I'm not a Union guy. I'm probably the last guy who is going to defend Union activity. I believe Unionization has been one (of many) factors in the decline of manufacturing in the United States. I work for a company that has a UAW shop and while, dealing with individuals in the Union is generally pretty easy, dealing with the Union as a whole can be a major pain in myess.
All that said, it's beginning to look like the Senate/UAW negotiations went south because the Senators don't understand Union contracts, Union mentality or UAW/Automaker history. On the other hand, I don't think the Union understands the gravity of their situation. And the wages are not the big part of the problem - it's the legacy costs. Wake up.
Understand that I am against bailouts in general. I think the "love" needs to be spread around. Right now, the only ones taking it in the shorts are the responsible, hard-working, tax-paying, I-might-scramble-sometimes-but-I-meet-my-bills-even-if-I have-to-get-another-job citizens of this country. There is zero reason to bail out mismanaged, overpaid, underworked, sometimes criminally negligent or worse, business. Whether Wall Street or Main Street, Detroit or Dallas, Silicon Valley or Rio Grande Valley, government intervention only prolongs the agony. The losers will lose, the winners will win. Sooner is better.