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Autoworkers Meet on Proposed Givebacks to Big Three; Mumbai Terrorist Cooperates in Police Investigation; Obama Introduces Bill Richardson as Future Cabinet Member

Aired December 03, 2008 - 14:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

(BEGIN VIDEOTAPE)
KYRA PHILLIPS, CNN ANCHOR (voice over): The Big Three, can they get a jump from their workers to get the bailout started?

Mumbai one week later, nuclear India has tough words for nuclear Pakistan, considering all options to protect its territorial integrity. So what does that mean?

UNIDENTIFIED FEMALE: A lot of people maybe have doubted me, or don't believe that a girl without arms, or a woman without arms, could do much.

PHILLIPS: No arm, no shoes, no problem. Here is a pilot who is truly fleet of foot.

(END VIDEOTAPE)

PHILLIPS: Hello, everyone, I'm Kyra Phillips live in the CNN World Headquarters in Atlanta. And you are live in the CNN NEWSROOM

Well, to hear the automakers tell it, death doesn't just comes in threes, it comes in Big Threes. The CEOs of Ford, Chrysler and GM go before Congress tomorrow to state their case for $34 billion in government money and warn what could happen if they don't get it.

Chrysler says it needs $7 billion quick, just to stay alive. One Chrysler official even says that if one automaker fails the whole industry could collapse, and our recession could become a depression. The head of the autoworkers union, also, will be in D.C. tomorrow to tell Congress how the workers will help. Our Brooke Baldwin is in Detroit, where the UAW held an emergency meeting today.

Brooke, what came about?

BROOKE BALDWIN, CNN CORRESPONDENT: Kyra, I think it is important to point out a lot came about, a lot of discussion. And I think this is sort of significant, take a look at the front of the -- what is this? "The Detroit News", "Survival Road Map". You talk about the Big Three execs on their way to Washington to help try to get the multibillion dollar loan from federal government. Also, part of the survival road map, the union. The union in its show of solidarity came together today, the Big Three councils, GM, Ford, Chrysler. And here is what they discussed as that meeting wrapped up just a short time ago.

They will be allowing the Big Three to delay payments, billions of dollars of payments, to a retire health care trust, in 2010, so that should help the Big Three shore up some liquidity too, again to survive, the key word here.

Also, they discussed suspending the jobs bank and what that does, is that provides all kinds of money -- in financing for these laid-off workers; thousands of workers, let's say, after plants closed and they're laid off. They are still paid up to 95 percent of their salaries. That may be no longer. UAW President Ron Gettelfinger spoke during this press conference and he said that the American automotive industry is a victim of the bleak economy.

(BEGIN VIDEO CLIP)

RON GETTELFINGER, PRESIDENT, UAW: We are not asking for that famous term that everybody uses, this is a loan to help the industry through an economic downturn that the industry had nothing to do with.

(END VIDEO CLIP)

BALDWIN: The total of 525 different delegates from all across the country are gathered just upstairs here at the GM headquarters, in a meeting room. One of those leaders, Victor Quiroz, from Los Angeles, he is the president of the local UAW 230.

What was your first reaction? You flew in, you got this e-mail Monday, that you needed to be in Detroit, you attended the meeting. What was your reaction?

VICTOR QUIROZ, PRESIDENT, UAW LOCAL 230: Well, first we knew, we knew there had to be some serious talks in regards to this. We came, consciously knowing that we had to basically offer our share, knowing that Congress is basically looking for ways, and how it is that they have to substantiate or at least justify how is it they are going to help us.

Today, it was the first time that we have seen it in decades in which the three councils come together at once, rather than the constitutional conventions. We had to come together. We had to basically come to those decisions to revise not only the viva (ph) issues but also make some revisions on the national agreements. That is part of our share. We know we are part of the big economy, so we are basically giving Congress, listen, this is what we are doing and now step up to the plate just like we are trying to step up to the plate.

BALDWIN: What was the mood inside of the meeting today? It can't be easy making these kinds of concessions. It affects thousands of people.

QUIROZ: It affects thousands of people, but I think the options were basically pretty much clear. Either do something or nothing, and basically go into abysmal. That is what we had to do. Today, I am proud to basically say that we are coming with a package, trying to basically come to conclusions and details that will be further coming. BALDWIN: All right. Victor Quiroz, appreciate it. Thank you so much.

QUIROZ: Thank you.

BALDWIN: Final note, as I mentioned earlier, another piece of this whole puzzle as the 525 delegates depart from Detroit, a number of people will be gathering this Detroit Sunday, downtown, part of this huge caravan, Kyra, driving to Washington, D.C. so that their voices are heard when and if Congress reconvenes and agrees to give the Big Three this multibillion dollar federal loan.

