Tennessee Senator Has Rocky History With Auto Union

Sen. Bob Corker, a Republican from Tennessee, faced off with the UAW over fuel efficiency standards last year when he supported legislation that requires car makers to lift the MPG average of their product lineups.

FOXNews.com

Friday, December 12, 2008

The architect behind the failed Senate deal to rush $14 billion in emergency loans to Detroit's automakers is no stranger to the car industry or a friend of the United Auto Workers, which torpedoed the deal.

Sen. Bob Corker, a Republican from Tennessee, is the founder of his own construction company and an investor in commercial real estate. The Wall Street Journal reported that Corker faced off with the UAW over fuel efficiency standards last year when he supported legislation that requires car makers to lift the MPG average of their product lineups.

Click here to read the Wall Street Journal report.

On Thursday night, the deal to provide loans to automakers collapsed in the Senate after negotiations between lawmakers and the UAW over steep wage cuts fell apart.

On Friday, Corker heard the UAW point the finger at him for the failed Senate deal.

UAW President Ron Gettlefinger blamed the defeat on southern senators who he said are anti-union and anti-Detroit.

But Corker said the blame belonged on the UAW.

"Our members know they represent citizens all across this country that recognize the UAW's pay scale is far higher than what they're making in other plants," he told FOX News.

Corker said the deal would have held up if the union would have offered a date on which it would cut wages.

"What we were attempting to do is the exact same thing that would occur in bankruptcy but to avoid the stigma," he said. "And what that meant was the debtholders were going to lost 70 percent of their month. Management had huge concessions. The one issue that a bankruptcy judge would deal with is making sure the wage structure was competitive with the industry."

Corker said he would call Gettlefinger and try to salvage a deal.

"I'm going to tell him, that in a matter of a few moments, we can solve this," he said.

 

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