Update from U.S. Senator Bob Corker
April 2009

Touring Tornado-Damaged Areas of Rutherford County

Senators Bob Corker and Lamar Alexander stop to speak to a Rutherford County resident during their tour of tornado-damaged areas on April 13.

Senator Alexander and I toured several areas of Rutherford County that were hardest hit after the storms earlier this month and were able to speak with some of the residents that have been affected. The random nature of these storms always reminds us of how fragile life is, and we certainly pray for all those who have experienced great loss. Being on the ground, it is heartening to see the way communities pull together to get through something like this, as the city of Murfreesboro and Rutherford County are doing, and we stand ready to work with local and state officials on the recovery efforts.

Press Release: Alexander, Corker Tour Tornado-Damaged Areas of Rutherford County, Talk with Affected Residents

Spring Hill Should Play a Key Role in GM’s Future

In December our office tried to broker a deal that would have resulted in bipartisan support and provided a viable road map for General Motors to move forward. As we worked through that plan, every stakeholder agreed to shared sacrifice except the United Auto Workers, where we met resistance. In fact, somehow in offering a plan to help the company survive, one that made common sense and would have garnered bipartisan support, I became public enemy No. 1 with the UAW and the AFL-CIO.

Unfortunately, none of us can know what would have happened if there had been cooperation among all the stakeholders in December and we had been able to move forward with our plan to solve decades-old problems and protect taxpayer investment. We do know the results now. In one fell swoop, our government has taken over a company — it fired the CEO, replaced the board, is involved in making decisions about which plants will survive and what kind of cars they will make, and now appears to be directing the company to bankruptcy. In bankruptcy, the same UAW contracts that were the focus of our negotiations in December would change dramatically and bondholders would take huge write-downs on their investments. Unfortunately, because these steps weren't taken in December, billions of taxpayer dollars are now down the drain and more stringent, draconian measures will be put in place.

Regardless of what got us here, the members of the UAW across Tennessee are my constituents, and though they may have disagreed with my approach this fall, there should be no doubt that I want the very best for them, their families, and the many people throughout our state who depend on the auto industry.

I called to congratulate Fritz Henderson as soon as he was announced as GM's new CEO. Fritz and I have had a lot of interaction over the past six months and enjoyed a good relationship. I have offered my support in his efforts to do what's best for GM. I have also spoken with Steve Rattner, head of the administration's auto task force, and sought his strongest assurance that politics will be left out of the decision-making. I certainly hope that is the case.

If the administration uses factors like efficiency, flexibility and the quality of the workers, our modern, adaptable GM plant in Spring Hill, Tennessee should do very well. Spring Hill is the kind of facility that represents what made the American car industry a world leader in technological innovation. Hopefully it will play a key role in GM's resurgence.

Press Release: Corker, Gregg: Treasury Decision Is a Violation of Trust

Honoring a Decorated Veteran

Mrs. Jessie Mae Davis of Chattanooga (center) arrives at the military medal ceremony honoring her late husband, Sgt. Deforrest Davis.

 
Last summer, Mrs. Jessie Mae Davis of Chattanooga contacted our office for help in obtaining her husband’s military awards. Sgt. Deforrest Davis, who served in the military for 23 years, passed away in May of 2006 due to an illness unrelated to his service. At a ceremony earlier this month arranged by the Chattanooga Area Veterans Council, Mrs. Davis was presented with a Bronze Star, Purple Heart, Air Medal, Korea Defense Service Medal, Vietnam Service Medal with three Bronze Service Stars, Valorous Unit Award, and a Cold War Recognition Certificate in honor of her husband’s service. Our military men and women and their families make tremendous sacrifices serving our country, and I’m very proud we were able to help Mrs. Davis secure the military recognition her husband earned.