PHILLIPS: All right. We will be following it all of the way through, of course.

Brooke, thank you so much.

Coming up later this hour we are going to talk with a union leader who was at that emergency meeting, as well, and ask him some of those sacrifices that workers might be making.

Now, remember $700-billion rescue plant passed before the election? How is that working out? Well, if you ask the Government Accountability Office there is a lot of room for improvement. The office just finished its first review of the plan and ruled some critical problems with oversight needs fixing to make sure that the plan is actually working. The GAO also says that the Treasury needs more staff and a better way to make sure that the banks are using that money effectively.

Terror, anger and grief now, three faces of the Mumbai massacre one week later. The man in black is the last surviving gunman of the 10 who stormed ashore in India's largest city. And today, he is the single biggest lead for Indian investigators. A country still in shock from a rolling rampage today, lit candles in memory of 179 victims, while outraged, Pakistanis burned flags over U.S. and Indian suggestions that the Mumbai plot may have originated on Pakistani soil.

Well, the gunman I mentioned is telling police a chilling tale of a long and intricate training of Pakistanis by Pakistanis in Pakistan.

CNN's Nic Robertson is following the investigating in Mumbai .

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN INT'L. CORRESPONDENT: Well, police believe that was the fifth and last bomb that the gunman brought ashore a week ago. They say the gunman brought ashore five bombs, two where put into taxis, one exploded, two were put into hotels, and the fifth left at the railway station. What appears to have happened it tidied up after the chaos when the gunman had that shooting spree at the train station, tidied up with the lost property, the police had been going through the lost property there. They discovered the bomb, high explosives, RDX. It would have been very, very damaging, caused many casualties if it had gone off, but the police successfully now defused that bomb.

We have also been learning more details about the training for these attackers, from the police. More details coming out everyday. There is word that the bomber who is now -- the gunman who is now in police custody had one and a half years of terror training at a terror training camp, several terror training camps, in fact, inside Pakistan.

According to the police, he was given expertise and special training on handguns on automatic weapons, on explosives, on survival techniques, on maritime training. What they say is very important is the last three months of that training was very specialized training. The 10 gunmen were given code names. They weren't told what each of the others were being taught. They were taught individually. They were taught and shown photographs of the locations that they were told to target. They were shown where they would enter the building, and the doors where they would exit the building; the other buildings that they would go to.

In the case of the gunman who is in police custody, it was the train station, it was the hospital and other buildings. Very, very specific and detailed training according to the police. The police also say they have traced the weapons that they used, the hand grenades and the guns; they say they traced those back to Pakistan, as well. But what worries police investigators here now, they say, is that they believe that this is a unique attack. It was something new. It represents a sea change, if you will, in the style and type of attack and this worries them.

Because they say that what they have learned from this gunman is that there were many more people like him going through the terror training camps, and they believe that means that there is the potential now for more sophisticated attacks. And what worries them in particular is that they believe, knowing the people that are going through those training camps, that these sophisticated terror attacks may not just target India in the future, but other countries as well, potentially countries in Europe, and potentially, as well, the United States.

Nic Robertson, CNN, Mumbai, India.

(END VIDEOTAPE)

PHILLIPS: As you know, the Big Three heads of the automakers are going before Congress tomorrow. To hear the automakers tell it, death does not just come in threes, it comes in Big Threes. So the CEOs of Ford, Chrysler, and GM will give their testimony again before Congress to state their case for $34 billion in government money, and warn what could happen if they don't get it.

Chrysler says it needs $7 billion, quickly, just to stay alive. One Chrysler official even says that if one automaker fails, the whole industry could collapse, and our recession could become a depression. As you can imagine, Michigan Senator Carl Levin has been following this from the very beginning. He will be paying attention to tomorrow, of course, listening to that testimony, listening to the questions being asked.

Senator, I appreciate you joining me. Maybe I should go ahead and start with the emergency meeting that we have been talking about taking place in Detroit, the autoworkers union. The fact that they have even come forward; the president, right here, saying that we know additional sacrifices will be required. Is this one step in the right direction? Just to add to what the CEOs need to do, of the companies. But it looks like the union is finally saying, OK, we have to give up some as well?

SEN. CARL LEVIN, (D) MICHIGAN: Yesterday, we got the plans from the auto industry. They were comprehensive plans. They did exactly what Congress asked them to do, which was to give a road map to economic viability, and that road map has been presented, and it will be explored in the hearings tomorrow and Friday.

