Pelosi leaves out labor costs in her Detroit bailout conditions

Nancy Pelosi has laid down her conditions for a bailout of the Big Three automakers.

• Restructure the automobile companies to ensure their long-term economic viability;

• Meet standards for fuel efficiency that ensure the competitiveness of U.S. autos, including new fuel-efficiency standards; and,

• Deploy advanced vehicle technologies required to compete in the domestic and global market.

Labor costs are a big reason why Detroit is in its predicament. Bankruptcy would allow the automakers to renogiate their union contracts.

Assuming the Democrats push through a bailout bill, the automakers have to look the next union contract negotiations within the framework of company survival. That means pay freezes or cuts, and less generous benefits. If the domestic auto industry doesn't survive, the workers get nothing.

Oh yeah. The automakers need to build better cars.

Businesses that adapt are the ones that survive.

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