Ensign to Bush: Reject deal

WASHINGTON -- The White House should "stand up and show some courage" by rejecting a last-minute request for loans to tide over the distressed U.S. auto industry, Sen. John Ensign, R-Nev., said Friday afternoon.

Ensign said he opposes the Bush administration tapping into the $700 billion fund set aside to prop up the financial system in order to bail out an individual sector.

He contended the United Auto Workers union "walked away" from Senate negotiations over an emergency loan bill late Thursday because they believed the White House would agree to access the Troubled Assets Relief Program, or TARP, as a backup.

"It isn't too late for the Bush administration to stand up and show some courage" by turning down the loan request, Ensign said. That would force negotiations to resume on a comprehensive bill that would include an auto industry restructuring, he said.

Negotiations toward a compromise bill collapsed Thursday night, with Democrats and Republicans now blaming each other for the failure.

The main sticking point was a dispute between Republicans and organized labor over wage cuts for union workers at auto plants. There was no agreement on a timetable for when labor costs for U.S. automakers would be made more competitive with foreign counterparts.

Republicans charged the United Auto Workers union was refusing to commit to lower wages. Democrats and labor officials said Republicans were aimed at union-busting by singling out workers for concessions they were not insisting upon for other parties.

"The demand by the GOP would have no question treated workers differently from every other stakeholder ... and the GOP caucus tried to mandate the precise restructuring terms for workers," UAW president Ron Gettelfinger said Friday at a news conference.

"In effect, that means that the GOP caucus was insisting that the restructuring had to be done on the back of workers and retirees instead of having all stakeholders come to the table," Gettelfinger said.

Sen. Harry Reid, D-Nev., said it became clear "that Republicans have no interest in keeping the Big Three from collapsing," referring to General Motors Corp., Chrysler Corp., and the Ford Motor Company.

"Republicans may think that rejecting this legislation sent a message to the auto industry," Reid said. "Instead, they sent a message to every single American that they are more interested in settling scores than solving problems."

Ensign suggested Republican senators who opposed the bailout are being undercut now by the Bush administration.

"It is outrageous they are going to use TARP funds for something they were not intended for," Ensign said on CNBC. He commented amid indications the administration would agree to help General Moters and Chrysler Corp., in order to avert bankruptcies.

He said the administration was setting a bad precedent by tapping the TARP money to help the auto industry.

Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@stephensmedia.com or 202-783-1760.