The UAW is continuing to do what they have been doing for years, making cutbacks. Very painful cutbacks in terms of what they had already won at the bargaining table. The UAW will also be at these hearings supporting the request for bridge loans.

And by the way, all of the leadership here support bridge loans. There is no difference in that, the president, the president-elect, the leaders of the Senate, the speaker of the House -- all support bridge loans. The difference is that they have a difference over where the money for the bridge loans would come from, which two pots of already appropriated funds should be the source for the bridge loans. That is the major problem once we get over the hurdle of having plans before us which to provide for financial and economic viability.

PHILLIPS: Well, Senator, let me ask you this, you talk about the cutbacks that the unions have had to make on a regular basis. Do you think that is fair when you look at the money the CEOs have been making, and the money that has allegedly been wasted, and, you know, the whole situation that came up about them flying their private jets, and not being more economically sound in a very tough time right now? Do you think it is fair that the unions are having to do this once again, and sacrifice even more?

LEVIN: Everybody is going to have to participate here. The obviously the CEOs who have said they are going to give up any salary during this period of time, when they have loans. No bonuses during this period of time. They have got that point very clearly in their plans and in their statements yesterday.

We also need some much more active support from the White House and from the president-elect, both. They both say they favor bridge loans, they want to make sure that the plans will lead to economic viability. But we need them to be actively involved in finding the solution here, and what the not is. The not is which of the two parts, already appropriated funds, is going to be used for these bridge loans? We need the president and the president-elect to be actively looking for that solution.

PHILLIPS: And what do you need to hear to know that those loans will definitely be paid back? We have heard the execs say, well, they will be paid back, but will they really be paid back? And how do you hold them accountable for that?

LEVIN: Well, there are plans that have been supplied and so you need to read the plans as I have, and then satisfy yourself, that those plans do provide the road map to economic viability and payback, secondly, in terms of whether the plans will be kept, there is oversight boards --

PHILLIPS: Well, that is my question. How do you know those plans will kept? I mean so many --

LEVIN: You have an oversight board. And I'll try to answer your question.

PHILLIPS: OK.

LEVIN: That is the second part of the answer, which is that you have an oversight board which would be appointed to make sure that those plans are carried out as they are laid down.

PHILLIPS: All right. Finally, apparently a Chrysler official came forward, Senator, and said if one automaker fails that the whole industry could collapse, and even the recession becoming a depression. Do you believe in that? Do you believe it is a true statement?

LEVIN: I do, because they have common suppliers. And one other point that I think has not been made adequately here, and that is every other country with an auto industry is in the same position as we are. They are all making loans to their industry. We are not unique. This problem is not because of mistakes that were made by the executives, even though there have been mistakes. The problem that we are in now is a global problem of the auto industry.

The French have announced loans to the industry. European auto industry has asked for $15 billion. The Brazilian auto industry, yesterday, or the day before got a $3.5 billion loan. The Chinese auto industry, the Chinese auto industry is seeking loans from the Chinese government. So, this is not just an American problem. This is a global problem.

And the issue we face, do we want an auto industry with all of the millions of jobs (AUDIO GAP), including suppliers, including the dealers and all of the other jobs, do we want an auto industry here at the end of the recession, or are we willing to give it up, which no other country will do for that big chunk of their own industry.

PHILLIPS: And final question, Senator, I mean, you bring up a very good point, about -- it is not just us, but we're seeing this struggle all across the country --

LEVIN: The world.

PHILLIPS: The world, excuse me. And you see all of the profits that are made and all of the money involved in this business, so that the question is, why is everyone struggling? Why is everybody looking for a loan and everybody looking for more money? What happened to get everybody to this point? Was it overspending? Was it not -- you know, inequality in salary? Can you even pinpoint why we are in the position we are in on a worldwide basis?

LEVIN: Yes, because there is a worldwide global recession, which has reduced dramatically the purchase of automobiles of every company. Not just the American Big Three, every company worldwide has dramatically lost sales during this recession. There is a global recession going on. That is the current cause of this problem. The issue is, at the end of that recession, do we want to have an industrial base and a manufacturing base so dependent on the auto industry, in this country, like every other country insists on. Do we want that to be there at the end of this recession?

PHILLIPS: Well, and that takes us back to Wall Street and that takes us to, you know, what has happened there, in addition to the loans situation. And I guess we could keep talking for hours on why we are where we are, but no doubt we will be paying attention to the hearings tomorrow and look forward to finding some type of answer.

Michigan Senator Carl Levin. Appreciate your time, sir.

LEVIN: Good being with you.

