OCT. 3, 2008
corrected copy:NWLP
9/30/08
12:04 PM
Page 3
Union leaders blast bailout plan; House rejects it
WASHINGTON, D.C. — A $700
billion Wall Street financial bailout
package congressional leaders and the
White House rejected Sept. 29 did far
too little for homeowners and vested
far too much power in the Bush Ad-
ministration — whose policies and
lack of oversight are at the root of the
financial crisis, said AFL-CIO Presi-
dent John Sweeney.
Under warnings of a financial col-
lapse on Wall Street by Treasury Sec-
retary Henry Paulson, the U.S. House
of Representatives defeated H.R. 3997
— the Emergency Economic Stabi-
lization Act of 2008 on a vote of 205-
228
At press time it was unclear if the
bailout bill will come up for a re-vote
in its current form.
Oregon Democrats Earl Blume-
nauer, Peter DeFazio and David Wu
voted against the bill while Democrat
Darlene Hooley and Republican Greg
Walden supported it.
Brian Baird, a Democrat represent-
ing Southwest Washington, also voted
in favor of the bill.
“(This) bill put up taxpayer money
without a commitment from the gov-
ernment that they would be paid
back,” Rep. Wu said in a press release.
“Instead, the American people were
told that some future president would
offer some future Congress a proposal
to help taxpayers recoup any losses
that they suffered — with no guaran-
tee that they’d ever see their money
again.”
Prior to the vote, union leaders
blasted the bailout plan, mostly be-
cause the $700 billion in taxpayer
money had no strings attached to it.
“The bailout bill gives too little re-
lief to homeowners and too much
power to an administration that has
demonstrated neither competence nor
foresight,” said AFL-CIO President
John Sweeney. “It will require vigilant
monitoring. And without a robust eco-
nomic recovery package and concrete
help for homeowners, the bailout will
not work.
“It will not address the real under-
lying weaknesses in the U.S. econ-
omy, and it will not earn the confi-
dence of working men and women. It
should not be enacted unless Congress
moves forward with a meaningful
economic stimulus package now,”
Sweeney declared.
‘The bailout bill gives
too little relief to
homeowners and too
much power to an
administration that
has demonstrated
neither competence
nor foresight.’
Senate Democrats attempted to do
just that a few days earlier by intro-
ducing a second economic stimulus
package. But Senate Republicans ini-
tiated a filibuster, mustering enough
votes on Sept. 27 to block it. Democ-
rats needed 60 votes to shut off the de-
bate — but got only 52.
Oregon Senators Ron Wyden and
Gordon Smith were among the 52
supporting an end to the filibuster.
Presidential nominees John Mc-
Cain and Barack Obama did not vote.
Sweeney said President Bush and a
majority of Republican lawmakers not
only blocked the stimulus package,
but also watered down taxpayer pro-
tections Democrats wanted in the
$700 billion bailout bill. One of the
items that was jettisoned, Sweeney
said, was bankruptcy relief for home-
owners who are stuck with sub-prime
mortgages and face foreclosure and
eviction.
“Without a stimulus and bank-
ruptcy reform, the bailout looks like
what it is — help for Wall Street —
when what America needs is help for
Main Street,” Sweeney concluded.
The Change to Win labor federa-
tion called on Congress to enact a fi-
nancial rescue plan that addresses the
concerns and needs of Main Street.
Their program calls for:
• Revision of bankruptcy laws to
allow judges to restructure mortgages
and interest rates to keep working
families in their homes.
• Pension fund eligibility for partic-
ipation in any financial rescue plan.
• Economic stimulus legislation in-
cluding extended unemployment ben-
efits, funding of infrastructure projects
and assistance for state and local gov-
ernments to prevent devastating cuts
in essential public services.
“Grassroots Americans are rising
up and they are mad as hell,” said
Teamsters President James Hoffa.
“Our proposal is in line with what the
majority of Americans want right now
— to restore financial stability, pro-
vide relief to homeowners, pass eco-
nomic stimulus legislation to create
more jobs and protect the pension
plans of average Americans.”
Laborers President Terry O’Sulli-
van said that every billion dollars
spent on rebuilding the nation’s roads,
airports and mass transit creates
47,500 jobs. He is campaigning for
$100 billion in construction projects
to be included in a second stimulus
package.
“ The bailout cannot be another
Bush no-strings raid on taxpayers and
the Treasury,” O’Sullivan said. “Un-
fortunately, all Americans are stuck in
the same boat with those at fault and if
they sink, they will drag us down with
them.”
Change to Win emphasized that
any bailout package must include pro-
tections for worker pensions, which
have suffered large losses because of
Wall Street irresponsibility.
Anna Burger, chair of Change to
Win, said “workers will not accept
their tax dollars being turned over to
the fat cats who took multi-million
dollars bonuses and then bankrupted
their companies and now threaten our
entire economy. Action on the bailout
will shape the votes of working Amer-
icans in November.”
(Editor’s Note: Press Associates
Inc. contributed to this report.)
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