Press Release: Chattanooga Area Veterans Council Recognizes Sgt. Deforrest Davis

A Way to Avoid Massive, Last-Minute Spending Bills

I realized very quickly after coming to Washington that there is absolutely no construct for fiscal discipline on the federal level. There’s obviously no magic bullet solution, but I believe examining, debating, amending and passing each of our spending bills in regular order rather than lumping them together into a last minute, massive spending bill would go a long way to improving our appropriations process and restoring the public’s confidence in the way we’re spending their tax dollars. Toward that end, I sent a letter – signed by all 41 Republican senators – to Democrat Leader Harry Reid urging him to begin floor consideration of the spending bills during the early summer months to ensure that an appropriate amount of time is available to examine, debate and vote on amendments to the bills. We believe the Senate should pass at least eight of the appropriations bills by the August recess, and we will consider using all available procedural tools to guarantee regular order for appropriations bills and a more transparent process.

Press Release: Corker and Republican Caucus to Reid: To Avoid Massive Spending Bills, Senate Should Pass Appropriations Bills Individually By End of Fiscal Year

Targeting Prescription Drug Abuse in Tennessee

Prescription drug abuse is a serious problem in Tennessee and throughout our country, and the increasing rates of death and dependency associated with unintended and inappropriate uses of methadone, in particular, represent a real threat to public health. The Tennessee Statewide Drug Diversion Task Force says prescription drug overdoses in our state increased 53 percent between 2002 and 2006. From 2003 to 2006, methadone was the #1 drug listed on death certificates in Tennessee and methadone-related deaths in our state increased by 160 percent. At present, our country has NO methadone-specific education or certification requirements that practitioners must fulfill before prescribing methadone for pain management. I’ve joined Senator Jay Rockefeller in introducing the Methadone Treatment and Protection Act of 2009. This bill would fill in some gaps in education, oversight, monitoring and reporting of methadone so we can help save lives and ensure safe and effective treatments for addiction and chronic pain.

Press Release: Corker Joins Rockefeller in Bipartisan Bill to Reduce the Number of Methadone-Related Deaths

Photos

During the Senate’s April recess, I traveled across the state, visiting Chester, Crockett, Davidson, Gibson, Grundy, Haywood, Madison, Obion, Putnam, Rutherford, Sequatchie, Shelby, Weakley and Wilson counties. At every stop along the way, Tennesseans, like most Americans, were very concerned about the economy. I assured them that I am working every day to make sure we put in place policies that will put us on a path to recovery and pull us out of this economic slump.

McWherter Scholars Dinner in Dresden 

Sen. Corker attends a dinner for McWherter Scholars in Dresden.

Crockett County Meet-and-Greet 

Sen. Corker addresses Crockett County residents during a meet-and-greet in Alamo.

Haywood County Town Hall Meeting

Sen. Corker welcomes citizens at a town hall meeting in Brownsville.

Obion County Town Hall Meeting 

Sen. Corker chats with Obion County residents during a town hall meeting in Union City.

 
Chester County Town Hall Meeting 

Sen. Corker greets Freed-Hardeman students following a town hall meeting in Henderson.

Gibson County Meet-and-Greet

Sen. Corker arrives at To the Last Drop Coffee Shop in Trenton for a meet-and-greet with Gibson County residents.

Jackson Rotary Club Meeting

Sen. Corker greets members of the Jackson Rotary Club during a meeting in Jackson.

Wilson County Town Hall Meeting

Sen. Corker takes questions from the audience during a town hall meeting in Lebanon.

In the News

Columbia Daily Herald - Opinion: Union or bust? Corker Plan vs. Obama Plan
The Hill: Corker steps into the spotlight for GOP
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Columbia Daily Herald - Opinion: Union or bust? Corker Plan vs. Obama Plan
April 10, 2009
By Mike Bennett

Mike Bennett is a Spring Hill retiree and former bargaining chairman of United Auto Workers Local 1853.

In December of 2008, UAW President Ron Gettlefinger walked away from Senator Bob Corker’s auto bailout plan believing he would get a better deal under the incoming Obama administration.

Less then 80 days after Barack Obama was sworn into office, it’s become apparent that the Corker plan may have been a better deal for the union. At the time, Sen. Corker had agreement from the bondholders to accept 30 cents on the dollar for the GM unsecured debt, and had the dealers agreeing to a voluntary reduction in the number of GM dealerships if the UAW would agree to negotiate a “competitive” labor contract the end of 2009.

