In today’s Washington Examiner, Timothy Carney has an excellent column about President Obama’s plan to "save" Chrysler. As Carney shows, it’s more accurate to call Obama’s plan a bailout of Big Labor and political payback for the UAW union’s exorbitant politicking on behalf of Obama and his party in the 2008 election:
The union’s $1.98 million to Democratic candidates last cycle (not counting the $4.87 million in independent expenditures to elect Obama president) is more than any PAC spent on Republicans. If you combine the political spending of the top three oil company PACs and the UAW’s PAC, Republicans and Democrats come out about even.
Peer deeper into the UAW’s finances, and it starts to look even more like a big business. The organization sits on nearly $1.2 billion in investments. This is money the UAW took from the paychecks of workers, money that now functions as an endowment out of which the union pays its staff and subsidizes its golf resort.
Black Lake Golf Club, which the UAW brags is "one of the finest anywhere in the nation," is owned by the union. Situated at the very top of Michigan, a drive of more than four hours from Detroit, it’s not exactly accessible to the union rank and file.
The resort is subsidized by workers’ paychecks, too—the union currently has $29.6 million in loans outstanding to the resort. That’s not their only posh real estate. The UAW’s Washington headquarters, home base for the union’s $1.6 million-a-year lobbying operation, is a beautiful $2.98 million townhouse in the DuPont circle neighborhood.
While UAW membership has fallen by 32.5 percent since 2002, the national headquarters has kept its spending nearly the same—a reduction of only 1.9 percent. Add these facts together, and it starts to look like the union management exists largely to preserve union management.
These are the people who would, practically speaking, own Chrysler under Obama’s plan. These are the benefactors of Obama’s upturning bankruptcy law and threatening investors.
But Obama’s team will maintain that it’s “the workers” who are taking ownership of Chrysler under their plan. When Obama and Democrats extend future bailouts and subsidies to Chrysler, they will have even more reason to claim that they are simply helping the workingmen. In truth, subsidies and special favors for the UAW are corporate welfare, and considering the UAW’s political activities, the right word might be crony capitalism.
Read the full column here.
It’s also worth remembering that the UAW is one of the most militant unions whose leaders relish in intimidating workers and lashing out at independent-minded employees.
