Nov. 14 (Bloomberg) -- An economic adviser to President- elect Barack Obama advocates wage and benefit cuts for auto industry workers and executives as part of any government bailout of the industry.

``In exchange for government aid, the Big Three's creditors, shareholders and executives should be required to accept losses as large as they'd endure under Chapter 11'' bankruptcy protection, economist and Obama adviser Robert Reich wrote on his Web site this week. ``And the UAW should agree to some across- the-board wage and benefit cuts,'' he added, referring to the United Auto Workers union.

Major auto-parts suppliers also should eventually adhere to the same conditions, wrote Reich, a former labor secretary under President Bill Clinton.

Reich wrote that his Web site reflects only his own thoughts and therefore should not be attributed to Obama or to anyone else advising him. He didn't return a phone call seeking comment.

Obama and his transition team are pushing Congress to approve at least $25 billion to save cash-starved carmakers General Motors Corp., Ford Motor Co. and Chrysler LLC, all of which may fail without the assistance. Congress had previously approved another $25 billion in loans to the three companies.

UAW leaders oppose any wage or benefit cuts for workers or retirees.

``Active and retired UAW members have already made enormous sacrifices in the 2005 and 2007 collective bargaining agreements,'' the UAW wrote in a letter today to union members.

Reich also wrote on his Web site that Obama's administration may have to spend up to $700 billion next year to revive the economy. Reich advocated spending the money on infrastructure such as roads, bridges and ports to get the best economic boost.

To contact the reporter on this story: Matthew Benjamin in Washington at mbenjamin2@bloomberg.net

Last Updated: November 14, 2008 17:31 EST