Being “competitive” under the Corker plan would be determined by the President Obama’s Secretary of Labor. The UAW president complained that the union was being treated unfairly in proportion to the other stakeholder’s sacrifice and opted for “no deal.” If the Corker plan had been adopted by the UAW then to help keep GM solvent, how would it have changed the current GM situation?

Under the Corker Plan, the principles of the understanding would have been approved by both Republicans and Democratic in a bipartisan congressional agreement. Under the Corker Plan the terms and conditions of the GM restructuring would have voluntarily been agreed upon by the union, bondholders, dealers and suppliers. It would have been their plan and they together would have owned the decision to file for bankruptcy or not to file.

What plants would close or not closed would have been their decision to make based on plant efficiency, quality and support for their product plan. What brands stayed and what brands were retired would have been theirs to make. What products were built and what prices were charged would have been theirs. The decision to fire Rick Wagoner or not would have been up to the GM Board of Directors.

Since the UAW walked away from the Corker plan, the bondholders, dealers, suppliers and equity holders have all repositioned themselves as the economic environment has worsened and auto sales have plummeted since December 2008. Absent the UAW’s agreement to become “competitive,” the bondholders have concluded that their financial “haircut” would be less severe under a GM bankruptcy.

The UAW in the meantime negotiated a new Ford concessionary labor agreement that the union says is “competitive” with the foreign transplants labor costs. General Motors promptly concluded that the new Ford-UAW contract doesn’t go far enough to meet GM’s needs to become viable.

“A major problem in terms of financial viability of GM is the willingness of the bondholders to step up,” said Sen. Carl Levin, D-Michigan.

With the bondholder chickens out of the Corker henhouse, President Obama’s plan began to develop. President Obama’s auto task force determined that the GM restructuring and recovery plan was weak and didn’t go far enough because “the retiree health care benefits are unmanageable.” As a result President Obama said, “It will require unions and workers who have already made extraordinarily painful concessions to do more.”

Under the emerging Obama auto plan, Rick Wagoner and the majority of the GM Board of Directors had to go, as bankruptcy has become “more probable.” Under the Obama plan the company assets will be split into two companies with the “good” assets (Chevrolet and Cadillac) in one company and Buick, GMC, Hummer, Saturn and other assets in the “bad” company left to the debtors to fight over in bankruptcy court for years to come.

Under the Obama plan what products are built or not built (fuel-efficient green cars) and which plants remain open and which close will be made by the Obama administration. Sen. Corker has since said he expects the plant closing decisions will be political rather then economic. Consequently, plant efficiency, quality or recent GM plant investments will have little bearing on the final outcome.

Remember, Tennessee voted for McCain.

In the meantime, President Obama has replaced Rick Wagoner with a figurehead CEO, Fritz Henderson, who has no real authority outside the Obama plan.

Henderson has already publicly stated he will do whatever it takes to get General Motors in line with to the Obama plan, including bankruptcy.

In the meantime, President Obama has appointed Edward Montgomery as “Director of Recovery for Auto Communities and Workers” to help ease the implementation pain of the Obama plan. As his first order of business, Montgomery flew to Michigan to meet with Michigan Gov. Jennifer Granholm and Detroit’s Mayor Ken Cockrel in a closed door, three-hour meeting.

President Obama has assured Gov. Granholm that he will minimize the economic impact on Michigan with his restructuring of GM. You can bet Granholm has lobbied hard to have as much as possible of the GM product returned to Michigan under Obama plan, rather then moving product from Michigan to Tennessee.

Maybe that’s why the Local UAW President, Mike O’Rourke, recently stated in a UAW newsletter that the membership needs to “pray for the best and plan for the worst” with the Obama plan.

Story created Apr 10, 2009 - 14:51:05 EDT.

Copyright © 2009 Columbia Daily Herald

The Hill: Corker steps into the spotlight for GOP
By Reid Wilson and J. Taylor Rushing
Posted: 03/30/09 08:10 PM [ET]

Sen. Bob Corker asked President Obama's team so many questions on Sunday night about General Motors CEO Rick Wagoner’s forced resignation, a presidential adviser had to phone him back for a detailed follow-up.

