The UAW was willing to consider lowering its wages across the board to meet those of non-union plants, but wanted to delay any cuts until after its current contracts with the Detroit 3 run out in 2011. Plus, it's not exactly clear what level of pay would be targeted, as foreign run plants pay a wide range of wages to their workers, even among plants owned by the same foreign automaker. Nevertheless, without the UAW conceding to cut wages immediately, Senate Republicans refused to support the bill and it failed late Thursday night during a procedural vote.
The markets are about to open on Wall St., after which we'll have a clearer picture of the repercussions of last night's Senate vote. The only avenue left for immediate federal assistance is for the White House to allocate funds from TARP, which it may be more inclined to do after the bell rings to open the New York Stock Exchange this morning.
[Source: Automotive News, sub. req'd, Photo by Bill Pugliano/Getty]