PHILLIPS: Well, they fought for the same job, now they are teaming up. President-Elect Barack Obama turns to former rival Bill Richardson to fill a spot in his Cabinet. We are going to have a live report from Washington.

And we will hear from half of the world's pre-eminent power couple on his role in her new position. It is an interview you will only see on CNN.

(COMMERCIAL BREAK)

PHILLIPS: Well, just a month after he was elected, Barack Obama is making progress in filling his Cabinet. His latest pick announced today, New Mexico Governor Bill Richardson for Commerce secretary. He had been considered a contender for the job of secretary of State. CNN's Suzanne Malveaux joins us now from Washington with more.

Hi, Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hi, Kyra,

This is somebody who has an incredible amount of experience. He has been a governor, a congressman, a diplomat, a U.N. ambassador, he even Energy secretary. And he has negotiated with countries like North Korea, Iran, Cuba, Iraq, gotten hostages out, peace agreements in, cease-fires. So, the big question, of course, is why Commerce secretary?

It was widely viewed he would be logical pick for secretary of state. That is the job he wanted. But that big prize, as we know, went to Senator Hillary Clinton. So Obama, today, was asked why shouldn't this be seen, especially to Hispanics who supported his candidacy, why this was not a consolation prize?

(BEGIN VIDEO CLIP)

BARACK OBAMA (D), PRESIDENT-ELECT: I have appointed about half of my Cabinet so far. And I think that when people look back and see the entire slate, what they will say is -- not only in terms of my Cabinet but in terms of, but in terms of my White House staff, I think that people are going to say, this is one of the most diverse Cabinets and White House of all time. But more importantly, they are going to say, these are all people of outstanding qualifications and excellence.

(END VIDEO CLIP)

MALVEAUX: Not surprising that Obama emphasized Richardson's role as an economic diplomat, one who had to deal with the global economic crisis, and as a governor he acted as the CEO of his state, basically, balancing budgets, increasing access to health care, those types of things, Kyra.

PHILLIPS: Well, Suzanne, was the Obama transition team sensitive to the way this appointment would be perceived?

MALVEAUX: They certainly were. They were aware of this. They realize they had three big guns here, Hillary Clinton, Joe Biden and Bill Richardson; all of them who have portfolios that kind of overlap. They wanted to bring them all under the umbrella, all under the tent. They had to figure out a way to do that.

That is why you didn't see him, basically, with the economic team last week with the whole group of people. He got his own press conference, his own announcement. They really wanted to bolster this, because they knew it would be perceived that way. And they wanted to emphasize this was about global trade and that this was a match for his resume.

PHILLIPS: Suzanne Malveaux, live from Washington, thanks.

And of all the Cabinet picks and staff appointments, by the president-elect, only one comes with a spouse who used to be president. In an exclusive with CNN International, former President Bill Clinton says the junior senator from New York and last surviving rival for the Democratic nomination did not expect a spot in Obama's Cabinet.

(BEGIN VIDEO CLIP)

WILLIAM JEFFERSON CLINTON, FMR. PRESIDENT OF THE UNITED STATES: I think she was shocked. She first read about it in the newspaper, the speculation.

UNIDENTIFIED FEMALE: Really?

CLINTON: Yes, and she -- it was I think a very wise decision by the president-elect, and I think she made the right decision.

(END VIDEO CLIP)

PHILLIPS: Well, Clinton spoke with CNN's -- I think it is Anjali Rao in Hong Kong, where he opened a meeting of his Clinton Global Initiative.

Well, the parties, the glitz, the glamour, you know we see a lot of that on Inauguration Day, but in these tough times, will the party go on when Barack Obama takes the oath of office?

Here is CNN's Jim Acosta.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN CORRESPONDENT (voice over): Talk about pressure, less than 50 days the go and some 3 million people expected, and the stage is still being set.

So, Obama Inauguration Spokeswoman Linda Douglass says they have to get creative.

LINDA DOUGLASS, SPOKESWOMAN, PRESIDENTIAL INAUGURAL CMTE.: One of things we are looking at is opening up the National Mall, for the first time, with a big screen TVs and an audio system.

ACOSTA: Another challenge? Striking the right tone. Past presidents have learned that glitzy inaugural balls can be a distraction in tough times.

LARRY SABATO, UNIVERSITY OF VIRGINIA: It is not going to look particularly good for the president-elect and his team, if Americans see limousine after limousine and fur coat after fur coat, at a time when just about everybody else is suffering.

ACOSTA (On camera): These are tough times.

DOUGLASS: These are tough times, and certainly we are mindful of the struggles that Americans are going through in their own lives right now.

ACOSTA: Douglass says that is why they set new limits on donations to the inaugural fun.