Corker’s doggedness and attention to detail have elevated the Tennessee Republican to the level of a party expert on business and an emerging star just more than two years into his Senate career. Corker has become a go-to-senator for Republicans in need of new faces, and has shone in the era of bailouts.

On Sunday, Corker was at it again, pressing the Obama administration during a conference call with lawmakers on the administration’s decision to reject restructuring plans submitted by two of the nation’s leading automakers. When the White House failed to persuade him, Corker did what seems to be coming naturally these days — he stepped into the spotlight and spoke on behalf of his party.

“I know we are in unprecedented times, but I do think that this action today should send a chill, really, through people in this country,” said the GOP senator on Monday during a conference call with reporters.

“Even though there’s no question lots of mistakes have been made, certainly, as it relates to our auto enterprises, this action being taken by the administration in basically defining how this company will be going into the future is very concerning.”

Corker has taken on an increasingly public persona with the downturn in the economy, and that has made him in demand. His party looks to him for leadership. He’s becoming a regular on the Sunday shows, appearing twice on “Fox News Sunday,” as well as on ABC’s “This Week” and CBS’s “Face the Nation.” He’s frequently in touch with top economic officials, such as Treasury Secretary Timothy Geithner and his predecessor, Hank Paulson.

In a wide-ranging interview with The Hill this month, Corker said the key to solving the economic crisis remains boosting the flow of credit.

“The issue that’s really creating this downward spiral is people not having access to capital,” Corker said. “You talk to businesses small and large, whether it’s a large [real estate investment trust] that cannot access additional capital for shopping centers or office buildings or warehouses or whether it’s a small-businessman who’s just trying to keep a dry cleaners open — access to credit is the issue. That’s what we need to be focused on.”

Still, during the March 24 interview, one day after the Dow Jones Industrial Average soared nearly 7 percent on positive news about home sales, there are at least some early signs that the credit market is beginning to loosen.

“We’re beginning to see some things that might begin to create more lending in this country and might create some faith in our larger institutions and hopefully calls them to begin lending, attracting over time some common equity,” Corker said.

Corker came to the Senate aided by a controversial National Republican Senatorial Committee-funded advertisement that seemed to link his opponent, then-Rep. Harold Ford (D-Tenn.), to a party at the Playboy Mansion. But Corker has built a reputation as a calm conciliator, not a partisan bomb-thrower.

While fury over excessive bonuses for AIG executives has raged, Corker has called for restraint. “I think we all need to calm down,” he said. “We are beginning to react to things without thinking.”

And while some Republicans have called for Geithner’s resignation, Corker will not, though he is notably tepid in his comments about the Treasury chief.

“I give leeway to the leader to make their own decisions about Cabinet members, and so look, he’s our Treasury secretary. I think the president has faith in him at present,” Corker said, when asked if he has faith in Geithner’s ability. “That’s who we’re dealing with, and I plan to deal with him in every appropriate way to try to make sure we have good policies in this country.”

The exterior cool masks what observers say is a mind for economic issues that has quickly stood out among his fellow Republicans.

Corker has taken advantage of what leadership aides say was a unique opportunity. He was the president of his party’s Senate freshman class. In fact, if there were other positions to fill, he was those, too: Corker was the only Republican freshman to win election in 2006.

Others — both fans and detractors — say Corker has yet to achieve a status as prominent as that of Sen. Judd Gregg (N.H.), the ranking Republican on the Senate Budget Committee who has the ear of Senate leadership on economic issues. Gregg, who plans to depart the Senate after his term expires in 2011, is still the main voice.

“I don’t know that there’s a natural person [to fill in for Gregg]. Gregg’s going to leave a big hole,” one GOP Senate aide said. “But Corker certainly is one of those leadership looks to already on these issues.”
Gregg called Corker a rising star in the caucus.

“He’s one of the most well-regarded people here on financial policy,” Gregg said. “He’s always well-informed, he spends a lot of time digging into the issues, and he has a lot of common sense. He’s one of the strongest players around here.”

© 2009 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.