Last modified: Friday, November 14, 2008 12:50 PM EST With the federal government still handing out aid from a $700 billion rescue of financial institutions, Congress will begin considering a bailout of the auto industry Monday. (File Photo) Financial aid to auto industry to be considered by Congress BY JIM HAND SUN CHRONICLE STAFF With the federal government still handing out aid from a $700 billion rescue of financial institutions, Congress will begin considering a bailout of the auto industry Monday. U.S. Rep. James McGovern, D-Worcester, said Thursday he has not yet seen any details of what the bailout might include, so he cannot commit to supporting it yet. But McGovern said it is becoming clear something has to be done to prevent the likes of General Motors from going bankrupt. "I don't think we can afford to lose any more industries. This is a time of great crisis and we're going to have to take some extraordinary measures to keep some industries afloat," he said. House Speaker Nancy Pelosi has asked U.S. Rep. Barney Frank to prepare legislation to allow the auto industry to tap into the $700 billion that was set aside for financial institutions. A spokesman for Frank, D-Newton, said he does not believe the current financial rescue legislation allows for industries like automakers to have access to the funds, so he will write a measure to amend the original bill. Some conservatives have said the government should keep out of the automakers situation. They said companies like Ford, Chrysler and GM are poorly run and have labor contracts that are too costly. McGovern said he believes reform of the industry is necessary and the Big Three should make more fuel-efficient cars, but doing nothing is not an option. "The cost of indifference is thousands and thousands of people without a job," he said. Some experts have predicted that if GM, alone, goes out of business, it could eventually mean the loss of 2.5 million to 3 million jobs because of spinoff effects. Gary Chaison, professor of industrial relations at Clark University's graduate school of management, said several companies that provide glass, steel and tires to the Big Three would be badly hurt if the automakers failed. Also, the cities and towns surrounding the auto plants would be crippled financially, resulting in the layoffs of teachers, firefighters and police, he said. Chaison said he believes the American public has already lost a lot of faith in the economy and cannot afford another shakeup like the bankruptcy of automakers. Chaison said the issue is also a political one, as well. Democrats who will soon have commanding control of Congress and the White House owe labor unions for their election victories. The majority party cannot say no to the United Auto Workers union, he said. The problem, Chaison said, is a bailout would be subsidizing poorly-run companies. "Why should we reward them for their failure to innovate," he said. McGovern said he would favor conditions on a bailout to force the companies to change their ways.