice Act (EFCA), also known as the card check bill,, is at the top of labor’s agenda. The bill would essentially end the right of workers to a secret ballot in affiliation elections.
House and Senate members who supported the bill in 2007, when it failed to pass, collected on average $862,056 from union PACS throughout their careers, which is 10 times the amount on average than those who did not, according to OpenSecrets.Org.
