Proposal would drop labor targets in auto bailout

http://www.reuters.com/article/GCA-autos/idUSTRE50864V20090110

Fri Jan 9, 2009 9:04pm EST

By John Crawley

WASHINGTON (Reuters) - Legislation proposed on Friday to tighten the sweeping U.S. corporate bailout program omitted specific targets for labor concessions that were a key feature of last month's Bush administration rescue of distressed automakers.

A portion of the bill proposed by House Financial Services Committee Chairman Barney Frank sought to codify the auto bailout with terms, that with two exceptions, basically mirror those imposed by the White House when it extended $17.4 billion in emergency loans to General Motors Corp (GM.N) and Chrysler LLC.

Key changes proposed by Frank would ensure oversight of the auto rescue under a trustee or "car czar" and would eliminate language on steps the United Auto Workers union must take in coming weeks to try and reduce industry costs.

Under the Bush administration's bailout, carmakers and the UAW are to make "their best efforts" to reach an agreement on concessions to the 2007 contract in at least three areas.

GM and UAW officials are to meet on Monday.

The administration wants the UAW to end its "jobs bank," which pays furloughed workers, and accept half of corporate contributions to a retiree health care trust fund in stock rather than cash.

FULL story at link.