DOUGLASS: No corporations, no union, no money from lobbyists; a limit of $50,000 for an individual. But there have been past inaugurations when that limit was $250,000.

ACOSTA: Obama supporters dismiss the idea of dialing it down.

UNIDENTIFIED MALE: I'm not sure that you do tone it down. Based upon the way this campaign was run, I think the president elect wants to open the inaugural events up to as many people as possible.

ACOSTA: A tone will be set when the president-elect selects his inaugural theme.

OBAMA: The time has come for a new beginning. A new dawn of American leadership.

ACOSTA: A new dawn? Sounds like FDR's New Deal.

(on camera): Are we seeing a theme emerge, perhaps?

DOUGLASS: We are not going to be talking about themes. You will be hearing what the theme is when we roll it out.

ACOSTA: OK, and but it sounds like a theme that's -

DOUGLASS: Good try though.

ACOSTA: President Bush's inaugural in 2005 ran between $40 and $50 million, for now, Mr. Obama's inaugural planners won't talk about a price tag, except to say that private money should cover most of the costs.

Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: Extraordinary times for the auto industry. And a pretty much unprecedented meeting of its union leaders. What it is like knowing your industry, your family's industry, maybe even your nation's economy have so much riding on what you are doing.

(COMMERCIAL BREAK)

PHILLIPS: (AUDIO GAP) ... the national weather outlook today.

Hey, Chad.

CHAD MYERS, CNN METEOROLOGIST: Hey, Kyra.

I was trying to look at Alaska, because some spots in central Alaska this morning, obviously, you know, where the snow is, where the snow pack already is; 31 degrees below zero, so everyone here that is hating 5 in Sioux Falls, think about farther to the north and to the northwest and how bad it could be.

Although, they say it is a dry cold. But I don't think that helps.

(WEATHER FORECAST)

PHILLIPS: Right now, 2:29 Eastern Time. Here are some other stories we are working on in the CNN NEWSROOM.

Attorney General Mike Mukasey is back on his feet and in front of the cameras. He held his first news conference today since collapsing last month while giving a speech. Mukasey says he doesn't know what caused his fainting spell.

New York Giant's receiver Plaxico Burress is on the mend, but his career is on hold. The team suspended him after he accidentally shot himself in the leg and was charged with illegal weapons possession. And investigation continues into the shooting at a New York nightclub.

New details about the attacks in Mumbai; the only surviving attacker is talking. Police say the group spent three months planning that deadly siege.

Well, for the family caught in the middle of the Mumbai siege is now home safely and talking about their ordeal. They survived by hiding under a bed at the Taj Mahal hotel.

Amanda Ober, from our affiliate WESH, reports.

(BEGIN VIDEOTAPE)

AMANDA OBER, WESH REPORTER: The Allen family was enjoying an exotic vacation in India, including a few nights at the Taj Mahal Hotel in Mumbai. Little did they know on their second night the hotel would be stormed by armed terrorists.

MAXINE WILLIAMS ALLEN, SIEGE SURVIVOR: Every time I close my eyes I can hear this woman screaming and then a man yelling no, no, no and then you heard it followed by gunshots. And that is when he said to me, this is serious. And we pushed the kids under the bed.

DR. LEWIS ALLEN, SIEGE SURVIVOR: Underneath, there is enough space that you can get under and then you have a little bit of space inside, in this area. And that's where we were staying.

OBER: Dr. Lewis Allan showed us a bed almost identical to the one he, his wife and two sons hid under for two full days.

M. ALLEN: They actually slept at one point, one night, and most of one day which we can't understand, you know, they were out cold. And that was a blessing because you had to be quiet.

OBER: Their only source of communications was text messages. In one conversation with an embassy official Dr. Allen reported gunshots on the second floor. The representative responded stay low, operations ongoing. Eventually a friend did let the commandos know the Allen's exact location. And they were rescued, but their exit from the hotel was frightening.

M. ALLEN: His sneakers you figure -- they were squeaking. And he took them off and what he realized he was stepping in was pools of blood as we were walking down.

OBER: The Allen's believe it is a miracle that they made it out alive. And they say they want to tell their story for a reason.

M. ALLEN: Just like we don't want the world to judge us based on the fringes, those that exist on the fringes of our society. We don't want others to think badly for just a few people that wreak havoc like this. They can't win from that stance.

OBER: Amanda Ober reporting, WESH-2 News.

(END VIDEOTAPE)

PHILLIPS: Well, talk about a vacation they won't forget. The passengers on this cruise ship attacked by Somali pirates over the weekend are speaking out about their high seas adventure. The luxury liner out ran two small boats of pirates off of the coast of Yemen. The ship wasn't damaged and no passengers were not hurt. But everyone has a story.

