Overhaulin'

Will GM auto workers get free money for re-electing Obama?

MEGYN KELLY (host): We also have a developing story in Detroit where GM has reached a tentative new labor deal with the United Auto Workers, according to reports. The Associated Press reporting that the four-year contract includes higher entry-level pay, a sweeter profit-sharing plan for the union workers, and a $5,000 signing bonus. Some analysts say that is good news, since the union was reportedly hoping to land bonuses of up to 10,000 a worker. Stu Varney is with the Fox Business network and the host of Varney & Company. The signing bonus goes to people who already have jobs, who are already working there? VARNEY: The signing bonus goes to $5,000 each to 48,500 regular workers at General Motors. Everybody who works at GM, everybody on the line gets $5,000. KELLY: Why do you get a signing bonus if you already have the job there? Isn't a signing bonus used to lure someone into the job? VARNEY: Yes, good point. Let me give you some context here. The taxpayer -- that is, the government -- owns 26 percent of General Motors, 500 million shares. The government, therefore, has a very heavy influence on these contract negotiations. And what they've come up with is basically, in my opinion, a sweetheart deal for the unions. As you enumerated there, Megyn, it's a four-year deal, $5,000 to every single worker. No worker will pay a dime extra for health care coverage. That's different from the rest of America. There'll be new hires, there'll be more profit-sharing, and that $56 per hour for regular workers will be maintained. Now, this is as the economy goes on the brink of recession. Car sales are weak. I believe that this is a sweetheart deal for the unions and that, essentially, this is a politicized contract agreement because the president, the administration want to favor the unions and want to be seen to be doing precisely that. KELLY: Well, they did cut them down from $10,000 signing bonuses to $5,000 signing bonuses, Stu. But you know, I don't understand, because normally a signing bonus -- you can argue about whether they should get pay races and all. But a signing bonus, normally it's to lure somebody into the job or to prevent them from quitting. I mean, in this economy was there a realistic possibility that these thousands of union members were going to quit and go someplace else and they needed that five grand to keep them on board? VARNEY: No. Absolutely out of the question. That $5,000 is not to keep them on board. That is a nice sweet deal demanded by the unions. Remember, the unions are beholden to the administration. The administration is beholden to the unions. They want a relationship that really works. And a $5,000 signing bonus, more new hires of union workers, extra profit-sharing, no increase in health care costs to the worker -- that's a very sweet deal. [Fox News, America Live, 9/19/11]

Public Comments

1. Actually, Obama will get free money by the forced taxation of GM employees, including those who don't support Obama. It's called "union dues".
2. It doesn't matter. They're Union. Unions always vote Democrap and the Democraps repay them out of the public treasury.
3. Yes..
4. "Stu Varney is with the Fox Business" And I stopped reading. The story has a Republican slant and thus, has little-to-no credibility. EDIT: Also, Megyn Kelly still hasn't answered for the hypocrisy regarding her rants against entitlement and then taking every last day of maternity leave given to her by Fox. So basically the entire article is filled with cronies.
5. Fox news is a joke
6. Golly, I though you guys cherished the rich. What's wrong with this corporation? I thought they were job creators, almost holy in their role. Are they bad all of a sudden if they back a non neo-con? What are the rules here?
7. Hospitals all over this country give signing bonuses to keep quality nurses rather than loose them . The bonuses are given when they " sign " to stay there .. Meagan Kelly is either misinformed or just plain lying .