"Under [Sen. Corker's] plan, which was the subject of intense negotiations with Democrats, the automakers would be required by March 31 to cut their debt obligations by two-thirds — an enormous sum given that G.M. alone has more than $60 billion in debt outstanding.

The automakers would also be required to cut wages and benefits to match the average hourly wage and benefits of Nissan, Toyota and Honda employees based in the United States, and the companies would have to impose equivalent work rules. The plan would also bar any pay for idled workers other than “customary severance pay.”

http://www.nytimes.com/2008/12/12/business/12auto.html?_r=1&hp

This may be trying to handle a complicated matter with a very broad brush, but it'd be real interesting to see if the American car companies could compete if they paid the same labor rates as the Japanese ones here.

I didn't see if they mentioned pre-existing pension obligations.