(BEGIN VIDEO CLIP)

MARILYN MACHUM, CANADIAN TOURIST: We went up to breakfast. We just sat down and the captain said there were suspicious boats following us. Would we all go into the corridors or into out cabins.

WENDY ARMITAGE, NEW ZEALAND TOURIST: It was really minor really. But it was a surprise planned attack. And they did fire shots.

(END VIDEO CLIP)

PHILLIPS: The MS Nautica was sailing through the treacherous Gulf of Aden on a voyage from Rome to Singapore.

Born to fly. A woman with no arms, determined to get her wings.

(COMMERCIAL BREAK)

JACQUI JERAS, CNN CORRESPONDENT (voice-over): Joe McKenna is in the business of protecting you from the sun. His company Sky Shades makes umbrellas and shade structures for everything from restaurants to playgrounds. But instead of just keeping the sun out, McKenna wants to harness its energy.

JOE MCKENNA, SKY SHADES: It's running a laptop. We've got a DVD playing that's playing. We've got a cell phone charging.

JERAS: This is what he calls the powerbrella (ph). A prototype solar power umbrella.

MCKENNA: We're pulling electricity out of the unit right now.

JERAS: Sky Shades partners with Conarca (ph), a company that makes the thin solar films that are placed on top of the umbrella.

MCKENNA: Pockets allow us to be able to slide the panels in and out. So there are 16 eight-watt panels.

JERAS: Energy from the sun charges the batteries in the unit. A volt meter shows how much electricity it's getting. McKenna says that the design is ideal for outdoor places where people charge their electronic devices.

MCKENNA: I've got different friends that take their laptops and they go into the Starbucks or the Paneras, places that offer free wi- fi. And one of the challenges that they've always told me is getting there at the right time to be able to use some of the outlets and the plugs that are available in the stores. It's a new generation of solar and it's going to change the which we think about solar.

Jacqui Jeras, CNN.

(END VIDEOTAPE) (COMMERCIAL BREAK)

PHILLIPS: Well, if the big three U.S. automakers think Congress is a tough sell, they'd better be glad they don't have to face their customers. The CNN/Opinion Research Corporation Poll shows just 36 percent of Americans favor government help for the struggling U.S. auto industry. 6 in 10 oppose it. Those views, not withstanding (ph), most Americans believe their families would feel the effects sooner or later if U.S. car companies went bankrupt. Only 23 percent believe they'd never be affected at all.

Well, the head of the United Auto Workers says there's a huge difference of the auto bailout and the financial bailout. In fact, Ron Gettelfinger won't call the $34 billion proposal a bailout at all. He says it's a loan, where Uncle Sam gets a lot in return.

(BEGIN VIDEO CLIP)

GETTELFINGER: AIG or Bear Stearns or CitiGroup. Nobody asked them for anything, no oversight or anything. Look, here's the plan. You want the plan, here it is. Oversight, bring it on. The U.S. government gets equity in the companies, you got it. No dividends, there it is. I mean, so this is a big difference than company A out here raising their hand and saying, I need help.

(END VIDEO CLIP)

PHILLIPS: Well, Michael Green was in that emergency UAW meeting today in Detroit. He's the head of the local union and part of three generations of his family who work for GM. We had a chance to interview him, his dad and his son last week.

Good to see you again, Mike.

MIKE GREEN, PRESIDENT UAW LOCAL 653: Good to talk with you.

PHILLIPS: Well, go ahead and tell me what your impressions were from the emergency meeting today. What struck you maybe as in a positive manner and also some of your concerns.

GREEN: Well, in a positive manner you know, looking at what they rolled out there today. I don't think it's anything that's not achievable.

And what I was really happy with, it looks like again the bargainers have addressed everybody. You know, they've had everybody's best interest in mind and I think it's nothing that can't be worked out there. I think there's a better idea on the package that's going to D.C., and I think we're going to come out of this OK.

PHILLIPS: All right. Tell me what changes the UAW is prepared to make at this point.

GREEN: Well, you know, some of the key things that, you know, everybody's been talking about the job bank. That was something that's been the big buzz. They're looking at addressing that. What they did there is, they're going to let the VPs go back of General Motors, Chrysler and Ford and sit down with their bargaining units. They've got a top committee assembled right now.

So, you know, that gives a say of what's going to happen and that way you have some input on what's going on. So, they do look at is, individuals. So, what might concern us at GM, might not be the same concern with the other two big companies.

