The Detroit Free Press is reporting that the United Auto Workers have reached a “tentative” agreement to modify its 2007 employment contract. But wait! “The UAW is withholding the terms of the tentative understanding pending completion of the VEBA discussions and ratification of the agreements,” says UAW boss Ron Gettelfinger. But give them the money anyway, is the clear subtext. Or, as the Freep puts it “the announcement by the UAW on Tuesday shows that the union and the companies are making significant progress.” When asked by the Freep, GM’s Rick Wagoner couldn’t even give a number just now. Wagoner claims that they went into talks with “ambitious” plans. And now there are now details. But everything’s peachy! GM’s take (from the viability plan): “As of February 17, the Company and the UAW have made significant progress on costs/work rules, which represent major steps in narrowing the 8 competitive gap. However, these revisions do not achieve all of the labor cost savings comprehended in the Company‘s financial projections.”
I’m thinking of a Bethlehem and Youngstown Steel scenario ahead for the UAW. What, if anything, did retirees get out of Chapter 7?
I’m thinking of a Bethlehem and Youngstown Steel scenario ahead for the UAW. What, if anything, did retirees get out of Chapter 7?
I’m thinking the UAW is refusing to bend over, because the bondholders are gonna throw the power-off switch anytime now.
Why concede your position in a potential bankruptcy filing if the concession wouldn’t prevent a filing in the first place?
Remember the recent political campaign? Remember when John Edwards and other Democrats proposed to make retirees first in line in corporate bankruptcies?
If such legislation were to pass, I think you’d see the bondholders become much more reasonable very quickly.
In the meantime, no one should expect Gettlefinger, et al., to burn their house down because there is an advancing inferno that is (currently) beyond their control.
Just watched Wagoner’s talk on CSPAN. He declined to give details of the agreement with the UAW because they wanted to notify their membership first. Sounds reasonable.
Let me guess: Wagoner told Gettelfinger “We don’t have the money for that VEBA-deal. You’ll have to ask Uncle Sam for bailout”.
The US government has just bought 2 auto campanies and the UAW is a big part of the bargain. There is no way the US government can bankrupt these companies now. They will just keep throwing billions of taxpayer dollars at them and this will be over a hundred billion before it is done and now consruction and the rest of the industries will be lining up and demanding their bailouts.
National Socialism comes to the USA.
Take from the successful and give to the unsuccessful.
Remind me again why I should have to pay for UAW pensions and benefits when I don’t get a pension, will not have retirement benefits I don’t pay for besides medicare crap, and I still have to save my pay for the future instead of buying a new boat, vacation home, discounted vehicles, or anything else instead?
Light the match.
You must woinder how a company can be viable when it has only 50,000 workers and 500,000 retirees and there is no work for the workers since barely anyone buys their product. I would like to see the economic plan that explains that. And that is not even considering the SUB payments they need to make to the workers about half the year.
I was just thinking about that old commercial where the guy buys the company since he likes the product so much. (Remingtom Razors?) Obama liked his 300 so much he bought the company, with other peoples money.
Remind me again why I should have to pay for UAW pensions and benefits
Because you didn’t provide the government with massive amounts of money and support during the election now you will pay those that did.
Get: “Forget it, we aren’t going for your plan”
Wag: “Without your going along, we won’t get money from Obama, and you won’t get VEBA payoff”
Get: “Fine, you tell him everything is fine, and get your check, and then we will figure it out later. Just don’t tell anyone anything specific.”
Okay, who bets this isn’t what happened?
Landcrusher
You couldn’t have hit that nail any better.
First they (including B-O) lie to the public, then once the B-S is outed (by the NY Times? Fat chance), ask for forgiveness using your intentions (not your results) as your defense.
Face it, this isn’t about saving GM or Chrysler (that is incidental). It’s a Federal Jobs program, until they file Chap 11.
If the 10% labor cost of manufacture is true, it would be cheaper to send them to one big “Jobs Bank” and shutter the plants. There would be a 90% savings.
Call them (GM/Chrysler, including their shareholders) what they are: welfare recipients.
Thank goodness the Free Legal Services Program was spared!
http://www.freep.com/article/20090217/BUSINESS06/902170344