right-to-work and bankruptcy reorganization

Carol Penskar, a recent letter-writer to the WSJ, makes an important point about Detroit selling off instead of getting bailed out...

"The plant assets to be sold are primarily located in non-right-to-work states where the would-be buyers...have wisely chosen not to locate. They would not bid for Big Three assets under labor law in these states....Federal law guaranteeing right-to-work at purchased plants would be the best way to protect taxpayers."

Wow...that's very much a second-best solution. She assumes a bailout. From there, she's willing to blow off federalism and have the federal government over-ride state decisions about right-to-work (however problematic those might be-- ethically and practically).

That said, she makes an important point about the future of the Big Three, assuming some level of impending reorganization.

More broadly, this points to a key moment for labor unions in the next year or so. One could imagine them increasingly their power substantially-- with an auto bailout and "card check". But you could also imagine it going, dramatically, the other way-- with the public militating against the massive injustices and inefficiencies inherent in each. Or if there is no bailout, the Big Three will be forced to make massive adjustments in their cost structures-- requiring huge concessions from labor unions-- or go out of business.