PHILLIPS: Mike, you mentioned Job Bank. And that pays 95 percent of the laid off workers' salary.

Do you think that is right to have that type of job bank?

GREEN: Well, it's one of the things that was negotiated. I don't know if it's right. What that was designed for was part of your job security. And what that was to do was to keep jobs in the U.S. What that was designed around, to help do that.

Well, unfortunately that didn't happen. So, therefore, the job base is created and that's where people went. It's been kind of a black eye on the UAW because it -- you know, people want to say well, they just sat around and do nothing. There's a lot of people that went out. My plant, LGR Plant here in Lansing, we got to front load all of our training because of it. People just didn't sit in a job bank. We went out and people went to training and learned about the new product coming in, while other people did their job.

So, we really -- you know, we did well that way. We had people in the community working in the schools no matter -- you know, mentoring children or the rest of it. You don't hear any of the positive things that happen there. And there was a lot of positive that happened to the job bank.

PHILLIPS: OK. Also, on another -- since we're talking about, you know, cold hard cash. The CEO's are saying, look, we know that we're not going to be able to make as much money. We're going to have to skip out on the bonuses, et cetera, et cetera, not fly the private jets. That makes sense. But at the same time, all of you guys are going to have to experience pay cuts, as well.

Do you think that's fair?

GREEN: Well, you know, I think they if they lead by example, it's sure a lot easier to you know, talk to the membership on what's going on.

You know, what we have to look at is what it's going to take to survive. And it's not just for the auto industry. You know, this is middle time America, you know. It's not just the auto worker, itself. It's everybody that's attached to it. Again, we take a look at, because of the economy and the effect it's going to have on everybody. And that's kind of why -- I don't know if people really understand the depth it would be if the auto industry went down.

PHILLIPS: Yes. I think that a lot of people are getting a sense that it would really, really hit our economy harder than we ever realize.

Mike Green. President UAW Local 653. Tell you dad and your son I said, hello.

Good to see you Mike.

GREEN: Good to see you. That's 652, by the way.

PHILLIPS: Oh, we've got get that fixed. That's incorrect in my notes. I apologize. 652, that is noted, Mike Green.

Thank you.

GREEN: All right. Thank you.

(BUSINESS HEADLINES)

PHILLIPS: Well, lots of people daydream about flying planes. But one woman was so determined to become a pilot, she pretty much invented a new way to fly.

More now from Lorraine Rivera, of our affiliate KBOA.

(BEGIN VIDEOTAPE)

LORRAINE RIVERA, KBOA REPORTER (voice-over): From the runways. to the sky. This flight is like most others. Flying the pattern is a breeze, the landing smooth. The only thing that's different, the pilot in command of this air coop is a 25-year-old woman without arms.

JESSICA COX, PILOT: A lot of people maybe have doubted me or don't believe that a girl without arms can or a woman without arms could do much.

RIVERA: But she can. Jessica Cox, a certified pilot does it all and alone. Even her preflight inspection.

COX: It's full.

RIVERA: She checks the oil with a screwdriver and her foot and head, and fills out her own logbook.

COX: OK. Today is the 2nd.

RIVERA: Really, the only tricky part --

COX: Yes. That was my first challenge in flight training, was how to buckle the seat belt. So, I figured out. Well, you don't always have to buckle the seat belt after you sit down.

RIVERA: Born with a congenital defect, she's accepted who she is. For 11 years, she used prosthetic arms. Then decided she didn't need them. And three years ago, a pilot with Right Flight, an aviation company, offered her the chance to fly.

PARRISH TRAWEEK, FLIGHT INSTRUCTOR: Well, when she came in here, we knew she could do it just because of the drive that she has. Absolutely.

COX: Yes. Parrish, you know, he has this undying faith in me.

RIVERA: She's already logged close to 100 hours in the sky.

COX: When you're behind the yoke and you're soloing the airplane for the first time and you look over and you don't see your instructor there and you're forced to accept that you're flying the airplane, you realize at that moment that you literally have your life in your own hands or in my case, in my own feet.

(END VIDEOTAPE)

PHILLIPS: That is fantastic. Right now Jessica Cox is a motivational speaker, we can all see why. But she hopes to some day be a flight instructor.

Well, a singing Santa is a holiday headache for one Pennsylvania neighborhood. We've got the Grinchy details.

And it's good enough for retailers. Now, travel agencies are getting in on the act. Buy your next vacation on layaway.

(COMMERCIAL BREAK)

PHILLIPS: First Lady Laura Bush showing off a little White House Christmas splendor today. She hosted a sneak peek of the 2008 holiday decorations. In addition to touring decked out rooms and getting a glimpse of the official tree, an 18-foot Frazier Fir. Members of the media sampled some of the tasty goodies that will be available at the White House this holiday season.

Well, Santa Claus is getting a bad wrap in Bethlehem, Pennsylvania. The self-proclaimed Christmas city.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (singing): It's the most wonderful time of the year.

UNIDENTIFIED MALE: Have a great holiday season.

(END VIDEO CLIP)

PHILLIPS: (INAUDIBLE) started getting complaint calls right after a homeowner set up his singing Santa. The figure has been a holiday guest out front for the last four years. The owner says he has already turned down the volume and turns it off at night, so "bah, humbug" to anyone lacking Christmas spirit.

Here, you want to listen to a little bit?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Have a great season.

How about a song to get you into the holiday spirit?

(END VIDEO CLIP)

PHILLIPS: Also, straight ahead, she wanted a new handbag for the holidays, but what she found inside, well, it was quite a haul.

(COMMERCIAL BREAK)

RICK SANCHEZ, CNN ANCHOR: But the idea of course would be that we are actually doing something having to do with --

PHILLIPS: Was he just picking his nose?

SANCHEZ: What's that?

PHILLIPS: What are you and Angie Massie (ph) talking about there?

SANCHEZ: She -- whatever she says I do, because she is the executive producer.

PHILLIPS: I will tell you what, and she is also the brains behind the body there, Rick Sanchez. Brains behind your body.

SANCHEZ: She and I were just talking about the admirals and the generals. I mean, there's 12 of them and they are going to be telling someone on Barack Obama's staff, look, let's get rid of Gitmo and let's stop the torturing. It is an interesting concept. So we're going to be getting into exactly what they are asking for.

The other thing I'm going to be doing -- and this is a story that really got to me this morning. I was watching the locals this morning here in Atlanta. And they were doing a story about a cemetery where slaves are buried. They're going to replace that cemetery with a trash landfill. Think of the symbolism of that. Yes.

I spent a lot of time thinking about this.

PHILLIPS: That's just stupid.

SANCHEZ: Well --

PHILLIPS: I mean, is that -- who came up with that idea? Why are they doing it? Has it been approved? And are you serious?

SANCHEZ: I am serious and you will be surprised -- or maybe not so surprised -- to note that the commissioners who voted for this, according to the NAACP, have all been given campaign funds be the landfill company.

PHILLIPS: Oh boy. Imagine that.

Well, I'm going to be paying attention to that one. We will follow up with that. Actually, we'll watch your show and follow up with it tomorrow, Rick.

SANCHEZ: You always do.

PHILLIPS: It doesn't mean that we follow everything that you do, although I do love Angie Massie.

All right. A bizarre situation in California leads to three arrests and a lot of questions. It started Monday when a teenaged boy ran into a gym wearing only underwear and shackles. Well he was bruised, he was tired, he was hungry, he was begging for help. And he directed cops to a home where he said he allegedly had been held captive for some time.

Well, after a search, they arrested the couple that was living there and later picked up a third suspect, the boy's aunt.

(BEGIN VIDEO CLIP)

MATT ROBINSON, TRACY. CALIF. POLICE SPOKESPERSON: He was chained. As we know, he had a chain around his ankle. His condition in the house -- his situation, basically, as we know, he was dirty, he was bloody. Basically, what he was living in, how he was living, we really can't -- detectives are not commenting on that yet.

(END VIDEO CLIP)

PHILLIPS: Well, a court appearance is scheduled for tomorrow for the husband and wife who were arrested. Their four children have been taken into state custody.

(COMMERCIAL BREAK)

PHILLIPS: So, is your money tight, but you still want to travel? Try booking a flight now and paying for it later. Call it layaway travel.

(BEGIN VIDEO CLIP)

SANDRA BARNES, DIRECTOR OF TRAVEL, AAA: You can actually put down a deposit and then make your final payment 45 to 60 days prior to your departure.

I actually think people take advantage of it to avoid those high interest rates on their credit cards.

(END VIDEO CLIP)

PHILLIPS: Well, AAA encourages travelers using the layaway plan to book early.

So no holiday shopping money? How about some free gift cards. Connie Shepherd (ph) found 24 of them tucked inside a purse she had just bought at a Michigan Target store. The cards are loaded with amounts up to $100 from such stores as Toys 'R' Us, Kohl's and J. Crew. Of course, Shepherd turned them into police. But so far, no one has reported the cards missing, and police say if no one claims them, Merry Christmas, Connie.

We'll see you back here tomorrow.

The 3:00 edition of NEWSROOM with Rick Sanchez starts right now.